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FBI Investigates the SEC hack After Bitcoin ETF Approval Hoax

January 11, 2024 - Around 2 mins mins to read

Key Points:

  •  A hacked SEC X account falsely announced Bitcoin ETF approval, sending prices soaring before crashing back down
  • The FBI investigates the SEC hack underscores the seriousness of the incident and the potential for national security concerns
  • The hack sparks bipartisan criticism from Senators, demanding increased security measures and questioning the SEC’s trustworthiness. 
The crypto community is reeling after a brazen hack of the Securities and Exchange Commission’s (SEC) X account sent Bitcoin prices soaring before crashing back down. The FBI investigates the SEC hack, raising concerns about security vulnerabilities and potential market manipulation.
FBI Investigates the SEC hack After Bitcoin ETF Approval Hoax

FBI Investigates the SEC Hack Tweet Spurs Wild Bitcoin Swings

The drama unfolded on Tuesday when a seemingly innocuous tweet appeared on the @SECGov account, claiming the agency had approved multiple Bitcoin exchange-traded funds (ETFs). This news, long-awaited by investors, instantly sent Bitcoin prices skyrocketing. Crypto exchanges buzzed with excitement, with some, like Coinbase, even issuing celebratory statements.

However, the euphoria was short-lived. Within minutes, SEC Chair Gary Gensler issued a statement via his own X account, clarifying that the previous tweet was “unauthorized” and the result of a “compromised” account. Bitcoin prices promptly plummeted, reflecting the market’s volatile reaction to the false information.

“Unauthorized Access” Triggers Mayhem: SEC Breach Exposes Security Vulnerability, Senate Grills Agency

The SEC confirmed the hack, acknowledging “unauthorized access” to its X account. While details of the breach remain unclear, the FBI investigates the SEC hack and its potential implications for financial markets.

“I’m concerned that unauthorized access to SEC accounts could undermine our markets and the agency’s mission,” said Sen. Sherrod Brown, Chairman of the Senate Banking Committee, demanding an investigation and updates. Adding fuel to the fire, Republican Senators JD Vance and Thom Tillis sent a scathing letter to Gensler, slamming the SEC for a “colossal error” that eroded trust in the agency and the financial system.

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