FBI arrests Alabama man in connection to SEC social media hack
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Federal authorities have arrested a man in Athens, Alabama who allegedly helped hack the Securities and Exchange Commission's account on X, formerly Twitter, earlier this year.
Why it matters: The arrest is the first indication of who was actually behind the incident, which sent shockwaves through the financial and crypto world.
Catch up quick: In January, someone hacked the SEC's X account and published a post falsely saying that national exchanges were now approved to list Bitcoin ETFs.
- At the time, the SEC was actively deliberating such an approval, making the post even more believable.
- This post prompted Bitcoin prices to spike to $1,000 per bitcoin, according to officials.
- The SEC said at the time that the hack was the result of a SIM swap attack, meaning an attacker took over the phone number tied to one of the agency's cell phones.
What's happening: Federal investigators arrested Eric Council, Jr. earlier today in connection to the SEC account hack, according to a press release Thursday.
- Council Jr. is accused of participating in a scheme with others to take over the @SECGov account on X and share a fake post in the name of SEC Chair Gary Gensler.
- Law enforcement believes Council received personal information about someone tied to the SEC from his co-conspirators, per an indictment unsealed Thursday.
- Council then used these details to create fraudulent ID cards to present in-person at an AT&T store, which operated the victim's cell phone plan.
- Once at the store, Council purchased a SIM card linked to the victim's phone number and shared the details about the SIM with his co-conspirators.
- His co-conspirators then used the information to hack the SEC's account.
The intrigue: The Justice Department says Council conducted several suspicious internet searches afterwards, including:
- "SECGOV hack,"
- "telegram sim swap,"
- "how can I know for sure if I am being investigated by the FBI," and
- "What are the signs that you are under investigation by law enforcement or the FBI even if you have not been contacted by them."
What we're watching: Council Jr. is expected to make his first appearance in an Alabama court later today, according to a press release.
- DOJ did not share any additional information about Council Jr.'s alleged co-conspirators.
Go deeper: A simple security feature is proving difficult to actually use
