FBI arrests ‘AGiantSchnauzer’, the Alabama man behind SEC Bitcoin hack

Eric Council Jr., 25, of Athens, Alabama, was arrested in connection with the U.S. Securities and Exchange Commission hack of account X in January 2024.

The hack of the council resulted in the false claim that the SEC had approved Bitcoin exchange-traded funds, leading to a sharp increase in the value of Bitcoin (BTC).

Council was charged with aggravated identity theft and conspiracy to commit access device fraud. He will make his first court appearance in the Northern District of Alabama.

From SIM swapping to market manipulation

According to the indictment, Council and his co-conspirators conducted a “SIM swapping” attack to gain unauthorized control of SEC’s X account.

On January 9, 2024, they published a fake message from the SEC Chairman stating that Bitcoin ETFs had been approved for listing on national securities exchanges. This announcement caused the value of Bitcoin to increase by $1,000.

Bitcoin’s value fell by $2,000 after the SEC regained control of the account and declared that the message was fake.

SIM swapping is a cybercrime that allows attackers to bypass security measures such as two-step verification by tricking mobile operators into transferring the victim’s phone number to a SIM card they control.

In this case, the Council allegedly used a false identity to obtain a SIM card linked to the victim’s phone and then used that access to compromise the SEC’s X account.

Is the FBI investigating me?

According to the indictment, Council used usernames such as “Ronin,” “Easymunny” and “AGiantSchnauzer” online and obtained personal identification information and the victim’s photo and name from co-conspirators.

The municipality used this information to create a fake ID using an ID card printer. He then used the fake ID to obtain a SIM card connected to the victim’s phone line at a cell phone store in Huntsville, Alabama.

Finally, here’s the answer to the SEC’s question of who hacked account X ahead of Bitcoin ETF approval:

A 25-year-old from Alabama who goes online uses “AGiantSchnauzer” and “Easymunny” pic.twitter.com/iitBFFXLOj

— Leo Schwartz (@leomschwartz) 17 October 2024

With a new iPhone purchased with a SIM card and cash, the Council accessed the codes for the @SECGov X account and shared them with accomplices.

They used these codes to post a fake tweet on behalf of the SEC Chairman on the @SECGov X account, falsely announcing that the SEC had approved BTC ETFs.

According to the FBI, the city received Bitcoin payment for the successful SIM swap and later returned the iPhone to Birmingham, Alabama, in cash.

After all this, the Council searched the internet for terms like “SECGOV hack”, “telegram sim swap”, “How can I be sure I’m being investigated by the FBI” and “What are the signs you’re under surveillance”. Even if they haven’t contacted you, an investigation has been initiated by law enforcement or the FBI.

FBI warns about SIM swapping

U.S. Attorney Graves emphasized the serious consequences of SIM swapping schemes, which can lead to significant financial losses. “Here it is alleged that the conspirators used their illegal access to a telephone to manipulate financial markets,” he said.

Deputy Attorney General Argentieri highlighted how the Council and its accomplices used this access to falsely inflate the price of Bitcoin and underlined the Department of Justice’s commitment to prosecuting cybercrimes that threaten market integrity.

FBI Acting Special Agent in Charge Geist also stated that SIM swapping continues to be used by cybercriminals to exploit financial systems. “The FBI will continue to work tirelessly with law enforcement to hold accountable those who break U.S. laws,” he said.