Judge sentences SEC hacker to 14 months in prison

Eric Council Jr. receives 14-month prison sentence for fake ETF announcement

On May 16, 2025, a US District Court in the District of Columbia sentenced Eric Council Jr. to 14 months in prison for his role in a scheme to disseminate a fraudulent announcement regarding the approval of spot Bitcoin exchange-traded funds (ETFs). This follows Council’s guilty plea to one count of conspiracy to commit aggravated identity theft and access device fraud.

The Justice Department’s announcement detailed the sentencing, concluding a case stemming from the January 2024 compromise of the US Securities and Exchange Commission’s (SEC) X account. Council and his accomplices used this breach to post a fabricated message claiming the SEC would approve spot Bitcoin ETFs. This deceptive action artificially impacted the market, highlighting the seriousness of the crime.

The prosecution had initially sought a two-year prison sentence, citing the gravity of the offense and its potential market manipulation. Council’s legal team, however, argued for a more lenient sentence of one year and one day. The court ultimately settled on a 14-month sentence, falling between the prosecution and defense’s recommendations.

Court documents reveal Council profited approximately $50,000 from SIM swap attacks, a technique employed to gain unauthorized access to the SEC’s account. These illicit funds are likely subject to forfeiture as part of the legal proceedings. The details of the SIM swap attacks and the broader conspiracy remain under investigation.

Council’s sentencing underscores the severe consequences of manipulating financial markets through deceptive practices and unauthorized access to official accounts. The case serves as a stark warning against similar actions, emphasizing the robust legal response to such cybercrimes. The 14-month sentence reflects the court’s determination to deter future attempts at market manipulation and identity theft. Further investigation into the conspiracy and the other individuals involved is ongoing. This case is likely to set a precedent for future prosecutions involving similar cyberattacks aimed at manipulating financial markets. The ongoing investigation may reveal further details about the extent of the conspiracy and the involvement of additional parties.