An Alabama man, Eric Council Jr., 25, admitted to hacking the Securities and Exchange Commission’s (SEC) X account last year. He faces up to five years in prison.
The Hack and its Fallout
In January 2024, Council and others took control of the SEC’s official X account. They falsely announced the approval of spot Bitcoin ETFs (exchange-traded funds). This fake news caused Bitcoin’s price to surge over $1,000 before plummeting more than $2,000 once the SEC regained control and debunked the announcement. Ironically, the SEC did approve spot Bitcoin ETFs shortly after the incident.
How it Happened
The Department of Justice (DOJ) says Council used an illegal SIM swap to impersonate someone with access to the SEC’s X account. A SIM swap involves tricking a phone company into transferring a phone number to a SIM card controlled by the hacker. Council was allegedly paid in Bitcoin for his role. His co-conspirators are believed to have actually posted the false ETF announcement.
The Guilty Plea and Sentencing
Council pleaded guilty to conspiracy to commit aggravated identity theft and access device fraud. His sentencing is scheduled for May.
