A US judge has sentenced an Alabama man to 14 months in prison for his role in a January 2024 hack of the Securities and Exchange Commission’s (SEC) X account, which briefly spiked bitcoin prices by over $1,000. Eric Council Jr., 26, pleaded guilty to conspiracy to commit aggravated identity theft and access device fraud. The hacking scheme involved executing a SIM swap attack on an individual linked to the SEC’s phone number, allowing co-conspirators to gain control of the account.
Council’s defense lawyer had requested a 12-month prison term, citing his client’s lack of prior criminal history and claims that marijuana use helped him cope with mental health struggles. However, prosecutors recommended a harsher sentence due to Council’s apparent attempt to downplay his role in the hack and shift blame towards the SEC’s cybersecurity practices.
The hacking scheme involved posting a false tweet claiming the SEC had approved bitcoin exchange-traded funds (ETFs), causing brief price spikes before being corrected by the agency. The next day, the SEC announced approval of rule changes allowing the creation of bitcoin ETFs. Council was paid approximately $50,000 in bitcoin for his involvement.
The US Attorney’s office warned that SIM swap schemes like this one threaten the health and integrity of financial market systems, as well as individual financial security.
Source: https://www.cnbc.com/2025/05/16/alabama-prison-sec-bitcoin-hack-x.html