SEC Hacker Sentenced to 14 Months for False Bitcoin ETF Announcement

A federal judge has handed down a 14-month prison sentence to Eric Council Jr., one of the individuals involved in a scheme that posted a false message on the X account of the US Securities and Exchange Commission (SEC). The message falsely announced regulatory approval of spot Bitcoin exchange-traded funds (ETFs).

Following a hearing on May 16 in the US District Court for the District of Columbia, the Justice Department revealed that Council would serve 14 months in prison. This sentence comes after he pleaded guilty to one count of conspiracy to commit aggravated identity theft and access device fraud. Council was part of a group that compromised the SEC's X account in January 2024, leading to the dissemination of the misleading information.

Prosecutors had initially sought a two-year sentence for Council, while his legal team argued for a sentence of one year and one day. Court documents indicated that Council had earned approximately $50,000 through SIM swap attacks, a method used to compromise the SEC's X account. These funds are likely to be subject to forfeiture.

This case highlights the growing concern over cybersecurity and the potential for misinformation to impact financial markets. The incident underscores the need for robust security measures to protect regulatory bodies and financial institutions from such attacks. The sentence handed down to Council serves as a deterrent to others who might consider engaging in similar activities, emphasizing the serious consequences of cybercrime.