Eric Council Jr., the hacker responsible for breaching the U.S. Securities and Exchange Commission’s (SEC) official X account in January 2024 and posting a false message about the regulatory approval of Bitcoin exchange-traded funds (ETFs), is scheduled for sentencing on May 16, 2025.
Prosecutors have recommended a two-year prison sentence for Council, citing his role in a "sophisticated fraud scheme" that involved SIM swap attacks, producing fake identification documents, and misleading telecommunications providers to gain unauthorized access. They emphasized that Council profited approximately $50,000 from similar attacks and that his conduct warrants a significant penalty within the sentencing guidelines.
In response, Council’s defense lawyers have filed a sentencing memorandum requesting a reduced sentence of no more than one year and one day (366 days). They argue that this sentence "serves the ends of justice," sufficiently punishes Council, promotes respect for the law, and deters future criminal conduct.
The defense highlights that this term balances justice and punishment appropriately following Council’s guilty plea to conspiracy to commit aggravated identity theft and access device fraud.
The case has drawn attention due to the market disruption caused by the fake SEC announcement, which briefly caused Bitcoin’s price to surge by over $1,000. The hack exploited security weaknesses, such as the SEC’s temporary disabling of multifactor authentication on its social media account.
Council’s sentencing will be decided by Judge Amy Berman Jackson, who has asked prosecutors to clarify the felony charges in the record before sentencing. The outcome will be announced on May 16, 2025.
This case underscores ongoing challenges in cybersecurity and regulatory enforcement in the crypto space.
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