{"id":480642,"date":"2025-05-18T01:23:25","date_gmt":"2025-05-18T00:23:25","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=480642"},"modified":"2025-05-18T01:23:25","modified_gmt":"2025-05-18T00:23:25","slug":"jan-2024-secs-x-account-hacker-got-14-months-in-prison-for-cyber-fraud","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/jan-2024-secs-x-account-hacker-got-14-months-in-prison-for-cyber-fraud\/","title":{"rendered":"Jan 2024 SEC\u2019s X account hacker got 14 months in prison for cyber fraud"},"content":{"rendered":"<p>Eric Council Jr. was sentenced to 14 months' imprisonment for his role in the Jan. 9, 2024, <a href=\"https:\/\/cryptoslate.com\/secs-twitter-x-was-hacked-to-post-fake-spot-bitcoin-etf-approval-gensler\/\">hack<\/a> of the U.S. Securities and Exchange Commission\u2019s (SEC\u2019s) X account. The convicted, along with co-conspirators, posted false news of the SEC approving the first Bitcoin (<a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">BTC<\/a>) exchange-traded fund in the U.S.<\/p>\n<p>In a <a href=\"https:\/\/www.justice.gov\/opa\/pr\/alabama-man-sentenced-14-months-connection-securities-and-exchange-commission-x-hack-spiked\">press release<\/a> on May 16, 2025, the U.S. Department of Justice (DOJ) stated that Council Jr. will also be subjected to three years of supervised release, a form of parole.<\/p>\n<p>The 26-year-old from Huntsville, Alabama, had pleaded guilty to conspiracy to commit aggravated identity theft and access device fraud in February. He was <a href=\"https:\/\/cryptoslate.com\/fbi-arrests-man-for-sec-social-media-hack-over-fake-bitcoin-etf-approval-post\/\">arrested<\/a> by the Federal Bureau of Investigation (FBI) agents in October last year.<\/p>\n<h2>What Council Jr. did<\/h2>\n<p>On Aug. 29, 2023, the District of Columbia Court of Appeals in Washington <a href=\"https:\/\/www.reuters.com\/legal\/us-court-says-sec-wrong-deny-grayscales-spot-bitcoin-etf-proposal-2023-08-29\/\">ruled<\/a> that the SEC was wrong to reject Grayscale\u2019s spot BTC ETF application without proper cause. The court\u2019s decision meant that the SEC would review Grayscale\u2019s application, which it had rejected several times.<\/p>\n<p>The court win raised optimism, and the crypto industry was highly anticipating the SEC to approve the first spot Bitcoin ETF any day. Council Jr. and his accomplices took advantage of the market sentiment and announced a fake approval from the SEC\u2019s genuine X account.<\/p>\n<p>Court documents indicate that Council Jr. conspired to hack the SEC\u2019s X official account and post fake news of spot BTC ETF approval to manipulate the price of BTC. His role was to carry out a Subscriber Identity Module (SIM) swap, where a bad actor convinces the mobile carrier to port a victim\u2019s phone number to a SIM card controlled by them.<\/p>\n<p>According to the DOJ, Council Jr. used an ID card printer to produce fake IDs of victims, whose personal data was supplied to him by co-conspirators. He then used the fake IDs to gain access to the victim\u2019s number to access the SEC\u2019s X account and post the fake news. Council Jr. received payment in BTC for his role in the SEC\u2019s X account hack.<\/p>\n<h2>The damage Council Jr. contributed to<\/h2>\n<p>Immediately after the posting of the fake news, the price of each BTC increased by more than $1,000. But after the SEC chair, <a href=\"https:\/\/cryptoslate.com\/people\/gary-gensler\/\">Gary Gensler<\/a>, <a href=\"https:\/\/cryptoslate.com\/secs-twitter-x-was-hacked-to-post-fake-spot-bitcoin-etf-approval-gensler\/\">acknowledged<\/a> the hack and dismissed the message of hackers as fake, the BTC price crashed by over $2,000 per BTC, <i>CryptoSlate<\/i> data shows.<\/p>\n<p>BTC price rose to $48,000 after the fake news was posted, but crashed to $45,000 after Gensler\u2019s refutation. Around $50 billion was <a href=\"https:\/\/cryptoslate.com\/bitcoin-sheds-50-billion-in-market-capitalization-after-fake-sec-etf-approval-rattles-market\/\">wiped off<\/a> Bitcoin\u2019s market capitalization in the 24 hours following the posting of the fake news. The price fluctuation also caused a total of $220 million in liquidations.<\/p>\n<p>FBI Criminal Investigative Division Acting Assistant Director Darren Cox called hack \u201ca calculated criminal act meant to deceive the public and manipulate financial markets.\u201d He added:<\/p>\n<blockquote><p>\u201cBy spreading false information to influence the markets, Council [Jr.] attempted to erode public trust and exploit the financial system.\u201d<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Eric Council Jr. was sentenced to 14 months&#8217; imprisonment for his role in the Jan. 9, 2024, hack of the U.S. Securities and Exchange Commission\u2019s (SEC\u2019s) X account. The convicted, along with co-conspirators, posted false news of the SEC approving the first Bitcoin (BTC) exchange-traded fund in the U.S. In a press release on May [&hellip;]<\/p>\n","protected":false},"author":1386,"featured_media":480651,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[76799,16041,60793,9836],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Jan 2024 SEC\u2019s X account hacker got 14 months in prison for cyber fraud<\/title>\n<meta name=\"description\" content=\"The convicted had helped co-conspirators hack the SEC\u2019s X account to post fake news of much anticipated spot BTC ETF approval.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/jan-2024-secs-x-account-hacker-got-14-months-in-prison-for-cyber-fraud\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Jan 2024 SEC\u2019s X account hacker got 14 months in prison for cyber fraud\" \/>\n<meta property=\"og:description\" content=\"The convicted had helped co-conspirators hack the SEC\u2019s X account to post fake news of much anticipated spot BTC ETF approval.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/jan-2024-secs-x-account-hacker-got-14-months-in-prison-for-cyber-fraud\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2025-05-18T00:23:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/05\/sec-hacker.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Monika Ghosh\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Monika Ghosh\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/jan-2024-secs-x-account-hacker-got-14-months-in-prison-for-cyber-fraud\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/jan-2024-secs-x-account-hacker-got-14-months-in-prison-for-cyber-fraud\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/monika-ghosh\/#person\",\"name\":\"Monika Ghosh\",\"url\":\"https:\/\/cryptoslate.com\/author\/monika-ghosh\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/monika-ghosh\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/monika-ghosh\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/08\/monika-ghosh-author-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/08\/monika-ghosh-author-300x300.jpg\",\"caption\":\"Monika Ghosh\"},\"jobTitle\":\"Former Reporter\",\"description\":\"Monika started reading about crypto in 2020 and went deeper and deeper down the rabbit hole. 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