US prosecutors have recommended a two-year prison sentence for Eric Council Jr., who pleaded guilty to compromising the SEC's X account in January 2024. Council, part of a group that posted a fake message claiming that the SEC had approved Bitcoin exchange-traded funds (ETFs), caused significant market disruption prior to the actual approval announcement. The U.S. District Court filing on May 12 states that Council's actions involved a 'sophisticated fraud scheme' using fraudulently produced identification and deceit at telecommunication stores. Prosecutors described the actions as deserving of a significant penalty, emphasizing that the fake announcement incited a surge in Bitcoin's price, which increased by more than $1,000 before the SEC dispelled the claims. As of the filing date, Council's legal team had not responded to the sentencing recommendation, and he is scheduled for a court appearance on May 16.

Source 🔗