Alabama Man Receives Sentence for Breaching SEC’s Social Media to Share False Bitcoin ETF Information

A 26-year-old man from Alabama has received a prison sentence exceeding one year for his involvement in a social media breach that temporarily elevated the price of bitcoin.

Eric Council Jr., hailing from Huntsville, confessed to charges linked to a hack involving the U.S. Securities and Exchange Commission’s X account in January 2024, as reported in a statement by the U.S. Department of Justice.

Disguised as a telecom client using a fake ID, Council employed a SIM-swap technique to take control of a phone number associated with the SEC’s account. His accomplices then falsely claimed that the agency had authorized spot bitcoin exchange-traded funds (ETFs), which was a long-awaited regulatory development.

In a matter of minutes, the value of bitcoin spiked by over $1,000, only to plummet by more than $2,000 once the announcement was uncovered as fraudulent. The SEC did eventually approve the launch of spot bitcoin ETFs later that month.

Authorities indicate that Council received payment in bitcoin for his actions. He has been sentenced to 14 months in prison, followed by three years of supervised release.

Federal prosecutors described the incident as a deliberate effort to manipulate financial markets. “Taking over a federal agency’s official communication platform was a calculated criminal endeavor aimed at misleading the public and distorting financial markets,” remarked Acting FBI Assistant Director Darren Cox. “By disseminating false information to sway the markets, Council sought to undermine public trust and exploit the financial system.”