Alabama Hacker Receives Prison Sentence Over SEC Twitter Account Breach and Bitcoin Spike

Eric Council Jr., an Alabama resident, was sentenced to 14 months in prison for his involvement in the January 2024 hack of the Securities and Exchange Commission’s (SEC) X account. The hack caused bitcoin prices to surge briefly.

Council pleaded guilty three months ago in a Washington, D.C. court to charges including conspiracy to commit aggravated identity theft and access device fraud. He assisted others who hijacked the SEC’s social media account.

The hackers used the SEC’s account to send a false tweet claiming that bitcoin exchange-traded funds (ETFs) had been approved by the SEC. This tweet led to a sudden rise in bitcoin prices before the SEC took back control and refuted the claim.

Interestingly, the SEC approved bitcoin ETFs the following day, officially allowing their creation. However, the false tweet still caused temporary market confusion and price fluctuations.

The prosecutors recommended a 24-month prison term, but Council was sentenced to 14 months. A video showed Council acknowledging his role but blaming the SEC’s cybersecurity measures for the breach.

In the video, Council minimized his culpability, accusing the SEC of poor cybersecurity practices managed by “a lonely 85-year-old with dementia.” The animated clip ended with a sarcastic message.

Council’s lawyer sought a sentence of 12 months and one day, citing Council’s clean record and marijuana use to manage mental health. The attorney declined to comment on the video mentioned in court.

Council’s role in the conspiracy involved a SIM swap attack. He printed a fake driver’s license with a portable ID printer and convinced an AT&T employee to transfer a victim’s phone number to him.

Known online by various handles including “Ronin” and “AGiantSchnauzer,” Council was paid around $50,000 worth of bitcoin for his role. Law enforcement found fake IDs and evidence on his devices after searches of his home and car.