WASHINGTON, May 17, 2025 (BSS/AFP) - A 26-year-old man has been sentenced to 14 months in prison for a false post on the X account of the US Securities and Exchange Commission (SEC) that briefly sent bitcoin prices soaring, the Justice Department said Friday.

Eric Council Jr, of Huntsville, Alabama, pleaded guilty in February to conspiracy to commit aggravated identity theft and access device fraud, the department said in a statement.

In January 2024, Council and others conspired to seize control of the SEC's X account and falsely announce that the market regulator had approved a new cryptocurrency product, Bitcoin Exchange-Traded Funds (ETFs).

The price of the digital currency surged by more than $1,000 following the false announcement and fell by more than $2,000 after the SEC said its X account had been compromised.

The market had been speculating for weeks that the SEC would grant approval for the new product offering investors an index fund that replicates the performance of bitcoin without them having to hold the cryptocurrency directly.

"Council and his co-conspirators used sophisticated cyber means to compromise the SEC's X account and posted a false announcement that distorted important financial markets," Matthew Galeotti, head of the Justice Department's Criminal Division, said in the statement.

"Prosecuting those who seek to enrich themselves by threatening the integrity of digital assets through fraud is critical to protecting US interests," Galeotti added.