Alabama Man Sentenced for SEC Twitter Hack That Caused Bitcoin Price Surge

A 26-year-old man from Alabama has been sentenced to 14 months in prison for his involvement in a social media hack that briefly manipulated the price of Bitcoin. Eric Council Jr., a resident of Huntsville, pleaded guilty to his role in the January 2024 breach of the U.S. Securities and Exchange Commission’s (SEC) official X (formerly Twitter) account, according to the U.S. Department of Justice.

Council used a SIM-swap attack—a method where a hacker gains control of a victim’s phone number by duping a telecom provider—to hijack a number linked to the SEC's account. Using a fake ID to pose as a telecom customer, Council enabled his co-conspirators to access the account and publish a false statement claiming that the SEC had approved spot Bitcoin ETFs, a move long awaited by crypto investors.

The fraudulent post caused Bitcoin’s price to spike by over $1,000 within minutes, only to plunge more than $2,000 once the announcement was confirmed as fake. The real approval of spot Bitcoin ETFs came weeks later, but the incident had already highlighted the vulnerability of official channels and the market’s sensitivity to such announcements.

Authorities revealed that Council was compensated in Bitcoin for his role in the scheme. Following his 14-month prison term, he will face three years of supervised release.

Federal prosecutors described the attack as a deliberate effort to mislead the public and manipulate financial markets. Acting FBI Assistant Director Darren Cox stated that the breach was a calculated act aimed at eroding public trust and exploiting the financial system through misinformation.

Council’s case underscores the growing risks of cybersecurity breaches in financial communication channels and their potential to disrupt crypto markets.