U.S. Senators Demand Explanation from SEC Chair over Fake Bitcoin ETF Tweet
Two U.S. Senators, JD Vance and Thom Tillis, have written a letter to Securities and Exchange Commission (SEC) chair Gary Gensler expressing concern and requesting clarity regarding the SEC’s recent fake tweet. The tweet falsely claimed that multiple spot Bitcoin ETFs had been approved, causing extreme volatility in the price of Bitcoin. Vance and Tillis demand an explanation for how the fake announcement was made, whether by an SEC employee or an outside entity, and how the SEC plans to rectify any financial losses incurred by investors due to the false information.
Twitter Investigation Reveals Hack of SEC Account
A preliminary investigation by Twitter’s Safety team revealed that the hack of the SEC’s Twitter account was not due to a breach of Twitter’s systems but rather an individual obtaining control over a phone number associated with the account through a third party. It was also revealed that the SEC account did not have two-factor authentication enabled at the time of the hack, contradicting SEC chair Gensler’s own recommendations against identity theft and fraud.
SEC Responds to Fake Announcement
The SEC acknowledged that its account had been compromised and stated that it had terminated the person/persons responsible for the unauthorized access. The regulator will be working with law enforcement to investigate the matter further. In their letter, Senators Vance and Tillis requested that if the tweet was found to be a result of a cybersecurity attack, the SEC should provide Congress with a report on the breach within four business days.
Crypto Community Awaits Approval of Spot Bitcoin ETFs
The incident with the fake tweet comes at a time of heightened anticipation among the crypto community as there is a possibility of multiple spot Bitcoin ETFs being approved. The SEC has rejected all previous applications for a spot Bitcoin ETF, but recent developments have increased optimism for an approval. Analysts from Bloomberg Intelligence have raised the odds of a spot Bitcoin ETF being approved in January to 95%.
Hot Take: SEC’s Fake Tweet Raises Concerns and Highlights the Need for Strong Cybersecurity Measures
The recent fake tweet from the SEC’s Twitter account has raised serious concerns about the regulator’s cybersecurity procedures. The incident led to extreme volatility in the price of Bitcoin and left investors confused. It is crucial for regulatory bodies like the SEC to have robust cybersecurity measures in place to prevent unauthorized access and false information from being disseminated. This incident serves as a reminder of the importance of implementing two-factor authentication and following best practices to protect sensitive information. As the crypto industry continues to grow, regulators must prioritize cybersecurity to maintain trust and stability in the market.
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