Alabama Man Sentenced to 14 Months in Prison for Hacking the U.S. Securities and Exchange Commission's (SEC) Social Media Account

Eric Council Jr., a 26 year old man, was convicted for his role in a SIM swap attack that allowed him and his accomplices to post a false message about Bitcoin exchange-traded funds (ETFs) being approved by the SEC. The hack briefly caused a spike in Bitcoin's price before the SEC regained control of the account.

An Alabama man has been sentenced to 14 months in prison for hacking the U.S. Securities and Exchange Commission's (SEC) social media account, causing a brief surge in Bitcoin's price.

Eric Council Jr., 26, was convicted for his role in a SIM swap attack that allowed him and his accomplices to post a false message about Bitcoin exchange-traded funds being approved by the SEC. The hack briefly caused a spike in Bitcoin's price before the SEC regained control of the account.

The tweet read: "The U.S. Securities and Exchange Commission has approved the spot Bitcoin ETF. More updates to follow."

The post quickly went viral on social media, causing a stir among Bitcoin traders. As a result, Bitcoin's price shot up by $1,000 in a matter of hours. However, the SEC quickly intervened and shut down the claim, leading to a further decrease of over $2,000 in Bitcoin's price.

The next day, the SEC announced the approval of Bitcoin ETFs but under different circumstances, as it was applying to approve several more types of products, including ones from well-known firms like BlackRock and Charles Schwab.

The involvement of multiple branches of government, including the FBI and IRS, ultimately led to the arrest of Council and his accomplices.

Council pleaded guilty to conspiracy to commit aggravated identity theft and access device fraud. The conspiracy involved a SIM swap attack on an individual associated with the SEC, aiming to gain control of the commission's social media account.

To impersonate the victim and acquire his phone number from an AT&T store, Council used a fake ID. His accomplices then contacted AT&T to perform a SIM swap, claiming to be the victim and providing the new phone number to receive a SIM card.

The judge sentenced Council to a 14-month prison term, which was 10 months less than the recommendation by prosecutors. However, in a video posted online, Council blamed the SEC's cybersecurity practices for the hack.

"I think they could do a better job at protecting their employees and their systems," Council said in the video.

His lawyer requested the court to sentence Council to a 12-month prison sentence because he did not have a prior criminal record.

"They're asking for 24 months, which is an overestimation of the sentence that's required in this case," the lawyer argued.

Council's case highlights the potential risks of cyberattacks in the cryptocurrency space. The SEC remains a primary target in various cyber attacks due to its regulatory role in the U.S. securities market.

Despite the frequent attempts, the commission has managed to strengthen its security measures to prevent future attacks and maintain market trust in their systems.

After serving his sentence, Council will be placed on two years of supervised release and ordered to pay restitution to the victims.