In a new case of a punished cybercrime, a hacker has received a 14-month prison sentence for hacking the SEC’s X account, uncovering alarming digital vulnerabilities.
See the tweet below!
His actions manipulated Bitcoin prices, proving cybercriminals’ capacity to destabilize financial systems.
Eric Council Jr., a 25-year-old from Alabama, was sentenced to 14 months in prison for playing a pivotal role in a January 2024 cybercrime.
This malicious act involved hacking the Securities and Exchange Commission’s X account and issuing false tweets that manipulated Bitcoin prices.
Council was found guilty of conspiracy charges related to aggravated identity theft and access device fraud.
The attack showcased a “SIM swap” strategy, where Council and his accomplices tricked a mobile carrier into transferring an SEC employee’s phone number to their SIM card.
Using a fake ID, Council impersonated the victim at an AT&T store, obtained the SIM card, activated a new iPhone, and gained unauthorized access to the SEC’s account.
Once inside, they issued a fraudulent tweet claiming Bitcoin ETF approval, causing Bitcoin values to surge by over $1,000.
“[Council] used the reset code to gain access to the @SECGov X account and issue a fraudulent post in the name of the then-SEC Chairman, falsely announcing SEC approval of Bitcoin (BTC) Exchange Traded Funds (ETFs),” prosecutors said.
Within hours, the SEC corrected the false post, leading to Bitcoin prices plummeting by $2,000.
The damage was done, exposing vulnerability and reliance within our digital financial systems.
Authorities tracked Council through online searches, finding queries on SIM swappings and whether he was under investigation.
The investigation by the FBI Washington Field Office and the SEC Office of Inspector General culminated in Council’s arrest.
Council’s plea led to federal charges, and a sentence that included three years of supervised release with computer use restrictions.
While Council evaded a maximum five-year sentence, his imprisonment and $50,000 earnings from the scheme highlight the severity of such cyber crimes.
Prosecutors emphasized these incidents threaten integrity and security, while defense argued Council’s clean record warranted leniency.
“Schemes like this threaten the health and integrity of the market system and that SIM swap schemes threaten the financial security of citizens, financial institutions, and government agencies,” said District of Columbia U.S. Attorney Jeanine Pirro.
Alabama Man Sentenced to 14 Months in Connection with Securities and Exchange Commission X Hack that Spiked Bitcoin Prices
🔗: https://t.co/zPjS3UL54P pic.twitter.com/3lYwTV3JtA
— Criminal Division (@DOJCrimDiv) May 16, 2025
The incident underscores the need for robust cybersecurity in financial regulatory bodies.
The Department of Justice stresses the importance of prosecuting similar frauds to maintain digital asset integrity.
Council’s case reflects how individuals might exploit technological vulnerabilities, making vigilant cybersecurity practices crucial to national economic security.
