Update (Feb. 10 at 8:32 pm UTC): This article has been updated to include a minute order showing Eric Council Jr. will be sentenced on May 16.
US authorities have proposed a plea agreement for Eric Council Jr., the individual who allegedly helped compromise the Securities and Exchange Commission’s X account in January 2024.
In a Feb. 9 filing in the US District Court for the District of Columbia, federal prosecutors proposed a forfeiture order that could require Council to pay $50,000 he “personally obtained” as a result of the posting a message to X suggesting that the SEC had approved spot Bitcoin (BTC) exchange-traded funds (ETFs) for the first time. The alleged hacker would also plead guilty to one count of conspiracy to commit aggravated identity theft and access device fraud.
Proposed forfeiture order filed on Feb. 9. Source: PACER
Council was allegedly part of a group that temporarily took control of the SEC’s X account in January 2024 through a SIM swap attack. The breach allowed the hackers to post a false message featuring an image of then-SEC Chair Gary Gensler announcing the approval of spot Bitcoin ETFs. The SEC removed the message and officially announced greenlighting the investment vehicles less than 24 hours later.
At the time of publication, US District Judge Amy Berman Jackson had not signed off on the forfeiture order. Officials with the Federal Bureau of Investigation arrested Council in October 2024, after which he pleaded not guilty to the felony charge. According to the Congressional Research Service, he could face a minimum of two years in prison.
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The fake Bitcoin ETF post, published to X on Jan. 9, 2024, came as many in the crypto industry anticipated the SEC would announce whether it would approve or disapprove of listing spot BTC investment vehicles on US exchanges. Immediately after the social media post went live, the price of BTC surged by more than $1,000 before Gensler denied its veracity.
Since his arrest, Council has been free on a personal recognizance bond and was allowed to travel out of the jurisdiction for the holidays. According to a Feb. 10 order, he will return to court on May 16 for sentencing.
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