Alabama Man Pleads Guilty in SEC X Account Hack That Falsely Announced Bitcoin ETF Approval

A 25-year-old Alabama man, Eric Council Jr., has pleaded guilty to charges related to the January 2024 hack of the U.S. Securities and Exchange Commission's (SEC) X account. The hack resulted in a fake post falsely announcing the approval of spot Bitcoin exchange-traded funds (ETFs), causing a brief but significant surge in Bitcoin's price.

How the Hack Happened: A Coordinated Effort

Council admitted in Washington federal court on Monday to conspiring to commit aggravated identity theft and access device fraud. Prosecutors accused Council of working with co-conspirators who identified the target and helped him gain access to the victim's phone, ultimately enabling the breach of the SEC's X account. This was done by tricking an employee at a local phone store, prosecutors alleged.

A Day Before the Real Announcement: Timing and Market Impact

The hack occurred on January 9, 2024, just one day before the SEC actually approved spot Bitcoin ETFs, a move that had been highly anticipated by the cryptocurrency market. The false post sent Bitcoin's price soaring, only to fall again when the SEC confirmed the announcement was unauthorized.

Sentencing Set for May: The Consequences of the Hack

Judge Amy Berman Jackson has set a sentencing date for May 16. The case highlights the vulnerability of even high-profile social media accounts and the potential for significant market manipulation through such breaches.