Man Sentenced for Role in SEC Twitter Hack That Briefly Boosted Bitcoin Price

An Alabama man, Eric Council Jr., received a 14-month prison sentence for his part in the January 2024 hack of the Securities and Exchange Commission’s (SEC) X social media account. This hack caused bitcoin’s price to jump by over $1,000 temporarily.

Council pleaded guilty three months ago in U.S. District Court in Washington, D.C., admitting conspiracy to commit aggravated identity theft and access device fraud. He helped others take control of the SEC’s account used on the X platform.

The hackers posted a false tweet stating that the SEC had approved bitcoin exchange-traded funds (ETFs). This misinformation caused bitcoin prices to rise before the SEC took back control and announced the tweet was fraudulent.

Ironically, the SEC officially approved bitcoin ETFs the day after the hack, allowing the creation of these financial products. Nevertheless, the fake tweet caused market confusion and brief volatility.

Prosecutors had asked for a 24-month prison sentence, but the court handed Council 14 months. During sentencing, a video surfaced of Council accepting responsibility while blaming the SEC’s cybersecurity measures for the breach.

In the video, Council downplayed his and his conspirators’ guilt, accusing the SEC of poor cybersecurity managed by “a lonely 85-year-old with dementia.” The animated video ended with a sarcastic tone.

Council’s lawyer requested a prison term of 12 months and a day, pointing out Council’s lack of prior criminal history and his use of marijuana for mental health. The attorney declined to comment on the video mentioned by prosecutors.

Council played a key role in the hack by conducting a SIM swap attack. He used a fake driver’s license printed on a portable ID printer to convince an AT&T employee to transfer the victim’s phone number to him.

Known online by the aliases “Ronin,” “Easymunny,” and “AGiantSchnauzer,” Council earned approximately $50,000 worth of bitcoin from his co-conspirators. Authorities seized fake IDs and digital evidence during raids on his home and car.