Hacker Behind SEC Breach Faces $50,000 Forfeiture Deal

Federal prosecutors have proposed a plea deal to Eric Council Jr., the alleged hacker who used the SEC’s X account to spread false Bitcoin ETF news. Under the agreement, Council must plead guilty and forfeit $50,000, reportedly his earnings from the market manipulation.

While he has admitted to charges of conspiracy, identity theft, and fraudulent use of technology, the court has yet to approve the seizure of funds—leaving open the possibility of renegotiation.

Council, who was arrested in October 2024, initially denied all allegations. Now, he faces up to two years in prison. His sentencing hearing in May will determine whether this case sets a precedent for future crypto-related cybercrimes.

The Inside Story of the SEC Hack

According to prosecutors, the hacker took control of the SEC’s X account through a SIM-swapping attack, a method that essentially hands over a victim’s phone number to cybercriminals. Once inside, they published a fake post about a spot Bitcoin ETF approval, a move that sent Bitcoin’s price soaring before official sources shut it down.

Check this out: WhiteBIT’s Cybersecurity Tips

Despite all the security upgrades in recent years, SIM swapping is still a major threat. By hijacking a victim’s phone number, attackers can intercept verification codes and gain access to everything from bank accounts to social media.

The Bigger Picture—What This Attack Means for Crypto Security

Let’s be real—if the SEC can get hacked, what does that say about the rest of the financial world?

This wasn’t just a cyberattack. It was a live experiment in how easily fake news can shake up crypto markets. Bitcoin shot up when people believed the ETF announcement, then tumbled once the truth came out.

The real question now is: How do we prevent this from happening again? Stronger cybersecurity? Better verification methods? One thing’s for sure—regulators, exchanges, and tech companies need to step up before the next attack happens.

Cybercriminals are quickly learning that the courtroom is just another game to play.

Plea deals have become a strategic move—prosecutors use them to close cases faster, while defendants see them as a way to negotiate a lighter sentence.

The crypto community, however, isn’t convinced. If hackers know they can bargain their way out of severe punishment, will that incentivize more cyber heists? The debate is growing, but one thing is clear: as digital crime evolves, so must the legal system.

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