A 26-year-old man from Alabama has been sentenced to more than a year in prison for his role in a social media hack that briefly sent the price of bitcoin soaring.

Key Points:

• Eric Council Jr. has been sentenced to 14 months for hacking the SEC’s account to announce the supposed approval of spot bitcoin ETF.
• The Bitcoin price surged over $1,000 following the false announcement before plummeting by more than $2,000 once the truth came to light.
• Council executed a SIM-swap attack, presenting a fake ID to gain access to the SEC’s social media account.

In January 2024, he pleaded guilty to charges related to this hack. The fraudulent post strikingly contributed to a momentary boost for bitcoin’s price, showcasing the potential impacts of misinformation in financial markets. Authorities noted that Council was compensated in bitcoin for his actions. He faces 14 months in prison, followed by three years on supervised release.

Federal prosecutors have described this event as a calculated attempt to manipulate financial markets, with Acting FBI Assistant Director Darren Cox emphasizing the severe nature of the crime, which attempted to undermine public trust in the financial system.