An Alabama resident has confessed to executing a SIM swap attack that compromised the U.S. Securities and Exchange Commission's (SEC) account on X in January 2024.

The individual, 25-year-old Eric Council Jr., initially denied the charges but later admitted to facilitating a false announcement about Bitcoin ETFs, which he and his accomplices used to manipulate the market.

Impact of the Fake Bitcoin ETF Announcement

The fraudulent post claimed that Bitcoin ETFs had been approved for trading on national security exchanges, causing Bitcoin's price to surge by $1,000 before plummeting by $2,000 when SEC Chairperson Gary Gensler clarified the account's compromise.

The SEC confirmed that the @SECGov account was accessed via a SIM swap attack, targeting the phone number associated with the account's manager.

Mechanics of the SIM Swap Attack

By gaining control of the phone number, Council was able to reset the account password and post the misleading announcement. His co-conspirators, who paid him $50,000 in Bitcoin, also accessed the account to disseminate the false information.

Council used a counterfeit identification card, created with a printer and personal data from his accomplices, to impersonate a victim and seize control of their phone number.

Court documents reveal that Council conducted online searches to determine if he was under FBI investigation, indicating his awareness of potential legal consequences.

He is set to be sentenced on May 16 and could face up to five years in prison for conspiracy to commit aggravated identity theft and access device fraud.

Learn more about the risks of SIM swapping and how to protect your accounts in our detailed Research section.

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