Eric Council Jr. Sentenced to 14 Months in Prison for Accessing the SEC's X Account Using a SIM Swap Attack

At that time, Council posted a false message in January 2024, falsely claiming the SEC had approved spot Bitcoin ETFs.

A U.S. federal judge has sentenced Eric Council Jr. to 14 months in prison for accessing the Securities and Exchange Commission’s X account using a SIM swap attack.

At the time, Council posted a false message in January 2024, claiming the SEC had approved spot Bitcoin ETFs, which drove up the price of BTC briefly.

Council previously pleaded guilty to conspiracy to commit aggravated identity theft and access device fraud. According to the Department of Justice (DOJ), Council made approximately $50,000 through similar attacks, and those funds are expected to be forfeited.

Prosecutors had asked for a two-year sentence, while Council’s lawyers requested one year and one day. The court’s decision to sentence Council to 14 months and one day falls between those terms. He will also serve 36 months of supervised release and will remain free on a personal recognizance bond.

How A SIM Swap Enabled Access

Council was able to gain access to the SEC X account by transferring the agency’s phone number to a SIM card that was in his possession. This allowed him to bypass two-factor authentication and log in.

In a statement, the DOJ said:

“After gaining access to the X account, Council posted a message that falsely stated that the SEC had approved spot bitcoin ETFs. The post went viral, and news articles and social media quickly picked up on the story.”

The message, which was quickly recognized as false by crypto news outlets, led to a brief but noticeable increase in the price of Bitcoin. It also sparked discussion about the role of social media in financial markets and the potential for disinformation to influence investment decisions.

Authorities did not provide details on whether any accounts beyond the SEC’s were involved in the scams.

According to court records, the funds linked to Council’s activity will be subject to seizure. The DOJ did not confirm whether any co-conspirators were charged in connection with the case.

Jeanine Pirro, interim U.S. Attorney for the District of Columbia, said:

“Schemes of this nature threaten the health and integrity of our market system. SIM swap schemes threaten the financial security of average citizens, financial institutions, and government agencies.”

The Council case comes amid a broader crackdown on crypto fraud in the U.S. legal system.

On May 8, Alex Mashinsky, former CEO of Celsius, was sentenced to 12 years in prison after pleading guilty to two felony counts of making false entries in a record of a federally insured credit union and conspiracy to commit wire fraud.

In New York, John Karony, former CEO of SafeMoon, is currently on trial for allegedly defrauding investors in the Eastern District court. His case is still ongoing.

As authorities continue to pursue cases of identity theft, market manipulation, and unauthorized access to financial platforms, the sentencing of Eric Council Jr. marks the latest development in an ongoing series of prosecutions targeting such activity.