Details of the ruling
Federal Judge Amy Berman Jackson issued her ruling today (May 17, 2025) on Eric Council Jr., a 25-year-old from Alabama, sentencing him to 12 months and one day in prison after he pleaded guilty to charges of conspiracy to commit aggravated identity theft and fraud using access devices. This ruling came after a hearing held on May 16 in the U.S. District Court for the District of Columbia.
Background of the case
Council participated in a January 2024 hack of the X platform account of the U.S. Securities and Exchange Commission (SEC), where he posted a fake announcement stating that the agency had approved Bitcoin exchange-traded funds (ETFs). He used SIM swapping technology to take control of the account, tricking an employee at a local mobile phone store into assisting him in hacking the victims' phones.
## Impact of the incident on the cryptocurrency market
The fake announcement caused:
- A sudden increase in Bitcoin's price by more than $1,000 within minutes
- Forced liquidations exceeding $220 million
- More than 70,000 traders were affected due to the sharp fluctuations
After the SEC regained control of its account and denied the validity of the announcement, Bitcoin's price dropped by more than $2,000. Ironically, the agency actually approved Bitcoin ETFs the day after the incident.
Discussion on the prison sentence duration
- The prosecution sought to sentence Council to two years in prison, stating that he "profited from a sophisticated fraudulent scheme" and made about $50,000 from similar SIM swap attacks.
- Council's defense requested that his sentence not exceed 12 months and one day**, stating that this "is sufficient to punish him, reinforce respect for the law, and deter future criminal behavior."
## Broader implications of the case
This case highlights several important issues:
1. The vulnerability of official institutions' social media accounts, especially since the SEC's account did not have multi-factor authentication enabled at the time of the incident.
2. The impact of misinformation on highly volatile cryptocurrency markets.
3. The seriousness of U.S. authorities in addressing cybercrimes affecting financial markets, as the Assistant Director of the FBI's Criminal Investigation Division stated that the defendant "deceived the public by impersonating the victim."