Social Media Platform X Responds To Account Breach
Social media platform X put the blame on the U.S. Securities and Exchange Commission (SEC) for the account breach that led to a fake announcement of the approval of spot Bitcoin ETFs (exchange-traded funds).
The SEC Account Compromised Through A SIM Swap Attack
The unidentified actor gained control of a phone number associated with the X account, which then gave the hacker access to the SEC’s account, X said. This type of hack is referred to as a SIM swap hack. A SIM swap hack is a form of identity theft where an attacker takes over a victim’s phone. This then gives the attacker access to the person’s social media, as well as their bank and cryptocurrency accounts. In this case, the hacker was likely able to convince a third-party telecommunications provider to give them control of the phone number tied to the SEC’s X account.
The SEC Post Caused A BTC Rollercoaster
The fake X post caused BTC to surge to a 24-hour high of $47,680, according to CoinGecko data. SEC Chair Gary Gensler quickly clarified that the SEC had not yet approved a spot Bitcoin ETF, with the price then plunging back to $45,668.33 as of 5:00 am EST.
Hot Take
The SEC must be cognizant of the potential impact of any breaches that could have market manipulation implications. This incident highlights the need for heightened security measures to protect accounts that disseminate important financial information.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies. Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.