An Alabama man has pleaded guilty in connection with the unauthorized takeover of the US Securities and Exchange Commission (SEC)’s social media account on X in January 2024, an incident aimed at artificially boosting bitcoin prices.
Court documents reveal that Eric Council conspired with others to seize control of the SEC’s X account. They falsely announced that the SEC had approved Bitcoin Exchange-Traded Funds (ETFs), a news that was highly sought after in the market. Following the false announcement, the price of Bitcoin surged by more than $1,000.
The SEC became a victim of a SIM-swap attack, where the hacker gained access to the SEC’s phone number associated with the account. This enabled them to reset the password and take control of the account.
As part of the scheme, Council created a fraudulent ID card using information obtained from a co-conspirator’s victim. He impersonated the victim to take control of the mobile phone number. His co-conspirators then accessed the SEC account and posted on behalf of the SEC Chairman. Council was compensated in bitcoin for his involvement.
Council pleaded guilty to conspiracy to commit aggravated identity theft and access device fraud. He is set to be sentenced on May 16 and faces a maximum penalty of five years in prison.