SEC Twitter Hack: Eric Council Jr. Jailed 14 Months for SIM-Swap Bitcoin ETF Fraud, Crypto Market Manipulation
Eric Council Jr., a 26-year-old Alabama resident, has been sentenced to 14 months in prison by a U.S. federal judge for his involvement in hacking the Securities and Exchange Commission’s (SEC) X (formerly Twitter) account. Utilizing a SIM-swapping attack and fake identification, Council and accomplices published a false post claiming the approval of a spot Bitcoin ETF—a major crypto market milestone. The fraudulent announcement caused bitcoin prices to spike by $1,000 before quickly reversing after the news was debunked. Council pleaded guilty to conspiracy to commit aggravated identity theft and device access fraud, earning approximately $50,000 in bitcoin from the scam, which is subject to forfeiture. Prosecutors sought a two-year sentence, while the defense requested 366 days. Upon release, Council will face 36 months of supervised release. The case highlights increasing regulatory and legal efforts to combat crypto-related hacking, fraud, and market manipulation. Crypto traders should remain vigilant regarding emerging social engineering threats, misinformation, and the broader enforcement push against market manipulation risks.
Neutral
The sentencing of Eric Council Jr. for hacking the SEC’s X account and manipulating the bitcoin market through false ETF approval news caused a rapid but short-lived price spike, followed by an immediate reversal. Since the fraudulent news was quickly debunked and the market corrected itself within hours, there are no persistent bullish or bearish forces directly resulting from the incident. However, the event highlights the ongoing risk of misinformation, prompting increased vigilance among traders and leading to heightened enforcement by authorities. While this may foster greater market stability long term, the immediate price impact has already dissipated, suggesting a neutral effect on current market conditions.