Alabama Man Faces Five Years in Prison for Hacking SEC’s X Account

An Alabama man is facing up to five years in prison over the January 2024 takeover of the SEC’s social media account on X.

The Office of Public Affairs (OPA) this week announced the guilty plea of Eric Council Jr., of Athens, Alabama, in connection with the January 2024 unauthorized takeover of the US Securities and Exchange Commission (SEC)’s social media account on X.

The 25-year-old, along with several co-conspirators, used a SIM-swapping technique to hack into the SEC’s X account, and posted a fake announcement that prompted Bitcoin’s trading price to swing sharply.

BTC Exchange Traded Funds

Council and his crew falsely announced (in the name of then-SEC Chairman, Gary Gensler) that the SEC had approved Bitcoin Exchange Traded Funds, a decision highly anticipated by the market.

The price of Bitcoin (BTC) immediately jumped $1,000 per unit. Shortly after, the SEC regained control of its X account and confirmed the announcement was the result of a security breach.

Following the correction, the value of BTC decreased by more than $2,000 per Bitcoin, meaning those who knew how to use the window made a quick profit.

The SEC, as planned, announced the official approval of Bitcoin ETFs the following day.

A typical SIM swapping attack

“The conspirators gained control of the SEC’s X account through an unauthorized Subscriber Identity Module (SIM) swap carried out by Council,” said the Justice Department in a press release this week.

“As part of the scheme, Council used an identification card printer to create a fraudulent identification card with a victim’s personally identifiable information obtained from his co-conspirators,” the DOJ continues. “Council used the fraudulent identification card to impersonate the victim and gain access to the victim’s cellular phone number for the purpose of accessing the SEC’s account.

Council was paid in bitcoin from his co-conspirators for his role, court documents say.

Council pleaded guilty to conspiracy to commit aggravated identity theft and access device fraud and is scheduled to be sentenced on May 16. He faces a maximum penalty of five years in prison.