Bitcoin bro searched ‘how can I know for sure if I am being investigated by the FBI’ before FBI arrest

Alabama Man Arrested by FBI for Hacking SEC’s Social Media Account to Manipulate Bitcoin Value

An individual from Alabama has been taken into custody by the FBI for allegedly breaching the Securities and Exchange Commission’s social media account in an attempt to inflate the value of Bitcoin. The evidence that led to the arrest of Eric Council, Jr., remains undisclosed, but it seems that the 25-year-old may have been aware of the investigation prior to his apprehension. Before being captured, Council reportedly conducted internet searches on his personal computer for phrases such as “SECGOV hack,” “how can I know for sure if I am being investigated by the FBI,” and “what are the signs that you are under investigation by law enforcement or the FBI even if you have not been contacted by them.”

On January 9, 2024, the official Twitter account of the SEC tweeted a false announcement stating, “Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.” This tweet, which suggested a significant development in the cryptocurrency market, caused Bitcoin’s value to surge by approximately $1,000 per coin. However, it was later revealed that the SEC had not actually made any decision regarding Bitcoin ETFs, and the tweet had been posted by an unauthorized individual who gained access to the Commission’s social media account.

The US Attorney’s Office for the District of Columbia reported that the @SECGov account was compromised using a technique known as a “SIM swap,” where the perpetrator fraudulently obtains a new SIM card linked to the victim’s phone number. Council, also known as “@Easymunny,” allegedly collaborated with others to execute the SIM swap by providing a fake ID with the SEC employee’s personal information to AT&T representatives. Once in possession of the new SIM card, Council accessed the SEC’s Twitter account through Two-Factor Authentication password retrieval codes and facilitated the dissemination of the false Bitcoin ETF approval announcement.

Following the incident, Bitcoin’s value plummeted as the SEC regained control of their social media account and clarified the misinformation. Council is facing charges of conspiracy to commit aggravated identity theft and access device fraud in connection with the hack. The aftermath of the incident also saw the SEC mistakenly publish and retract an announcement regarding the approval of 11 Bitcoin ETFs, causing further confusion in the market.

As the legal proceedings unfold, it remains to be seen how Council’s actions will impact the ongoing investigation into the manipulation of Bitcoin’s value and the security of government agencies’ social media accounts.