Eric Council Jr. Sentenced for SEC Account Hack

Eric Council Jr., 26, was sentenced to 14 months for hacking the SEC’s X account in Athens, Alabama, on January 9, 2024.

The incident underscores cybersecurity vulnerabilities, leading to a significant market reaction and SEC enforcement actions .

Council’s SIM swap and subsequent account hack posted a fraudulent announcement about Bitcoin ETFs. Bitcoin’s price initially surged by $1,000 before correcting. The SEC acted swiftly, highlighting the need for increased digital security.

Eric Council Jr. pleaded guilty in February 2025, admitting conspiracy to commit aggravated identity theft . No past affiliation with crypto sectors is noted. The SEC now focuses on bolstered cyber defenses.

Bitcoin saw immediate price impacts, spiking before settling down. This event caused market instability, though no other cryptocurrencies were officially reported as affected. Financial implications were evident as the SEC took regulatory action.

“The unit will not only protect investors but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow. It will root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies.” – Mark T. Uyeda, Acting Chairman, SEC

The SEC’s Cyber and Emerging Technologies Unit addresses these threats. Past attacks show ongoing risk to markets, driving regulatory changes. Other digital assets remained stable during this incident.

Official units aim for tighter security. Market trust is affected by such events, amplifying the need for rigorous enforcement measures. The unit promises to root out digital asset misuse.