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2mo ago

Alabama Man Sentenced for SEC X Account Hack That Manipulated Bitcoin Prices

Eric Council Jr. received a 14-month prison sentence after pleading guilty to a SIM swap attack that led to a fraudulent Bitcoin ETF announcement and market disruption.

The US Securities and Exchange Commission (SEC) headquarters in Washington, DC. (Image: Valerie Plesch/Bloomberg via Getty Images)
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Overview

  • Eric Council Jr., 26, was sentenced to 14 months in prison, three years of supervised release, and ordered to forfeit $50,000 for his role in the January 2024 SEC X account hack.
  • The hack involved a SIM swap attack that allowed Council and his co-conspirators to post a fake Bitcoin ETF approval, causing Bitcoin's price to surge by over $1,000 before dropping more than $2,000 after the breach was revealed.
  • Council used a fake ID created with a portable ID card printer to impersonate a victim and gain unauthorized access to the SEC's X account by obtaining a replacement SIM card.
  • The case highlighted vulnerabilities in cybersecurity practices, particularly the SEC's temporary deactivation of multi-factor authentication on its X account.
  • The investigation, led by the FBI, DOJ, and SEC OIG, underscores the importance of robust cybersecurity measures to protect public trust and market integrity.