The US government has urged a federal judge to impose a two-year prison sentence on Eric Council Jr., who played a role in spreading false information about the approval of a spot Bitcoin ETF by the Securities and Exchange Commission (SEC) via its official X account.
SEC Impersonator faces 2-year Prison
According to a filing made on May 12 in the US District Court for the District of Columbia, federal prosecutors alleged that Council posted a fraudulent message on X in January 2024, falsely claiming the SEC had authorized the first-ever spot Bitcoin ETF. This misleading announcement caused significant market volatility in the 24 hours before the SEC officially gave the green light to such products. The inaccurate and deceptive post led to Council’s arrest shortly afterward.
“This offense warrants a prison term within the guideline range,” prosecutors argued in the filing. They described Council’s actions as part of a “sophisticated fraud scheme,” involving forged identification documents, misleading activity at telecom providers, and the illicit transmission of password reset codes to co-conspirators both within the U.S. and abroad.
As of May 12, Council’s defense team had yet to respond to the government’s sentencing recommendation. His sentencing hearing is scheduled for May 16 before Judge Jackson.
Council has admitted guilt, acknowledging his involvement in a hacking group that seized control of the SEC’s X account through a SIM-swapping technique. Once in control, the group issued a fake post claiming approval of spot Bitcoin ETFs. Although the SEC quickly deleted the message, it briefly triggered a sharp rise in Bitcoin’s price—over $1,000—before then-Chair Gary Gensler publicly denied the post’s accuracy. The SEC formally approved the ETFs the next day.
The timing of Council’s case coincides with the ongoing legal crackdowns in the crypto sector. For example, former Celsius CEO Alex Mashinsky was recently sentenced to 12 years in prison following a guilty plea in December 2024. Prosecutors had requested a 20-year sentence, while Mashinsky’s defense team asked for just over a year. Apart from the prison term, he agreed to forfeit $48 million and several properties. Mashinsky wept during sentencing and offered an apology, saying, “I respectfully ask the victims for forgiveness and I apologize to all of them for my mistakes. I’m truly sorry.”
Meanwhile, Council’s fate will be determined by US Attorneys appointed by President Donald Trump, who had filled interim leadership positions in several districts after facing Senate resistance.
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