Alabama Man Who Hacked SEC's X Account to Pump Fake Bitcoin ETF Hype Slapped With 14-Month Prison Sentence

A shocking tale of cybercrime has unfolded as an Alabama man, Eric Council Jr., was sentenced to 14 months in prison for his role in hacking into the Securities and Exchange Commission's (SEC) Twitter account and falsely announcing the approval of spot Bitcoin exchange-traded funds (ETFs). The brazen hack, which took place in early January 2024, sent shockwaves through the cryptocurrency market and briefly surged the price of Bitcoin by over $1,000 within minutes.

Council, a 26-year-old resident of Athens, Alabama, got unauthorized access to the SEC's X account and tweeted a bogus statement about the greenlighting of Bitcoin ETFs. The false post was met with enthusiasm from investors, who quickly took to the market, unaware that the announcement was nothing more than a clever ruse. However, former SEC Chairman Gary Gensler quickly confirmed that the tweet was false, and the agency's account was compromised.

Prosecutors alleged that Council conspired with others to take control of the account and post the fake statement. The FBI launched an investigation, which led them to a laptop belonging to Council at his residence. The search warrant revealed internet searches by Council for phrases such as "How can I know for sure if I am being investigated by the FBI?" and "What are some signs that the FBI is after me?"

Ironically, the SEC announced its approval of the first batch of spot Bitcoin ETFs just a day after the hack. The highly anticipated products were allowed to be traded in the United States, marking a significant milestone for the cryptocurrency market.

Council was eventually arrested in October 2024 and pleaded guilty to one count of conspiracy to commit aggravated identity theft and access device fraud in February. Interim US Attorney Jeanine Ferris Pirro stated that Council's actions hurt the integrity of the markets, highlighting the dangers of schemes like these that threaten the health and security of our market system.

"Schemes of this nature threaten the financial security of average citizens, financial institutions, and government agencies," Pirro warned. "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."

In addition to Council's prison term, he was ordered to forfeit $50,000 in proceeds from his offenses and will serve 36 months of supervised release, with restrictions on accessing the dark web and participating in identity-related crimes.