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securebulletin.com@Secure Bulletin
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Eric Council Jr., a 26-year-old from Alabama, has been sentenced to 14 months in prison for his role in hacking the U.S. Securities and Exchange Commission’s (SEC) X account in January 2024. This breach involved a SIM swap attack, a method where a criminal fraudulently induces a cellular phone carrier to reassign a cellular phone number from a victim’s SIM card to a SIM card controlled by the criminal. Council pleaded guilty in February 2025 to conspiracy charges involving aggravated identity theft and access device fraud, and was sentenced on Friday by Judge Amy Berman Jackson in Washington, D.C.
The hack of the SEC's X account was used to post a false announcement about Bitcoin ETF approvals, which had an immediate and significant impact on the cryptocurrency market. Following the false announcement, the price of Bitcoin increased by more than $1,000 per BTC, but after the SEC regained control and confirmed the announcement as unauthorized, the value of BTC decreased by more than $2,000. Council received $50,000 for his participation in the scheme, which involved using a portable ID card printer to create a fraudulent identification card to impersonate a user of a government phone connected to the SEC’s account on X.
In addition to the prison sentence, Council faces further penalties including the forfeiture of $50,000 in Bitcoin proceeds and three years of supervised release with restrictions on dark web access and identity fraud. Prosecutors highlighted Council's post-arrest conduct, which included mocking the SEC's cybersecurity measures. The incident underscores critical vulnerabilities in institutional cybersecurity and highlights the need for stricter carrier verification protocols, especially concerning SIM swap risks, and a move away from over-reliance on SMS-based multi-factor authentication.
References :
The hack of the SEC's X account was used to post a false announcement about Bitcoin ETF approvals, which had an immediate and significant impact on the cryptocurrency market. Following the false announcement, the price of Bitcoin increased by more than $1,000 per BTC, but after the SEC regained control and confirmed the announcement as unauthorized, the value of BTC decreased by more than $2,000. Council received $50,000 for his participation in the scheme, which involved using a portable ID card printer to create a fraudulent identification card to impersonate a user of a government phone connected to the SEC’s account on X.
In addition to the prison sentence, Council faces further penalties including the forfeiture of $50,000 in Bitcoin proceeds and three years of supervised release with restrictions on dark web access and identity fraud. Prosecutors highlighted Council's post-arrest conduct, which included mocking the SEC's cybersecurity measures. The incident underscores critical vulnerabilities in institutional cybersecurity and highlights the need for stricter carrier verification protocols, especially concerning SIM swap risks, and a move away from over-reliance on SMS-based multi-factor authentication.
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References :
- Secure Bulletin: SEC X account hack report
- DataBreaches.Net: DataBreachesNet reports Alabama Man Sentenced to 14 Months in Connection with Securities and Exchange Commission X Hack that Spiked Bitcoin Prices
- therecord.media: News article about SEC X account hack and sentencing
- malware.news: Malware news discusses Alabama Man Sentenced to 14 Months in Connection with Securities and Exchange Commission X Hack that Spiked Bitcoin Prices
- PCMag UK security: PCMag Alabama Man Gets 14 Months for Hacking SEC's X Account With SIM-Swap Scheme
- www.justice.gov: DOJ announces Alabama Man Sentenced to Hack SEC X Account, Spiked Value of Bitcoin
- securebulletin.com: Alabama man sentenced to 14 months in SEC X account hack
- Daily CyberSecurity: Crypto Crash: Alabama Man Sentenced for Hijacking SEC’s X Account
- techcrunch.com: US man who hacked SEC’s X account to spike Bitcoin price sentenced to prison
- The Record: An Alabama man will spend more than a year in prison for his role in the January 2024 SIM-swap hack of a Securities and Exchange Commission social media account that resulted in swings to the price of bitcoin.
- thecyberexpress.com: SIM Swap Hacker Jailed for Hijacking SEC’s X Account and Faking Bitcoin ETF News
- securityonline.info: SecurityOnline reports on Crypto Crash: Alabama Man Sentenced for Hijacking SEC’s X Account.
- Talkback Resources: Alabama man sentenced to 14 months for hijacking SEC's Twitter account, causing Bitcoin price surge and crash, using SIM swap attack, emphasizing cybersecurity importance.
- gbhackers.com: Hacker Arrested for Taking Over SEC Social Media to Spread False Bitcoin News
- cyberpress.org: Hacker Charged After SEC Twitter Account Breach Causes Bitcoin Price Spike
- gbhackers.com: Hacker Arrested for Taking Over SEC Social Media to Spread False Bitcoin News
- www.scworld.com: Hacker of SEC's X account gets 14 month jail time
- hackread.com: Man Behind SEC Bitcoin Hoax Tweet Sentenced in SIM Swap Hack
- Cyber Security News: Hacker Charged After SEC Twitter Account Breach Causes Bitcoin Price Spike
- The Register - Security: SEC SIM-swapper who Googled 'signs that the FBI is after you' put behind bars
- bsky.app: SEC Twitter hack: Man imprisoned for role in attack that caused Bitcoin's price to soar. Read more in my article on the Bitdefender blog: https://www.bitdefender.com/en-us/blog/hotforsecurity/sec-twitter-hack-bitcoins-price
- www.bitdefender.com: SEC Twitter hack: Man imprisoned for role in attack that caused Bitcoin’s price to soar.
Classification:
- HashTags: #SECHack #BitcoinManipulation #Cybersecurity
- Company: SEC
- Target: SEC
- Attacker: Eric Council Jr
- Product: X
- Feature: X account hack
- Type: Hack
- Severity: Major