In a digital age where our financial markets rely heavily on technology, a 25-year-old hacker from Alabama shook the system.
See the tweet below!
Eric Council Jr.’s 14-month prison sentence reveals the vulnerabilities in our regulatory cybersecurity.
On May 18, 2025, Council pleaded guilty to conspiracy charges involving a cyberattack on the Securities and Exchange Commission’s (SEC) X account.
This breach allowed him and his co-conspirators to falsely announce the approval of Bitcoin ETFs, resulting in a temporary spike in Bitcoin’s value.
The U.S. District Court in Washington, D.C. took his actions seriously, imposing a 14-month prison term.
Council wasn’t alone in his scheme. He used a “SIM swap” attack, a technique involving tricking phone carriers to assign a victim’s number to a new SIM card.
He physically acquired a new iPhone to receive the SEC’s account reset codes and coordinated with his partners to issue the false tweet.
Prosecutors detailed how the SEC quickly corrected the tweet, but not before the damage was done.
Bitcoin’s value initially surged by $1,000, plummeting by $2,000 once the truth emerged.
This event highlights ongoing security challenges and the manipulative potential of compromised social media accounts.
“Council and his co-conspirators used sophisticated cyber means to compromise the SEC’s X account and posted a false announcement that distorted important financial markets,” said Assistant United States Attorney (AUSA) in the Organized Crime and Gangs Section Matthew R. Galeotti.
The cyberattack also underscores the continual threat to market stability posed by technical vulnerabilities.
Council allegedly profited around $50,000 from his illicit activity.
After serving his sentence, he will endure three years of supervised release with limited computer use.
U.S. Attorney Jeanine Pirro emphasized the significant threat such schemes pose to market systems and financial security.
Council’s actions, now thoroughly investigated, remind us of the necessity for strong cybersecurity measures to protect vital economic sectors from manipulation.
“Schemes like this threaten the health and integrity of the market system and that SIM swap schemes threaten the financial security of citizens, financial institutions, and government agencies,” Pirro said.
The case was meticulously pursued by FBI Washington Field Office and the SEC’s Office of Inspector General, working tirelessly to hold those responsible accountable.
This sentencing serves as a crucial step in reinforcing the resilience of our financial markets against cyber fraud.
“Council & his co-conspirators used sophisticated cyber means to compromise the @SECGov's X account & posted a false announcement that distorted important financial markets." – Matthew R. Galeotti, Head of @DOJCrimDiv https://t.co/XvlptFw2z7
— U.S. Department of Justice (@TheJusticeDept) May 16, 2025
