US Pushes for 2-Year Sentence Over SEC X Account Hack

Eric Council Jr.’s SIM swap attack on the SEC’s X account caused a false ETF post that briefly spiked Bitcoin’s price by over $1,000.

U.S. prosecutors urged a two-year sentence, citing Council’s coordinated fraud involving fake IDs, telecom exploits, and market disruption.

The case highlights how political shifts and legal responses are shaping the U.S. government’s stance on cybercrime in crypto.

Federal prosecutors have requested a two-year prison term for Eric Council Jr. after he helped hack the SEC’s official X account. The incident caused a sharp spike in Bitcoin's price due to a fake post claiming spot Bitcoin ETFs had been approved.

Prosecutors filed the sentencing recommendation on May 12 with the U.S. District Court for the District of Columbia. The fake announcement circulated hours before the actual approval, shaking investor confidence and disrupting crypto markets. Council, scheduled for sentencing on May 16, already pleaded guilty to involvement in the SIM swap attack.

SEC X Account Breach Triggered Market Chaos

Council’s actions were part of a broader, well-coordinated scheme involving fake IDs and mobile carrier manipulation. The team used social engineering at telecom stores to gain access to high-profile accounts, including the SEC’s. Once inside, they posted a false statement that spot Bitcoin ETFs had been approved.

Consequently, Bitcoin surged over $1,000 within minutes of the post going live. However, the SEC quickly deleted the message. Gary Gensler, then SEC Chair, publicly denied the claims, restoring market clarity. Moreover, the real approval of spot Bitcoin ETFs arrived only the following day. Council’s fraudulent involvement in misleading investors led to swift legal action.

Legal Fallout and Wider Implications

Prosecutors argued Council’s scheme deserved a “guidelines range prison sentence.” His group operated both in the U.S. and abroad, using advanced tactics to access private data. Additionally, they transmitted password reset codes to co-conspirators to control major accounts.

The Justice Department emphasized that Council’s fraud wasn’t an isolated mistake. Instead, it reflected a deliberate plan to deceive and profit. As of May 12, Council’s defense team had yet to file any opposition to the sentencing request.

The case also unfolds amid political shifts within the Department of Justice. President Donald Trump had appointed interim U.S. attorneys without Senate confirmation. This political backdrop raises questions about how future digital asset cases will be handled.

Besides Council’s case, judges are also issuing stiff penalties in crypto-related crimes. In December 2024, a court sentenced former Celsius CEO Alex Mashinsky to 12 years in prison.

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