In a landmark case underscoring the vulnerabilities of high-profile social media accounts, 26-year-old Eric Council Jr. of Alabama was sentenced to 14 months in prison for his role in hijacking the U.S. Securities and Exchange Commission’s (SEC) official X account to make a false report of Bitcoin ETF approval. Council’s move temporarily propelled Bitcoin’s price to new heights before fraud came to light, leading to new scrutiny of cybersecurity practices at financial regulators.
Background of the Hack
The Unauthorized Post
On January 9, 2024, Council and co-conspirators launched a SIM swap attack on the @SECgov X account of the SEC’s phone number and took control of the account to state that the Commission had approved spot Bitcoin ETFs. Bitcoin’s price rose in minutes by more than $1,000, a testament to the market’s reactiveness to regulatory announcements. But then-SEC Chair Gary Gensler quickly rescinded the release, declaring the agency’s account had been “compromised”.
True SEC Approval Follows
Ironically enough, the SEC formally approved a number of spot Bitcoin exchange-traded products on January 10, 2024, adding 11 new ETFs such as Grayscale Bitcoin Trust and BlackRock’s IBIT. This authentic move was a watershed for cryptocurrency investing, opening up regulated markets to spot-based Bitcoin products.
The SIM Swap Scheme
Council, aka “Ronin” and “Agiantschnauzer” on the internet, used a counterfeit ID made by a handheld ID printer to pose as an AT&T customer to obtain a replacement SIM card for the SEC’s telephone number. With the new SIM, he accessed password reset codes for the X account, passing them to accomplices who executed the false tweet. During an FBI search of his residence, agents found internet searches by Council such as “How can I know for sure if I am being investigated by the FBI?”.
Market Impact and Aftermath
The temporary spike in the price of Bitcoin was a notional 2.5% gain, which equated to an estimated $40 billion shift in the market capitalization of the cryptocurrency. However once the SEC announcement confirming the hack was made, Bitcoin fell more steeply, erasing gains and demonstrating how incorrect information can destroy asset prices.
Legal Proceedings and Sentencing
Council pleaded guilty in February 2025 to one count of conspiracy to commit aggravated identity theft and access device fraud. During a May 16 hearing before U.S. District Judge Amy Berman Jackson, prosecutors recommended a two-year sentence, while defense counsel sought just over a year. The court ultimately imposed a 14-month prison term, followed by three years of supervised release, and ordered Council to forfeit $50,000. He’s also barred from dark-web access and further identity fraud.
Official Reactions
“Schemes of this nature threaten the health and integrity of our market system,” said U.S. Attorney Jeanine Pirro, highlighting the larger threat of SIM swap fraud to individuals and institutions alike. Matthew R. Galeotti, Chief of the DOJ Criminal Division, pointed out that prosecutions of digital-asset fraud are indispensable to protecting U.S. financial interests.
Implications for Market Security
This incident is a grim reminder that even advanced institutions need to reinforce social engineering and cybersecurity defenses. Regulators and exchanges are now under pressure to deploy multi-factor authentication, real-time surveillance, and strong incident-response measures to forestall such attacks. With digital assets increasingly going mainstream, market integrity depends on the strength of technological defenses and the strict application of cybercrime legislations.
Conclusion
Eric Council Jr.’s sentencing brings both the perils of hacking into social media and the instant market impact of misinformation. As finance becomes electronic, constant caution and judicial notice must be maintained to protect investors and have faith in regulatory commissions.
