Prosecutors in the United States are working on a plea agreement for Eric Council Jr., who is charged with hacking the SEC’s X account and causing a fictitious tweet approving a Bitcoin ETF that affected the cryptocurrency market.
Eric Council Jr., an Alabama man accused of a high-profile hack of the official X account of the U.S. Securities and Exchange Commission (SEC), is reportedly negotiating a plea agreement with U.S. prosecutors.
The January hack resulted in a phony post regarding the authorization of spot Bitcoin ETFs, which momentarily affected the price of BTC.
Last week, charges of “conspiracy to commit aggravated identity theft and access device fraud” were brought against Eric Council Jr.
Prosecutors Offer Plea Deal to X Account Hacker in SEC Case, Seeking Cooperation
In a recent hearing at the U.S. District Court in Washington, D.C., Assistant U.S. Attorney Kevin Rosenberg confirmed the government’s intention to extend a plea deal to Council. However, as Bloomberg reported, it’s uncertain whether Council will accept the offer.
Rosenberg said, “We will extend a plea; [—] I have no idea if it will be accepted or not,” in reference to U.S. District Judge Amy Berman Jackson.
Council’s cooperation could help federal authorities prosecute other suspected conspiracy participants if he accepts the deal.
📰 Eric Council, Jr. has been arrested for being behind the SEC SIM swap attack that falsely announced the launch of spot Bitcoin ETFs.#EricCouncil #SpotBitcoinETFshttps://t.co/Pzokrd9kF9
— Cryptonews.com (@cryptonews) October 17, 2024
Prior to the SEC’s eagerly anticipated announcement about spot Bitcoin ETFs, the incident took place. According to the prosecution, Council and unnamed accomplices gained access to the SEC’s X account and posted an illegal message stating that Bitcoin ETFs were authorized for listing on exchanges that were registered.
The post reportedly sent just a day before the SEC’s official announcement, caused Bitcoin’s price to surge by over $1,000 in response to the perceived news of the anticipated ETF approvals.
The prosecution has emphasized that Council was not acting alone but was allegedly directed by others who played important roles in orchestrating the attack.
Judge Jackson Takes on SEC Hack Case: Will Council’s Cooperation Reveal New Leads?
In order to undermine the security of the SEC’s social media accounts, Council and his accomplices allegedly used SIM swapping, a fraudulent technique for moving phone numbers to new devices.
Council allegedly used his co-conspirators to obtain a victim’s name and photo, among other personal information, which he then used to fabricate an identity document, according to the prosecution.
He went to an AT&T store in Huntsville, Alabama, using this fictitious identification, and got a SIM card linked to the victim’s phone number. Council allegedly obtained the required access codes to the SEC’s social media account using a new iPhone that he purchased with cash.
The case is being overseen by Judge Amy Berman Jackson, who presides over a separate SEC case against Binance. If a plea deal is reached, both parties must submit the proposed plea documents by December 4, per the court’s schedule.
Through potential cooperation, prosecutors hope Council’s insights could reveal further details about the organization and individuals behind this attack.