Alabama Man To Plead Guilty In SEC Account Hacking Case

According to CoinDesk, Eric Council Jr., an Alabama resident, is set to plead guilty to charges related to hacking the X account of the U.S. Securities and Exchange Commission (SEC). The charges include Conspiracy to Commit Aggravated Identity Theft and Access Device Fraud. Council has agreed to forfeit $50,000 in proceeds from these offenses, as indicated by a "Consent Order of Forfeiture" filed in D.C. federal court. The prosecution alleges that Council used a fake ID to deceive a phone store employee, enabling him and his co-conspirators to access a device linked to the SEC’s X account. This breach led to a false post claiming the SEC had approved bitcoin exchange-traded funds (ETFs), which was shared on the agency’s account a day before the actual approval. The anticipation surrounding the approval of these funds was significant, as they were expected to attract substantial investments from institutional investors. The false post temporarily caused a surge in bitcoin prices. Judge Amy Berman Jackson has scheduled Council's sentencing for May 16. The case highlights the security vulnerabilities that can arise in the digital age, especially concerning high-profile financial institutions. The FBI apprehended Council in October following the incident, which underscores the importance of cybersecurity measures in preventing unauthorized access to sensitive accounts. The incident serves as a reminder of the potential market impact of misinformation, particularly in the volatile cryptocurrency sector.