Alleged SEC hacker allowed to travel for the holidays

Eric Council Jr., the individual who allegedly hacked the United States Securities and Exchange Commission’s X account in January and posted a message suggesting that Bitcoin exchange-traded funds (ETFs) had been approved, will be allowed to travel for the holidays. 

In a Dec. 13 filing with the US District Court for the District of Columbia, Judge Amy Berman Jackson said Council could travel to North Carolina with a third-party custodian between Dec. 23 and Dec. 29. The judge said the alleged hacker “must provide Pre-Trial Services with his precise itinerary and information concerning where he will be staying at least two business days before traveling.”

Council pleaded not guilty to hacking the SEC’s X account on Jan. 9 and posting a message suggesting that the commission had greenlighted spot Bitcoin (BTC) ETFs at a time when many in the industry expected a decision. The fake message, complete with a quote from SEC Chair Gary Gensler, shook markets before the commission officially approved the investment vehicles roughly 24 hours later.

Federal Bureau of Investigation officials arrested Council in Alabama on Oct. 17. He has pleaded not guilty to one count of conspiracy to commit aggravated identity theft and access device fraud.

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At the time of publication, the judge had not scheduled a trial date for Council but suggested that the parties could file a plea agreement by Jan. 17. Council would need to appear in court in person at that time.

SEC hacked when many awaited spot Bitcoin ETF decision

Before Council’s alleged actions, many in the crypto industry had been expecting the SEC to announce a decision on whether US exchanges would be permitted to list spot ETFs tied to Bitcoin. US authorities alleged Council was part of a group that took control of the SEC’s X account through a SIM swap attack, with the post causing the price of BTC to briefly surge by more than $1,000.

After the hack, X’s safety team reported that the SEC did not have two-factor authentication enabled. The commission did not report any problems with its social media accounts in May when it approved spot Ether (ETH) exchange-traded products.

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