Shocking SEC Hacker Case: Eric Council Jr.’s 366-Day Sentencing Recommendation

The legal battle continues for the individual behind the fake Bitcoin ETF approval post on the SEC’s X account. This high-profile case involving an **SEC hacker** has captured significant attention in the crypto community, highlighting the security vulnerabilities even official government accounts face.

Eric Council Jr. Faces Sentencing

Defense lawyers for **Eric Council Jr.**, identified as part of the group responsible for the security breach, have formally requested a significantly shorter prison sentence than prosecutors. In a recent court filing, Council’s legal team asked the judge to impose a sentence of no more than one year and one day (366 days) following his guilty plea.

This recommendation stands in contrast to the two-year sentence sought by prosecutors. The defense argues that a 366-day sentence is sufficient to:

• Punish Council for his involvement.
• Promote respect for the law.
• Deter similar future criminal actions.

The filing emphasizes that this period adequately addresses the gravity of the offense while considering other factors.

The Fake Bitcoin ETF Announcement

The incident occurred in early 2024 when the U.S. Securities and Exchange Commission’s (SEC) official X account was compromised. The attackers posted a false message stating the regulator had approved spot **Bitcoin ETF** listings. This fake announcement caused temporary market volatility and confusion before the SEC quickly clarified the post was unauthorized and false.

SIM Swap Attack Details

The method used to gain unauthorized access to the SEC’s account was identified as a **SIM swap** attack. This type of attack involves manipulating a mobile carrier to transfer a phone number to a new SIM card, often controlled by the attacker. By hijacking the phone number, attackers can intercept verification codes or gain access to accounts linked to that number, such as social media profiles or email accounts. Court filings revealed that Council reportedly earned around $50,000 from this and similar SIM swap schemes.

Sentencing Recommendation and Judge’s Order

Council initially pleaded not guilty but changed his plea in February to guilty on one count of conspiracy to commit aggravated identity theft and access device fraud. His **sentencing recommendation** hearing is scheduled for May 16.

Adding another layer to the proceedings, the presiding judge, Amy Berman Jackson, recently ordered the government to provide more specific details about the felony involved in the case and where that information is documented in the court record. This request was due by May 13, indicating the judge is seeking clarity on specific aspects before making a final sentencing decision.

Potential Impact on Future Crypto Cases

While Council’s case nears its conclusion, the broader legal landscape in the District of Columbia could see changes. Recent announcements regarding potential new leadership for the U.S. attorney’s office in the district could potentially influence how future crypto-related cases are handled or prioritized, although the direct impact remains to be seen.

Summary

The case against SEC hacker Eric Council Jr. highlights the intersection of cybersecurity risks and the crypto market. With the defense requesting a 366-day prison sentence compared to the prosecution’s two-year demand, the final decision rests with the judge. The incident, stemming from a SIM swap attack that led to a fake Bitcoin ETF post, underscores the need for robust security measures for high-profile accounts. The upcoming sentencing hearing will be a key moment in this closely watched case.