25-Year-Old Pleads Guilty in SEC Twitter Hack That Sent Bitcoin Soaring

Eric Council, the Alabama man behind a fake Bitcoin ETF post from the SEC’s hacked social media account, has admitted to the crime. With sentencing set for May, he faces forfeiting up to $50,000 in illicit profits. Meanwhile, the real Bitcoin ETFs continue to flourish, drawing billions from investors.

SEC Hack That Shook the Crypto Market

It was a simple tweet, but the impact was massive. On a day when traders hung on every word from regulators, a fake post from the SEC’s official account declared that Bitcoin ETFs had been approved. Prices soared by over $1,000 within hours before the truth emerged—the account had been compromised.

The man behind it? Eric Council Jr., a 25-year-old from Alabama. He didn’t act alone but allegedly worked with others to break into the SEC’s X (formerly Twitter) account using stolen credentials. Authorities later revealed he had used a fake ID to access a device tied to the regulator’s social media system.

Council was arrested in October following an FBI investigation. Now, he has pleaded guilty in federal court.

Guilty Plea and Financial Penalty

Court documents from the U.S. District Court in Washington, D.C., lay out the charges against him—conspiracy to commit aggravated identity theft and access device fraud. His lawyers negotiated a guilty plea, and as part of the deal, Council agreed to forfeit up to $50,000 in illegal gains from his scheme.

Judge Amy Berman Jackson scheduled sentencing for May 16. Given the severity of identity-related financial crimes, Council could face significant prison time. However, the exact terms of his sentence remain uncertain.

One thing is clear: his actions rattled markets, proving just how susceptible crypto trading can be to misinformation.

The Bitcoin ETF Frenzy

Despite the chaos caused by the hack, the real approval of spot Bitcoin ETFs in January 2024 has been a game-changer for the industry. Unlike the fraudulent post, these ETFs were genuinely greenlit by the SEC, opening doors for traditional investors to gain exposure to Bitcoin through regulated channels.

A year later, demand remains strong. According to SoSoValue data:

• Bitcoin spot ETFs saw $245 million in net inflows in the first week of 2025.
• Fidelity’s FBTC and ARK 21Shares Bitcoin ETF (ARKB) led the pack in attracting investors.
• BlackRock’s iShares Bitcoin Trust (IBIT) made a splash with a single-day purchase of 1,478 BTC, valued at approximately $155 million.

This growing interest has driven ETF trading volumes to record highs. In one instance, IBIT hit a daily trading volume of $6.8 billion.

More Crypto ETFs on the Horizon

The success of Bitcoin ETFs has encouraged asset managers to expand their offerings. Companies are experimenting with new ways to attract investors while managing risk.

One notable example is Calamos Investments, which recently launched a “Protected Bitcoin ETF.” This unique product guarantees investors a full refund if Bitcoin’s price drops by 50%, albeit with a cap on potential profits.

As interest in crypto-backed funds continues to rise, firms are rushing to develop more specialized products. The SEC, which once hesitated to approve such funds, is now facing an influx of applications for ETFs tied to Ethereum and other digital assets.

A Cautionary Tale for the Market

Council’s guilty plea serves as a reminder of the risks tied to crypto speculation. The SEC hack showed how easily a well-placed lie could shake an entire market. It also underscored the importance of security in a world where social media can move billions of dollars in minutes.

While Council awaits sentencing, the Bitcoin ETF sector he falsely claimed to approve is thriving—this time, for real.