Background of the Case
Eric Council Jr., a resident of Alabama, is preparing to plead guilty to charges related to the hacking of the U.S. Securities and Exchange Commission’s (SEC) X account. This breach allowed him to falsely announce that the SEC had approved bitcoin exchange-traded funds (ETFs), a move that stirred significant interest in the cryptocurrency market.
Details of the Charges
A “Consent Order of Forfeiture,” recently filed in a Washington D.C. federal court, reveals that Council will plead guilty to charges including Conspiracy to Commit Aggravated Identity Theft and Access Device Fraud. As part of his plea agreement, he has also consented to forfeit $50,000 in proceeds from these criminal activities.
The Hacking Incident
According to prosecutors, Council employed a fraudulent identification to deceive an employee at a phone store. This deception enabled him and his accomplices to gain access to a device that had credentials for the SEC’s X account. This breach occurred during a period when there was much anticipation surrounding the SEC’s potential approval of spot bitcoin ETFs.
Impact on the Cryptocurrency Market
The unauthorized post, which was shared on the SEC’s account just one day before the actual approval announcement, created a brief surge in bitcoin’s price. The approval of these ETFs was highly awaited, as it was expected to attract substantial investments from institutional players, further legitimizing bitcoin in the financial landscape.
Legal Proceedings and Next Steps
Judge Amy Berman Jackson has scheduled Council’s sentencing for May 16. Council was arrested by the FBI in October following the breach of the SEC’s X account, highlighting the seriousness of cybercrimes in the financial sector.
In summary, this case illustrates the intersection of cybersecurity and financial regulation, as well as the potential consequences of exploiting high-stakes situations in the cryptocurrency world.
