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SEC hacker counters prosecutors with 366-day sentencing recommendation

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Defense lawyers have asked a judge to sentence the person responsible for helping post a fake message announcing regulatory approval of Bitcoin exchange-traded funds to roughly a year in prison, countering prosecutors’ request for a two-year sentence.

In a May 13 filing in the US District Court for the District of Columbia, Eric Council Jr.’s legal team asked that he be sentenced to no more than one year and one day in prison following his guilty plea.

Council was part of a group that took control of the US Securities and Exchange Commission’s (SEC’s) X account in 2024 through a SIM swap attack, posting a message that suggested the regulator had approved spot Bitcoin (BTC) exchange-traded fund listings for the first time.

“A sentence of twelve months and one day serves the ends of justice,” said the May 13 filing. “It sufficiently punishes the defendant for his role in this case. It also promotes respect for the law and deters future criminal conduct.”

Eric Council Jr.’s sentencing recommendation, filed on May 13. Source: PACER

Council initially pleaded not guilty to the charges, but changed his plea to guilty in February on one count of conspiracy to commit aggravated identity theft and access device fraud. The judge overseeing the case, Amy Berman Jackson, also ordered prosecutors to “identify the felony and point to where that information can be found in the record” by May 13.

Prison sentence between 1 and 2 years?

The SEC hacker is scheduled to be sentenced on May 16. Prosecutors asked the judge to impose a two-year sentence on Council, saying he “profited through a sophisticated fraud scheme.” Court filings showed he earned roughly $50,000 through similar SIM swap attacks.

Related: ZKsync X hacker posts false SEC probe in apparent effort to crash token

Though Council’s case was likely winding down with his upcoming sentencing hearing, the DC court district could soon be under new leadership, potentially affecting the prosecution of crypto-related cases. On May 8, US President Donald Trump announced that Fox News host Jeanine Pirro would become the interim US attorney for the District of Columbia.

Magazine: SEC’s U-turn on crypto leaves key questions unanswered

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ECB official sees digital euro as key to protecting EU ‘sovereignty’

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Piero Cipollone said the bloc is on track to test real transactions in 2027 and roll out a digital euro as early as 2029, pending legislation this year.

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Netanyahu floats use of blockchain as solution to potential financial sanctions

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Ahead of elections, Prime Minister Benjamin Netanyahu said Israel could turn to blockchain and crypto to skirt potential international sanctions, to the dismay of opponents and the country’s central banker.

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Wells Fargo and five others object to OKX-ICE tokenized stock listings: Report

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As of Friday, 22 companies had filed objections as part of the joint venture’s proposed tokenized stock platform under the SEC’s innovation exemption.

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