• Eric Council Jr. pleaded not guilty to one charge over his alleged hacking of the SEC’s X account
• Council Jr. allegedly helped a group hack the SEC’s X account and post a fake announcement claiming the approval of spot Bitcoin ETFs
• The fake post caused Bitcoin’s price to surge by over $1,000 before the SEC denied the news and confirmed their account was compromised
On January 9, 2023, a fake tweet from the SEC’s official Twitter account claimed that Bitcoin exchange-traded funds (ETFs) had been approved, causing prices to briefly surge. The SEC later confirmed its account was hacked. Recently, one of the alleged hackers behind the fake tweet, Eric Council Jr., pleaded not guilty in court.
The Fake Tweet That Shook Crypto Markets
On January 9th, with anticipation building around a potential SEC announcement approving Bitcoin ETFs, the SEC’s official Twitter account was hacked. The hackers posted a fake tweet stating that the SEC had approved spot Bitcoin ETFs. This fake news caused Bitcoin’s price to spike over $1,000 before the SEC denied the tweet and confirmed its account had been compromised.
The Aftermath and Arrest
The next day, January 10th, the real SEC announcement came, approving Bitcoin ETFs from 11 different asset managers. However, the damage from the fake tweet hack was already done. Now, months later, Eric Council Jr. has been arrested in connection with the hack and pleaded not guilty in a Washington D.C. courtroom on October 25th.
Council Faces Conspiracy Charges
Council was allegedly part of the group responsible for the hack. He has been charged with conspiracy to commit identity theft and access device fraud. Prosecutors offered Council a plea deal, but he pleaded not guilty before Judge Amy Berman Jackson. The judge is also overseeing the SEC’s case against Binance, showing how seriously the commission is taking this hack.
Looking Ahead
The repercussions of the fake ETF tweet hack continue, with Council’s conspiracy case only the latest development. It remains to be seen whether more arrests will follow, but the hack represents the growing threats against an increasingly digital financial system. Crypto markets are vulnerable to manipulation through social media, and regulators are still figuring out how to effectively police crimes in the Web3 era.
