Alabama man sentenced to 14 months for hacking SEC account in fake bitcoin ETF post

The man behind the hack of the U.S. Securities and Exchange Commission’s social media account that falsely claimed spot bitcoin exchange-traded funds had been approved was sentenced Friday to 14 months in prison.

Eric Council Jr, 26 of Alabama, was sentenced to 14 months in prison, according to a statement released on Friday by the U.S. Attorney's Office for the District of Columbia. 

Over a year ago, the SEC's account was compromised  just before the agency approved spot bitcoin ETFs. Prosecutors said that Council worked with others to take control of the SEC's X account when they posted, "Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges."  

Both former SEC Chair Gensler and X quickly confirmed afterward that the account had been compromised. Council pleaded guilty in February to prosecutors' charge of conspiracy to commit aggravated identity theft and access device fraud.

The fake post went out a day before the SEC officially approved much-anticipated spot bitcoin ETFs in January 2024. After the post was sent, the price of bitcoin increased by more than $1,000, prosecutors said in October. 

In a statement, U.S. Attorney Jeanine Ferris Pirro said Council's actions hurt the integrity of the markets. Pirro, a former District Attorney in New York who later became a television host, was appointed by President Donald Trump last week to lead that office in D.C. 

"Schemes of this nature threaten the health and integrity of our market system," said Pirro. "SIM swap schemes threaten the financial security of average citizens, financial institutions, and government agencies.  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.”