Federal prosecutors are evaluating a plea bargain proposal for Eric Council Jr., the Alabama man recently apprehended for breaching the X account of the U.S. Securities and Exchange Commission.
Bloomberg reported the recent updates concerning the SEC X account hack on Friday, October 25.
As per Bloomberg, U.S. attorney Kevin Rosenberg informed U.S. District Judge Amy Berman Jackson during a hearing on October 25 that the prosecution is contemplating a plea agreement. However, the government remains uncertain if the proposal will be accepted.
The Federal Bureau of Investigation apprehended Council, 25, the previous week. In a press release, the U.S. Attorney’s Office for the District of Columbia highlighted that the accused’s hacking and posting of a fraudulent message on the SEC’s X account resulted in a $1,000 surge in Bitcoin (BTC) prices as the market responded.
Council and accomplices are said to have executed a SIM-swap attack to illicitly access and seize control of the U.S. securities market regulator’s social media profile. This occurred while the crypto sector was eagerly anticipating the SEC’s endorsement of the initial spot Bitcoin exchange-traded funds for the U.S. market, a time marked by heightened optimism.
Upon regaining control of its account, the SEC confirmed that an earlier announcement was false and the byproduct of a SIM swap attack, leading to a sharp decline in crypto prices. Sentiment drastically shifted, turning negative for BTC as its price plummeted over $2,000 within minutes.
Subsequently, the SEC approved spot BTC ETFs, a milestone that triggered a surge in Bitcoin price to an all-time high of $73k.
Charges filed against Council include device fraud and conspiracy to commit aggravated identity theft. The suspect is alleged to have received a BTC payment from undisclosed sources for successfully conducting the SIM swap attack.
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