US Authorities Propose Plea Deal For Alleged SEC Account Hacker

According to Cointelegraph, U.S. authorities have put forward a plea agreement for Eric Council Jr., who is accused of compromising the Securities and Exchange Commission’s X account in January 2024. In a filing dated February 9 in the U.S. District Court for the District of Columbia, federal prosecutors suggested a forfeiture order that could compel Council to pay $50,000, which he allegedly gained by posting a misleading message on X. The message falsely claimed that the SEC had approved spot Bitcoin (BTC) exchange-traded funds (ETFs) for the first time. As part of the proposed agreement, Council would plead guilty to one count of conspiracy to commit aggravated identity theft and access device fraud. Council is alleged to have been part of a group that temporarily seized control of the SEC’s X account through a SIM swap attack. This breach enabled the hackers to post a deceptive message featuring an image of then-SEC Chair Gary Gensler, falsely announcing the approval of spot Bitcoin ETFs. The SEC swiftly removed the message and officially announced the approval of the investment vehicles less than 24 hours later. At the time of writing, U.S. District Judge Amy Berman Jackson had not yet approved the forfeiture order. Council was arrested by the Federal Bureau of Investigation in October 2024 and subsequently pleaded not guilty to the felony charge. According to the Congressional Research Service, he could face a minimum sentence of two years in prison. The fraudulent Bitcoin ETF post, which appeared on X on January 9, 2024, coincided with widespread anticipation in the crypto industry regarding the SEC's decision on listing spot BTC investment vehicles on U.S. exchanges. Following the post, the price of BTC surged by over $1,000 before Gensler refuted its authenticity. Since his arrest, Council has been released on a personal recognizance bond and permitted to travel outside the jurisdiction for the holidays. It remains uncertain when he will return to court in person to face potential sentencing under the proposed plea deal.