Hacking the SEC's X Account: Arrest Made

By Douglas Gillison, Chris Prentice, and Sarah N. Lynch
WASHINGTON (Reuters)

A 25-year-old Alabama man was arrested on Thursday for hacking the U.S. Securities and Exchange Commission's X account this year as part of an alleged conspiracy to manipulate bitcoin prices, U.S. prosecutors said.

In January, a hacker posted false news on the SEC's @SECGov X social media account, announcing the agency had approved bitcoin exchange-traded funds, causing the price of the cryptocurrency to spike. The agency quickly disavowed and deleted the post.

The incident sparked criticism of the SEC, the top U.S. markets regulator, and renewed concerns over security on X since its acquisition by billionaire Elon Musk in October 2022.

Eric Council Jr. of Athens, Alabama, was arrested in connection with the "SIM-swapping" hack, the U.S. Attorney's office for the District of Columbia said in a statement.

A lawyer for Council did not immediately respond to requests for comment.

The SEC stated, "The SEC thanks law enforcement for their vigilance in seeking accountability for the breach of the SEC's X account," according to a spokesperson.

Federal prosecutors allege that Council assisted unnamed co-conspirators who identified a victim with access to the SEC's X account, referred to as "C.L." They instructed Council on how to switch the victim's phone to a new device, allowing them to post the bogus message on the SEC's account.

The post on X caused bitcoin prices to spike by $1,000. Council reportedly received bitcoin payment for the SIM swap and then drove to Birmingham, Alabama, to return the iPhone, according to the Justice Department.

After the incident, Council allegedly searched the internet for phrases like "what are some signs that the FBI is after you" and sought information on deleting accounts on the encrypted messaging app Telegram.

Council has been charged with conspiracy to commit aggravated identity theft and access device fraud, according to the indictment.

The day after the hack, the SEC formally approved the bitcoin ETFs, further integrating the cryptocurrency into the mainstream.