Eric Council Jr., a 26-year-old from Alabama, has been sentenced to 14 months in prison after pleading guilty to charges related to a hacking incident in January 2024 involving the U.S. Securities and Exchange Commission's (SEC) X account. Council utilized a SIM-swap attack alongside a fraudulent ID to hijack a phone number linked to the SEC's social media and falsely announced the approval of spot bitcoin exchange-traded funds (ETFs). This misleading post caused bitcoin's price to surge by over $1,000 within minutes, only to crash by more than $2,000 soon after the announcement was debunked. Federal prosecutors labeled the act as a deliberate attempt to manipulate financial markets and expressed concerns about the erosion of public trust. Following his prison sentence, Council will undergo three years of supervised release and reportedly received compensation in bitcoin for his involvement in the scheme.

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