FBI arrests alleged hacker behind fake SEC bitcoin ETF X post

An arrest was made in connection to the fake bitcoin ETF approval posts sent out from the SEC’s account back in January

article-image

Michele Ursi/Shutterstock modified by Blockworks

share

The Federal Bureau of Investigation announced the arrest of the man allegedly behind the fake bitcoin ETF approval posts sent from the Securities and Exchange Commission’s account back in January. 

The FBI arrested Eric Council Jr. of Alabama. He’s being charged with conspiracy to commit identity theft, and access device fraud, per a press statement.

“The indictment alleges that Eric Council, Jr. unlawfully accessed the SEC’s account on X by using the stolen identity of a person who had access to the account to take over their cellphone number,” said Principal Deputy Assistant Attorney General Nicole Argentieri.

Council allegedly conspired with other people to create and post the tweets on the SEC’s account. 

“Council, Jr.’s co-conspirators then allegedly used this unauthorized access to the X account to falsely announce that the SEC had approved listing Bitcoin ETFs, which caused the price of Bitcoin to rise by $1,000 and then fall by $2,000. Council’s indictment underscores the Criminal Division’s commitment to countering cybercrime, especially when it threatens the integrity of financial markets,” Argentieri said.

The posts, which announced the approval of the spot bitcoin ETFs though the products had not officially been approved by the Commission, were sent out just days before the SEC formally approved the spot bitcoin products. 

The posts triggered a spike in bitcoin’s price.

Following the SIM swap, Council bought a new phone and used it to access the SEC’s X account. 

“Council received BTC payment for performing the successful SIM swap. Shortly after, Council drove to Birmingham, Alabama to return the iPhone used in the SIM swap for cash,” the FBI said.

Council is set to appear in an Alabama court later Thursday.

“The SEC thanks law enforcement for their vigilance in seeking accountability for those responsible for the breach of the SEC’s X account,” a spokesperson for the SEC told Blockworks.

Updated Oct. 17, 2024 at 3:05 pm ET: Added comment from SEC spokesperson.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Featured.png

Research

Helium stands at a pivotal moment in its evolution as a decentralized wireless network, balancing rapid growth, economic restructuring, and global expansion. With accelerated growth in domestic DAUs and Hotspots supporting its network, Helium is leveraging strategic partnerships and innovative proposals to scale internationally. The recent implementation of HIP 138, “Return to HNT,” has unified its token economy under HNT, simplifying participation and strengthening liquidity, while HIP 139’s phase-out of CBRS refocuses efforts on scalable Wi-Fi offload. Meanwhile, governance shifts under HIP 141 raise questions about centralization as Nova Labs consolidates control over the roadmap.

article-image

Tokens worth 20% of the current supply of the TRUMP memecoin launched by the president are set to be unlocked tomorrow

article-image

A crypto-industry lawsuit is “moot” now that Joint Resolution 25 has been signed into law

article-image

Fed Chair Powell assured markets that the labor market is in “good place,” dependent on price stability

article-image

As uncertainty reigns, the Philly Fed manufacturing index fell to a multi-year low, but layoffs have slowed

article-image

Base launched two tokens as part of its ethos that everything can be tokenized, but the move sent Crypto Twitter reeling

article-image

The Arbitrum-based perps DEX recently launched its points campaign