Eric Council Jr. was sentenced to 14 months’ imprisonment for his position within the Jan. 9, 2024, hack of the U.S. Securities and Change Fee’s (SEC’s) X account. The convicted, together with co-conspirators, posted false information of the SEC approving the primary Bitcoin (BTC) exchange-traded fund within the U.S.
In a press launch on Could 16, 2025, the U.S. Division of Justice (DOJ) acknowledged that Council Jr. may even be subjected to a few years of supervised launch, a type of parole.
The 26-year-old from Huntsville, Alabama, had pleaded responsible to conspiracy to commit aggravated id theft and entry system fraud in February. He was arrested by the Federal Bureau of Investigation (FBI) brokers in October final 12 months.
What Council Jr. did
On Aug. 29, 2023, the District of Columbia Courtroom of Appeals in Washington dominated that the SEC was improper to reject Grayscale’s spot BTC ETF utility with out correct trigger. The courtroom’s resolution meant that the SEC would overview Grayscale’s utility, which it had rejected a number of instances.
The courtroom win raised optimism, and the crypto business was extremely anticipating the SEC to approve the primary spot Bitcoin ETF any day. Council Jr. and his accomplices took benefit of the market sentiment and introduced a faux approval from the SEC’s real X account.
Courtroom paperwork point out that Council Jr. conspired to hack the SEC’s X official account and submit faux information of spot BTC ETF approval to govern the value of BTC. His position was to hold out a Subscriber Identification Module (SIM) swap, the place a nasty actor convinces the cell provider to port a sufferer’s cellphone quantity to a SIM card managed by them.
In accordance with the DOJ, Council Jr. used an ID card printer to provide faux IDs of victims, whose private knowledge was equipped to him by co-conspirators. He then used the faux IDs to achieve entry to the sufferer’s quantity to entry the SEC’s X account and submit the faux information. Council Jr. acquired cost in BTC for his position within the SEC’s X account hack.
The harm Council Jr. contributed to
Instantly after the posting of the faux information, the value of every BTC elevated by greater than $1,000. However after the SEC chair, Gary Gensler, acknowledged the hack and dismissed the message of hackers as faux, the BTC worth crashed by over $2,000 per BTC, CryptoSlate knowledge reveals.
BTC worth rose to $48,000 after the faux information was posted, however crashed to $45,000 after Gensler’s refutation. Round $50 billion was wiped off Bitcoin’s market capitalization within the 24 hours following the posting of the faux information. The value fluctuation additionally induced a complete of $220 million in liquidations.
FBI Prison Investigative Division Performing Assistant Director Darren Cox known as hack “a calculated legal act meant to deceive the general public and manipulate monetary markets.” He added:
“By spreading false data to affect the markets, Council [Jr.] tried to erode public belief and exploit the monetary system.”
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