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:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
  • Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
Tags

Upcoming Events

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.

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.

recent research

Research Report Templates.jpg

Research

Bluefin possibly stands at an inflection point. The token is near an all-time low yet the protocol’s spot volume market share and derivatives exchange usage have been increasing month over month since its November launch. Given its current market position and the upcoming upgrades (for both Bluefin and SUI), there may be upside potential before the increased supply growth in December. However, strong opposition from existing competitors (like Cetus and Suilend), as well as new entrants (like Aftermath), pose key challenges to Bluefin’s medium-term success.

article-image

Introducing garbled circuits for enhanced privacy and regulatory compliance

article-image

Ross Ulbricht was a freedom maximalist building freedom tech, powered by Bitcoin

article-image

Solana validators can reap benefits including payments, votes and community clout

article-image

Sponsored

WalletConnect is cementing itself as the essential connectivity layer, ensuring wallets remain the entry point for billions of users

article-image

According to a legal filing, Galaxy Digital helped boost the price of LUNA while quietly selling its tokens

article-image

Tech fund portfolio manager Dominic Rizzo calls stablecoins “the most obvious use case for crypto”