A federal court issued a prison term following an instance where the SEC’s social media platform was illegally accessed and misleadingly posted that a Bitcoin ETF had been approved, causing a temporary surge in the cryptocurrency market.
DOJ Sentences Hacker for SEC X Breach and Bitcoin ETF Hoax
The U.S. Department of Justice (DOJ) announced on May 16 that a resident of Huntsville, Alabama, has been sentenced to over a year behind bars for his involvement in a cyber intrusion targeting the Securities and Exchange Commission’s (SEC) social media presence. Eric Council Jr., 26, received a 14-month prison sentence followed by three years of supervised release after pleading guilty to conspiracy charges related to identity theft and access device fraud. Authorities say Council’s actions led to a momentary but significant spike in the price of bitcoin by exploiting the SEC’s platform to spread false financial information.
According to the DOJ, Council executed a SIM-swapping operation to hijack a victim’s cellular service, which enabled him and his co-conspirators to gain access to the SEC’s official account on social media platform X. Using that access, the group published a fake post announcing the approval of bitcoin exchange-traded funds (ETFs)—a long-anticipated development among investors. The announcement had immediate consequences on the cryptocurrency market, the DOJ described:
Immediately following the false announcement, the price of BTC increased by more than $1,000 per BTC. Following the correction, the value of BTC decreased by more than $2,000 per BTC.
Council, who used a forged ID to impersonate the account holder, received payment in bitcoin for his role in the scheme. BTC was trading around $46K on Jan. 10, 2024, when the SEC officially approved spot bitcoin ETFs.
Federal authorities emphasized that such activities could compromise the honesty and fairness of the open market system. In other words, FBI’s Criminal Investigative Division Acting Assistant Director Darren Cox highlighted: “Such actions may undermine the trustworthiness and impartiality of public markets.
A planned, malicious hijacking of a federal agency’s primary communication channel was an intentionally deceitful crime aimed at misleading the general public and influencing stock market activities.
He stated that the Council intentionally shared misleading data with the aim of manipulating financial markets, ultimately seeking to undermine public faith and take advantage of the financial system.
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2025-05-17 06:10