Eric Council Jr., a 26-year-old from Athens, Alabama, has been sentenced to 14 months in prison for his involvement in a conspiracy that hacked into the U.S. Securities and Exchange Commission's (SEC) X account. The hack involved publishing fraudulent posts under the name of the then-SEC Chairman to manipulate Bitcoin's value.
The announcement came from U.S. Attorney Jeanine Ferris Pirro, along with Matthew R. Galeotti from the Justice Department’s Criminal Division, SEC Inspector General Deborah Jeffrey, and FBI Assistant Director Steven J. Jensen.
Court documents reveal that since January 2024, Council conspired with others to conduct Subscriber Identity Model (SIM) attacks or "SIM swaps" for monetary gain. On January 9, 2024, they executed a SIM swap on the mobile phone linked to the @SECgov X account. This allowed them unauthorized access to post fraudulent information claiming SEC approval of Bitcoin Exchange Traded Funds (ETFs), which temporarily increased Bitcoin's price by over $1,000 before it dropped by more than $2,000 after the breach was confirmed.
U.S. Attorney Pirro stated: “Schemes of this nature threaten the health and integrity of our market system.” She warned that those engaging in such activities will be caught and prosecuted.
Matthew R. Galeotti emphasized prosecuting individuals who use cyber means to commit fraud is essential for protecting U.S. interests: “Council and his co-conspirators used sophisticated cyber means to compromise the SEC’s X account.”
FBI Assistant Director Jensen noted: "Today's sentencing shows that those who use the perceived anonymity of digital fraud...will be unmasked and brought to justice."
SEC OIG Special Agent Amanda James added: “Today’s sentencing exemplifies SEC OIG’s commitment to holding bad actors accountable.”
In June 2024, further attempts at SIM swaps were made by Council in Alabama. A search warrant led FBI agents to recover fake identification materials and internet searches related to hacking and law enforcement investigations.
Council admitted receiving approximately $50,000 for performing SIM swaps and pleaded guilty on February 10, 2025. Besides imprisonment, Judge Amy Berman Jackson ordered forfeiture of $50,000 and three years of supervised release with restrictions on computer use related to identity fraud.
This case was investigated by multiple agencies including the FBI Washington Field Office Criminal and Cyber Division and was prosecuted by Assistant U.S. Attorney Kevin Rosenberg among others.
For additional information on SIM swapping practices visit: https://www.ic3.gov/PSA/2024/PSA240411