Man Sentenced for Bitcoin Surge Hack

An Alabama man, Eric Council Jr., was sentenced to 14 months in prison for hacking the X account of the U.S. Securities and Exchange Commission (SEC) and posting a false announcement about the approval of spot Bitcoin exchange-traded funds (ETFs). The incident occurred in early January 2024, when Council gained unauthorized access to the SEC’s X account and tweeted a fabricated statement claiming that the SEC had approved Bitcoin ETFs for listing on all registered national securities exchanges. This false information briefly caused the price of Bitcoin to surge by over $1,000 within minutes.

Prosecutors alleged that Council conspired with others to take control of the SEC’s account and post the misleading tweet. The false announcement was quickly debunked by former SEC chairman Gary Gensler, who confirmed that the tweet was fake and that the agency’s account had been compromised. Following Gensler’s statement, the price of Bitcoin fell by over $2,000. The Federal Bureau of Investigation (FBI) conducted a search warrant at Council’s residence in Athens, Alabama, and discovered a laptop containing internet searches related to FBI investigations, indicating Council’s awareness of potential legal consequences.

Ironically, the SEC approved the first batch of spot Bitcoin ETFs just a day after the hack, allowing these highly anticipated financial products to be traded in the United States. Council was arrested in October 2024 and pleaded guilty in February to one count of conspiracy to commit aggravated identity theft and access device fraud. Interim U.S. Attorney for the District of Columbia Jeanine Ferris Pirro emphasized the severity of Council’s actions, stating that such schemes threaten the integrity of the market system and the financial security of citizens, institutions, and government agencies.

In addition to his prison sentence, Council was ordered to forfeit $50,000 in proceeds from his offenses and will serve 36 months of supervised release. During this period, he will be restricted from accessing the dark web and participating in identity-related crimes. This case serves as a stark reminder of the potential consequences of cybercrimes and the importance of maintaining the integrity of financial markets.