SEC Bitcoin ETF Post Investigation
London: 17 January 2024 (TraderMade): In a surprising turn of events, the US Securities and Exchange Commission (SEC) is under scrutiny after a fake post surfaced on its social media account. The post suggests approving exchange-traded funds (ETFs) for bitcoin.
The crypto industry, eagerly awaiting such approval, was stirred when a message briefly appeared on the SEC's X social media account, formerly Twitter.
Key Takeaway:
- Beware of false SEC announcements;
- Bitcoin ETF approval misinformation led to market fluctuations.
The SEC swiftly responded, clarifying that it has not yet approved spot bitcoin ETFs and that the post resulted from a brief compromise of its X account.
The unauthorized access has been terminated, according to the regulatory body, which is now collaborating with law enforcement to investigate the incident and any related misconduct.
X, owned by Elon Musk, confirmed the compromise and revealed that an unidentified individual gained control over a phone number associated with the SEC's account through a third party.
Notably, the SEC's account lacked two-factor authentication during the breach. X emphasized that the platform itself was not breached.
The misleading post claimed approval for bitcoin ETFs on all registered national securities exchanges and included a fabricated quote from SEC Chair Gary Gensler. This misinformation temporarily boosted bitcoin prices, impacting the market.
As investigations unfold, the incident highlights the vulnerabilities associated with social media accounts in the fast-paced world of cryptocurrency.
