US prosecutors are preparing to offer a plea deal to Eric Council Jr., an Alabama man accused by the US Securities and Exchange Commission (SEC) of hacking his social media account and spreading false information about Bitcoin ETFs.
The incident occurred in January 2024 when the SEC announced that the X account (formerly Twitter) had been compromised and that spot Bitcoin ETFs had been approved before an official agency announcement.
During a hearing in U.S. District Court for the District of Columbia on Friday, Assistant U.S. Attorney Kevin Rosenberg said prosecutors planned to “present a plea,” but it remained unclear whether the defendant would accept the offer, Bloomberg reported.
Eric Council Jr., 25, was arrested last week and charged with “aggravated identity theft and conspiracy to commit access device fraud.” Court records show Council has pleaded not guilty to the charges. The SEC’s social media account was compromised in January, with a fake post stating, “Today the SEC is approving Bitcoin ETFs for listing on all registered national securities exchanges.” Both SEC Chairman Gary Gensler and X (formerly Twitter) quickly confirmed that the account had been hacked.
Following the fake announcement, the BTC price surged by more than $1,000, underscoring the significant market impact of the misleading information. The fake post came just one day before the SEC officially approved the long-awaited spot Bitcoin ETFs, which have since raised billions in investments.
The case is being presided over by Judge Amy Berman Jackson, who is also overseeing a separate lawsuit filed by the SEC against cryptocurrency exchange Binance. If Council and prosecutors reach a plea agreement, both sides must submit “copies of proposed defense documents” by Dec. 4, the court filing states.
*This is not investment advice.