In May 2025, Eric Council Jr., a 25-year-old from Athens, Alabama, was sentenced for his role in a January 2024 cyberattack that exploited the U.S. Securities and Exchange Commission's (SEC) X (formerly Twitter) account. The breach involved a fraudulent announcement claiming SEC approval of Bitcoin exchange-traded funds (ETFs), leading to a brief surge in Bitcoin's price by over $1,000 before it plummeted following the SEC's clarification.

🧠 How the Attack Unfolded

Council orchestrated the attack through a SIM-swapping scheme. He created a counterfeit identification card to impersonate an individual with access to the SEC's X account. Using this fake ID, he convinced AT&T to transfer the victim's phone number to a new SIM card, which he then inserted into a purchased iPhone. This allowed him to intercept multi-factor authentication codes, enabling unauthorized access to the SEC's account. Council subsequently provided the access credentials to his co-conspirators, who posted the fraudulent message.

📉 Market Impact

The fake announcement falsely attributed to SEC Chairman Gary Gensler stated:

“Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.”

This led to a rapid increase in Bitcoin's price from approximately $46,730 to just under $48,000. However, once the SEC regained control of its account and issued a correction, Bitcoin's price fell to around $45,200. The SEC officially approved the first Bitcoin ETFs the following day.

⚖️ Legal Consequences

Council was charged with conspiracy to commit aggravated identity theft and access device fraud. He pleaded guilty and was sentenced to five years in federal prison. The case highlights the vulnerabilities in digital security and the potential for market manipulation through cyber means.

This incident underscores the growing threat of SIM-swapping attacks, where cybercriminals exploit weaknesses in mobile carrier security to gain unauthorized access to personal and corporate accounts. The SEC breach serves as a cautionary tale for financial institutions and regulatory bodies to bolster their cybersecurity measures to prevent similar exploits.