A post on X that claimed the SEC had allowed bitcoin-based exchange-traded funds was labeled “unauthorized” by the SEC, and its account was hacked
The Securities and Exchange Commission (SEC) stated on Tuesday that a message that was issued from the agency’s account on the social platform X, which announced the approval of a bitcoin exchange-traded fund that had been anticipated for a long time, was “unauthorized,” and that the agency’s account had been hacked from the beginning. The message was issued on Tuesday. Tuesday is the day that the message was sent out.
Following the publication of the post on X, which was once known as Twitter, which said, “The SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges,” the price of bitcoin saw a sudden and significant surge of more than $1,000. This occurred soon after the post was made available to the public. Investors in cryptocurrencies have already drove the price of bitcoin to more than $46,000 prior to the announcement. This occurred before the statement was made. I am doing this in the hope that it will be accepted.
It is possible to invest in bitcoin by purchasing an exchange-traded fund (ETF), which would eliminate the requirement to buy the cryptocurrency directly on a cryptocurrency exchange like Binance or Coinbase. This would allow investors to bypass the hassle of acquiring bitcoin directly. An example of this would be investing in bitcoin using this strategy.
Nevertheless, not long after the first tweet was made public, Gary Gensler, Chairman of the Securities and Exchange Commission, said on his personal account that the SEC’s account had been hacked and that “The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.” Gensler’s statement came shortly after the initial tweet was made public. The response made by Gensler was sent not long after the first tweet was published. Even though Gensler said that the post was in violation of the law, he did not provide any more evidence to support his claim.
A comment that was made by Cory Klippsten, who is the Chief Executive Officer of Swan Bitcoin, was “Welp.” This statement was made on platform X.
There were a great number of other bitcoin investors, including Klippsten, who had anticipated that the regulator would provide authorization for bitcoin exchange-traded funds (ETFs) as soon as this week. These investors included Klippsten as one of them.
As a result of the publication of the illegal article, the price of bitcoin fell from around $46,730 to just below $48,000. This is a decline that is really substantial. In the aftermath of the Securities and Exchange Commission’s (SEC) decision to dismiss the accusation, the price of bitcoin fell to around $45,200. The price was around $46,150 at approximately 6:15 p.m. Eastern Time as of the event.
In the immediate aftermath of Gensler’s remarks, it seems that the Securities and Exchange Commission has seized control of the account. This seems to have taken place during a short period of time.
There was no clear evidence offered on the particular way in which the social media account belonging to the Social Security Administration (SEC) was the target of a hacking attempt. In a tweet that was put out on Tuesday evening, the @Safety account of X said that a preliminary investigation that was carried out by the platform had showed that “an unidentified individual” had obtained a phone number that was linked with the account “through a third party.” This information was revealed in the tweet.
Although it was unable to provide any other information, it did disclose that the SEC account that was hacked, which was @SecGov, did not have two-factor authentication enabled. This was the case despite the fact that it was unable to provide any additional information.
Legislators who have long made it clear that they are unhappy with the manner in which Gensler manages the Securities and Exchange Commission (SEC), notably Republicans, have recently voiced their outrage over what they consider to be inadequate security protocols that the SEC has implemented in regard to its accounts. Even before the news that Gensler had been terminated was made public, this was already coming to light.
It is necessary, as stated by Senator Bill Hagerty, a Republican from Tennessee who is a member of the Senate Banking Committee, for the United States Congress to be presented with answers on the recent occurrences that have taken place. “Just as the Securities and Exchange Commission would demand accountability from a public company if they made a massive mistake that moved the market,” the commissioner said in his statement.
Not only is this not the first time that erroneous information has been disseminated regarding the future of bitcoin on regulated exchanges, but it is also not the first time that this information has led the market to move in opposite ways. Both of these things are true.
As a direct result of a false rumor that was circulating in October, which said that fund manager BlackRock had been successful in securing permission for a bitcoin exchange-traded fund (ETF), the price of bitcoin saw a significant increase. This was a direct consequence of the myth.
Immediately after Elon Musk assumed control of Twitter in the later part of 2022, he immediately began a complete overhaul of the content moderation and security teams that were hired by the network. This reform was intended to improve the network’s overall security and safety. In spite of the fact that internet watchdog organizations have expressed their dissatisfaction with the increase in harmful content, which includes antisemitic and other forms of hate speech on X, a great number of people are concerned about the integrity of accounts.
“The consequences of account takeovers could potentially be significant, especially during an election year,” said Brett Callow, an expert with the cybersecurity company Emsisoft. “This information is especially relevant during the election year.” “This is especially true during election years.” “This is especially true while the election is taking place.”
It was requested that X provide a statement; however, a spokesman for the company did not immediately react to the query that was submitted to them.
