U.S. prosecutors are reportedly preparing a plea deal for Eric Council Jr., an Alabama man accused of a high-profile hack of the U.S. Securities and Exchange Commission's (SEC) official X account.
The breach, which took place in January, led to a fake post about the approval of spot Bitcoin ETFs and temporarily influenced the BTC price.
Eric Council Jr. was arrested and charged last week with "conspiracy to commit aggravated identity theft and access device fraud."
Prosecutors Offer Plea Deal to X Account Hacker in SEC Case, Seeking Cooperation
In a recent hearing at the U.S. District Court in Washington, D.C., Assistant U.S. Attorney Kevin Rosenberg confirmed the government's intention to extend a plea deal to Council. However, as Bloomberg reported, it's uncertain whether Council will accept the offer.
"We will extend a plea; [ -- ] I have no idea if it will be accepted or not," addressing U.S. District Judge Amy Berman Jackson, Rosenberg stated.
If Council accepts the deal, his cooperation could aid federal authorities in prosecuting other alleged participants in the conspiracy.
The incident occurred before the SEC's long-awaited announcement regarding spot Bitcoin ETFs. Prosecutors allege that Council and unidentified co-conspirators took control of the SEC's X account, posting an unauthorized message declaring that Bitcoin ETFs were approved for listing on registered exchanges.
The post reportedly sent just a day before the SEC's official announcement, caused Bitcoin's price to surge by over $1,000 in response to the perceived news of the anticipated ETF approvals.
The prosecution has emphasized that Council was not acting alone but was allegedly directed by others who played important roles in orchestrating the attack.
Judge Jackson Takes on SEC Hack Case: Will Council's Cooperation Reveal New Leads?
According to the allegations, Council and his co-conspirators employed SIM swapping, a method of fraudulently transferring phone numbers to new devices, to compromise the SEC's social media account security.
Prosecutors claim that Council obtained personal information from a victim through his co-conspirators, including a name and photo, which he allegedly used to create a fraudulent ID.
With this fake identification, he visited an AT&T store in Huntsville, Alabama, obtaining a SIM card tied to the victim's phone number. Using a new iPhone he bought with cash, Council allegedly accessed the SEC's social media account by retrieving the necessary access codes.
The case is being overseen by Judge Amy Berman Jackson, who presides over a separate SEC case against Binance. If a plea deal is reached, both parties must submit the proposed plea documents by December 4, per the court's schedule.
Through potential cooperation, prosecutors hope Council's insights could reveal further details about the organization and individuals behind this attack.