A shocking cybercrime case has come to a close after an Alabama man pleaded guilty to hacking the U.S. Securities and Exchange Commission’s (SEC) social media account on X (formerly Twitter).

The unauthorized takeover in January 2024 led to a fake announcement about Bitcoin Exchange Traded Funds (ETFs), briefly sending the cryptocurrency’s value soaring by more than $1,000 before it plummeted.

The Man Behind the Hack

Eric Council Jr., a 25-year-old from Athens, Alabama, admitted in court that he worked with others to gain control of the SEC’s account.

Once inside, they posted a fraudulent message in the name of the SEC Chairman, falsely stating that Bitcoin ETFs had been approved—a long-anticipated decision in the financial world.

Investors took the bait, and within moments, Bitcoin’s price spiked.

But as soon as the SEC regained control of its account and debunked the claim, the cryptocurrency’s value plunged by more than $2,000, leaving many traders scrambling.

How the Hack Was Pulled Off

Council and his co-conspirators used a technique known as SIM swapping to breach the SEC’s security.

This method involves tricking a cell phone provider into reassigning a victim’s phone number to a new SIM card controlled by hackers.

To pull this off, Council created a fake identification card using stolen personal information provided by his accomplices.

With this fraudulent ID, he impersonated a legitimate account holder and took over the phone number linked to the SEC’s social media account.

This gave his co-conspirators the access they needed to post the bogus announcement.

For his role in the scheme, Council received payments in Bitcoin from his associates.

Facing the Consequences

Council has pleaded guilty to conspiracy to commit aggravated identity theft and access device fraud.

He is set to be sentenced on May 16 and could face up to five years in prison.

A federal judge will determine his sentence based on U.S. Sentencing Guidelines and other legal factors.

Authorities Weigh In

The case was announced by key officials, including Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division and U.S. Attorney Edward R. Martin Jr. for the District of Columbia.

The investigation was led by the FBI’s Washington Field Office and the SEC’s Office of Inspector General.

A Warning About SIM Swapping

This case highlights the dangers of SIM swapping, a growing cyber threat that can lead to severe financial and security breaches.

Authorities encourage individuals to take steps to protect their phone numbers from unauthorized transfers and to remain vigilant against identity theft.

This article was published on TDPel Media. Thanks for reading!

Share on Facebook «||» Share on Twitter «||» Share on Reddit «||» Share on LinkedIn