SEC Hacker Sentenced After Bitcoin ETF Hoax Sends Crypto Market Surging
What happened when the SEC’s X (formerly Twitter) account was hacked, and how did it impact Bitcoin prices? In a major case blending cybersecurity, crypto market manipulation, and financial fraud, a U.S. man has been sentenced to federal prison for hacking the U.S. Securities and Exchange Commission’s official X account to falsely announce Bitcoin ETF approvals. This high-profile breach not only misled investors but also briefly caused Bitcoin prices to spike—highlighting growing concerns around digital asset regulation, social engineering, and SIM swap attacks.
Image Credits:Valerie Plesch/Bloomberg / Getty ImagesWho Was Behind the SEC Bitcoin ETF Hack?
Eric Council Jr., 26, of the United States, was sentenced to 14 months in prison and three years of supervised release for his role in orchestrating the cyberattack. The Department of Justice (DOJ) confirmed the sentencing in an official press release. Council and a group of co-conspirators executed a SIM swap attack, targeting the phone number of an individual with privileged access to the SEC’s X account. Once they gained control, the hackers reset the account’s password and posted a fraudulent announcement stating that Bitcoin ETFs had been approved by the agency.
The Impact on Bitcoin and the Crypto Market
Within minutes of the fake post going live on January 9, 2024, Bitcoin prices surged, driven by widespread belief that the SEC had finally greenlit Bitcoin Exchange-Traded Funds—a long-awaited move in the crypto industry. However, the price gains were short-lived. As news of the breach spread and the SEC debunked the post, Bitcoin prices quickly corrected, leaving many retail investors burned by the false pump.
This incident underscores how market volatility, combined with social media manipulation, can be exploited for short-term financial gains. It's also a sobering reminder of the importance of cybersecurity in finance, especially as digital currencies continue to gain mainstream traction.
How the SIM Swap Attack Worked
Council and his accomplices used a SIM swapping technique—a form of identity theft where hackers trick or bribe a telecom provider into transferring a victim’s phone number to a new SIM card. With control over the victim’s number, the hackers intercepted two-factor authentication (2FA) codes and reset the SEC X account password. This cybercrime tactic is becoming increasingly common in targeting high-profile social media and financial accounts.
What This Means for Crypto Investors and Platforms
The SEC hack has sparked fresh conversations about the security of social media platforms, especially those used by government agencies and financial institutions. It has also renewed calls for enhanced crypto regulation, stronger 2FA measures, and user education on phishing and SIM hijacking.
For investors, this event highlights the importance of verifying news from official sources before making trades, especially in a market as volatile as cryptocurrency. As Bitcoin ETFs remain a trending topic in the financial world, misinformation—even for a few minutes—can trigger millions in trading volume and create major risks for day traders and long-term holders alike.
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