Federal Ruling on Eric Council Jr.
In a significant ruling, a federal judge has handed down a 14-month prison sentence to Eric Council Jr., who was implicated in disseminating a fraudulent announcement that indicated the U.S. Securities and Exchange Commission (SEC) had authorized spot Bitcoin exchange-traded funds (ETFs).
Background of the Case
On May 16, following a session in the U.S. District Court for the District of Columbia, the Department of Justice confirmed the sentencing, which came after Council entered a guilty plea on charges related to conspiracy for committing aggravated identity theft and access device fraud.
The Cyber Attack
Council was involved in a cyber attack that led to the hacking of the SEC’s X account in January 2024, where the bogus statement about spot Bitcoin ETF approval was made. Prosecutors had intensified their requests for a more severe punishment, aiming for a two-year sentence, contrasting with the defense which sought a lighter sentence of just over a year.
Profits from Illegal Activities
Additionally, court documents revealed that Council profited approximately $50,000 from similar SIM swap attacks, including the one targeting the SEC. These funds are expected to be subject to legal forfeiture.
Ongoing Developments
The situation continues to evolve, and updates will be provided as they emerge.
