Man Pleads Guilty in SEC X Account SIM-Swap Crypto Scam

Man Pleads Guilty in SEC X Account SIM-Swap Crypto Scam

Eric Council Jr., a 25-year-old from Alabama, has pleaded guilty to charges related to SIM-swapping the U.S. Securities and Exchange Commission's (SEC) X account. The breach occurred in January 2024, leading to a fake announcement that briefly boosted Bitcoin prices.

How the SIM-Swap Attack Was Executed

Court documents reveal Council used identity fraud to convince AT&T employees to transfer the SEC account holder’s phone number to a SIM card he controlled. This allowed him to intercept two-factor authentication (2FA) messages, facilitating unauthorized access.

Bitcoin Price Manipulation and Market Impact

Following the fraudulent announcement about Bitcoin ETF approval, BTC prices surged over $1,000 before plummeting by $2,000 after the SEC clarified the misinformation. The incident underscores the influence of misleading financial statements in digital markets.

Legal Consequences and Ongoing Investigations

Council faces sentencing on May 16 for conspiracy to commit aggravated identity theft and access device fraud. Prosecutors noted he exchanged his fraudulently acquired iPhone for cash, further implicating him in the scheme.

Lessons for Cybersecurity in Financial Markets

• Strengthening security measures like non-SMS-based 2FA to prevent SIM-swaps.
• Increased vigilance against identity fraud at telecom providers.
• Timely intervention in detecting and mitigating financial misinformation.

This case highlights vulnerabilities in digital identity security and the critical need for enhanced protective measures across financial and regulatory institutions.