Alabama man causes Bitcoin value to plummet after hacking SEC account.

Council then drove to Birmingham to return the iPhone for cash and destroyed the SIM card to cover his tracks. Court documents indicate that Council, using the online aliases “Ronin,” “AGiantSchnauzer,” and “Easymunny,” received $50,000 for his role in the scheme.

Following the hack of the SEC’s X account, Council’s internet searches included inquiries such as, “How can I know for sure if I am being investigated by the FBI” and “What are some signs the FBI is after you.” The FBI Washington Field Office and SEC Office of Inspector General conducted an in-depth investigation into the case.

SIM swapping, the method used by Council and his co-conspirators, involves fraudulently manipulating a cell phone carrier to transfer a phone number from a legitimate user’s SIM card to a SIM card controlled by criminals. Council created a fake identification card using stolen personal information from his associates to carry out the unauthorized SIM swap. In this case, the victim, identified only as “C.L.,” fell victim to this identity theft scheme.

On January 9, Council proceeded to an AT&T store in Huntsville, posing as an FBI employee in need of a new SIM card after allegedly breaking his phone. Using the fraudulent identification card, he impersonated the victim, “C.L.,” to gain access to the victim’s phone number, essential for penetrating the SEC’s X account. Council then proceeded to an Apple store in Huntsville, where he purchased a new iPhone and inserted the new SIM card to receive the necessary security reset codes for the SEC’s account.

Council’s accomplices then exploited their access to the SEC’s X account, posting a false announcement in the name of then SEC Chairman Gary Gensler. This misleading post led to a significant increase in the value of Bitcoin, only to plummet when the SEC reasserted control and confirmed the announcement as fraudulent.

In the aftermath of the SEC account hack, Council engaged in suspicious internet searches, demonstrating his awareness of potential law enforcement attention. However, his actions ultimately led to his arrest and guilty plea for conspiracy to commit aggravated identity theft and access device fraud.

As of now, Eric Council Jr. awaits sentencing in May, facing the prospect of up to five years in federal prison for his involvement in the unauthorized hacking of the U.S. Securities and Exchange Commission’s X account. His case serves as a cautionary tale of the consequences of engaging in cybercrime activities and highlights the importance of cybersecurity and vigilance in protecting sensitive information and digital assets.