The U.S. Securities and Exchange Commission (SEC) was recently embroiled in a cybersecurity breach and subsequent trust crisis. On January 9, hackers infiltrated the SEC’s social media account, falsely announcing the approval of spot Bitcoin exchange-traded funds (ETFs).
The SEC quickly clarified that it had not endorsed any Bitcoin ETF applications, contradicting the misleading announcement made on its compromised social media account. The breach saw hackers briefly taking control of the SEC’s account, disseminating a statement that erroneously asserted the regulatory approval of long-anticipated spot Bitcoin ETFs.
This misinformation led to a temporary surge in Bitcoin prices, with the cryptocurrency briefly reaching nearly $48,000. However, the bubble burst when the SEC promptly debunked the false claim, causing Bitcoin to plummet nearly 6% to $45,100.
The incident prompted swift action from U.S. authorities, who initiated an investigation into the breach of the social media account belonging to Wall Street’s primary regulatory body. The SEC assured collaboration with law enforcement in the ongoing investigation, confirming the termination of unauthorized access and disavowing the misleading post as having no origin from the SEC or its staff.
SEC Chair Gary Gensler, in a separate statement on his personal social media account, emphasized that no decision regarding Bitcoin ETFs had been reached. An SEC spokesperson acknowledged the breach, stating that there was unauthorized access and activity on the compromised account by an unknown party. The spokesperson highlighted that the SEC would work diligently with law enforcement and government partners to investigate the breach and determine appropriate next steps.
Revelations from the social media platform’s Safety team indicated that the SECgov account lacked two-factor authentication, enabling the attacker to gain control over a phone number tied to the account. This vulnerability served as an entry point for the unauthorized access and subsequent dissemination of false information.
As the regulatory body faces scrutiny over the breach, market observers remain on edge as the SEC is anticipated to make decisions regarding spot Bitcoin ETFs. Despite the misleading announcement, SEC Chair Gensler reiterated that the ETFs had not been authorized, emphasizing the need for accurate information dissemination in the volatile cryptocurrency landscape.
The compromised SECgov account had tweeted, “Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges. The approved Bitcoin ETFs will be subject to ongoing surveillance and compliance measures to ensure continued investor protection.” This tweet included a graphic with a quote purportedly from Gensler. The account also posted a second tweet simply saying “$BTC,” but this post was swiftly deleted.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Gary Gensler, Sam Bankman-Fried |
| Companies | Wall Street, X’s Safety team, U.S. Securities and Exchange Commission |
| Currencies | Bitcoin |
| Securities | None |
