In a reported case of cybercrime, Eric Council Jr., a 25-year-old from Athens, Alabama, was sentenced today to 14 months in prison for hacking the United States Securities and Exchange Commission’s (SEC) X account. The hack, which caused Bitcoin prices to spike, has raised alarms about cybersecurity in government agencies.
The Crime Leading to the Sentence
In January 2024, Council and his accomplices executed a SIM-swapping scheme to gain control of the SEC’s X account. Using a fake ID, Council tricked an AT&T store employee into transferring an SEC employee’s phone number to his device. This allowed the group to post a false announcement claiming the SEC had approved Bitcoin exchange-traded funds (ETFs).
The news sent Bitcoin’s value soaring by over $1,000, from $46,730 to nearly $48,000, before crashing to $45,200 after the SEC debunked the claim. Council, paid in Bitcoin for his role, pleaded guilty to conspiracy to commit aggravated identity theft and access device fraud.
The hack not only disrupted markets but also exposed vulnerabilities in government cybersecurity, prompting calls for stronger protections.
Cyber Manipulations on the Rise
Council’s hack case proves that simple acts from popular figures can influence market prices. For example, on May 5, the Solana-based memecoin GORK, a playful parody of xAI’s Grok chatbot, surged nearly 70%, owing to a cryptic X post from billionaire Elon Musk.
The billionaire CEO of Tesla changed his profile picture to match the distorted Grok logo and wrote, “sup @gork,” teasingly asking for its opinion. This subtle nod sent crypto traders into a frenzy, fueling a rapid price spike for the memecoin, which briefly hit a $40 million market cap.
The so-called Libra “Argentine coin” also experienced a rapid price pump after Argentine president, Javier Milei, promoted the token via social media. Shortly after, the token lost over 90% of its value.
These incidents have pushed authorities to act swiftly, with the FBI and the SEC’s Inspector General leading investigations into Council’s hack. The rise in SIM-swapping attacks, often targeting high-profile accounts, has led to tougher penalties and increased scrutiny of telecom security practices, aiming to deter future cybercriminals.
