So the SEC’s X account was hacked before?

[Sanitough]

The FBI says that Eric Council Jr. used a SIM swapping attack to make a fake X post from @SEC claiming Bitcoin ETFs had been approved.

The FBI has arrested an Alabama man who is accused of hacking the Securities and Exchange Commission’s X account in January. The indictment (PDF) alleges that 25-year-old Eric Council Jr. worked with co-conspirators to take control of the account and post a fake message from SEC Chair Gary Gensler about Bitcoin ETFs that caused the price of Bitcoin to jump by more than $1,000 momentarily.

To carry out this scheme, Council is accused of creating a fake ID using the information belonging to the person in control of the SEC’s X account. He then allegedly tricked AT&T into providing a SIM card with the victim’s phone number and install it into a new iPhone he purchased. Finally, Council was able to gain control of the SEC’s account using recovery authentication codes sent to the number, and later return the iPhone to the Apple Store where he’d bought it.

What a missed chance, he could’ve just waited, especially since it eventually got approved, and now we’re in a bull run... He wouldn’t have ended up in jail. But really, nothing’s safe nowadays, not even the SEC’s X account, which investors keep a close eye on since SEC announcements can hugely impact Bitcoin.

If he gets convicted, he’s looking at 5 years behind bars...pretty harsh. He probably didn’t realize just how big the penalty is for what he did. Although, maybe he made some money off it, just not much, since the pump back then was just over $1,000 compared to the $10k increase we’re seeing now.

[Alpha Marine]

I'm more concerned about how he could successfully trick X into sending a recovery authentication code to a new number.
I mean, why would they send a recovery code to a number that was not used to register on the site? Or are the regulations different in different regions?
If you get logged out of your account and you don't know the password, the recovery authentication gets sent to the email or phone number used in registering the account, so wy was it sent to a different number? And no, they don't send to another number even if the number is the number of the owner of the account.
I do not know the full details but X have some questions to answer and they can also be sued for negligence or whatever if its what I think.

[john_egbert]

I'm more concerned about how he could successfully trick X into sending a recovery authentication code to a new number.
I mean, why would they send a recovery code to a number that was not used to register on the site? Or are the regulations different in different regions?
If you get logged out of your account and you don't know the password, the recovery authentication gets sent to the email or phone number used in registering the account, so wy was it sent to a different number? And no, they don't send to another number even if the number is the number of the owner of the account.
I do not know the full details but X have some questions to answer and they can also be sued for negligence or whatever if its what I think.

The whole situation is a circus of sorts - a man was able to do so much with so little... Nevertheless, I hope his example will be a lesson for others.

[FortuneFollower]

Ignorance does not mean innocence, simply put.

[letteredhub]

I'm more concerned about how he could successfully trick X into sending a recovery authentication code to a new number.
I mean, why would they send a recovery code to a number that was not used to register on the site? Or are the regulations different in different regions?

According to the Op's quoted details it seems the SIM card came with same phone number as that of the victim . Therefore even if X has to request for certain verification codes before he can access the account, on request he's still gonna be the one receiving those codes.

I think the people that has much questions to answer as the AT&T. They would have done some checks if the  first line is active before issuing it to a new sim card.

[Potato Chips]

LMAO bro did what?

He later conducted internet searches for “SECGOV hack,” “telegram sim swap,” “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.”

So only the perp who did the sim swap was arrested and he's pretty amateur judging from the search history lol. It's been revealed that he had co-conspirators whom he sent the OTP to, as well and they seem to be the folks who accessed the X account.

Council shared those codes with members of the conspiracy, who then accessed the account – and issued the fraudulent tweet on the @SECGov X account in the name of the SEC Chairman, falsely announcing the SEC’s approval of BTC ETFs. 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.

So it seems like Council is just an errand guy or something. I wouldn't be surprised if he just received instructions how to sim swap too. His co-conspirators most likely have been paid and/or profited a much bigger amount.

