Eric Council Jr. admitted his guilt in hacking social media accounts managed by the U.S. Securities and Exchange Commission (SEC). This incident caused significant disruption in the cryptocurrency market after false claims of Bitcoin ETF approvals.
Guilty Plea in SEC Account Breach
Legal documents in the U.S. District Court for the District of Columbia reveal that Council admitted to conspiracy to commit aggravated identity theft and device access fraud. Council's attorney entered a guilty plea in a court document made public on Sunday. The SEC’s official X account was compromised in January last year, just days before the agency formally approved Bitcoin ETFs. Prosecutors reported that Council worked with others to take over the account, posting "Today the SEC grants approval for Bitcoin ETFs for listing on all registered national securities exchanges."
Immediate Response from Authorities
Following the unauthorized post, former SEC Chair Gary Gensler and representatives from X confirmed the account had been compromised. The statement was quickly retracted, clarifying such approval had not been granted at the time. The misleading announcement caused Bitcoin’s price to spike by more than $1,000 in a short period. The post was made just one day before the SEC's official Bitcoin ETF approval, briefly affecting market activity. Prosecutors highlighted the price movement as a key factor in the case.
Ongoing Investigation
Authorities continue to investigate individuals involved in the cyber breach. Council's plea marks a significant step in the case, but further details about other potential co-conspirators remain undisclosed. The case underscores risks associated with cyber breaches targeting financial institutions and regulatory bodies.
Eric Council Jr.'s guilty plea marks a pivotal moment in the SEC cyberattack case, impacting the cryptocurrency market. The investigation is ongoing.
