Alabama Man Pleads Guilty in US SEC X Account Bitcoin ETF Hack, Here’s All

A 25-year-old Alabama man has admitted to his role in the hacking of the U.S. Securities and Exchange Commission’s (SEC) X account. The cyberattack led to a false announcement about Bitcoin exchange-traded funds (ETFs), causing a brief price surge.

Eric Council Jr. Pleads Guilty in US SEC X Account Hack

Eric Council Jr., 25, has pleaded guilty in Washington federal court to conspiracy to commit aggravated identity theft and access device fraud. The charges stem from his involvement in the unauthorized access of the SEC’s official X account.

According to federal prosecutors, Eric Council Jnrand his co-conspirators used a SIM swap attack to bypass security measures. The false post on January 9, 2024, stated that the SEC had approved spot Bitcoin ETFs, which led to a temporary increase in Bitcoin’s price. The US SEC quickly removed the post and clarified that the announcement was unauthorized.

However,  the US SEC officially approved spot Bitcoin ETFs one day after the fraudulent post was published. Judge Amy Berman Jackson has scheduled Council’s sentencing for May 16. Prosecutors indicated that he could face a mandatory minimum sentence of two years in prison.

How the Hack Was Executed

Prosecutors revealed that Council used a fake ID to deceive a local phone store employee into assisting with the SIM swap attack. This technique allowed him and his associates to gain control of the victim’s phone and ultimately access the SEC’s X account.

The individuals behind the scheme reportedly worked together to identify the target and bypass multiple security measures.

Once inside the account, they posted a fraudulent announcement about Bitcoin ETFs. Bitcoin’s price surged by over $1,000 before the SEC confirmed that the post was false.

Financial Gain and Forfeiture Agreement

As part of his plea agreement, Council has agreed to forfeit $50,000, which prosecutors say he earned from the scheme. Federal authorities filed a proposed forfeiture order on February 9, but the court has not yet approved it.

Council was arrested by the FBI in October 2024 and initially pleaded not guilty to the charges. However, he later changed his plea to guilty as part of an agreement with prosecutors. He was released on a personal recognizance bond and was permitted to travel during the holiday season.

According to the report, Eric Council’s sentencing will take place in the U.S. District Court for the District of Columbia. Legal experts indicate that his charges carry a minimum prison sentence, though the final decision rests with the court.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

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