SEC Account Hack Results in 14-Month Sentence

On Friday, a SIM swapper responsible for hacking the official X account of the Securities and Exchange Commission (SEC) was sentenced to 14 months in prison, according to a report from the Wall Street Journal.

Eric D. Council, from Athens, Alabama, accessed his account in early January 2024, incorrectly declaring that a Bitcoin Exchange Trade Fund (ETF) had received approval. This misleading announcement caused significant spikes in the prices of major cryptocurrencies.

The hack was executed by Council who accessed the SEC’s X account using personal information obtained from the individual whose identity was falsely used.

By using a counterfeit ID, he convinced employees at a mobile store to issue a new SIM card, allowing him to bypass two-factor authentication (2FA).

The false announcement regarding the ETF approvals led to a surge in Bitcoin’s price, which increased by more than $1,000, only to crash sharply once the news was revealed as fraudulent.

During the scheme, Council acted alongside accomplices and received $50,000 for his involvement in this sophisticated operation.

He pleaded guilty in April after facing multiple charges, including wire fraud.

SIM swapping has been a longstanding issue for cryptocurrency holders. A notable case involved Michael Terpin, a cryptocurrency investor who sued AT&T after losing $24 million in crypto. In 2020, another high-profile incident involved Joseph James O’Connor, who executed a massive Twitter hack affecting various celebrity accounts, including those of Elon Musk and Kim Kardashian.