Key Points
- Eric Council Jr. has admitted to hacking the SEC’s social media account and creating a false announcement about Bitcoin ETF approval.
- The fake announcement triggered a surge in Bitcoin prices, and Council is now required to forfeit up to $50,000.
Eric Council Jr., a 25-year-old man from Alabama, has confessed to hacking the social media account of the United States Securities and Exchange Commission (SEC) over a year ago.
This hack was related to the approval of Bitcoin ETFs, and Council, along with accomplices, posted a false announcement about the approval on the SEC’s account.
Details of the Case
According to court documents filed in the US District Court of the District of Columbia, Council was charged with conspiracy to commit aggravated identity theft and access device fraud.
Council’s legal team has admitted guilt to the charges and filed a “Consent Order of Forfeiture,” which requires Council to forfeit up to $50,000, believed to be the proceeds of his illegal activities.
Judge Amy Berman Jackson has scheduled Council’s sentencing for May 16.
Council’s counterfeit post was made a day before the SEC officially approved the much-anticipated offering.
The fraudulent announcement resulted in a significant increase in the price of Bitcoin, with the coin gaining over $1,000 in less than 24 hours.
The hackers were able to capture the attention of the crypto community due to the anticipation surrounding the fund.
Council was subsequently arrested by the Federal Bureau of Investigation (FBI) in October.
Growth of Bitcoin ETFs
Meanwhile, the spot Bitcoin ETFs that the SEC approved in January have been thriving.
In the first week of 2025, data identified that a significant amount of capital flowed into Bitcoin spot ETFs, adding a net $245 million during this time.
Recently, BlackRock’s iShares Bitcoin Trust (IBIT) purchased 1,478 BTC worth approximately $155 million.
This purchase increased its weekly purchases to over 11,000 BTC and resulted in the highest-ever daily trading volume for IBIT, totaling $6.8 billion.
This surge in activity reflects the growing interest of investors in Bitcoin ETFs.
More Crypto ETFs on the Horizon
As a result, asset managers are trying to meet this growing demand by creating more crypto-based ETFs.
Calamos Investments launched the “Protected Bitcoin ETF,” a fund that guarantees 100% money back if Bitcoin falls by 50%.
There are already filings for Solana and XRP ETFs from VanEck, 21Shares, Canary Capital, and Bitwise.
Recently, Nasdaq officially filed 19b-4 forms with the US SEC seeking approval to list and trade the CoinShares XRP and Litecoin ETF products.
If approved, these funds would give investors direct exposure to XRP and Litecoin.
