US prosecutors have recommended that a court sentence Eric Council Jr. to two years in prison for hacking the SEC X account.

The SEC X account hack case is winding down, as US prosecutors have filed their sentencing recommendation against the defendant, Eric Council Jr.

In response, the council objected to the recommendation, appealing for a lesser sentence after pleading guilty.

Prosecutors Propose 2-Year Sentence for SEC X Account Hack

U.S. prosecutors have requested that Judge Amy Berman sentence Eric Council Jr. for the SEC X account hack last year, a court filing shows.


Prosecutors said the case merited a prison sentence within the guidelines and the council's conduct merited a "significant sentence".

U.S. attorneys also noted that the defendant had profited through a "sophisticated fraud scheme" in which he forged identification documents and made a series of false statements to commit the crime.

The council led the group that hacked the SEC's X account through a SIM swap attack and posted a false post on January 9, 2024 regarding the approval of spot Bitcoin ETFs.

The action affected the market, as the price of Bitcoin increased after the false announcement. The commission subsequently removed the post and revealed that it had suffered a hack.

The case officially began in October 2024, when US prosecutors indicted Eric Council Jr. for conspiracy to commit identity theft and device access fraud. Meanwhile, earlier this year, the Alabama native pleaded guilty to hacking the SEC X account.

Eric Counsel objected to the sentencing recommendation.

Attorneys for Eric Council have filed a sentencing memorandum objecting to prosecutors' recommendation of a 2-year sentence.

Defense attorneys have requested that Judge Berman sentence their client to the maximum of one year and one day in prison following a guilty plea.

As disclosed in a May 13 filing, the attorneys argued that a sentence of twelve months and one day would serve the best interests of justice.

He added that the proposed sentence "adequately punishes" the defendant for his role in the SEC X account hack and that it promotes respect for the law and ensures deterrence. Eric’s counsel will learn his fate on May 16, which is his sentencing date.

Meanwhile, it's worth noting that the hack happened under the Gensler-led administration, which adopted a regulatory enforcement approach to the crypto industry.

However, the new administration has taken a more regulatory-friendly approach with new SEC chair Paul Atkins vowing to make the US the crypto capital of the world.

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