"Alabama Man Pleads Guilty to SEC Bitcoin ETF Hack"

In a significant development, an Alabama resident, Eric Council Jr., has pleaded guilty to hacking the Securities and Exchange Commission's (SEC) X account and posting false information about a Bitcoin ETF. The incident, which occurred in January 2024, involved Council and his associates taking control of the SEC's official account and posting a fake announcement claiming that the agency had approved spot bitcoin exchange-traded funds.

The US District Court for the District of Columbia has outlined the terms of a plea agreement, which includes a potential forfeiture of $50,000, the amount Council personally gained from the fraudulent post. As part of his plea, Council has admitted to conspiracy charges related to aggravated identity theft and access device fraud.

The hack took place just before the SEC was set to approve spot bitcoin ETFs. Council and his accomplices used the compromised social media account to post a misleading message a day before the official decision, causing bitcoin's value to surge by over $1,000. Former SEC Chair Gary Gensler and the social media platform X later confirmed that the account had been breached.

During the court proceedings, prosecutors detailed an elaborate scheme in which Council used information from his co-conspirators to create a fake ID. He then used the ID to obtain a SIM card linked to a victim's phone line, allowing him to intercept access codes for the SEC's account.

US District Judge Amy Berman Jackson has yet to approve the forfeiture order. Council was arrested by the FBI in October 2024 after initially pleading not guilty. According to the Congressional Research Service, he could face a minimum sentence of two years in prison. After his arrest, Council was released on a bond and allowed to travel for the holidays. It's unclear when he will return to court for sentencing related to the plea deal.