- U.S. prosecutors recommend a two-year sentence for the individual who hacked SEC’s official X account.
- The hacker used a SIM swap to post a false message about Bitcoin ETF approval.
- The sentencing hearing is scheduled for May 16 before Judge Amy Berman Jackson.
U.S. prosecutors have asked a federal court to sentence SEC hacker Eric Council Jr. to 24 months in prison.
Prosecutors seek two year prison time for SEC hacker in ETF misinformation Case
Federal prosecutors in Washington, D.C., are pushing for a two-year prison sentence for Eric Council Jr., the man who pled guilty to hacking the Securities and Exchange Commission’s official X account in early 2024. Eric Council’s exploit led to the posting of a false statement that the SEC had approved spot Bitcoin exchange-traded funds (ETFs), causing widespread confusion and immediate market reaction.
Cointelegraph’s fake news that the SEC approved iShares Bitcoin Spot #ETF has caused many users to #FOMO and lose money.
A whale spent 613,201 $USDC to buy 20.5 $WBTC and quickly sold for 563,970 $USDC after it was confirmed fake news.
The whale lost $49K in just 10 minutes! pic.twitter.com/8YSPPjCvbr
— Lookonchain (@lookonchain) October 16, 2023
According to a May 12 court filing, Council gained unauthorized access to the SEC’s account through a SIM swap operation, allowing him to bypass standard security protocols. The government argued that Council’s actions were part of a coordinated fraud scheme involving fake identification documents, deception at telecom service providers, and cooperation with unidentified individuals based in the United States and abroad.
Prosecutors emphasized that Council’s conduct warrants a full prison term within the sentencing guideline range. They stated that the attack was not merely a prank or digital trespass but a calculated act intended to manipulate public perception through a government agency’s platform.
Fraud scheme involved forged IDs, Telecom deception, and international co-conspirators
The Department of Justice described the incident as part of a wider pattern of digital fraud and identity manipulation. Council reportedly used forged documents to impersonate SEC employees, which allowed him to convince telecommunications providers to hand over control of the agency’s phone line.
Once access was obtained, Council and his associates intercepted password reset codes and ultimately took control of the SEC’s X account.
The false ETF approval post was published shortly afterward, triggering immediate responses across financial and public communication channels.
The SEC removed the tweet within minutes and issued a formal statement clarifying that no ETF approvals had been made at that time. The actual ETF approval came the following day.
Investigators traced the operation to a group effort, though Council is the only individual currently facing sentencing. The DOJ notes that additional participants remain unidentified, and further prosecutions may follow if more evidence becomes available.
What’s next?
Eric Council Jr. is scheduled to be sentenced on May 16. The court will determine whether to accept the prosecution’s recommendation of 24 months in prison. No response has been filed yet by Council’s legal team.