[Zlantann]

What a missed chance, he could’ve just waited, especially since it eventually got approved, and now we’re in a bull run... He wouldn’t have ended up in jail. But really, nothing’s safe nowadays, not even the SEC’s X account, which investors keep a close eye on since SEC announcements can hugely impact Bitcoin.

If he gets convicted, he’s looking at 5 years behind bars...pretty harsh. He probably didn’t realize just how big the penalty is for what he did. Although, maybe he made some money off it, just not much, since the pump back then was just over $1,000 compared to the $10k increase we’re seeing now.

It would not be accurate to assume that his intention for hacking SEC's X account was for him to make a profit from his Bitcoin hodlings. Hackers engage in it for different reasons. It is possible that he did it just for fun or fame. Or he is a trader or is working for a big trading firm that wants to use fake news to manipulate the market and make profit. 

Afterward, he bought a new iPhone with cash, using both the SIM card and the device to obtain access codes for the @SECGov X account. Council then shared these codes with other conspiracy members, enabling them to access the account and post a fraudulent post. For his role in the successful SIM swap, Council was paid in BTC.

https://www.forbes.com/sites/digital-assets/2024/10/18/fbi-arrests-hacker-behind-sec-x-account-fake-bitcoin-etf-announcement/

Since he was paid and he had to sell the phone he used for the hack, it is likely that he was hired by people or organizations whose intention was to make profit from the manipulation. Maybe further investigation will expose more details about the hacks. 

[Ziskinberg]

But did he really gain much from that hack? It seems like he wasn’t an expert, probably just experimenting and testing his skills without realizing how serious the consequences would be if he got caught. Even if Bitcoin went up $1k at that time, it would take a ton of Bitcoin to make a real profit, which I doubt he had.

Those deepfake scams are actually more effective, where they convince investors to send money directly to a wallet or even control their computer to transfer funds to an exchange. But in this case, I don’t see how he’d benefit that much. Now, if Bitcoin had pumped by 100% back then, maybe his SEC X hack would’ve been worth it.

[serjent05]

But did he really gain much from that hack? It seems like he wasn’t an expert, probably just experimenting and testing his skills without realizing how serious the consequences would be if he got caught. Even if Bitcoin went up $1k at that time, it would take a ton of Bitcoin to make a real profit, which I doubt he had.

Who knows, it is possible that he has some cryptocurrency holding and that fake tweet from the currently hacked SEC X account could have hype his holding and profit from it.  I also do not think that it was unintentional or the suspect does not know the consequences.  He just thought that he would never be traced since his number is the same as the creator of the SEC X account.

Those deepfake scams are actually more effective, where they convince investors to send money directly to a wallet or even control their computer to transfer funds to an exchange. But in this case, I don’t see how he’d benefit that much. Now, if Bitcoin had pumped by 100% back then, maybe his SEC X hack would’ve been worth it.

Yeah, probably the suspect don't have much knowledge on how to proceed with that kind of scam, or he just thinks that hacking the government social media account is much more safer.

[hd49728]

The FBI says that Eric Council Jr. used a SIM swapping attack to make a fake X post from @SEC claiming Bitcoin ETFs had been approved.

An important account of government with big impacts on money of many people in financial and cryptocurrency market, must be secured better.

This SIM swap attack, can be considered as an accident, but SEC can not secure their account too carelessly like this. It's unprofessional and unacceptable too.

[BEWARE] Sim Port Attack. It's not a new scam attack type so it's ridiculous that an agency like SEC let it happened with their X account.

[kotajikikox]

What a missed chance, he could’ve just waited, especially since it eventually got approved, and now we’re in a bull run... He wouldn’t have ended up in jail. But really, nothing’s safe nowadays, not even the SEC’s X account, which investors keep a close eye on since SEC announcements can hugely impact Bitcoin.

It doesn't matter if it got approved or not, he went to jail because he hacked into an account he wasn't. He would still have gone to jail now even if what he spread was rightful information. You can't just hack into accounts of people and not experience the consequences of your actions especially of someone important in the government.

