When we think about cybercrime, we often imagine hackers stealing personal data or breaking into bank accounts.
But sometimes, these crimes hit the financial markets in unexpected ways — like hijacking an official government social media account to spread false information.
That’s exactly what happened recently with the U.S. Securities and Exchange Commission (SEC).
The Man Behind the SEC’s Social Media Hack
Eric Council Jr., a 26-year-old from Huntsville, Alabama, was sentenced to 14 months in prison along with three years of supervised release.
His crime? Taking part in a scheme that illegally took over the SEC’s social media account on X (formerly Twitter).
This wasn’t just a prank — it caused real chaos in the Bitcoin market.
The False Bitcoin ETF Announcement and Its Fallout
Council and his co-conspirators managed to post a fake announcement claiming the SEC had approved Bitcoin Exchange Traded Funds (ETFs).
This news, if true, would have been a major milestone for cryptocurrency investors.
Naturally, Bitcoin’s price jumped by more than $1,000 per coin right after the false announcement.
But the truth came out, and the market corrected sharply — Bitcoin’s value dropped by over $2,000 per coin, causing huge losses for many investors. This wild rollercoaster was triggered by a single, unauthorized social media post.
The Sneaky SIM Swap Technique That Made It Possible
How did Council and his team pull off such a high-profile hack? They used a sophisticated cybercrime method called SIM swapping.
This involves tricking a phone company into transferring a victim’s phone number to a SIM card controlled by the hacker.
With access to the victim’s phone number, the criminals could then hijack social media accounts.
Council went a step further by using an ID card printer to create a fake identification card.
This card contained stolen personal details from co-conspirators, allowing him to impersonate the victim and get control of their phone number — all part of the plan to seize the SEC’s X account.
The Justice Department’s Take on the Crime
Matthew R. Galeotti, head of the Justice Department’s Criminal Division, stressed how dangerous such schemes are.
He pointed out that using cyber tricks to manipulate financial markets harms not only investors but the integrity of the whole financial system.
Prosecuting these criminals is key to protecting U.S. interests in the digital age.
A Stark Warning From U.S. Attorney Jeanine Pirro
Jeanine Pirro, the U.S. Attorney for the District of Columbia, didn’t mince words about the risks of SIM swapping.
She warned that these scams threaten everyone — from ordinary citizens to big financial institutions and government agencies.
Her message was clear: no matter how clever the crime, those who commit it will be caught and held responsible.
FBI’s Message on Protecting Public Trust
Darren Cox, Acting Assistant Director of the FBI’s Criminal Investigative Division, described the takeover of a federal agency’s social media as a calculated crime meant to mislead the public and manipulate markets.
He emphasized that spreading false information to influence markets not only damages financial systems but also erodes trust in public institutions.
SEC’s Commitment to Fighting Cybercrime
Amanda James, Special Agent in Charge at the SEC’s Office of Inspector General, highlighted the importance of this sentencing in protecting the SEC’s programs and reputation.
She assured that the SEC, alongside law enforcement partners, remains dedicated to investigating cybercrimes and ensuring the agency’s mission continues without interference.
Who Investigated and Prosecuted the Case
The FBI Washington Field Office and SEC’s Office of Inspector General led the investigation.
The prosecution team included Trial Attorneys Ashley Pungello and Lauren Archer from the Justice Department, and Assistant U.S. Attorney Kevin Rosenberg from D.C., with vital support from Cyber Fellow Paul M. Zebb III.
Protect Yourself From SIM Swapping
If this story sounds scary, that’s because it is. But there are ways to protect yourself from SIM swapping.
The FBI offers helpful advice on recognizing and preventing these scams at www.ic3.gov/PSA/2024/PSA240411. Staying informed and vigilant is the best defense against this kind of cybercrime.