#hacker Hacker imprisoned for posting false news about Bitcoin ETF on SEC account on X.The Department of Justice imposed a prison sentence after the SEC's social media account was hacked to falsely announce the approval of a bitcoin ETF, which briefly sent crypto markets into a tailspin.

The Department of Justice condemns the hacker for the SEC breach and bitcoin ETF fraud.

The U.S. Department of Justice (DOJ) announced on May 16 that a resident of Huntsville, Alabama was sentenced to more than a year in prison for participating in a cyber breach targeting the Securities and Exchange Commission (SEC) presence on social media. Eric Council Jr., 26, received a 14-month prison sentence, followed by three years of supervised release after pleading guilty to conspiracy related to identity theft and access device fraud. Authorities stated that Council's actions led to an immediate but significant spike in the price of bitcoin when he exploited SEC platforms to spread false financial information.

According to the DOJ, Council conducted a SIM swap operation to gain access to the victim's services with the mobile carrier, which allowed him and his accomplices to access the SEC's official account on the social media platform X. With this access, the group posted a false message announcing the approval of bitcoin exchange-traded funds (ETFs) — a long-awaited development among investors. The announcement had immediate consequences in the cryptocurrency market, as described by the DOJ:

Immediately after the false announcement, the price of BTC surged by more than $1,000 per BTC. After correction, the value of BTC dropped by more than $2,000 per BTC.

Council, who used a fake ID to impersonate the account holder, received payment in bitcoin for his role in the scheme. BTC was trading around $46K on January 10, 2024, when the SEC officially approved the spot bitcoin ETF.