If he gets convicted, he’s looking at 5 years behind bars...pretty harsh. He probably didn’t realize just how big the penalty is for what he did. Although, maybe he made some money off it, just not much, since the pump back then was just over $1,000 compared to the $10k increase we’re seeing now.

Was it not just a prank? Many hackers often do this just to prove a point and make someone a laughing matter. It certainly doesn't bode well for the SEC's X account that they were hacked. Of course, I think it says more about X and less about the account holder but the damage is still there.

[Alpha Marine]

According to the Op's quoted details it seems the SIM card came with same phone number as that of the victim . Therefore even if X has to request for certain verification codes before he can access the account, on request he's still gonna be the one receiving those codes.

I think the people that has much questions to answer as the AT&T. They would have done some checks if the  first line is active before issuing it to a new sim card.

So, if I'm getting this correctly, you're saying in America I can call the SIM company (AT&T) and tell them I need a new SIM for a particular number. As long as I can provide some identification, they'll give me the new SIM with the same number.
Where I'm from, if you need a new SIM for an old number, you must provide an ID to ensure you registered the old SIM. Your ID would be verified before they give you a different SIM with that same number. If after Verification, the ID doesn't check out, they can't retrieve that SIM for you or if they check and see that the old number was registered by someone else they won't give you a new SIM for that number.

So just out of curiosity, I would like to know how a person can forge an ID to claim the identity of another person and get a new SIM for an already existing number. Also, will the 2 SIMs be active at the same time? Because over here, the old one will be block by the network providers before issuing another one.

[fikrett]

The FBI says that Eric Council Jr. used a SIM swapping attack to make a fake X post from @SEC claiming Bitcoin ETFs had been approved.

An important account of government with big impacts on money of many people in financial and cryptocurrency market, must be secured better.

This SIM swap attack, can be considered as an accident, but SEC can not secure their account too carelessly like this. It's unprofessional and unacceptable too.

[BEWARE] Sim Port Attack. It's not a new scam attack type so it's ridiculous that an agency like SEC let it happened with their X account.

Yeah, that's what I agree on - it's just laughable that an account of such an entity was tricked and fooled by such a method.
Alas, at least it's going to stick and be a good history example of how you should look after your data.
 

[john_egbert]

If he gets convicted, he’s looking at 5 years behind bars...pretty harsh. He probably didn’t realize just how big the penalty is for what he did. Although, maybe he made some money off it, just not much, since the pump back then was just over $1,000 compared to the $10k increase we’re seeing now.

Was it not just a prank? Many hackers often do this just to prove a point and make someone a laughing matter. It certainly doesn't bode well for the SEC's X account that they were hacked. Of course, I think it says more about X and less about the account holder but the damage is still there.

Even then, those who ordered the guy, presumably, did get what they wanted from situation.
And probably would go unscratched from here. Only time will tell.
I hope some action will be taken to make such situations not to take place.

[Cryptohygenic]

So are we expecting recalling back to Dip of bitcoin since it was said to be fake update from an invalid SECs office that the Etf was approved which lingered to the pump of the market?
What would be the consequence in the current market after realizing this fact if actually the information is true??

[ClapReuser]

So are we expecting recalling back to Dip of bitcoin since it was said to be fake update from an invalid SECs office that the Etf was approved which lingered to the pump of the market?
What would be the consequence in the current market after realizing this fact if actually the information is true??  CFAHome

Therefore even if X has to request for certain verification codes before he can access the account, on request he's still gonna be the one receiving those codes.

I think the people that has much questions to answer as the AT&T. They would have done some checks if the  first line is active before issuing it to a new sim card.

[Cryptomultiplier]

According to the Op's quoted details it seems the SIM card came with same phone number as that of the victim . Therefore even if X has to request for certain verification codes before he can access the account, on request he's still gonna be the one receiving those codes.

