SEC attorneys launch investigation into market manipulation following dissemination of false information about Bitcoin ETF

SEC Lawyers Call for Market Manipulation Investigation

Lawyers representing the U.S. Securities and Exchange Commission (SEC) have announced that they are urging for an investigation into possible market manipulation. The SEC intends to investigate itself after it inadvertently caused the price of Bitcoin (BTC) to fluctuate based on a fake post published on its own account. This false message, which claimed that a spot Bitcoin ETF had been approved, resulted in a significant price jump on January 9.

BREAKING: Securities lawyers tell @FoxBusiness the @SECGov will have to investigate itself for market manipulation after moving the price of $BTC up and down following the hacked tweet that it had approved the first spot BTC ETF and then saying it was fake. That said, for the SEC…

— Charles Gasparino (@CGasparino) January 9, 2024

Calls for Investigation from Lawyers and Senators

American lawyers and senators are also demanding an investigation into the SEC’s actions due to the dissemination of false information. Senator Cynthia Lummis specifically called for transparency regarding the events leading up to the now-deleted post.

Fraudulent announcements, like the one that was made on the SEC’s social media, can manipulate markets. We need transparency on what happened.

— Senator Cynthia Lummis (@SenLummis) January 9, 2024

Bloomberg ETF analyst James Seyffarth suggested that SEC Chairman Gary Gensler will be furious with the employee responsible for the alleged security breach. However, it remains unknown who or what caused the dissemination of the fake news post on the SEC’s account.

Bitcoin’s Reaction and Current Trading Price

In response to the publication of the refutation, Bitcoin experienced a drop of over 6%, falling to $44,700. At present, Bitcoin is trading at approximately $46,000.

Hot Take: The Need for Accountability in Regulatory Agencies

The recent incident involving the SEC’s fake post and its impact on Bitcoin’s price highlights the importance of accountability and transparency in regulatory agencies. Market manipulation can have significant consequences, causing volatility and undermining trust in the financial system. It is crucial for regulatory bodies like the SEC to thoroughly investigate such incidents, identify any security breaches, and hold individuals responsible. This case also emphasizes the need for robust internal controls and protocols to prevent the dissemination of false information that can disrupt markets. Trust and confidence in regulatory agencies are essential for maintaining a fair and stable crypto market.