Eric Council Jr. from Athens, Alabama, has confessed to his role in a scheme involving the unauthorized takeover of the U.S. Securities and Exchange Commission (SEC)‘s X account, which was then allegedly used to disseminate false and misleading information and manipulate Bitcoin (BTC) prices.
The 25-year-old pleaded guilty to conspiracy charges related to aggravated identity theft and access device fraud.
The scheme reportedly involved Council hacking into the SEC’s X account and posting a bogus message under the name of former SEC Chairman Gary Gensler.
The fraudulent post made via social media platform X had falsely stated that the SEC had approved Bitcoin (BTC) Exchange Traded Funds, leading to a temporary surge in Bitcoin’s value by over $1,000.
After the SEC regained control of the account and had then clarified that the announcement was indeed false, Bitcoin’s value subsequently dropped by over $2,000.
Council and his accomplices gained unauthorized access to the SEC’s account through a SIM swap (which has becoming an increasingly common way to carry out fraudulent activities in recent years).
This method involves deceiving a cell phone carrier into transferring a phone number from the legitimate owner’s SIM card to one controlled by the criminals.
Council used an ID card printer to produce a fake ID using information obtained from his co-conspirators.
He then used the counterfeit ID to impersonate the victim and gain access to their mobile phone number, which was used to unlock the SEC’s X account.
Council’s co-conspirators then accessed the SEC’s X account and posted the false / misleading announcement.
For his participation, Council received a $50,000 payment in Bitcoin from his alleged “co-conspirators.”
The SEC officially approved the first exchange-traded funds that hold bitcoin the day following the scam.
Council is scheduled to be sentenced on May 16, 2025 and potentially faces a maximum penalty of 5 years in prison.
As part of his plea agreement, Council has reportedly agreed to forfeit $50,000 he received for his involvement in the hacking operation.