Alabama Man Sentenced for SEC Hack

A judge sentenced an Alabama man on Friday for his involvement in a hack of the Securities and Exchange Commission’s X account in January 2024. The breach resulted in tweets that temporarily drove up bitcoin prices by over $1,000.

The individual, Eric Council Jr., had pleaded guilty three months earlier in the U.S. District Court in Washington, DC, admitting to conspiracy related to aggravated identity theft and access device fraud, which he used to aid others managing SEC accounts.

The hacked X account falsely asserted that the SEC had approved a Bitcoin exchange, leading to a spike in cryptocurrency prices. However, the SEC quickly regained control of the account and dismissed the tweet as false, causing bitcoin’s value to drop by over $2,000.

Interestingly, the SEC announced the following day that it had approved rule changes for the creation of Bitcoin ETFs.

The 14-month sentence given to Council was shorter than the 24 months sought by prosecutors. In a video statement, the 26-year-old from Huntsville noted his role in the hack, describing his cooperation with law enforcement as a way to take responsibility. He criticized the SEC’s cybersecurity measures, suggesting they were lacking and led to the breach.

Council’s attorney, Dwight Crawley, had recommended a sentence of 12 months and a day, highlighting that Council had no prior criminal record. He mentioned that Council used marijuana for mental health challenges but had not violated any laws since his release under supervision.

Crawley did not comment further when approached for details about the video referenced by prosecutors. According to court records, Council’s role included executing SIM swap attacks to gain access to an individual’s phone number associated with the SEC’s account. He was reportedly aided by a conspirator who provided a printed driver’s license to facilitate the phone number switch at an AT&T store.

The Justice Department indicated that after acquiring the victim’s phone number, Council accessed the account and posted a tweet in the name of the SEC Chairman. At that time, the bitcoin market was eagerly awaiting news about an ETF decision.

Known online under pseudonyms such as “Ronin,” “EasyMunny,” and “Agiantschnauzer,” Council was compensated with around $50,000 worth of bitcoin for his role in the hack. Prosecutors disclosed that surveillance had captured him attempting another SIM swap at an Apple Store in Birmingham.

Law enforcement executed a search warrant on January 18, uncovering a fake ID in the victim’s name linked to the SEC hack, along with Council’s image and tools used for creating fraudulent identifications. A search of his laptop revealed further evidence of fake IDs and online inquiries about SEC hacks.

U.S. Attorney Janine Piro stated that such actions jeopardize the integrity of the financial system, emphasizing the risks posed to ordinary citizens, financial institutions, and government entities from SIM swapping schemes.