The US government has recommended a two-year sentence for Eric Council Jr., who was involved in posting a fake message about the approval of Bitcoin exchange-traded funds by the SEC. Prosecutors urged Judge Amy Berman Jackson to sentence Council to two years in prison for his role in the social media post suggesting the SEC’s approval of spot Bitcoin exchange-traded funds in January 2024. The false announcement led to market turmoil before the actual approval, resulting in Council’s arrest. US prosecutors highlighted the sophisticated fraud scheme involving fake documents and misrepresentations that warranted a significant penalty. Council’s legal team had not responded to the sentencing recommendation as of May 12, with a court appearance scheduled for May 16. Council pleaded guilty to a SIM swap attack on the SEC’s social media account, leading to the fake post. The incident caused a brief surge in Bitcoin’s price before the SEC clarified the situation. The case reflects a shift in leadership within the DOJ under Trump, raising questions about the handling of criminal cases involving digital assets. Trump’s interim appointments in key districts have faced scrutiny, potentially impacting the prosecution of such cases. In a separate case, former Celsius CEO Alex Mashinsky was sentenced to 12 years in prison in New York’s Southern District. The evolving landscape of crypto regulation and enforcement underscores the uncertainty in the industry.