On Might 16, 2025, a U.S. federal choose sentenced Eric Council Jr. to 14 months in jail after he accessed the SEC’s X account utilizing a SIM swap assault. At the moment, Council posted a false message in January 2024, falsely claiming the SEC had accredited spot Bitcoin ETFs.
Afterward, he pleaded responsible to conspiracy to commit aggravated id theft and entry system fraud. In accordance with the Division of Justice (DOJ), Council made roughly $50,000 by related assaults. In consequence, these funds are anticipated to be forfeited.
Prosecutors requested for a two-year sentence. Council’s legal professionals requested one yr and at some point. The courtroom’s resolution landed between these phrases. He stays free on a private recognizance bond and also will serve 36 months of supervised launch.
SIM Swap Assault Enabled Unauthorized Entry
Council gained entry to the SEC X account by transferring the company’s cellphone quantity to a SIM card underneath his management. This allowed him to bypass two-factor authentication and log in.
The message, falsely stating the approval of spot Bitcoin ETFs, unfold shortly and brought about temporary market disruption. Authorities didn’t present particulars on whether or not any accounts past the SEC’s had been concerned.
In accordance with courtroom data, the funds linked to Council’s exercise will likely be topic to seizure. The DOJ didn’t affirm if any co-conspirators had been charged.
Jeanine Pirro, interim U.S. Legal professional for the District of Columbia, mentioned:
“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 a number of different crypto-related courtroom proceedings. On Might 8, 2025, Alex Mashinsky, former CEO of Celsius, was sentenced to 12 years after pleading responsible to 2 felony counts.
In New York, John Karony, former SafeMoon CEO, is on trial for alleged fraud. His case continues to be underway within the Jap District courtroom.
Authorities proceed to pursue crypto fraud instances involving id theft, market manipulation, and unauthorized entry to monetary platforms. Council’s sentencing marks the most recent end result in a sequence of prosecutions concentrating on such exercise.