Hacker Admits Role in SEC Hack, Faces Two Years in Prison
Eric Council Jr., a 28-year-old hacker, has admitted to his role in a SIM swap attack that compromised the SEC's X account, leading to a false Bitcoin price ETF approval announcement. Council faces a potential two-year prison sentence and is ordered to forfeit $50,000 in earnings.
Council and his accomplices deceived a phone store employee using a counterfeit ID to gain control of a targeted phone number, facilitating the SIM swap attack. The SEC revealed that it had not activated two-factor authentication on its X account at the time of the hack, allowing Council and his associates temporary access.
The unauthorized post, announcing the approval of spot Bitcoin (BTC) exchange-traded funds (ETFs), caused an immediate surge in Bitcoin price, which soared by more than $1,000 before being clarified as not legitimate by then SEC Chair Gary Gensler. Council was initially taken into custody in October 2024 and pleaded not guilty. However, he admitted his involvement in the SEC hack during a February 10 hearing at the U.S. District Court for the District of Columbia.
Council has admitted guilt to conspiracy charges involving identity theft and access device fraud. U.S. District Judge Amy Berman Jackson has set a sentencing date for Council on May 16, 2025, with a potential minimum two-year prison sentence. Federal prosecutors have also requested a forfeiture order seeking to compel Council to surrender $50,000 in earnings allegedly gained from the unauthorized X post.
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