US Seeks 2-Year Sentence for SEC Bitcoin ETF Hacker

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Coinomedia2025/05/13 19:00

By:Isolde VerneIsolde Verne

US prosecutors recommend 2-year prison term for Eric Council Jr. over fake SEC Bitcoin ETF tweet.Prison Time Sought for Man Behind Fake SEC Bitcoin ETF TweetThe Fake Tweet That Shook the Crypto MarketGovernment Pushes for Serious Penalty

Eric Council Jr. helped fake SEC Bitcoin ETF tweet
US recommends 2-year prison sentence
False post briefly impacted Bitcoin markets

Prison Time Sought for Man Behind Fake SEC Bitcoin ETF Tweet

U.S. federal prosecutors have recommended a two-year prison sentence for Eric Council Jr., the individual involved in a January 2024 incident that briefly shook the crypto world. Council played a key role in posting a fake message on the official X (formerly Twitter) account of the U.S. Securities and Exchange Commission (SEC), falsely claiming that Bitcoin ETFs had been approved.

The misleading post caused a short-term spike in Bitcoin’s price before being debunked. The incident sparked outrage and renewed scrutiny over cybersecurity at key financial agencies.

The Fake Tweet That Shook the Crypto Market

On January 9, 2024, the SEC’s X account published a message stating that Bitcoin ETFs were approved—news that was eagerly awaited by the crypto community. Bitcoin’s price surged in response, only to tumble shortly after the SEC clarified the post was unauthorized.

It was later revealed that Eric Council Jr. had helped orchestrate the cyber intrusion, gaining access to the SEC’s social media platform and releasing the false statement. Authorities quickly identified and arrested him, initiating one of the most high-profile crypto-related cybersecurity cases of the year.

🚨 LATEST: The US government recommends 2-year prison sentence for Eric Council Jr., who helped post a fake message on SEC's X account announcing approval of Bitcoin ETFs in January 2024. pic.twitter.com/dfbysQ4D6z
— Cointelegraph (@Cointelegraph) May 13, 2025

Government Pushes for Serious Penalty

Now, prosecutors argue that the hoax had real-world consequences and eroded public trust in both markets and institutions. They believe a two-year prison sentence is appropriate, not only as punishment but also as a warning against cyber manipulation of financial information.

The sentencing recommendation reflects growing concerns about the risks of misinformation and market manipulation, especially in the fast-moving world of crypto.

The court has yet to finalize Council’s sentence, but the case already stands as a strong reminder of how digital fraud can ripple through markets and damage credibility at the highest levels.

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