Alabama Man Pleads Guilty in US SEC X Account Bitcoin ETF Hack, Here’s All

Highlights

Eric Council Jr. pleads guilty to hacking SEC's X account, faces minimum 2-year sentence.
SEC's false Bitcoin ETF approval post boosts BTC price temporarily after hack.
$50K forfeit by Eric Council Jr. after illicit gains from SEC X account SIM swap scam.

A 25-year-old Alabama man has admitted to his role in the hacking of the U.S. Securities and Exchange Commission’s (SEC) X account. The cyberattack led to a false announcement about Bitcoin exchange-traded funds (ETFs), causing a brief price surge.

Eric Council Jr. Pleads Guilty in US SEC X Account Hack

Eric Council Jr., 25, has pleaded guilty in Washington federal court to conspiracy to commit aggravated identity theft and access device fraud. The charges stem from his involvement in the unauthorized access of the SEC’s official X account.

According to federal prosecutors, Eric Council Jnrand his co-conspirators used a SIM swap attack to bypass security measures. The false post on January 9, 2024, stated that the SEC had approved spot Bitcoin ETFs, which led to a temporary increase in Bitcoin’s price. The US SEC quickly removed the post and clarified that the announcement was unauthorized.

However, the US SEC officially approved spot Bitcoin ETFs one day after the fraudulent post was published. Judge Amy Berman Jackson has scheduled Council’s sentencing for May 16. Prosecutors indicated that he could face a mandatory minimum sentence of two years in prison.

How the Hack Was Executed

Prosecutors revealed that Council used a fake ID to deceive a local phone store employee into assisting with the SIM swap attack. This technique allowed him and his associates to gain control of the victim’s phone and ultimately access the SEC’s X account.

The individuals behind the scheme reportedly worked together to identify the target and bypass multiple security measures.

Once inside the account, they posted a fraudulent announcement about Bitcoin ETFs. Bitcoin’s price surged by over $1,000 before the SEC confirmed that the post was false.

Financial Gain and Forfeiture Agreement

As part of his plea agreement, Council has agreed to forfeit $50,000, which prosecutors say he earned from the scheme. Federal authorities filed a proposed forfeiture order on February 9, but the court has not yet approved it.

Council was arrested by the FBI in October 2024 and initially pleaded not guilty to the charges. However, he later changed his plea to guilty as part of an agreement with prosecutors. He was released on a personal recognizance bond and was permitted to travel during the holiday season.

According to the report, Eric Council’s sentencing will take place in the U.S. District Court for the District of Columbia. Legal experts indicate that his charges carry a minimum prison sentence, though the final decision rests with the court.

TAGS
Bitcoin ETF

Recommended
Price Analysis

Best Crypto Presales To Invest In September 2025 – Top Upcoming Presale Tokens

Best Crypto AI Trading Bots In 2025

Top Meme Coins To Buy In September 2025

Kelvin Munene Murithi

Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.