U.S. Securities and Exchange Commission (SEC) X Account Hack Falsely Announces Bitcoin ETF Approval
The false announcement caused immediate market volatility, with Bitcoin initially surging to nearly $48,000 before plunging approximately 6% to $45,100 after the truth was revealed.
The U.S. Securities and Exchange Commission's (SEC) X account, responsible for communicating SEC decisions, was compromised, leading to a false announcement of bitcoin exchange-traded funds (ETFs) approval. This misinformation prompted a brief surge and subsequent drop in Bitcoin's value.
A spokesperson confirmed that the SEC did not approve any bitcoin ETF applications, contrary to a misleading tweet from the compromised X account. The SEC's Chair Gary Gensler reiterated via his personal account that the agency hadn't sanctioned the listing and trading of spot bitcoin ETFs.
The @SECGov X account was compromised, and an unauthorized post was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.
— U.S. Securities and Exchange Commission (@SECGov) January 9, 2024
The SEC's X account had posted a tweet proclaiming approval for Bitcoin ETFs across registered national securities exchanges. It also featured a graphic purportedly quoting Gensler, detailing ongoing surveillance and compliance measures for investor protection. However, this was swiftly deleted following the account compromise.
The SEC clarified that any approvals regarding bitcoin ETFs would be officially communicated through its EDGAR database and published in the Federal Register, with X not being a designated communication platform for such decisions.
This incident highlights the susceptibility of social media platforms to unauthorized access and the potential impact of false information on cryptocurrency markets, emphasizing the necessity of verifying official statements through authorized channels.
