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5d ago

Alabama Man Sentenced for SEC X Account Hack That Manipulated Bitcoin Prices

Eric Council Jr. received a 14-month prison sentence for a SIM swap scheme that compromised the SEC's social media account, leading to false Bitcoin ETF approval posts and market volatility.

The US Securities and Exchange Commission (SEC) headquarters in Washington, DC. (Image: Valerie Plesch/Bloomberg via Getty Images)
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Overview

  • Eric Council Jr., 26, was sentenced to 14 months in prison for hacking the SEC's X account to manipulate Bitcoin prices through false announcements.
  • The January 2024 SIM swap attack enabled Council and co-conspirators to falsely claim SEC approval of Bitcoin ETFs, causing a $1,000 price spike followed by a $2,000 drop.
  • Council admitted to using a fake ID and SIM swap techniques to gain unauthorized access to the SEC's X account, sharing reset codes with co-conspirators.
  • In addition to the prison sentence, Council was ordered to forfeit $50,000 and will face three years of supervised release with restrictions on computer use.
  • Federal investigations into Council's co-conspirators are ongoing, highlighting the broader risks of SIM swap fraud and its impact on digital asset markets.