Alabama resident Eric Council admitted in a Washington, D.C., federal court to hacking the U.S. Securities and Exchange Commission’s (SEC) account to issue a false announcement about Bitcoin ETFs.
Case Details
Eric Council, 25, admitted in court that he conspired with others to hack the SEC account on January 9, 2024. The fake post claimed the SEC had approved Bitcoin ETFs, briefly causing Bitcoin’s price to soar by over $1,000 before the agency debunked it.
Hacking Method
Council used a SIM swap attack to gain access to the SEC-linked phone number. Prosecutors say he created a fake ID with stolen personal details to impersonate the victim and hijack their number. His co-conspirators then used this access to post the misleading tweet under the SEC chairman’s name.
Consequences and Sentence
Council was arrested in October 2024 and pleaded guilty to conspiracy to commit aggravated identity theft and access device fraud. He faces up to five years in prison at his sentencing on May 16. He also agreed to surrender $50,000 in Bitcoin payment obtained for his participation in the fraudulent scheme. The attack occurred only days before the official SEC approval of Bitcoin ETFs, creating an intense situation for the cryptocurrency market.
It is noteworthy that this incident exposed security vulnerabilities within financial regulatory institutions.
