Alabama Man Sentenced to 14 Months for SEC X Hack, Triggering Bitcoin Price Surge
On Friday, May 16, 2025, the Justice Department’s Office of Public Affairs announced that an Alabama man was sentenced to 14 months in prison and three years of supervised release for his involvement in a cyberattack that compromised the U.S. Securities and Exchange Commission’s (SEC) social media account on X, previously known as Twitter. Eric Council Jr., a 26-year-old from Huntsville, admitted guilt in February to charges of conspiracy to commit aggravated identity theft and access device fraud.
Court documents reveal that Council collaborated with others to seize control of the SEC’s X account. The group orchestrated a false announcement claiming that the SEC had approved Bitcoin Exchange Traded Funds (ETFs), a highly anticipated decision in the financial markets. Following the fraudulent post, Bitcoin’s price surged by over $1,000 per coin. Once the misinformation was corrected, the value of Bitcoin plummeted by more than $2,000 per coin.
The scheme relied on a sophisticated technique known as a Subscriber Identity Module (SIM) swap, executed by Council. In this type of fraud, a perpetrator manipulates a cellular provider to transfer a victim’s phone number to a SIM card under the criminal’s control, granting access to the victim’s social media or cryptocurrency accounts. Council used a fraudulent identification card, created with an ID printer and personal information provided by his co-conspirators, to impersonate a victim and gain control of their phone number. This enabled the group to access the SEC’s X account, where they posted the misleading Bitcoin ETF approval in the name of the SEC Chairman. Council was compensated in Bitcoin for his role in the conspiracy.
The Justice Department emphasized the severity of the crime, noting that the unauthorized takeover of a federal agency’s communication platform was a deliberate attempt to mislead the public and manipulate financial markets. The prosecution was led by the U.S. Attorney’s Office for the District of Columbia, with support from the Justice Department’s Criminal Division. The FBI’s Criminal Investigative Division played a key role in the investigation, highlighting the act’s intent to undermine public trust and exploit the financial system.
The SEC’s Office of Inspector General also contributed to the investigation, underscoring its commitment to safeguarding the integrity of SEC operations. The sentencing reflects ongoing efforts by federal authorities to combat cyber fraud and protect investors from schemes that threaten the stability of financial markets.
