SEC Faces Challenge Following Fake Bitcoin ETF Approval Tweet
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
The Securities and Exchange Commission (SEC) found itself at the mercy of a cyberattack targeting its official X account, @SECGov. The attack occurred on Tuesday when a fraudulent tweet, falsely claiming the SEC’s approval of spot bitcoin exchange-traded funds (ETFs), was posted.
The misleading tweet, featuring a fabricated endorsement from SEC Chair Gary Gensler, asserted the authorization of spot bitcoin ETFs on all registered securities exchanges.
However, the tweet was promptly deleted, and Gensler clarified, stating, “The @SECGov Twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.”
The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.
— Gary Gensler (@GaryGensler) January 9, 2024
SEC and the Recurring Tale of X Hacks
This is not the first time the SEC’s X account has fallen victim to hacking. In 2017, a similar incident occurred, resulting in a fake announcement about the suspension of trading in certain companies. The SEC suggested that the prior hack may have led to illicit trading profits.
The recent attack on the SEC’s X account is noteworthy within the context of cyber threats targeting cryptocurrency-related accounts. In 2020, a widespread hack affected prominent figures like Joe Biden, Barack Obama, Elon Musk, and Warren Buffett, disseminating a crypto scam. The incident led to the arrest of Joseph O’Connor, who received a five-year prison sentence for his involvement.
The fake tweet caused a brief surge in bitcoin prices, reaching $47,888, before retracting to around $44,750 as the misinformation was exposed. The incident highlights the susceptibility of cryptocurrency markets to external influences and misinformation.
As the SEC continues to review multiple applications for bitcoin ETFs, analysts anticipate potential approvals in the near future. However, the regulatory body has not disclosed an official timeline for its decision.
The incident raises concerns about cybersecurity vulnerabilities in financial institutions, emphasizing the importance of robust security measures to safeguard against unauthorized access and potential market manipulation.
