U.S. Seeks 24-Month Sentence for Man Who Hacked SEC Twitter, Caused Market Chaos

The U.S. government has requested a two-year prison sentence for Eric Council Jr., who has been implicated in disseminating false information regarding the approval of a Bitcoin spot ETF by the U.S. Securities and Exchange Commission (SEC).

On May 12th, prosecutors submitted a filing to the U.S. District Court for the District of Columbia, asserting that Council’s claims on the social media platform X prompted significant market fluctuations. Council’s false assertion, claiming that the SEC had granted approval for a spot Bitcoin ETF in January 2024, caused considerable unrest in the cryptocurrency community. The misinformation surged through the market within a mere 24 hours prior to the SEC’s actual endorsement of the product.

Council Jr. pleaded guilty to hacking the SEC's Twitter account and posting false information about a Bitcoin ETF approval. The incident occurred in 2024, and Council Jr. was charged with compromising the SEC's official Twitter account, which led to the dissemination of misleading information regarding the approval of a Bitcoin ETF. The false tweet caused significant market disruption and confusion among investors.

The U.S. prosecutors have submitted their recommendation to the federal court, seeking a 24-month prison term for Council Jr. This request comes after Council Jr. admitted to his involvement in the hacking incident. The false information posted on the SEC's Twitter account claimed that the regulatory body had approved a Bitcoin ETF, which is a significant development in the cryptocurrency market. However, this claim was later debunked, leading to a swift investigation and the eventual arrest of Council Jr.

The case highlights the growing concern over cybersecurity and the potential impact of false information on financial markets. The SEC, along with other regulatory bodies, has been increasingly vigilant in monitoring and addressing cyber threats. The incident involving Council Jr. underscores the need for robust security measures to protect against unauthorized access and the dissemination of misleading information.

The U.S. government's request for a two-year prison sentence reflects the severity of the offense and the potential consequences of such actions. The false tweet not only misled investors but also undermined the credibility of the SEC and the broader financial regulatory framework. The case serves as a reminder of the importance of maintaining the integrity of financial information and the need for stringent measures to prevent cyber attacks.

The legal proceedings against Council Jr. are ongoing, and the final sentencing decision will be made by the federal court. The outcome of this case will set a precedent for future cybersecurity-related offenses and the penalties associated with them. The U.S. government's stance on this matter sends a clear message that such actions will not be tolerated and that those responsible will face severe consequences.