Prosecutors say Eric Council Jr., 25, of Athens, Alabama, tried to skyrocket the value of Bitcoin and profit by publicizing a bogus decision to sell large amounts of the acquired currency. announced that he was a member of a criminal group. At a much cheaper price. The Council's alleged role in the conspiracy was to control the phone numbers that received text messages that received two-factor authentication codes for SEC accounts.
SIM swap structure
The indictment filed in the U.S. District Court for the District of Columbia provides a step-by-step explanation of how the alleged SIM swap took place.
12. COUNCIL and others specifically performed SIM swaps on mobile phone accounts associated with victim CL in order to obtain something of value.
a. On or about January 9, 2024, the co-conspirator identified the victim CL as having authorized access via a phone number linked to SECGov.
X account.b. On or about January 9, 2024, COUNCIL received instructions from a co-conspirator to perform a SIM swap on Victim CL's cell phone account that was controlled by AT&T.
c. On or about January 9, 2024, COUNCIL visited an AT&T store in Huntsville, Alabama and presented identification in CL's name. COUNCIL claimed that the FBI agent broke his cell phone and needed a new SIM card, so he obtained a new SIM card associated with CL's account (the “CL SIM Card”).
d. On or about January 9, 2024, after obtaining the CL SIM card, COUNCIL went to the Apple Store in Huntsville and purchased a new iPhone for the purpose of performing a SIM swap. COUNCIL inserted a CL SIM card into this iPhone to receive the two-factor security reset code associated with the @SECGov X account.
e. On or about January 9, 2024, COUNCIL received an “X Verification Code” to reset the @SECGov X account and immediately sent this code to the co-conspirators.
f. On or about January 9, 2024, the co-conspirators used this fraudulently obtained security code to access the @SECGov X account.
g. On or about January 9, 2024, a co-conspirator used such access to post fraudulent tweets to the @SECGov X account in the name of the SEC Chair, falsely announcing the SEC's approval of BIC ElF.
h. After receiving the reset code, on or about January 9, 2024, COUNCIL drove to Birmingham, Alabama to return the iPhone for cash.
Prosecutors said that after the SIM swap took place, the council conducted an internet search that incriminated them on conspiracy to defraud. Searches included “SECGOV hack,” “Telegram SIM swap,” “How do I know for sure if I'm being investigated by the FBI,” and “What are the signs I'm being investigated by law enforcement or the FBI?” This includes things such as “What is it?” If you haven't heard from them. ”
