Imagine waking up to see an official post from the U.S. Securities and Exchange Commission (SEC) announcing the approval of Bitcoin Exchange Traded Funds (ETFs).
Investors worldwide took notice, and Bitcoin’s price surged by over $1,000.
But within hours, it was all revealed to be a hoax—a fraudulent post from hackers who had taken over the SEC’s official X (formerly Twitter) account.
The Man Behind the Hack
Eric Council Jr., a 25-year-old from Athens, Alabama, has now pleaded guilty to his role in this cybercrime.
According to court documents, Council worked with co-conspirators to hijack the SEC’s social media account, using a sophisticated identity theft scheme known as SIM swapping.
This allowed them to post the fake ETF announcement, which sent Bitcoin’s value skyrocketing—before crashing even harder when the SEC clarified that the post was false.
How the Hack Happened
Council and his associates pulled off the scheme by manipulating a phone carrier into reassigning a victim’s phone number to a SIM card under their control.
Using a fake ID card with stolen personal information, Council tricked the system into giving him access to the victim’s phone.
From there, his co-conspirators accessed the SEC’s X account and posted the misleading message under the name of the then-SEC Chairman.
For his role in the crime, Council was paid in Bitcoin—ironically using the very currency that his deception had temporarily inflated.
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 a maximum of five years in prison.
A federal judge will ultimately determine his sentence based on U.S. Sentencing Guidelines and other legal factors.
The Investigation Continues
Authorities, including the FBI’s Washington Field Office and the SEC’s Office of Inspector General, are continuing to investigate the case.
Supervisory officials from the Justice Department and U.S. Attorney’s Office have been closely involved, with multiple prosecutors handling the legal proceedings.
Lessons from the Scam
This case highlights the growing threat of SIM-swapping attacks, where hackers manipulate phone carriers to gain unauthorized access to personal accounts.
It serves as a stark reminder of the importance of securing personal data and being cautious of sudden, market-moving announcements on social media.
For more information on how to protect yourself from SIM-swapping scams, visit.
