SEC X Account Hack Causes Entire Crypto Market To Shake Because Of Fake ETF News

Key Points:

• The SEC faced a cybersecurity breach as its X account falsely announced approval for spot Bitcoin ETFs.
• The SEC denied staff involvement, initiated an investigation, and clarified that no decision had been made on spot Bitcoin ETFs.
• Bitcoin’s price surged to $48,000 and then dropped to $44,800 following the SEC X account hack.

In a surprising turn of events on Tuesday, the highly anticipated decision by the US Securities and Exchange Commission (SEC) regarding the approval of a spot-Bitcoin exchange-traded fund (ETF) became the epicenter of a major cybersecurity incident.

SEC X Account Hack Appears Amid Bitcoin ETF Speculation

The SEC’s official X account, hosted on the platform formerly known as Twitter, was compromised, leading to an unauthorized post claiming approval for spot Bitcoin ETFs across all registered national securities exchanges. This misinformation briefly triggered a surge in Bitcoin’s price. The agency swiftly addressed the SEC X account hack, stating that unauthorized access had been terminated.

The incident prompted an investigation by US authorities into the compromise of a social media account at Wall Street’s primary regulator. Despite rumors suggesting SEC staff involvement, the SEC denied any connection to the unauthorized tweet. The regulator assured the public that no decision had been made on spot Bitcoin ETFs.

The SEC X account hack highlighted the vulnerability of even prominent financial institutions to cyberattacks, with Kurt Gottschall, a partner at law firm Haynes Boone, noting the irony given the SEC’s strict stance on cybersecurity incidents in the past.

Crypto enthusiasts seized upon the incident, interpreting it as a setback for SEC Chair Gary Gensler, who has been perceived as a critic of the cryptocurrency industry. The breach added a layer of irony as the SEC, which has warned about crypto’s online vulnerabilities, became a victim of a cybersecurity incident.

Bitcoin‘s price experienced volatile fluctuations amid conflicting information, initially soaring to nearly $48,000 on the false announcement of SEC approval, only to plummet to $44,800 when Chairman Gensler personally rejected the claim. The SEC pledged to collaborate with law enforcement to investigate the incident, emphasizing that the post did not originate from the SEC or its staff.