Bitcoin Price Manipulation: Hacker Sentenced for SEC X Account Hack

SEC Account Hack: Sentencing of Eric Council Jr.

Eric Council Jr., aged 26, has received a 14-month prison sentence, followed by a three-year period of supervised release. This sentencing stems from his involvement in the unauthorized access of the official X account belonging to the U.S. Securities and Exchange Commission.

Details of the Incident

The U.S. Department of Justice formally announced the sentencing via a public press release. Council, working alongside other individuals, successfully compromised the SEC’s X account in 2024.

The hackers disseminated false information claiming the agency had authorized Bitcoin exchange traded funds (ETFs). This announcement artificially inflated the price of Bitcoin, which subsequently experienced a decline after the deception was revealed.

Method of Attack

Investigations by the DOJ revealed that Council and his associates executed a SIM swap attack. This targeted the cellular phone account of an individual possessing access credentials for the SEC’s X account.

Successfully completing the SIM swap allowed the perpetrators to gain control of the victim’s phone number. This access was then exploited to reset the password associated with the SEC’s X account.

Consequently, the hackers obtained full administrative control over the account, enabling them to post the misleading announcement.

The unauthorized access and subsequent false statement caused significant market disruption. The incident highlights the vulnerabilities associated with social media account security and the potential for financial manipulation.