Alabama Man Set to Plead Guilty in SEC Hacking Case
Eric Council Jr., an Alabama resident, is facing charges for his involvement in hacking the X account of the U.S. Securities and Exchange Commission (SEC). He allegedly used this unauthorized access to post misleading information, falsely claiming that the agency had approved bitcoin exchange-traded funds (ETFs). Council is now preparing to enter a guilty plea in this serious case.
A Consent Order of Forfeiture has been filed in the D.C. federal court, revealing that Council has agreed to plead guilty to charges of Conspiracy to Commit Aggravated Identity Theft and Access Device Fraud. As part of his plea agreement, he will also forfeit $50,000 in proceeds obtained from these criminal activities.
According to the prosecution, Council employed a fraudulent identification to deceive a phone store employee into assisting him and his co-conspirators in accessing a device that held the credentials for the SEC’s X account. This breach occurred amidst the excitement surrounding the anticipated approval of spot bitcoin ETFs, which were widely expected to attract significant investment from institutional players.
The fallout from this security breach was notable; a misleading post was shared on the SEC’s account just one day prior to the actual approval announcement. This erroneous information caused a temporary surge in the price of bitcoin, illustrating the potential impact of such malicious activities on financial markets.
Council was arrested by the FBI in October for his role in compromising the SEC’s X account. Judge Amy Berman Jackson has scheduled Council’s sentencing for May 16, marking a critical development in this high-profile case.
