SEC’s Account Hacked
The US Securities and Exchange Commission (SEC) faced criticism after its X account was hacked, leading to a fake announcement of spot Bitcoin ETF approvals
Ripple’s CEO Brad Garlinghouse and Gemini’s co-founder, Cameron Winklevoss, urged an investigation into the SEC’s actions.
Bitcoin Prices Shoot Up
On January 9, 21:00 UTC, the SEC’s official Twitter account tweeted the approval of spot Bitcoin ETFs, causing Bitcoin’s price to surge above $47K.
The hype died quickly after SEC Chair Gary Gensler denied the news.
Crypto Market Liquidation
Over $51 million was liquidated from the crypto market, resulting in the community seeking answers from the regulatory body.
X blamed the SEC for the breach, stating its account didn’t have two-factor authentication.
SEC Should Investigate Itself
Lawyers told Fox Business that the SEC would have to investigate itself for market manipulation.
One X user called the SEC negligent with its security failure wrecking investors. Another described the event as market manipulation.
US Politicians Demand Answers
US legislators criticized the SEC’s mistake, calling it unacceptable and demanding transparency on what transpired.
Gensler has begun receiving Congressional letters regarding the breach.
Hot Take
The SEC’s mishandling of a hacked tweet that moved Bitcoin’s price has raised concerns over market manipulation and lack of accountability, prompting calls for rigorous investigations and transparency.
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.