Washington, D.C. – Federal Investigation Leads to Conviction
A 26-year-old Alabama man has been sentenced to 14 months in federal prison for his role in a conspiracy to hack into the X account of the U.S. Securities and Exchange Commission (SEC) and publish fraudulent posts designed to manipulate the value of Bitcoin (BTC).
The sentencing of Eric Council Jr., of Athens, Alabama, was announced by U.S. Attorney Jeanine Ferris Pirro, Justice Department Criminal Division Head Matthew R. Galeotti, SEC Inspector General Deborah Jeffrey, and FBI Assistant Director in Charge Steven J. Jensen of the Washington Field Office.
Hacking Operation & Fraudulent Bitcoin Scheme
According to court documents, Council conspired with others to carry out SIM swap attacks—a method of gaining unauthorized access to mobile phone accounts—beginning in January 2024.
On January 9, 2024, Council and his co-conspirators successfully executed a SIM swap targeting the mobile phone account associated with @SECgov, the official X account of the SEC. Their goal was to fraudulently access and manipulate the account to issue misleading financial statements.
Council impersonated the victim at an AT&T store in Huntsville, Alabama, presenting a fake ID and false information to obtain a replacement SIM card. He then used the card to reset the @SECgov X account password, taking photographs of security codes and sharing them with co-conspirators.
Shortly thereafter, the hacked SEC account published a fraudulent post falsely announcing SEC approval of Bitcoin Exchange Traded Funds (ETFs). The price of Bitcoin surged by more than $1,000 following the announcement before the SEC regained control of its X account and confirmed the breach, causing Bitcoin’s value to plummet by over $2,000.
Law Enforcement Response & Sentencing
Federal authorities swiftly investigated the case, leading to Council’s arrest on October 17, 2024. He pleaded guilty on February 10, 2025, to conspiracy to commit aggravated identity theft.
In addition to his 14-month prison sentence, U.S. District Court Judge Amy Berman Jackson ordered:
- Forfeiture of $50,000, the amount Council received for his role in the conspiracy.
- Three years of supervised release, with strict conditions prohibiting him from accessing the dark web or engaging in further identity fraud.
Law Enforcement Statements
Federal officials emphasized the severe consequences of cyber fraud in financial markets.
U.S. Attorney Jeanine Ferris Pirro stated:
“Schemes of this nature threaten the health and integrity of our market system. SIM swap schemes endanger financial security, and those involved will be caught, prosecuted, and held accountable.”
Justice Department Criminal Division Head Matthew R. Galeotti added:
“Council and his co-conspirators used sophisticated cyber techniques to manipulate financial markets. Prosecuting those who exploit digital assets through fraud is essential to protecting U.S. interests.”
FBI Washington Field Office Assistant Director Steven J. Jensen warned:
“Today’s sentencing demonstrates that those who believe in the anonymity of digital fraud will be unmasked and brought to justice.”
Further Investigation & Cybercrime Prevention
Council’s laptop, seized during a search warrant executed in June 2024, contained templates for additional fake IDs and internet searches related to avoiding FBI detection and identity fraud schemes.
The case was investigated by:
- FBI Washington Field Office Criminal and Cyber Division
- SEC Office of Inspector General
- U.S. Attorney’s Office for the District of Columbia
- Justice Department’s Criminal Division, including its Computer Crime and Intellectual Property Section (CCIPS) and Market Integrity and Major Frauds Unit
Prosecution was handled by Assistant U.S. Attorney Kevin Rosenberg, CCIPS Trial Attorney Ashley Pungello, and Fraud Section Trial Attorney Lauren Archer, with additional assistance from Cyber Fellow Paul M. Zebb III.
Conclusion
Council’s sentencing underscores the federal government’s commitment to protecting financial markets from cyber fraud. Law enforcement officials continue to track and prosecute individuals engaged in SIM swapping and digital financial manipulation, ensuring the security of investors and financial institutions.
