On May 16, 2025, a U.S. federal judge sentenced Eric Council Jr. to 14 months in prison after he accessed the SEC’s X account using a SIM swap attack. At that time, Council posted a false message in January 2024, falsely claiming the SEC had approved spot Bitcoin ETFs.
Afterward, he pleaded guilty to conspiracy to commit aggravated identity theft and access device fraud. According to the Department of Justice (DOJ), Council made approximately $50,000 through similar attacks. As a result, those funds are expected to be forfeited.
Prosecutors asked for a two-year sentence. Council’s lawyers requested one year and one day. The court’s decision landed between those terms. He remains free on a personal recognizance bond and will also serve 36 months of supervised release.
SIM Swap Attack Enabled Unauthorized Access
Council gained access to the SEC X account by transferring the agency’s phone number to a SIM card under his control. This allowed him to bypass two-factor authentication and log in.
The message, falsely stating the approval of spot Bitcoin ETFs, spread quickly and caused brief market disruption. Authorities did not provide details on whether any accounts beyond the SEC’s were involved.
According to court records, the funds linked to Council’s activity will be subject to seizure. The DOJ did not confirm if any co-conspirators were charged.
Jeanine Pirro, interim U.S. Attorney for the District of Columbia, said:
“Schemes of this nature threaten the health and integrity of our market system. SIM swap schemes threaten the financial security of average citizens, financial institutions, and government agencies.”
Crypto Fraud Sentencing Expands in U.S. Courts
The Council case follows multiple other crypto-related court proceedings. On May 8, 2025, Alex Mashinsky, former CEO of Celsius, was sentenced to 12 years after pleading guilty to two felony counts.
In New York, John Karony, former SafeMoon CEO, is on trial for alleged fraud. His case is still underway in the Eastern District court.
Authorities continue to pursue crypto fraud cases involving identity theft, market manipulation, and unauthorized access to financial platforms. Council’s sentencing marks the latest outcome in a series of prosecutions targeting such activity.
