Michaela
Eric Council Jr., accused of assisting in the breach of the U.S. Securities and Exchange Commission’s (SEC) X account, has admitted guilt to conspiracy charges involving identity theft and access device fraud.
During a February 10 hearing at the U.S. District Court for the District of Columbia, Council admitted his involvement in the SEC hack. U.S. authorities have put forward a plea agreement in response to his admission.
Council’s involvement in the cyberattack led to an unauthorized post on the SEC’s X account, falsely announcing the approval of spot Bitcoin (BTC) exchange-traded funds (ETFs) for the first time.
According to a Bloomberg report, federal prosecutors have requested a forfeiture order in a February 9 filing, seeking to compel Council to surrender $50,000 in earnings allegedly gained from the unauthorized X post.
Council and his associates gained temporary access to the SEC’s X account through a Subscriber Identity Module (SIM) swap attack. The SEC swiftly removed the false message and made an official announcement approving the investment vehicles within 24 hours.
U.S. District Judge Amy Berman Jackson has set a sentencing date for Council on May 16, 2025. If found guilty, Council could receive a minimum two-year prison sentence for the SEC hack felony charge, as stated by the Congressional Research Service.
Council was taken into custody by the Federal Bureau of Investigation (FBI) in October 2024 and initially entered a not-guilty plea to the felony charge. Since then, he has been released on a personal recognizance bond.
SEC Hack Instructed by Prominent Personalities
Prosecutors emphasized that Council was not operating independently, but was instead following instructions from prominent individuals involved in the cyberattack. The hackers behind the SIM swap attack that took over the SEC’s official X account used a counterfeit ID to deceive a phone store employee, securing control of a targeted phone number.
Council’s accomplices, who initially pinpointed the victim, circumvented security protocols to post a fabricated image of then SEC Chair Gary Gensler falsely endorsing the ETF approval.
The fraudulent post sparked an immediate surge in Bitcoin’s price, which soared by more than $1,000 until Gensler quickly clarified that the announcement was not legitimate.
After the breach, X’s security team revealed that the institution had not activated two-factor authentication on its account at the time of the SEC hack.
Council’s upcoming sentencing underscores the growing concern over cybersecurity within government agencies, particularly in safeguarding financial markets. Strengthening measures such as two-factor authentication and regular security audits are becoming critical to mitigating risks, especially as more financial institutions and regulators interact with digital platforms.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
