Alabama Man Pleads Guilty to SEC X Account Hack

Eric Council Jr., the Alabama man accused of hacking the US Securities and Exchange Commission's (SEC) X account in January 2024 to falsely announce the approval of Bitcoin exchange-traded funds (ETFs), is poised to plead guilty.

In a 9 February filing with the U.S. District Court for the District of Columbia, federal prosecutors proposed a forfeiture order requiring Council to repay $50,000 that he allegedly gained from the fraudulent post.

Additionally, Council is expected to plead guilty to one count of conspiracy to commit aggravated identity theft and access device fraud.

Hacked SEC Account Posted About Bitcoin ETF Approval

Council is accused of being part of a group that gained control of the SEC's X account in January 2024 via a SIM swap attack.

Prosecutors allege that Council used a fraudulent ID to deceive a phone store employee into facilitating the SIM swap, which allowed him and his associates to access the SEC’s account.

The attackers bypassed several security measures to post a fabricated message featuring then-SEC Chair Gary Gensler, falsely announcing the approval of spot Bitcoin ETFs.

Following the post, Bitcoin's price spiked by over $1,000 before the SEC confirmed the message was false.

The SEC swiftly removed the post and clarified that approval had not been granted, though it would approve the ETFs within 24 hours.

At the time of publication, US District Judge Amy Berman Jackson had not yet approved the forfeiture order.

Council, arrested in October 2024, initially pleaded not guilty to felony charges.

The post, which came amid high anticipation in the crypto community regarding the SEC’s decision on spot Bitcoin ETFs, led to significant market fluctuations.

Council could face at least two years in prison, according to the Congressional Research Service.

Council’s Initial Not Guilty Plea

Council was arrested by the FBI in October 2024 and initially pleaded not guilty to the charges.

However, he later changed his plea to guilty as part of a deal with prosecutors.

Released on a personal recognisance bond, Council was allowed to travel during the holiday season.

His sentencing will take place in the US District Court for the District of Columbia, with experts suggesting that the charges carry a minimum prison sentence, though the final determination lies with the court.

Judge Amy Berman Jackson has scheduled his sentencing for 16 May.