SEC Security Breach Causes US Authorities To Call For Urgent Investigation

Key Points:

• The SEC’s official Twitter account was compromised, spreading false news about the approval of a Bitcoin ETF, causing a brief surge in Bitcoin’s price.
• The SEC security breach triggered market fluctuations, prompting US authorities to investigate the security breach at the SEC.

The official social media account of the US Securities and Exchange Commission (SEC) fell victim to a security breach. Bad actors took control, spreading false information about the approval of a spot Bitcoin ETF, triggering a surge in the cryptocurrency’s price, and igniting scrutiny from US authorities.

SEC Security Breach Sparks Cryptocurrency Market Chaos

SEC Chair Gary Gensler confirmed the compromise, acknowledging an “unauthorized tweet” from the hacked account (SEC’s X account). This incident prompted a swift investigation into the SEC security breach, questioning the security measures in place at Wall Street’s principal regulatory body.

US Senator Bill Hagerty condemned the hack, deeming it unacceptable and asserting that Congress would demand answers from the SEC. Hagerty criticized the SEC, attributing the market impact to the misinformation stemming from the compromised account.

Senator Cynthia Lummis emphasized the potential market manipulation caused by fraudulent announcements, urging the SEC to be transparent about the incident. Additionally, she highlighted the need for heightened cybersecurity measures in the financial sector.

Tennessee State Senator Bill Hagerty took a direct swipe at Gensler, echoing the SEC Chair’s earlier advice for investors to secure their accounts with 2FA and robust passwords. This implied that even the SEC, a major regulatory agency, failed to secure its own account adequately.

Chairman of the House Financial Services Oversight and Investigations Subcommittee, Bill Huizenga, criticized Gensler for the SEC’s handling of the situation. The SEC pledged cooperation with investigative agencies to trace the identity of the attacker.

This SEC security breach adds a new layer of complexity to the cryptocurrency industry’s pursuit of a Bitcoin exchange-traded fund.

The hacking incident has injected uncertainty into the highly anticipated decision on whether to approve a Bitcoin ETF, previously expected by the January 10 deadline. The cryptocurrency’s price, having surged over 60% in recent months, is now under increased scrutiny amid the fallout from this unexpected security breach.