SEC hacker counters prosecutors with 366-day sentencing recommendation

Eric Council Jr., responsible for a SIM swap attack that resulted in a fake SEC announcement regarding Bitcoin ETF approval, faces sentencing. His defense team has requested a sentence of one year and one day, contrasting with the prosecution’s request for two years. Council’s legal team argues that this shorter sentence adequately punishes his actions, promotes respect for the law, and deters future offenses. Their May 13 filing emphasizes that a twelve-month sentence serves the ends of justice.

Council initially pleaded not guilty but subsequently changed his plea to guilty in February to one count of conspiracy to commit aggravated identity theft and access device fraud. The sentencing, scheduled for May 16th, is overseen by Judge Amy Berman Jackson. The prosecution contends that Council “profited through a sophisticated fraud scheme,” citing approximately $50,000 earned from similar SIM swap attacks as justification for a two-year sentence. Judge Jackson has also ordered prosecutors to clearly identify the relevant felony and its supporting evidence within the court record.

The case highlights the increasing prevalence of cyberattacks targeting regulatory bodies and the potential for significant market manipulation through such actions. The false announcement of Bitcoin ETF approval, disseminated through a compromised SEC X account, underscores the vulnerability of official communication channels to malicious actors and the resulting impact on market confidence.

Council’s sentencing hearing will occur amidst potential changes in leadership at the DC court district. The recent announcement of Jeanine Pirro as the interim US attorney for the District of Columbia by President Trump on May 8th may influence the future prosecution of similar crypto-related cases. This transition adds another layer of complexity to an already significant legal matter. The outcome of Council’s sentencing will serve as a precedent for future cases involving digital asset market manipulation and the use of SIM swap attacks to compromise sensitive information.