A man responsible for hacking the US Securities and Exchange Commission’s (SEC) social media account was sentenced to 14 months in prison on Friday. Eric Council Jr., a 26-year-old from Athens, Alabama, was convicted for his role in a conspiracy that manipulated Bitcoin’s (BTC) value through fraudulent posts on the SEC’s official X (formerly Twitter) account.
Bitcoin Price Post Manipulated By SIM Swap Conspiracy
According to the Department of Justice (DOJ), Council, alongside co-conspirators, executed a series of Subscriber Identity Model (SIM) attacks—commonly known as SIM swaps—starting in January 2024. These attacks allowed them to gain unauthorized access to the SEC’s X account, leading to the publication of false exchange-traded funds (ETFs) announcements.
On January 9, 2024, Council impersonated a victim to obtain a replacement SIM card from an AT&T store. Using a fake ID, he successfully swapped the victim’s phone number to his new SIM card, which he then used to take control of the SEC’s social media account.
Once in control, the conspirators issued a fraudulent post claiming that the SEC had approved spot Bitcoin ETFs. This misleading announcement caused Bitcoin’s price to surge by over $1,000, only for it to plummet by more than $2,000 after the SEC regained control of the account and confirmed that the post was unauthorized.
US Attorney Jeanine Ferris Pirro highlighted the serious implications of such schemes, stating, “SIM swap schemes threaten the financial security of average citizens, financial institutions, and government agencies.”
Matthew R. Galeotti, Head of the DOJ’s Criminal Division, emphasized the importance of prosecuting individuals who use cyber fraud to manipulate financial markets.
Council Pleads Guilty To Identity Theft
Council’s activities did not stop with the SEC hack. He admitted to planning additional SIM swaps and was arrested by the FBI on October 17, 2024.
A subsequent search of his apartment revealed a fake ID card, a portable ID printer, and a laptop containing templates for additional fraudulent IDs. Council had received about $50,000 for his role in the conspiracy and pleaded guilty to conspiracy to commit aggravated identity theft in February 2025.
In addition to his prison sentence, US District Court Judge Amy Berman Jackson ordered Council to forfeit the $50,000 he earned from the scheme and imposed three years of supervised release, during which he is prohibited from accessing the dark web or engaging in further identity fraud.
At the time of writing, the market’s leading cryptocurrency trades at $105,700, little over 3% from its all-time high (ATH) of $109,000 reached during January’s bull run following President Donald Trump’s election.
Featured image from DALL-E, chart from TradingView.com
