The Federal Bureau of Investigation announced the arrest of the man allegedly behind the fake bitcoin ETF approval posts sent from the Securities and Exchange Commission’s account back in January.
The FBI arrested Eric Council Jr. of Alabama. He’s being charged with conspiracy to commit identity theft, and access device fraud, per a press statement.
“The indictment alleges that Eric Council, Jr. unlawfully accessed the SEC’s account on X by using the stolen identity of a person who had access to the account to take over their cellphone number,” said Principal Deputy Assistant Attorney General Nicole Argentieri.
Council allegedly conspired with other people to create and post the tweets on the SEC’s account.
“Council, Jr.’s co-conspirators then allegedly used this unauthorized access to the X account to falsely announce that the SEC had approved listing Bitcoin ETFs, which caused the price of Bitcoin to rise by $1,000 and then fall by $2,000. Council’s indictment underscores the Criminal Division’s commitment to countering cybercrime, especially when it threatens the integrity of financial markets,” Argentieri said.
The posts, which announced the approval of the spot bitcoin ETFs though the products had not officially been approved by the Commission, were sent out just days before the SEC formally approved the spot bitcoin products.
The posts triggered a spike in bitcoin’s price.
Following the SIM swap, Council bought a new phone and used it to access the SEC’s X account.
“Council received BTC payment for performing the successful SIM swap. Shortly after, Council drove to Birmingham, Alabama to return the iPhone used in the SIM swap for cash,” the FBI said.
Council is set to appear in an Alabama court later Thursday.
“The SEC thanks law enforcement for their vigilance in seeking accountability for those responsible for the breach of the SEC’s X account,” a spokesperson for the SEC told Blockworks.
Updated Oct. 17, 2024 at 3:05 pm ET: Added comment from SEC spokesperson.
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