• Sam Sabin

Federal authorities have arrested a man in Athens, Alabama who allegedly helped hack the Securities and Exchange Commission’s account on X, formerly Twitter, earlier this year.

Why it matters: The arrest is the first indication of who was actually behind the incident, which sent shockwaves through the financial and crypto world.

Catch up quick: In January, someone hacked the SEC’s X account and published a post falsely saying that national exchanges were now approved to list Bitcoin ETFs.

• At the time, the SEC was actively deliberating such an approval, making the post even more believable.
• This post prompted Bitcoin prices to spike to $1,000 per bitcoin, according to officials.
• The SEC said at the time that the hack was the result of a SIM swap attack, meaning an attacker took over the phone number tied to one of the agency’s cell phones.

What’s happening: Federal investigators arrested Eric Council, Jr. earlier today in connection to the SEC account hack, according to a press release Thursday.

• Council Jr. is accused of participating in a scheme with others to take over the @SECGov account on X and share a fake post in the name of SEC Chair Gary Gensler.
• Law enforcement believes Council received personal information about someone tied to the SEC from his co-conspirators, per an indictment unsealed Thursday.
• Council then used these details to create fraudulent ID cards to present in-person at an AT&T store, which operated the victim’s cell phone plan.
• Once at the store, Council purchased a SIM card linked to the victim’s phone number and shared the details about the SIM with his co-conspirators.

• His co-conspirators then used the information to hack the SEC’s account.

The intrigue: The Justice Department says Council conducted several suspicious internet searches afterwards, including:

• “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.”

What we’re watching: Council Jr. is expected to make his first appearance in an Alabama court later today, according to a press release.

• DOJ did not share any additional information about Council Jr.’s alleged co-conspirators.