Eric Council Jr. Arrested for SEC SIM Swap Scheme
On October 17, 2024, Alabama resident Eric Council, Jr. was apprehended in connection with a significant SIM swap attack that occurred in January 2024. This attack targeted the U.S. Securities and Exchange Commission (SEC) and was linked to fraudulent activity involving spot Bitcoin exchange-traded funds (ETFs). The U.S. Attorney’s Office for the District of Columbia confirmed that Council, a 25-year-old from Athens, Alabama, faces serious charges including conspiracy to commit identity theft and access device fraud.
Details of the Alleged Crime
According to the indictment, Council, along with unidentified co-conspirators, gained access to critical personal information, including a victim’s identification details, which they used to create a counterfeit ID. This fraudulent identification allowed Council to conduct a SIM swap, a method in which a hacker tricks a mobile service provider into transferring a phone number to a new SIM card under their control.
After executing this scheme, Council purchased a new iPhone with cash at a store in Huntsville, Alabama, using the fraudulent ID. With the new device, he logged into the SEC’s official X account (formerly known as Twitter) and posted a misleading announcement falsely attributed to SEC Chair Gary Gensler, claiming that spot Bitcoin ETFs had received approval.
Market Manipulation and Aftermath
The fraudulent tweet had immediate repercussions on the cryptocurrency market. Following the post, the price of Bitcoin surged by over $1,000. However, the excitement was short-lived. Once the SEC realized the account had been compromised and informed the public about the breach, Bitcoin’s value plummeted, dropping over $2,000.
Reports indicate that Council allegedly received an undisclosed amount of Bitcoin as payment for his role in the attack. Afterward, he traveled to Birmingham, Alabama, where he returned the newly purchased iPhone for cash, further complicating the investigation.
Warning Against SIM Swap Schemes
The case has raised considerable concern regarding SIM swap schemes, a tactic that can lead to severe financial loss and the compromise of sensitive personal information. U.S. Attorney Graves emphasized the serious nature of these crimes, stating, “These SIM swapping schemes, where fraudsters trick service providers into giving them control of unsuspecting victims’ phones, can result in devastating financial losses to victims and leaks of sensitive personal and private information.”
As the legal process unfolds, the authorities aim to hold accountable those who engage in such illegal activities, sending a clear message about the importance of cybersecurity in financial markets.