Federal prosecutors are currently working on a plea agreement for Eric Council Jr., the Alabama individual charged in the January hack of the SEC’s X account.
During a recent court session, Council, who is 25 years old, maintained a not guilty plea to allegations of aggravated identity theft and access device fraud. Authorities assert that he was responsible for posting the notorious false tweet claiming that the SEC had approved Bitcoin ETFs.
FBI Aims to Identify the Masterminds Behind SEC X Hack
According to Bloomberg, prosecutors believe that Council’s cooperation could be key in pinpointing additional suspects involved in the operation. The conspiracy reportedly included the theft of personal information from an SEC employee to access the agency’s account.
Assistant US Attorney Kevin Rosenberg informed US District Judge Amy Berman Jackson regarding the prospective plea. Nevertheless, the prosecutor has not yet confirmed whether Council will accept the offer.
Prosecutors allege that Council fabricated an ID and deceived an employee at a phone store to gain access to the SEC employee’s phone, which allowed his alleged accomplices to exploit security vulnerabilities on X.
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Despite Council’s not-guilty plea, federal authorities claim they possess significant evidence linking him to the offense. The indictment indicates that Council often searched online for information related to the hack and checked if he was being investigated.
Council’s misleading tweet resulted in an immediate $230 million market liquidation, as investors reacted to the false information prior to the actual approval of Bitcoin ETFs.
This possible plea offer represents a standard tactic employed by government prosecutors. The FBI frequently encourages hackers to cooperate in return for reduced sentences, a strategy observed in the Bitfinex case.
Last week, federal prosecutors suggested a five-year sentence for Ilya Lichtenstein, the 2016 Bitfinex hacker, who received a lighter sentence for providing considerable assistance to authorities.
Read more: Everything You Need To Know About Ripple vs SEC
Meanwhile, the SEC continues to face challenges in its regulatory battle against Ripple. Earlier this week, a new filing revealed that Ripple is seeking to dismantle the SEC’s assertion that XRP is an unregistered security. Ripple’s action adds further pressure on the SEC, indicating another pivotal moment in this high-stakes courtroom confrontation.
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