US Prosecutors Consider Plea Deal for Alleged SEC X Account Hacker
Federal prosecutors are considering a plea deal in a high-stakes cybercrime case against alleged Alabama resident Eric Council Jr. for hacking into an account of the US Securities and Exchange Commission on X. The hack allegedly perpetrated by him sent enormous shockwaves through the market, spurring huge Bitcoin price swings.
Key Developments in the X Account Hack Case
Bloomberg reported Friday, Oct. 25, that U.S. Attorney Kevin Rosenberg told U.S. District Judge Amy Berman Jackson discussions of a plea offer continue, though he said it is still “unknown” whether the defense will agree to the terms.
Arrest and Charges Against Council
The Federal Bureau of Investigations arrested the 25-year-old Council last week in connection with the case. He faces a raft of charges, including device fraud and conspiracy to commit aggravated identity theft. According to the U.S. Attorney’s Office, Council allegedly used a SIM-swap attack to get unauthorized control over them X account and used it to post a sham message that led to a sudden spike in Bitcoin’s price.
Market Impact of the Hack
The fake announcement first saw Bitcoin jump $1,000 as crypto markets responded. Once the SEC confirmed that the account was indeed hacked and announced the notice as false, Bitcoin’s price fell sharply, offsetting earlier gains. This happened at a time when the cryptocurrency market is already filled with anticipation over a pending decision of the SEC on spot Bitcoin ETFs.
SEC’s ETF Approval and Bitcoin’s Price Reaction
In fact, it was after the account recovery that the SEC gave the green light to spot BTC ETFs, which later saw Bitcoin surge to an all-time high of $73,000. The approval brought back confidence in the crypto market for investors after the setback caused by the hack.
Possible Charges against Council
According to court documents, Council was allegedly paid in Bitcoin for his role in the SIM-swap attack. In return, he will be facing some serious penalties if convicted, possibly cushioned by the sentence that the plea deal currently under consideration could allow him to receive.
