The Securities and Exchange Commission (SEC) has reported that a social media post on X, claiming that it had approved spot bitcoin exchange-traded funds, was falsely created by an unauthorized party who gained control of the agency’s phone number on the platform. This incident raises concerns about the cybersecurity of both the SEC and the social media platform, formerly known as Twitter.
The SEC is currently coordinating with law enforcement, including the FBI and Department of Homeland Security, to address the situation. They are also assessing the impact of the breach on the agency, investors, and the marketplace, and considering additional remedial measures.
The confusion started on Tuesday when the hacked post appeared on the SEC’s X account, stating that the agency had approved Bitcoin ETFs for listing on registered national securities exchanges. A second post, which simply read “$BTC,” was also posted and quickly deleted by the unauthorized user. The price of bitcoin rose sharply before pulling back, indicating the impact of the false information.
In response to the hack, SEC staff posted on SEC Chair Gary Gensler’s official X account, clarifying that the agency’s main account had been compromised and that no spot bitcoin exchange-traded products had been approved. The SEC also reached out to X for assistance and believes that the unauthorized access to their account was terminated later in the day.
The agency has confirmed that there is no evidence of the unauthorized party gaining access to SEC systems, data, devices, or other social media accounts. However, the following day, the SEC officially approved the listing and trading of spot bitcoin ETFs, marking a significant breakthrough for the crypto industry.
As of Friday evening, Bitcoin was down 7.6% over a 24-hour period. The SEC continues to monitor the situation and take necessary measures to ensure the security of their social media accounts and protect investors.
