Hacker Behind Fake SEC Bitcoin ETF Post Faces $50K Forfeiture in Plea Deal
U.S. authorities propose financial penalty and guilty plea for alleged cybercriminal
Federal prosecutors have proposed a plea deal for Eric Council Jr., the individual accused of hacking the U.S. Securities and Exchange Commission’s (SEC) X account in January 2024 to spread false information about Bitcoin exchange-traded funds (ETFs).
According to a Feb. 9 filing in the U.S. District Court for the District of Columbia, Council could be required to forfeit $50,000—money he allegedly gained after posting a fraudulent announcement stating that the SEC had approved spot Bitcoin ETFs for the first time. The proposed deal would also see Council plead guilty to conspiracy to commit aggravated identity theft and access device fraud.
Authorities claim Council was part of a group that gained unauthorized access to the SEC’s social media account through a SIM swap attack. This allowed them to post a fake announcement, including an image of then-SEC Chair Gary Gensler, misleading the market. The post briefly sent Bitcoin’s price soaring by over $1,000 before Gensler publicly denied the information. The SEC later officially approved spot Bitcoin ETFs less than 24 hours after the hoax.
Council was arrested by the FBI in October 2024 and initially pleaded not guilty. While he has remained free on a personal recognizance bond, a judge has yet to approve the proposed forfeiture order. If convicted, Council could face a minimum of two years in prison under federal sentencing guidelines.
His next court appearance is scheduled for May 16, where he is expected to receive sentencing.
