- Eric Council sentenced for hacking SEC account, causing market spike.
- Bitcoin price surged by $1,000 before SEC debunked fake tweet.
- Hack resulted in a 14-month prison term, 10 months less than sought.
An Alabama man has been sentenced to 14 months in prison for hacking the U.S. Securities and Exchange Commission’s (SEC) social media account. Eric Council Jr., a 26 year old man, was convicted for his role in a SIM swap attack that allowed him and his accomplices to post a false message about Bitcoin exchange-traded funds (ETFs) being approved by the SEC. The hack briefly caused a spike in Bitcoin’s price before the SEC regained control of the account.
SEC Hacks Causes Bitcoin Price Surge
Council was involved in a conspiracy to access the SEC’s account in January 2024. The tweet claimed that the SEC had approved Bitcoin ETFs, which led to a sudden $1,000 rise in the BTC price. The SEC quickly debunked the claim, resulting in Bitcoin’s price dropping by over $2,000. However, the SEC announced the approval of Bitcoin ETFs the next day, but under different circumstances.
U.S. Attorney Jeanine Ferris Pirro stated that the hack damaged market integrity. Pirro emphasized the seriousness of such schemes and stated that criminals would be prosecuted. “SIM swap schemes threaten the financial security of average citizens, financial institutions, and government agencies,” Pirro said in a statement.
Council Sentenced For SEC Hack
Council pleaded guilty to conspiracy to commit aggravated identity theft and access device fraud. The conspiracy involved a SIM swap attack on an individual associated with the SEC. Council used a fake ID to impersonate the victim to acquire his phone number from an AT&T store.
The judge sentenced Council to a 14-month prison term, which was 10 months less than the recommendation by prosecutors. However, in a video posted online, Council blamed the SEC’s cybersecurity practices for the hack. His lawyer requested the court to sentence Council to a 12-month prison sentence because he did not have a prior criminal record.
SEC Faces Multiple Cyber Attacks
Council’s case demonstrates the potential risks of cyberattacks in the cryptocurrency space. The SEC remains a primary target in various cyber attacks because of its regulatory role in the U.S. securities market. However, the commission continues to strengthen its security to prevent future attacks and enhance the market trust in their systems.
After the final sentence, Council will serve time in federal prison for his role in this cybercrime.