SEC hacker once Googled ‘if I am being investigated by the FBI’
Eric Council Jr., the SIM swap hacker who helped compromise the Securities and Exchange Commission’s X account last year, made $50,000 performing similar attacks and even searched how to tell if the FBI is investigating him, recent filings show.
The recent filing was part of the prosecutor’s request to sentence him to two years in prison over his role in the hack, which saw the SEC X account publish a false announcement that a spot Bitcoin exchange-traded fund was approved, shaking up the markets.
Council searched: “How can I know for sure if I am being investigated by the FBI” and “How long does it take to delete Telegram account,” US prosecutors discovered following a search warrant of his house, car and devices last June, according to a May 12 court filing.
While Council’s Telegram chats were set up to be removed after two weeks, US prosecutors still found chats of Council discussing SIM swaps with others believed to be located overseas.
Council also admitted to law enforcement that he received around $50,000 for performing SIM swaps for clients between January to June 2024. He advertised himself as a SIM swapping expert on Telegram under the username easymunny, offering services for payment between $1,200 and $1,500.
How Eric Council Jr. pulled the hack off, then got caught
Council executed the SIM swap by creating fake identity documents to specifically impersonate someone that his co-conspirators identified as having access to the SEC’s X account.
These fake documents were then used to trick a staff worker at telecommunications firm AT&T into reassigning the victim’s phone number to Council’s SIM card.
Council had to share the last four digits of the victim’s Social Security number and driver’s license to effectuate the SIM swap.
He then bought a new iPhone from an Alabama Apple store, inserted the new SIM and shared the access codes to the SEC’s X account with his co-conspirators, who later posted the fake news about the spot Bitcoin ETFs on Jan. 9. The Bitcoin products received official approval the following day.
Council received payment for the SEC SIM swap in Bitcoin (BTC) and other cryptocurrencies, the prosecutors said.
However, Council’s luck ran out on June 12, 2024, when surveillance agents observed him attempting to execute a SIM swap at an Apple store, impersonating another victim.
Law enforcement executed a search warrant six days later and recovered several pieces of circumstantial evidence, including templates for fake identification cards on his laptop.
He pleaded guilty on Feb. 10, after a federal grand jury returned an indictment charging him with Conspiracy to Commit Aggravated Identity Theft and Access Device Fraud last October.
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The fake post accumulated over 1 million views before the SEC confirmed it had been hacked roughly 15 minutes later.
The two announcements resulted in Bitcoin’s price initially rising $1,000 before abruptly falling nearly $2,000 shortly after, wiping out tens of millions of dollars worth of market positions.
The security team at X confirmed that the SEC didn’t have two-factor authentication installed on its X account at the time of the incident. The SEC claimed it initially had 2FA enabled but was erroneously removed by X Support following a request by an SEC staff member.
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GD Culture Group (GDC), a Nasdaq-listed holding company focused on livestreaming, e-commerce and artificial intelligence-powered digital human technology, plans to raise up to $300 million for a cryptocurrency treasury reserve.
In a May 12 statement, GDC and its subsidiary, AI Catalysis, announced entering into a common stock purchase agreement with a British Virgin Islands limited liability company to sell up to $300 million of its common stock.
The proceeds from the stock sale will be used to fund the firm’s crypto treasury, which will include purchases of Bitcoin (BTC) and the Official Trump (TRUMP) token.
“Under this initiative, and subject to certain limitations, GDC intends to allocate a significant portion of the proceeds from any share sales under the facility to the acquisition, long-term holding, and integration of crypto assets into its core treasury operations,” the company said in the announcement.
GDC described the strategy as a move to align with the broader “decentralization transformation.”
Founded in 2016, GDC is a micro-cap company with a current $34 million market capitalization, according to Nasdaq data.
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GDC’s chairman and CEO, Xiaojian Wang, said the initiative builds on the company’s strengths in digital technologies and positions it for a blockchain-powered industrial shift.
“GDC’s adoption of crypto assets as treasury reserve holdings is a deliberate strategy that reflects both current industry trends and our unique strengths in digital technologies and the livestreaming e-commerce ecosystem,” Wang said.
The stock offering was announced over a month after the firm received a noncompliance warning from Nasdaq related to its stockholders’ equity. The notice indicated that the firm reported stockholders’ equity of only $2,643, well below the minimum requirement of $2.5 million.
The firm was given until May 4 to submit a plan to comply with the listing requirements. If accepted by Nasdaq, the compliance plan will allow up to 180 days from the notification period to comply with the requirements.
The Nevada-based company joins a small but growing group of public firms that are allocating part of their balance sheets to crypto assets.
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Trump token dinner planned for top holders
GDC’s announcement coincides with an upcoming high-profile event tied to the Trump token project. The 25 largest holders of TRUMP tokens are set to attend a private dinner at the White House on May 22.
However, the TRUMP memecoin project said in a May 12 X post that it has stopped considering additional purchases for the dinner and that the attendees had been notified to apply for background checks.
According to data provided on the project’s leaderboard, the top 220 wallets held more than 13.7 million tokens as of May 12, worth about $174 million at the time of publication.
