US prosecutors urged a two-year prison sentence for Eric Council Jr. over the SEC X account hack.
United States prosecutors have submitted their sentencing recommendation for Eric Council Jr., the SEC X account hack case defendant, which is nearing its conclusion. Council has objected to the recommendation, requesting a reduced sentence in light of its guilty plea.
Prosecutors urge a two-year sentence for the hacking of the SEC X account
According to a court filing, US prosecutors have requested that Judge Amy Berman sentence Eric Council Jr. for the SEC X account hack that occurred last year. Prosecutors asserted that the case warrants a prison sentence within the guidelines range and that Council’s actions warrant a “substantial penalty.”
The defendant had also profited from a “sophisticated fraud scheme” that involved him fraudulently producing identification documents and making a series of misrepresentations to carry out the crime, as noted by the US attorneys.
The group that infiltrated the SEC’s X account through a SIM Swap attack and posted a false post on January 9, 2024, regarding the approval of the spot Council-led Bitcoin ETFs. This action affected the market, as the Bitcoin price experienced a significant increase in response to the fraudulent announcement. Subsequently, the Commission removed the post and disclosed that a cyberattack had compromised it.
Eric Council Jr. was indicted by US prosecutors in October 2024 for conspiracy to commit aggravated identity theft and access device fraud, marking the official commencement of the case. In the meantime, the Alabama native pleaded guilty to the SEC X account breach earlier this year.
Eric Council Disagrees With Sentencing Recommendation
Eric Council’s attorneys have submitted a sentencing memorandum that contests the prosecution’s recommendation of a two-year sentence. The defense attorneys have asked Judge Berman to sentence their client to a maximum of one year and one day in prison following his guilty plea.
The attorneys contended that a sentence of twelve months and one day is consistent with the principles of justice, as indicated in the filing on May 13. They further stated that the proposed sentence “adequately punishes” the defendant for his involvement in the SEC X account breach and that it fosters respect for the law and guarantees deterrence. On May 16, Eric Council’s sentencing hearing will determine his fate.
In the interim, it is essential to note that the breach occurred during the Gensler-led administration, which implemented a regulation-by-enforcement strategy for the crypto industry. Nevertheless, the new administration has implemented a regulatory-friendly strategy, with new SEC Chair Paul Atkins promising to establish the United States as the global crypto capital.
