Washington, D.C. — A 26-year-old man from Huntsville, Alabama, was sentenced Friday to 14 months in federal prison for his role in a cyber scheme that led to the unauthorized takeover of the U.S. Securities and Exchange Commission’s (SEC) social media account on X (formerly Twitter), causing a temporary but significant spike in Bitcoin prices.
Eric Council Jr. pleaded guilty in February to conspiracy to commit aggravated identity theft and access device fraud. Federal investigators say Council played a key role in a coordinated SIM swapping attack that gave him and his co-conspirators access to the SEC’s X account, where they posted a fake announcement claiming that the SEC had approved Bitcoin exchange-traded funds (ETFs)—a decision highly anticipated by investors.
The false statement caused Bitcoin’s price to surge by over $1,000 per BTC within minutes. The market correction that followed saw the cryptocurrency’s value plummet by more than $2,000 per BTC once the hoax was discovered and the post retracted.
According to court documents, Council used a fraudulent ID card created with stolen personal data to impersonate a victim and gain access to the victim’s phone number. This allowed the attackers to take control of the SEC’s X account. The fake announcement was posted using the name of the SEC Chairman. Council received Bitcoin payments from his co-conspirators for his involvement in the hack.
“This case underscores how sophisticated cybercriminals can manipulate public institutions to exploit financial markets,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “We remain committed to prosecuting those who use digital deception for personal gain.”
U.S. Attorney Jeanine Pirro for the District of Columbia added, “This scheme was not only an attack on a federal agency but a threat to market integrity. Criminals engaging in SIM swap fraud will be caught and held accountable.”
FBI officials echoed those concerns, with Acting Assistant Director Darren Cox stating, “Council’s actions attempted to erode public trust in financial systems. His sentencing sends a strong message to others considering similar attacks.”
Council will also serve three years of supervised release following his prison term.
Authorities encourage the public to learn more about SIM swap fraud and prevention strategies by visiting the FBI’s cybercrime resource page at www.ic3.gov/PSA/2024/PSA240411.
