Defense Lawyers Seek Reduced Sentence for SEC Hacker in Bitcoin ETF Hoax

According to Cointelegraph, defense attorneys have requested a reduced prison sentence for Eric Council Jr., who was involved in a scheme to post a fraudulent message about regulatory approval of Bitcoin exchange-traded funds (ETFs). The defense is advocating for a sentence of approximately one year, in contrast to the prosecution's demand for a two-year term. In a filing dated May 13 in the U.S. District Court for the District of Columbia, Council's legal team argued for a sentence not exceeding one year and one day, following his guilty plea. Council was implicated in a group that gained unauthorized access to the U.S. Securities and Exchange Commission’s (SEC) X account in 2024 through a SIM swap attack. This breach led to the dissemination of a false message claiming the SEC had approved spot Bitcoin ETF listings for the first time. The defense stated, "A sentence of twelve months and one day serves the ends of justice," emphasizing that it adequately punishes Council while promoting respect for the law and deterring future criminal activities. Initially, Council pleaded not guilty but later changed his plea to guilty in February, admitting to one count of conspiracy to commit aggravated identity theft and access device fraud. Judge Amy Berman Jackson, who is presiding over the case, instructed prosecutors to specify the felony and indicate where this information is documented by May 13. Council's sentencing is set for May 16, with prosecutors urging a two-year sentence, citing his involvement in a "sophisticated fraud scheme" that reportedly netted him around $50,000 through similar SIM swap attacks. As Council's case approaches its conclusion with the impending sentencing hearing, the District of Columbia court may soon experience a change in leadership, potentially impacting the handling of crypto-related cases. On May 8, U.S. President Donald Trump announced that Fox News host Jeanine Pirro would assume the role of interim U.S. attorney for the District of Columbia. This development could influence the prosecution of future cases involving cryptocurrency and related offenses.