U.S. senators have raised the alarm over cybersecurity protocols at the Securities and Exchange Commission (SEC). This action follows an alarming breach where the SEC’s social media account was compromised, leading to the dissemination of false information regarding Bitcoin ETFs.
A fraudulent announcement on the SEC’s social media platform, previously known as Twitter, caused Bitcoin’s value to momentarily inflate to $48,000 before plummeting. The SEC, which confirmed the first Bitcoin ETFs the following day, faced scrutiny for the premature and inaccurate post.
Senators Ron Wyden and Cynthia Lummis have issued a bipartisan call to action, pressing the SEC to conduct a thorough investigation into their cybersecurity measures, or lack thereof. The senators highlighted the absence of two-factor authentication (MFA) at the time of the hack—a fundamental security feature that combines a password with a separate security key.
The senators’ letter underscores the urgency to adopt robust, phishing-resistant MFA to prevent future breaches. As the SEC’s oversight is crucial for market stability, the call for enhanced cybersecurity measures is not just a recommendation but a necessity to maintain trust and integrity in the financial system.
