Alabama Man Pleads Guilty in SEC X Account Hack

An Alabama man has pleaded guilty to his role in the high-profile hack of the US Securities and Exchange Commission (SEC)’s X account (formerly known as Twitter), spreading false information about the launch of the first-ever spot Bitcoin exchange-traded funds (ETFs) approval. 

Eric Council Jr. admitted in a Washington court to conspiring to commit aggravated identity theft and access device fraud. US District Judge Amy Berman Jackson has set his sentencing for May 16, where he could face penalties or punishment for his actions. 

A 25yr old Alabama man pleaded guilty to the now infamous SEC bitcoin ETF hack, he was using a fake ID and tricked a local phone store employee into helping him access the victim’s phone… sentencing is in May via @swillmer https://t.co/1N3v6TZV6v pic.twitter.com/U4tHXHaBdm

— Eric Balchunas (@EricBalchunas) February 10, 2025

How the Hack Unfolded

Prosecutors revealed that Council executed the attack by using a fake ID to deceive a local phone store employee into granting him access to the victim’s phone. His actions were allegedly by co-conspirators who initially identified the target and bypassed security protocols on X. 

The cyber attack took place on January 9, 2024, just a day before analysts and the entire crypto market were expecting the SEC’s official announcement regarding Bitcoin spot ETFs. The fraudulent post sparked rumors in the crypto market, which caused the surge in Bitcoin’s price. 

However, the rally was short-lived as the SEC quickly clarified that the announcement was unauthorized. The next day, the agency formally approved the ETFs. The case shows the vulnerabilities in financial and regulatory institutions’ digital security and the profound impact of misinformation on crypto markets. Approval of Bitcoin spot ETFs was a historic milestone in the industry and the rumors influenced market sentiment and price action.

Also Read: SEC Delays Decision on Ethereum ETF Options, Here’s What Analysts Say