Eric Council Jr. was implicated in the scheme, having executed the SIM swap to gain access to the SEC's linked phone number and enabling co-conspirators to post the fraudulent tweet.

The SEC has since regained control of its account and identified security vulnerabilities, noting that the account lacked multi-factor authentication at the time of the incident.

This incident underscores the ongoing advocacy within the cryptocurrency industry for Bitcoin ETFs, which aim to facilitate safer investment options.

The timeline for Council's return to court for potential sentencing remains unclear, as investigations into his co-conspirators continue.

On January 9, 2024, the SEC's X account was compromised, leading to a false announcement of a Bitcoin ETF approval that caused significant fluctuations in Bitcoin's value.

The fake announcement resulted in over $220 million in losses as traders reacted to the misinformation before the market corrected itself.

Bitcoin's price initially surged from around $46,730 to nearly $48,000 following the post, but it quickly dropped back to approximately $45,200 after the SEC denied the announcement.

He pleaded guilty to conspiracy to commit aggravated identity theft in a federal court in Washington, D.C., and faces a maximum sentence of five years in prison.

Council, who operated online under the aliases 'Ronin' and 'Easymunny,' was arrested by the FBI in October 2024 and charged with conspiracy to commit aggravated identity theft and access device fraud.

Sentencing for Council is scheduled for May 16, 2025, where he could also face fines and supervised release.

Court documents revealed that Council received approximately $50,000 in Bitcoin for his involvement in the scheme, which he agreed to forfeit as part of his plea deal.

The breach was executed through a SIM swap attack, allowing hackers to post a fraudulent message featuring an image of then-SEC Chair Gary Gensler.