The SEC X account hack case is drawing to an end, as US prosecutors have filed their sentencing recommendation against the defendant, Eric Council Jr. In response, Council has objected to the recommendation, appealing for a lower sentence after having made a guilty plea.
Prosecutors Recommend 2-Year Sentence For SEC X Account Hack
A court filing shows that US prosecutors have requested that Judge Amy Berman sentence Eric Council Jr. for the SEC X account hack that occurred last year. The prosecution stated that the case deserves a guidelines-range prison sentence and that Council’s conduct deserves a “significant penalty.”
The US attorneys also noted that the defendant had profited through a “sophisticated fraud scheme” that involved him fraudulently producing identification documents and making a series of misrepresentations to carry out the crime.
Council led the group that hacked 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 Bitcoin ETFs. That action impacted the market, as the Bitcoin price surged following the false announcement. The Commission thereafter took down the post and revealed it had suffered a hack.
The case officially began in October 2024, when the US prosecutors indicted Eric Council Jr for conspiracy to commit aggravated identity theft and access device fraud. Meanwhile, earlier this year, the Alabama native pleaded guilty to the SEC X account hack.
Eric Council Objects To Sentencing Recommendation
Eric Council’s lawyers have filed a sentencing memorandum, objecting to the prosecution’s recommendation of a 2-year sentence. The defense lawyers have requested that Judge Berman sentence their client to a maximum of one year and one day in prison following his guilty plea.
As revealed in the May 13 filing, the lawyers argued that a sentence of twelve months and one day serves the ends of justice. They added that the proposed sentence “sufficiently punishes” the defendant for his role in the SEC X account hack and that it promotes respect for the law and ensures deterrence. Eric Council will know his fate on May 16, which is the date for his sentencing hearing.
Meanwhile, it is worth mentioning that the hack occurred under the Gensler-led administration, which adopted a regulation-by-enforcement approach towards the crypto industry. However, the new administration has adopted a regulatory-friendly approach with new SEC Chair Paul Atkins vowing to make the US the crypto capital of the world.
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