SEC’s X Account “Compromised” in Fake Spot Bitcoin ETF News
The US Securities and Exchange Commission (SEC) is facing criticism after Chairman Gary Gensler confirmed that the agency’s X account was hacked to spread false information about spot Bitcoin exchange-traded funds (ETFs) receiving approval from the regulator.
Senior Bloomberg ETF analyst Eric Balchunas suggested that the SEC itself may be responsible for the mix-up, referring to it as a “scheduled tweet gone bad.”
Is SEC Trying To Cover Up Its Mistake?
Balchunas speculated that the SEC may have scheduled the tweet for December 10, the deadline for approving spot Bitcoin products, but mistakenly published it on December 9.
Elon Musk-led X acknowledged that the SEC’s account was hacked, with an unidentified individual gaining access through a third party. It was revealed that two-factor authentication was disabled on the account at the time of the breach.
Former White House communications director Anthony Scaramucci also expressed skepticism about the SEC’s side of the story, believing that an SEC staff member prematurely shared the news, exposing the “amateurish and dishonest nature” of the agency’s leadership.
In a poll conducted by Balchunas, over 83% of X users believed that the tweet came from inside the SEC.
Crypto Market Bore the Brunt of Fake Spot Bitcoin ETF Approval News
The fake approval announcement caused a temporary surge in Bitcoin prices, reaching a 19-month high of $47,900. However, the price dropped to $45,100 after Gensler debunked the news. Currently, BTC is valued at $45,807, reflecting a more than 2% decline in the past 24 hours.
Eleven companies, including BlackRock and Fidelity, have sought permission from the SEC to launch spot Bitcoin products. The final decision on the joint Bitcoin ETF proposal by Ark Invest and 21Shares is expected on December 10.
Hot Take: SEC’s X Account Hacked Raises Questions About Credibility
The recent hacking incident involving the SEC’s X account has raised doubts about the agency’s credibility and ability to handle sensitive information. The spread of false information regarding spot Bitcoin ETF approvals not only caused market turmoil but also revealed potential weaknesses in the SEC’s security measures. It remains to be seen how this incident will impact investor trust in the regulatory authority and its future decisions related to cryptocurrencies.
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