SEC Hacker Faces 2-Year Sentence
The case against Eric Council Jr., the individual responsible for last year's hack of the Securities and Exchange Commission's (SEC) X account, is nearing its conclusion. US prosecutors have filed a sentencing recommendation, proposing a two-year prison sentence. Council, who previously pleaded guilty, has filed an objection, advocating for a less severe punishment.
Prosecutors' Recommendation
Court documents reveal the prosecution's request for a guidelines-range sentence, emphasizing the severity of Council's actions and the need for a significant penalty. They highlight a "sophisticated fraud scheme" involving fraudulent identification and misrepresentations to execute the hack.
Council led the group that breached the SEC's X account via a SIM swap attack. On January 9, 2024, they posted a false announcement about the approval of spot Bitcoin ETFs, causing a surge in Bitcoin's price. The SEC swiftly removed the fraudulent post and disclosed the security breach.
The indictment, filed in October 2024, charged Council with conspiracy to commit aggravated identity theft and access device fraud. Council, an Alabama resident, pleaded guilty earlier this year.
Council's Objection
Council's legal team has filed a memorandum opposing the prosecution's recommendation. They are requesting a sentence of one year and one day, arguing that this adequately addresses the crime while promoting respect for the law and deterring future offenses. This shorter sentence, they contend, "sufficiently punishes" Council for his involvement.
The sentencing hearing is scheduled for May 16th. The outcome will be significant, given the hack occurred during a period of stricter SEC enforcement under the previous administration and the subsequent shift to a more regulatory-friendly approach under the new Chair, Paul Atkins.
Codeum's Note: This case highlights the critical need for robust cybersecurity measures within the crypto space. Codeum provides comprehensive blockchain security solutions, including smart contract audits, KYC verification, and custom smart contract development to help protect clients from similar attacks. Contact us to learn more about our services and how we can help secure your blockchain projects.