SEC Investigates X Account Breach, Lawmakers Demand Answers
A group of U.S. lawmakers has sent a letter to SEC Chair Gary Gensler, calling for a briefing on the recent breach of the SEC’s official X account. The breach resulted in a false tweet announcing the approval of bitcoin ETFs. The lawmakers, including Patrick McHenry and Ann Wagner, emphasized the importance of the SEC’s ability to communicate with market participants. They criticized the lack of two-factor authentication on the SEC account and demanded an explanation for the breach. The lawmakers have requested a briefing by January 17, 2024, to understand how the breach occurred and ensure it does not happen again.
X Confirms Account Breach and Lack of Two-Factor Authentication
X confirmed that the SEC’s account was indeed compromised, but stated that the breach was not due to any fault in X’s systems. Rather, the account’s compromise was attributed to an unidentified individual gaining control over a phone number associated with the @SECGov account through a third party. X also revealed that the account did not have two-factor authentication enabled at the time. They urged all users to enable this extra layer of security to prevent similar incidents in the future.
SEC Vows to Investigate and Take Appropriate Actions
The SEC released a statement following the breach, assuring that they will collaborate with law enforcement and other government agencies to investigate the matter. The focus of the investigation is to determine the unauthorized access and any related misconduct that may have occurred. The SEC aims to take appropriate steps to address the incident and prevent similar breaches in the future.
Lawmakers Criticize SEC and Chair Gensler
Various lawmakers expressed their disappointment with the SEC and Chair Gensler following the breach. Senator J.D. Vance called the error a “colossal mistake” and demanded an explanation. Senator Bill Hagerty compared the SEC’s mistake to that of a public company and stated that Congress needs answers. Senator Cynthia Lummis highlighted the potential market manipulation caused by fraudulent announcements and emphasized the need for transparency in this matter.
Hot Take: U.S. Lawmakers Demand Answers from SEC and Chair Gensler Over X Breach
Lawmakers in the U.S. have expressed their concerns and demanded accountability from the SEC and Chair Gary Gensler over the recent breach of the SEC’s official X account. The breach resulted in a false tweet regarding the approval of bitcoin ETFs. Lawmakers emphasized the importance of effective communication and security measures at the SEC and criticized the lack of two-factor authentication. In response to the incident, X confirmed the breach and urged users to enable two-factor authentication for enhanced security. The SEC has pledged to investigate the matter and take appropriate action to prevent future breaches. Various lawmakers have voiced their disappointment and called for transparency in this regard.
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