SEC Faces Major Cybersecurity Incident
Yesterday, the U.S. Securities and Exchange Commission (SEC) experienced a substantial cybersecurity incident, leading to confusion regarding the expected decision on Bitcoin exchange-traded funds (ETFs). A fraudulent post announcing the approval for the products, originating from a compromised SEC account on X, caused a brief spike in the cryptocurrency’s price before authorities initiated an investigation.
How it Impacted the Crypto Market
The fake tweet resulted in an immediate surge in the Bitcoin price, soaring to almost $48,000. Subsequently, at 4:26 p.m., Gary Gensler, the chair of the SEC, disclosed that the agency’s account had been hacked, leading to an unauthorized fake tweet. At that point, the price of bitcoin suddenly dropped to $46,800 and then fell to $45,881.
900 Million Liquidation Due to Fake News
Following a fraudulent approval post for spot exchange-traded funds (ETFs), the cryptocurrency market encountered a considerable drop in value. Coinglass data indicates that Bitcoin’s market capitalization fell by approximately $50 billion within the last 24 hours. As a result, the top cryptocurrency’s price declined to $890 billion before rebounding to approximately $900 billion at press time.
Security Measures
The incident has prompted concerns about the SEC’s security measures to protect its social accounts. Some market participants have criticized the regulator’s apparently insufficient approach to safeguarding its social accounts and have raised apprehensions about how the SEC can secure trillion-dollar markets if it cannot safeguard its social accounts.
Hot Take
The recent cybersecurity breach at the SEC raises questions about the security of cryptocurrency markets and the measures in place to prevent the spread of false information. It highlights the importance of rigorous security protocols, especially in the context of emerging assets such as cryptocurrency.
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