FBI arrests suspect in SEC X account hack leading to $230M liquidation

The FBI has arrested Alabama resident Eric Council Jr. for his involvement in the hacking of the SEC’s X (formerly Twitter) account in January 2024. 

The attack, executed through a SIM-swapping scheme, led to a false post claiming Bitcoin (CRYPTO:BTC) ETF approval, which triggered a $230 million liquidation in the cryptocurrency market. 

According to the FBI, Council accessed the SEC’s X account using a stolen identity, causing widespread panic and market disruption. 

Principal Deputy Assistant Attorney General Argentieri stated, "Eric Council Jr. used unauthorized access to falsely announce the SEC’s approval of Bitcoin ETFs, leading to significant financial consequences." 

SIM-swapping schemes, where attackers manipulate telecom providers to breach client security, have become a growing issue. 

The FBI stressed the severity of these crimes, highlighting their potential to cause "devastating financial losses." 

Law enforcement continues to pursue other co-conspirators involved in the incident, though no additional arrests have been made yet.

Council faces charges including conspiracy to commit aggravated identity theft and access device fraud. 

The FBI’s investigation revealed searches on Council's devices for terms like "SECGOV hack" and "FBI investigation," which served as evidence in the case. 

This arrest underscores the FBI’s focus on addressing cybercrimes involving cryptocurrency and SIM-swapping attacks.

The investigation is ongoing, with authorities encouraging cooperation from those involved, similar to recent cases like the Bitfinex hack.