US authorities have confirmed that Alabama resident Eric Council Jr. has admitted to hacking the SEC’s X account and posting false Bitcoin ETF information.
False Bitcoin ETF Announcement and Forfeiture
In January 2024, Council and his associates took control of the SEC’s official account on X, posting a fake announcement claiming that the agency had approved spot bitcoin exchange-traded funds. According to a February 9 court filing in the US District Court for the District of Columbia, federal prosecutors outlined the terms of a plea agreement. The filing states that Council may be required to forfeit $50,000, the amount he personally gained from the fraudulent post. As part of his plea, he has admitted to conspiracy charges related to aggravated identity theft and access device fraud.
Hacker Manipulates SEC Account, Spikes Bitcoin Price
It is worth mentioning that the incident took place just before the SEC was set to approve spot bitcoin ETFs. Council and his accomplices used the compromised social media account to post a misleading message a day before the official decision, causing bitcoin’s value to surge by over $1,000. Notably, a few hours later, former SEC Chair Gary Gensler and the social media platform X confirmed that the account had been breached. However, during the court proceedings, prosecutors detailed an elaborate scheme in which Council used information from his co-conspirators to create a fake ID. He then used the ID to obtain a SIM card linked to a victim’s phone line, allowing him to intercept access codes for the SEC’s account.
Judge Delays Forfeiture, Hacker Faces Two-Year Sentence
US District Judge Amy Berman Jackson has yet to approve the forfeiture order. Council was arrested by the FBI in October 2024 after initially pleading not guilty. According to the Congressional Research Service, he could face a minimum sentence of two years in prison. Reports state that after his arrest, Council was only released on a bond and allowed to travel for the holidays. However, it’s unclear when he will return to court for sentencing related to the plea deal. Last week, popular American rapper and producer Kanye West revealed that he turned down a $2 million offer to promote a fraudulent cryptocurrency scheme. In January, New York Attorney General Letitia James filed a lawsuit to recover over $2 million in cryptocurrency stolen from victims who fell prey to deceptive remote job scams.
The case of Council highlights the threatening level of cybercrime and the impact of false information on financial markets, necessitating strict security measures.
