Crypto News: Alabama Man Pleads Guilty to SEC Twitter Hack

The post Crypto News: Alabama Man Pleads Guilty to SEC Twitter Hack appeared first on Coinpedia Fintech News

Eric Council Jr., a 25-year-old from Alabama, has pleaded guilty to his involvement in hacking the U.S. Securities and Exchange Commission’s (SEC) official Twitter account in January 2024. The attack led to a fake post that falsely claimed the SEC had approved a Bitcoin exchange-traded fund (ETF), causing a temporary surge in Bitcoin’s price before the SEC clarified the message was unauthorized.

Bitcoin Price Surge Following SEC Twitter Hack

During a hearing at the U.S. District Court for the District of Columbia, Council admitted to conspiracy charges related to identity theft and access device fraud. The fraudulent post resulted in a market reaction, with Bitcoin’s price spiking by over $1,000, before the SEC confirmed the announcement was a result of the hack. The incident brought to attention the vulnerability of high-profile accounts and the potential impact of misinformation on financial markets.

Council, who initially pleaded not guilty to the felony charge, has been free on a personal recognizance bond since his arrest in October 2024. Federal prosecutors have proposed a plea agreement, requiring Council to pay $50,000, which authorities claim he gained from the scheme.

SIM Swap Attack Exposes Security Risks in Government Agencies

The attack was part of a larger SIM swap operation, where Council and his co-conspirators tricked a phone store employee into transferring control of the SEC’s official phone number. This breach stressed the importance of stronger security protocols for government agencies to prevent similar cyberattacks in the future. Council’s sentencing is scheduled for May 2025, and he could face a minimum of two years in prison if convicted.