FBI Arrests Hacker Linked to Fake Bitcoin ETF Announcement

On October 17, the FBI arrested 25-year-old Alabama resident Eric Counsil Jr., accused of hacking the X account of the SEC and posting a fake announcement about a spot Bitcoin ETF.

According to the statement, he is charged with “conspiracy to commit aggravated identity theft and device access fraud.”

The incident occurred on January 10, a day before the actual approval of the financial instrument based on the first cryptocurrency. At that time, unknown individuals gained control of the regulator’s account and posted a fake news story about the approval of a spot Bitcoin ETF, causing high market volatility.

Prosecutors allege that Counsil collaborated with others to seize the SEC account. The hackers managed to access the account through “SIM swapping.”

“The conspirators allegedly used illegal access to the phone [account] to manipulate financial markets. With these indictments, we will hold accountable those who commit these serious crimes,” the prosecutor noted.

Authorities believe Counsil obtained personal identification data, including the victim’s name and photograph, from his accomplices, then created a fake ID and SIM card in that name. Later, using a new iPhone purchased with cash, he gained control of the Commission’s account.

The hacker used several aliases, including Ronin, Easymunny, and AGiantSchnauzer. He allegedly searched online for “SEC Gov hack,” “SIM swap Telegram,” “how to know if I’m under FBI investigation,” and “signs of being under law enforcement or FBI investigation even if they haven’t contacted you.”

After the fake post was published, Ripple CEO Brad Garlinghouse suggested the agency investigate “itself.” Coinbase’s Chief Security Officer Philip Martin offered the SEC assistance in organizing social media protection.

Earlier, on October 16, 2023, crypto media outlet Cointelegraph published a post on X about the approval of a spot Bitcoin ETF by BlackRock. Following the news, Bitcoin’s price quickly surged to $30,000.

However, the asset fell just as swiftly after reports of the fake. According to representatives of the publication, the social media post was hastily published without editorial approval.