Hacker Gets Prison for SEC’s X Account Bitcoin Pump
In January 2024, Eric Council Jr., a 26-year-old from Alabama, orchestrated a SIM-swap attack to hijack the U.S. Securities and Exchange Commission’s (SEC) official X (formerly Twitter) account. By impersonating a telecom customer using a fake ID, he obtained a replacement SIM card linked to the SEC’s phone number. This enabled him and his co-conspirators to access the SEC’s account and post a fraudulent announcement claiming the approval of Bitcoin exchange-traded funds (ETFs). Bitdefender
The false announcement caused Bitcoin’s price to surge by over $1,000 within minutes. However, once the SEC clarified the breach, the price plummeted by more than $2,000, leading to significant market volatility. Justice
On May 16, 2025, Council was sentenced to 14 months in prison and three years of supervised release. He was also ordered to forfeit $50,000—the amount he received for his role in the scheme. The court imposed restrictions on his internet usage, including a ban on accessing the dark web or engaging in identity-related crimes. Perplexity AI
This incident underscores the vulnerabilities in digital platforms and the potential for market manipulation through cyberattacks. It also highlights the importance of robust cybersecurity measures and regulatory oversight in the cryptocurrency market.
For more details, you can read the official press release from the U.S. Department of Justice: Alabama Man Sentenced in Hack of SEC X Account that Spiked the Value of Bitcoin.
Details of the Hack
The hacker gained unauthorized access to the SEC’s official X (formerly Twitter) account and posted a fake announcement. This fraudulent post falsely stated that the SEC had approved Bitcoin ETFs, causing a temporary surge in Bitcoin’s price. This incident underscored the vulnerability of even high-profile accounts to cyberattacks and the potential market manipulation.
Legal Consequences
The court sentenced the individual to prison, emphasizing the severity of the crime. Prosecutors argued that his actions not only defrauded investors but also undermined the integrity of financial regulatory bodies. The sentence sends a strong message about the consequences of attempting to manipulate cryptocurrency markets through illegal means.
Impact on Cryptocurrency Market
- Market Volatility: The incident amplified the inherent volatility of the cryptocurrency market.
- Investor Confidence: It eroded investor confidence in the reliability of information disseminated through social media channels.
- Regulatory Scrutiny: It prompted increased regulatory scrutiny of social media’s role in financial markets and the need for enhanced cybersecurity measures.
SEC’s Response
Following the hack, the SEC took immediate steps to regain control of its X account and issued an official statement to correct the misinformation. The agency also launched an internal investigation to determine how the breach occurred and to implement stronger security protocols to prevent future incidents. The SEC’s swift response aimed to reassure investors and maintain the integrity of market information. You can follow more news about SEC’s actions on their official website.
Broader Implications for Cybersecurity
The SEC’s X account hack has broader implications for cybersecurity across various sectors. It serves as a reminder of the importance of robust authentication methods, continuous monitoring of online accounts, and proactive measures to detect and respond to cyber threats. Organizations should prioritize cybersecurity investments to protect sensitive information and maintain public trust.
