In a recent security incident, the U.S. Securities and Exchange Commission (SEC) swiftly addressed a breach of its social media presence, where a fraudulent announcement regarding the approval of Bitcoin ETFs momentarily stirred the market. The SEC clarified that its official account was momentarily infiltrated on Tuesday post-4 p.m. ET, leading to the spread of misinformation.
The regulatory body confirmed that no such approval for spot Bitcoin ETFs has been granted, contrary to the unauthorized statement disseminated on the platform now owned by Elon Musk. The SEC has since regained control and is actively collaborating with law enforcement to delve into the breach and any associated activities.
The platform, referred to in the text as ‘X’, acknowledged the lapse, attributing the incident to an “unidentified individual” manipulating a phone number tied to the SEC’s account via a third-party service. Notably, at the time of the breach, the SEC’s account lacked two-factor authentication—a security measure that ‘X’ indicated was not a factor in the incident.
As the crypto community stood on the cusp of a potentially pivotal moment with the anticipated approval of Bitcoin ETFs, the unauthorized post, complete with a fabricated quote from SEC Chair Gary Gensler, briefly influenced Bitcoin’s price. This unexpected turn of events has left industry insiders and ETF issuers in a state of bewilderment, questioning the potential impact on the forthcoming official decision.
Despite the disruption, experts like Anthony Tu-Sekine remain confident that the incident is unlikely to affect the imminent rulings on Bitcoin ETF proposals. The SEC’s verdict on a joint proposal from Ark Investments and 21Shares is expected imminently, with the industry watching closely.
