- Eric Council Jr. received a 14-month prison sentence for hacking the SEC’s social media to falsely announce Bitcoin ETF approvals.
- The false post, sent before the actual approval, caused Bitcoin’s price to surge by $1,000 in a single day.
- U.S. Attorney Jeanine Ferris Pirro warned that SIM swap schemes threaten financial stability and will be aggressively prosecuted.
Eric Council Jr., a 26-year-old from Alabama, was sentenced to 14 months in prison for his role in hacking the SEC’s social media account to falsely announce spot Bitcoin ETF approvals, causing a brief market surge.
Impact on Bitcoin Market and SEC Response
The fake post, which claimed the SEC had approved Bitcoin ETFs, was sent a day before the actual approval in January 2024, leading to a $1,000 spike in Bitcoin’s price. Both the SEC and the X platform quickly confirmed the hack, with former SEC Chair Gary Gensler dismissing the claim as false.
Prosecutors Warn of SIM Swap Schemes
U.S. Attorney Jeanine Ferris Pirro, recently appointed by President Trump, emphasized the severity of SIM swap schemes like the one Council used, warning that such scams threaten the financial system and would be aggressively prosecuted.
SEC Vows to Strengthen Cybersecurity
Following the incident, the SEC announced plans to bolster its cybersecurity measures to prevent further breaches, aiming to restore public confidence after the high-profile compromise of its social media accounts.
