SEC Twitter Account Compromised: False Bitcoin ETF Approval Sparks Market Turmoil

SEC Twitter Account Compromised: False Bitcoin ETF Approval Sparks Market Turmoil

Late on Tuesday, Social media X announced the completion of a preliminary investigation into the compromised U.S. Securities and Exchange Commission (SEC) account. The compromised account falsely claimed that the SEC had approved bitcoin ETFs for trading.

According to X’s post, the investigation revealed that the compromise wasn’t a result of any breach in X’s systems. Instead, an unidentified individual gained control over a phone number linked to the @SECGov account through a third party. X confirmed that the compromised account did not have two-factor authentication enabled at the time of the incident.

Following the unauthorized post, bitcoin prices experienced a surge, but they quickly dropped below $46,000 after the SEC clarified that it had not approved the bitcoin ETF. At approximately 12:20 a.m. ET, the price was trading at nearly $45,958.

In response to the situation, an SEC spokesperson informed that the SEC’s @SECGov X/Twitter account had been compromised. The tweet claiming approval of bitcoin ETFs was unauthorized and not made by the SEC or its staff.

The false social media post asserted that the regulator had approved bitcoin ETFs for trading, a statement contradicted by SEC Chair Gary Gensler. Despite market expectations for the regulator to greenlight the bitcoin ETF, Gensler, who has been critical of crypto during his tenure, denied the approval.

The SEC is anticipated to make a decision on the matter this week, signaling a potential shift after years of opposition to the idea. Gensler’s SEC has previously taken legal action against cryptocurrency exchanges such as Coinbase and Ripple, accusing both of selling unregistered securities.

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