SEC hacker sentenced to 14 months in prison

Eric Council Jr. Receives 14-Month Prison Sentence for Fake SEC Bitcoin ETF Announcement

A federal judge sentenced Eric Council Jr. to 14 months in prison for his involvement in a scheme to post a fraudulent announcement on the U.S. Securities and Exchange Commission’s (SEC) X account. The false announcement claimed the SEC would approve spot Bitcoin (BTC) exchange-traded funds (ETFs). This followed a May 16 hearing in the U.S. District Court for the District of Columbia.

Council pleaded guilty to one count of conspiracy to commit aggravated identity theft and access device fraud. The Justice Department announced the sentence, highlighting the threat such schemes pose to market integrity and financial security. Interim U.S. Attorney for the District of Columbia, Jeanine Pirro, emphasized the risks these actions present to citizens, financial institutions, and government agencies.

Council’s actions were part of a larger operation that compromised the SEC’s X account via a SIM swap attack in January 2024. Prosecutors initially sought a two-year sentence, while Council’s lawyers argued for one year and one day. Court documents revealed Council profited approximately $50,000 from similar SIM swap attacks, funds likely subject to forfeiture.

The judge also imposed 36 months of supervised release following Council’s prison term. While his reporting date remains unclear, he has been free on bond since his October 2024 arrest.

Council’s sentencing is the latest in a series of legal cases impacting the cryptocurrency industry. While high-profile cases like those involving FTX executives have concluded, other proceedings are ongoing. For instance, former Celsius CEO Alex Mashinsky received a 12-year sentence on May 8th after pleading guilty to two felony counts. The trial of former SafeMoon CEO John Karony is also continuing in the U.S. District Court for the Eastern District of New York. These developments underscore the evolving legal landscape surrounding cryptocurrency and the increasing scrutiny of individuals and companies operating within the sector. The Council case serves as a stark reminder of the potential consequences of fraudulent activities in the digital asset market.