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An Alabama man, Eric Council Jr., has been sentenced to 14 months in prison for hacking the U.S. Securities and Exchange Commission's (SEC) X account to post false news about the approval of Bitcoin Exchange-Traded Funds (ETFs). This fraudulent act caused a significant spike in Bitcoin's price, highlighting the vulnerabilities in digital security and the impact of cybercrime on financial markets.
Key Takeaways
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Eric Council Jr. sentenced to 14 months in prison for hacking the SEC's X account.
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The hack falsely announced the approval of Bitcoin ETFs, causing Bitcoin's price to surge by over $1,000.
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Council used a SIM-swap attack to gain access to the SEC's account.
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He must forfeit $50,000 and will be under supervised release for three years after his prison term.
The Hack That Shook the Crypto Market
In January 2024, Council executed a sophisticated cyberattack by obtaining personal information from an SEC account manager. He used this information to forge a fake ID, convincing a mobile store employee to issue a replacement SIM card. This allowed him to bypass the two-factor authentication (2FA) on the SEC's X account.
Once he gained control, Council posted a misleading tweet claiming that the SEC had approved Bitcoin ETFs. This announcement triggered a rapid increase in Bitcoin's price, which surged by more than $1,000 before the truth was revealed, leading to a subsequent drop of over $2,000.
Legal Proceedings and Sentencing
Council was arrested in October 2024 after the FBI identified him as a suspect in the hack. He pleaded guilty to conspiracy to commit aggravated identity theft and access device fraud in February 2025. During the sentencing, U.S. Attorney Jeanine Ferris Pirro emphasized the seriousness of such schemes, stating, "Schemes of this nature threaten the health and integrity of our market system."
In addition to his prison sentence, Council was ordered to forfeit $50,000 and will be subject to three years of supervised release following his incarceration. This includes restrictions on accessing the dark web or engaging in identity fraud.
The Broader Implications of Cybercrime
This case underscores the growing threat of SIM-swap attacks, where hackers hijack mobile numbers to access sensitive accounts. Such incidents have become increasingly common in the cryptocurrency space, raising concerns about the security of digital assets.
The SEC hack is reminiscent of other high-profile cybercrimes, including the 2020 Twitter hack that targeted celebrity accounts to promote a fake Bitcoin giveaway. These incidents highlight the urgent need for enhanced security measures and public awareness regarding digital fraud.
Sources
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Hacker Jailed for Posting Fake Bitcoin ETF News on SEC’s X Account – Legal Bitcoin News, Bitcoin.com News.
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SEC Hacker Eric Council Jr. Sentenced to 14 Months in Prison, BeInCrypto.
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SEC Hacker Jailed 14 Months for SIM-Swap Bitcoin ETF Scam, www.tokenpost.com.
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US hacker of SEC's X account sentenced to 14 months in prison, Bangladesh Sangbad Sangstha (BSS).
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