14-Month Sentence for SEC Account Hacking Scheme

Recently, a man who hacked into an X account linked to the U.S. Securities and Exchange Commission (SEC) received a 14-month prison sentence for his involvement in manipulating Bitcoin (BTC) prices.

According to a press release from the District of Columbia U.S. Attorney’s Office, Eric Council Jr., a 26-year-old from Alabama, was convicted after hacking the regulator’s X account alongside others to artificially inflate the value of BTC.

Authorities revealed that Council utilized “SIM swap” attacks, compromising mobile phone subscriber IDs to gain access to unique user information, thereby connecting devices to mobile networks.

Prosecutors stated that on January 9, 2024, Council and his accomplices targeted phones of individuals linked to the SEC’s official X account, which allowed them to manipulate BTC prices by posting misleading information.

To execute their plan, Council created a fake ID and obtained a replacement SIM card connected to a victim’s phone line, resulting in control over their AT&T account. He then purchased a new iPhone, inserted the SIM card, reset the SEC X account password, and shared it with his co-conspirators before selling the phone for cash.

One of his associates went on to fabricate a post using the SEC’s official accounts, claiming that the regulator had approved a Bitcoin-based exchange-traded fund (ETF).

This deceptive post caused the price of BTC to surge by $1,000. However, once the SEC regained control of its account and denounced the posts as false, BTC’s value dropped by $2,000.

U.S. Attorney Janine Piro remarked, “Schemes of this nature threaten the health and integrity of our market systems. SIM swap schemes endanger the financial security of everyday citizens, financial institutions, and government bodies.”