Eric Council Jr., accused of hacking the U.S. Securities and Exchange Commission’s (SEC) X account earlier this year, has received permission to travel for the holidays. A federal judge approved his request to visit North Carolina under specific conditions.
Judge Approves Holiday Travel
In a Dec. 13 court filing, Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia allowed Council to travel between Dec. 23 and Dec. 29. The decision requires him to be accompanied by a third-party custodian and provide Pre-Trial Services with a detailed itinerary at least two business days before his trip.
Details of the SEC X Account Hack
Council has pleaded not guilty to charges stemming from the Jan. 9 hack of the SEC’s X (formerly Twitter) account. During the breach, a fraudulent post claimed that the SEC had approved spot Bitcoin exchange-traded funds (ETFs), a hot topic in the crypto industry at the time.
The fake announcement, falsely attributed to SEC Chair Gary Gensler, caused a temporary $1,000 surge in Bitcoin’s price before the agency clarified the misinformation. The actual approval of spot Bitcoin ETFs occurred roughly 24 hours later, unrelated to the post.
Legal Proceedings and Charges
The FBI arrested Council in Alabama on Oct. 17. He faces charges of conspiracy to commit aggravated identity theft and access device fraud. While a trial date has not yet been scheduled, Judge Jackson has suggested a plea agreement may be filed by Jan. 17, requiring Council to appear in court in person.
Alleged Hack Involved SIM Swap Attack
Authorities allege that Council was part of a group that used a SIM swap attack to compromise the SEC’s account. This type of attack involves taking control of a victim’s phone number to bypass security measures.
The incident raised questions about the SEC’s cybersecurity practices. Reports following the hack revealed that the commission’s X account did not have two-factor authentication enabled at the time.
Broader Implications
The hack occurred when the crypto industry was eagerly awaiting the SEC’s decision on spot Bitcoin ETFs, intensifying its market impact. Although the SEC has since approved other exchange-traded products, including those tied to Ether, the case highlights the vulnerabilities of high-profile social media accounts and their potential influence on financial markets.
As legal proceedings continue, Council’s upcoming travel suggests a temporary reprieve amid his ongoing legal challenges.