I think the people that has much questions to answer as the AT&T. They would have done some checks if the  first line is active before issuing it to a new sim card.

So, if I'm getting this correctly, you're saying in America I can call the SIM company (AT&T) and tell them I need a new SIM for a particular number. As long as I can provide some identification, they'll give me the new SIM with the same number.
Where I'm from, if you need a new SIM for an old number, you must provide an ID to ensure you registered the old SIM. Your ID would be verified before they give you a different SIM with that same number. If after Verification, the ID doesn't check out, they can't retrieve that SIM for you or if they check and see that the old number was registered by someone else they won't give you a new SIM for that number.

So just out of curiosity, I would like to know how a person can forge an ID to claim the identity of another person and get a new SIM for an already existing number. Also, will the 2 SIMs be active at the same time? Because over here, the old one will be block by the network providers before issuing another one.

There's even going to be a requirement for the person to provide at least  three numbers that was saved on the sim card before they even agree to verify and release the sim card to the person requesting it.
I would have loved to know if the person convicted of such an offence is a worker or an employee for the SEC or has some form of affiliation with the SEC to be able to think out such an attack on a government owned and managed platform.

[Faisal2202]

If he gets convicted, he’s looking at 5 years behind bars...pretty harsh. He probably didn’t realize just how big the penalty is for what he did. Although, maybe he made some money off it, just not much, since the pump back then was just over $1,000 compared to the $10k increase we’re seeing now.

Council seems to be a smart man, although I am confused how one can someone fake identity to get a sim of someone else. Is the verification system of AT&T that useless or the scammer was so smart! He just trying to create a hype in the market I remember when this happened and how it created a great hype among the crypto community.

Sadly this was really unnecessary for him to do. 5 years is a huge sentence for such a crime. Although it's a good progress for the authorities by capturing him as this set's an example for other scammers that they could know they should not play out of their league haha I mean directly hacing Gary's phones.

[passwordnow]

But really, nothing’s safe nowadays, not even the SEC’s X account, which investors keep a close eye on since SEC announcements can hugely impact Bitcoin.

Even the celebrities and other known prominent people can't get out of these hacking, if you can remember that there was a young guy that have hacked a lot of celebrities accounts including Bill Gates, Kanye West, etc.

If he gets convicted, he’s looking at 5 years behind bars...pretty harsh. He probably didn’t realize just how big the penalty is for what he did. Although, maybe he made some money off it, just not much, since the pump back then was just over $1,000 compared to the $10k increase we’re seeing now.

He knows that there's a retaliation of what he's about to do but then, he continued to do that and willing to take the risk and the consequence of it. Now, he's on it and should spend whatever is the punishment that's given on him.

[letteredhub]

According to the Op's quoted details it seems the SIM card came with same phone number as that of the victim . Therefore even if X has to request for certain verification codes before he can access the account, on request he's still gonna be the one receiving those codes.

I think the people that has much questions to answer as the AT&T. They would have done some checks if the  first line is active before issuing it to a new sim card.

So, if I'm getting this correctly, you're saying in America I can call the SIM company (AT&T) and tell them I need a new SIM for a particular number. As long as I can provide some identification, they'll give me the new SIM with the same number.

If you had carefully digested the op you'll have noticed what it said about how the accused was able to create a fake sim (probably cloning the SIM) by using the exact informations as those of the SEC's custodian of their X account. See the quote again

To carry out this scheme, Council is accused of creating a fake ID using the information belonging to the person in control of the SEC’s X account.

So just out of curiosity, I would like to know how a person can forge an ID to claim the identity of another person and get a new SIM for an already existing number. Also, will the 2 SIMs be active at the same time? Because over here, the old one will be block by the network providers before issuing another one.

Am not into such illegal activities so how do you expect I know that?  Secondly, if the hacker or whatever he's called was able to have access to the SIM number through the impersonated informations then for sure he would have also deactivated the real owners SIM on the other end not to receive any information except for his