The United States has sentenced an Alabama man to 14 months in prison for his part in the hack of the X account belonging to the United States Securities and Exchange Commission. According to the official report, the man, who previously pleaded guilty, received his sentence on Friday. According to the report, the perpetrator, Eric Council Jr. of Athens, Alabama, was indicted for his role in hacking the X handle belonging to the securities agency. After the hack, he falsely announced the approval of spot Bitcoin exchange-traded funds (ETFs) in an attempt to drive up the value of Bitcoin. Authorities mentioned that Council conspired to commit aggravated identity theft for his role in the SIM swap attack. SEC X account hacker sentenced to 14 months in prison According to the authorities, 26-year-old Council conspired with others to carry out the act, taking control of the X account to make the announcement. At the time, the decision was highly anticipated by all interested parties in the crypto industry, with the false announcement causing the price of the digital asset to increase by $1,000. The surge was also followed by a correction, which saw the price of the asset drop by $2,000 per BTC. The conspirators gained access to the SEC’s X account using an unauthorized Subscriber Identity Module (SIM) swap that was done by Council. A SIM swap is a form of fraud where a criminal actor illegally induces a cellular phone carrier to reassign a cellular phone number from a victim’s SIM to a SIM card controlled by the criminal actor. This way, the criminal can access several accounts belonging to the victim, including social media, in the case of Council, and digital asset accounts. As part of the scheme, Council used an identity card printer to create an illegal identification card using the victim’s personal identifiable information obtained from co-conspirators. Council then used the identity card to impersonate the victims and gain access to their numbers for the purpose of accessing the SEC’s X account. His co-conspirators then went ahead to post the name of the SEC chairman, falsely announcing the approval of the Bitcoin ETF. The authorities were able to establish that Council was paid in Bitcoin for his role in the hack. Authorities kick against Council’s activities According to reports, the FBI found a laptop in a residence that Council lived in after a search warrant was obtained. On the laptop, the authorities found search phrases like, “How can I know for sure if I am being investigated by the FBI?” and “What are some signs that the FBI is after you?” The FBI eventually arrested him in late 2024. The SEC announced the official approval of the Bitcoin product on January 10, a day after the incident. The price of the asset has doubled since then, with BTC now trading well into the $100,000 price mark. In addition to his prison term, Council has been ordered to forfeit $50,000 and will be supervised for three years after his release, with the condition that he may not commit identity fraud or access the dark web. “Schemes of this nature threaten the health and integrity of our market system,” said U.S. Attorney Jeanine Pirro, in a statement. “SIM swap schemes threaten the financial security of average citizens, financial institutions, and government agencies. Don’t fool yourself into thinking you can’t be caught. You will be caught, prosecuted, and will pay the price for the damage your actions create.” The Securities and Exchange Commission Office of Inspector General Special Agent in Charge Amanda James mentioned that the sentencing shows that the agency is committed to putting bad actors away and holding them accountable for their actions while maintaining the integrity of SEC operations through investigative oversight. “We are committed to working with the SEC and other law enforcement partners to help the SEC effectively and efficiently deliver on its critical mission.” Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
