Eric Council, Jr., a resident of Alabama, was arrested on October 17 on charges related to a SIM swap attack that allegedly targeted the United States Securities and Exchange Commission (SEC). According to the U.S. Attorney’s Office for the District of Columbia, Council is accused of conspiring to commit identity theft and access device fraud in an incident that occurred in January 2024, which briefly impacted the price of Bitcoin.

Details of the Incident and Allegations Against Council

The indictment claims that Council, along with unidentified co-conspirators, obtained personal identification information and an ID card template containing the name and photo of a victim. This information was reportedly used to create a fake ID, which allowed Council to obtain a SIM card at a store in Huntsville, Alabama. He later used this SIM card to purchase a new iPhone.

Using this phone, Council allegedly accessed the SEC’s official account on the social media platform X (formerly Twitter). It is claimed that he and his co-conspirators posted a false announcement from the account, suggesting that spot Bitcoin ETFs had received regulatory approval.

Impact on Bitcoin Prices and Subsequent Investigation

The false announcement led to a sudden increase in Bitcoin’s price by over $1,000 per coin. However, once the SEC regained control of the account and issued a correction, the value of Bitcoin fell by more than $2,000. Authorities allege that Council received an undisclosed sum of Bitcoin for his involvement in the incident.

The U.S. Attorney’s Office stated that Council then returned to Birmingham, Alabama, where he exchanged the newly purchased iPhone for cash.

Ongoing Efforts to Address SIM Swap Schemes

Following the event, authorities discovered that Council had conducted several internet searches that suggested awareness of possible investigations. Some of these searches included phrases like “How can I know for sure if I’m being investigated by the FBI?” and “SECGOV hack.”

U.S. Attorney Graves commented on the risks associated with SIM swapping schemes, which involve fraudsters tricking service providers into transferring control of a victim’s phone number to another device. “These schemes can result in significant financial losses and compromise sensitive personal information,” Graves said. “In this case, illegal access was allegedly used to manipulate financial markets. We remain committed to holding individuals accountable for such actions.”

Authorities are continuing to investigate the incident, emphasizing the importance of cybersecurity measures and legal actions to deter future offenses.