Some US lawmakers have criticized the dinner. Republican Senator Cynthia Lummis reportedly said that the idea of the US president offering exclusive access for people willing to pay “gives [her] pause.”
Crypto regulation experts also fear that the Trump family’s crypto endeavors may trigger more regulatory scrutiny by the US Securities and Exchange Commission, as politically affiliated memecoins introduce a new challenge for crypto legislation.
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A 21-year-old man has been arrested over a series of arson attacks, police have said, after a fire at a house owned by Prime Minister Sir Keir Starmer.
The suspect was arrested in the early hours of Tuesday on suspicion of arson with intent to endanger life, according to the Metropolitan Police.
He remains in custody.
Emergency services were called to fires at the doors of two homes in north London within 24 hours of each other – one just after 1.35am on Monday in Kentish Town and the other on Sunday in Islington. Both properties are linked to Sir Keir.
Police are investigating links to several fires, which they are treating as suspicious. Pic: LNP
Detectives were also checking a vehicle fire last Thursday on the same street as the Kentish Town property to see whether it is connected.
Part of the area was cordoned off as police and London Fire Brigade (LFB) investigators examined the scene.
Neighbours described hearing a loud bang and said police officers were looking for a projectile.
Emergency services were deployed to the scene in Kentish Town, north London, on Monday. Pic: PA
Pic: PA
The prime minister is understood to still own the home, which was damaged by fire on Monday, but nobody was hurt. Pictures showed scorching at the entrance to the property.
Sir Keir used to live there before he and his family moved into 10 Downing Street after Labour won last year’s general election. It is believed the property is being rented out.
In the early hours of Sunday, firefighters dealt with a small fire at the front door of a house converted into flats in nearby Islington, which is also linked to the prime minister.
Counter-terror police are leading the investigation. Pic: LNP
In a statement, police said: “As a precaution and due to the property having previous connections with a high-profile public figure, officers from the Met’s Counter Terrorism Command are leading the investigation into this fire.
“Enquiries are ongoing to establish what caused it. All three fires are being treated as suspicious at this time, and enquiries remain ongoing.”
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The prime minister’s official spokesman said: “I can only say that the prime minister thanks the emergency services for their work and it is subject to a live investigation. So I can’t comment any further.”
Kemi Badenoch has condemned the suspected arson attacks.
Writing on X, the Conservative leader said: “This is a shocking incident. My thoughts are with the prime minister and his family. No one should face these sorts of threats, let alone people in public service.
“It’s an attack on our democracy and must never be tolerated.”
Shadow justice secretary Robert Jenrick told Sky News on Tuesday: “It’s important that the prime minister and anyone in public life has their family, their homes, protected.
“It is absolutely wrong, disgraceful, for any individual to take the kind of action that we saw against the prime minister’s home.”
Arizona Governor Katie Hobbs vetoed two key cryptocurrency-related bills that aimed to expand the state’s involvement in digital assets while signing a strict regulatory measure targeting Bitcoin ATMs.
On May 12, Hobbs rejected Senate Bill 1373, which sought to establish a Digital Assets Strategic Reserve Fund. The fund would have allowed Arizona to hold crypto assets obtained through seizures or legislative allocations.
“Current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars,” she stated in her veto letter. “I have already signed legislation this session which allows the state to utilize cryptocurrency without placing general fund dollars at risk,” she added.
That decision followed her veto of Senate Bill 1025 — the more ambitious “Arizona Strategic Bitcoin Reserve Act” — on May 3. It would have authorized up to 10% of the state’s treasury and retirement funds to be invested in Bitcoin and other digital assets.
According to data from bitcoinlaws.io, 26 US states have introduced strategic crypto reserve bills, with 18 of them currently active.
Hobbs also vetoed Senate Bill 1024, which would have permitted state agencies to accept cryptocurrency payments for taxes, fines and fees via approved service providers.
Although the proposal attempted to shield the state from direct exposure to price volatility, Hobbs said it still introduced “too much risk.”
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Hobbs approves Bitcoin ATM bill
On May 12, Hobbs approved House Bill 2387, which introduces new consumer protection rules for cryptocurrency kiosk (ATM) operators, aiming to reduce fraud and improve transparency.
The bill mandates that kiosks display clear, multilingual warnings about common crypto scams and require users to acknowledge these risks before completing transactions. Operators must also provide detailed receipts that include transaction data, contact information, fees and refund policies.
Furthermore, the bill caps transactions at $2,000 per day for new customers and $10,500 per day for returning users after 10 days. Kiosk providers must also offer 24/7 toll-free customer service and post the number visibly on each machine.
Under the bill, if a new user is tricked into sending crypto under false pretenses and reports it with proof within 30 days, they are entitled to a full refund, including fees.
According to CoinATMRadar, there are currently 20 active Bitcoin ATMs in Arizona.
Notably, Hobbs has not entirely closed the door on digital assets. On Wednesday, she signed House Bill 2749, which updates Arizona’s unclaimed property laws to include digital assets.
The legislation allows the state to retain unclaimed cryptocurrencies in their original form rather than liquidating them into fiat currency.
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