Fake Bitcoin ETF Post Lands Alabama Man Plea Deal In SEC Social Media Hack Case

The US government is preparing a plea deal for the hacker who targeted the Twitter/X account of the Securities and Exchange Commission (SEC), Bloomberg reported. The deal was made just a few days after authorities arrested the 25-year-old suspect from Alabama.

In January, the suspect hacked the SEC’s Twitter/X account and posted fake news, sharing that the agency approved Bitcoin ETFs, causing a spike in crypto prices. The agency immediately took down the post and explained it was a hoax. Bloomberg adds that the planned plea deal was shared with US District Judge Amy Berman Jackson last October 25th, but the government is unsure whether the plea will be accepted.

Suspect Arrested By The FBI Last Week

The Federal Bureau of Investigations (FBI) led the manhunt for Eric Council Jr., the suspect in SEC X’s account hacking from Alabama. According to the US Attorney’s office statement, Council was arrested over the “SIM-swapping” hack. The office further adds that the hacking and sharing of fake news have affected the price of Bitcoin and other cryptocurrencies.

The SEC commended the FBI’s work and thanked the authorities for helping pursue the suspect in the name of accountability. Prosecutors allege that the suspect has co-conspirators in hacking the SEC’s social media account. It was reported that the suspect was instructed to swap the victim’s phone for a new device and use it to post and share fake news.

SEC X Account Hacking Pushed Bitcoin Price Up

According to the government, posting fake news directly affected Bitcoin’s price and market activity. Immediately after posting, Bitcoin’s price increased by $1,000. The hacking happened a few days before the SEC officially announced that it would allow the trading of Bitcoin ETFs. It was a critical moment for the industry since all stakeholders were awaiting the agency’s official policy.

When the agency regained access to its account, it immediately dismissed the fake post, and Bitcoin and crypto prices instantly reacted. Market sentiment was wild after the SEC clarification, with BTC price dipping by at least $2,000 in minutes.

Will Council Get A Plea Deal?

A potential plea deal is now on the table after US Attorney Kevin Rosenberg confirmed the offer with District Judge Jackson on October 25th. Government prosecutors are still unsure whether Council will take the offer.

According to court documents, the suspect faces several charges, including conspiracy to commit aggravated identity theft and device fraud. It was also reported that the suspect received Bitcoin for completing the hack.

Featured image from Reuters, chart from TradingView