An Alabama man has been sentenced to 14 months in prison for his involvement in the January 2024 breach of the Securities and Exchange Commission’s X account, which was exploited to disseminate a tweet that briefly increased the price of bitcoin by over $1,000, according to the Justice Department.
Eric Council Jr., who pleaded guilty three months prior in U.S. District Court in Washington, D.C., admitted to conspiracy to commit aggravated identity theft and access device fraud in relation to aiding others in taking control of the SEC’s account.
The compromised account falsely claimed that the SEC had officially sanctioned exchange-traded funds for bitcoin.
This tweet led to a brief surge in the cryptocurrency’s price, which later dropped by more than $2,000 after the SEC regained control and clarified that the tweet was misleading.
The SEC ironically announced the following day that it had approved rule changes facilitating the creation of bitcoin ETFs.
Council’s 14-month sentence was less than the 24 months sought by prosecutors, who noted in a sentencing memorandum that a hacker group released a video on X featuring Council claiming responsibility for the hack.
In the animated video, the 26-year-old from Huntsville acknowledged his role in the breach and attempted to shift blame toward the SEC’s cybersecurity measures, suggesting, “[t]he @SECGov Hack was an inside job,” and asserting that the agency had not taken adequate accountability for investor losses related to cybersecurity lapses. He concluded the video by downplaying the seriousness of his actions and those of his accomplices.
Council’s defense attorney, Dwight Crawley, recommended a reduced sentence of 12 months and a day, citing his client’s lack of prior criminal activity.
“The defendant admitted to daily marijuana use prior to his arrest, but has remained clean since his release on pre-trial supervision,” Crawley stated, noting that the substance aided Council in managing his mental health issues.
Crawley did not provide comments on the case when reached by Finance Newso and abruptly ended the conversation when asked about the video referenced by prosecutors.
Council’s participation in the hacking conspiracy involved executing a SIM swap attack on an individual whose number was associated with the SEC’s X account.
He was informed about this victim’s identity by another conspirator and then utilized a portable ID card printer to create a fake driver’s license matching the victim’s. This counterfeit ID was presented at an AT&T store in Huntsville, enabling Council to convince an employee to transfer the victim’s phone number to a device controlled by him, according to court documents.
Once he gained access to the victim’s phone number, Council’s co-conspirators were able to access the SEC’s account and post on behalf of the SEC Chairman, the Justice Department reported. At that time, the bitcoin market was awaiting an important announcement regarding bitcoin ETFs.
Council, who operated under several online aliases including “Ronin,” “Easymunny,” and “AGiantSchnauzer,” received approximately $50,000 in bitcoin as compensation for his role in the hack.
Surveillance footage showed him attempting to repeat the SIM swap strategy at an Apple store in Birmingham, Alabama, just a week before his vehicles and home were searched under a law enforcement warrant.
The search led to the discovery of fake identification documents in the name of the SEC hack victim, as well as a portable ID printer. Investigators also found templates for counterfeit IDs and web searches related to the SEC breach, SIM swapping, and inquiries about federal investigation protocols.
“Schemes of this nature threaten the health and integrity of our market system,” District of Columbia U.S. Attorney Jeanine Pirro remarked. “SIM swap schemes threaten the financial security of average citizens, financial institutions, and government agencies.”
