The SEC Reveals SIM Swap Attack Behind Fake Twitter Announcement
The U.S. Securities and Exchange Commission (SEC) disclosed that the fake Twitter announcement of a spot Bitcoin ETF approval was a result of a SIM swap attack. The regulator stated that its @SECGov Twitter account was compromised, leading to the posting of a false announcement about the approval of spot Bitcoin ETFs. The SEC determined that an unauthorized party obtained control of the SEC cell phone number associated with the account through a SIM swap attack, allowing them to reset the account’s password. The SEC is currently working with law enforcement and federal oversight entities to investigate the incident.
SEC’s Failure to Enable Multi-Factor Authentication Contradicts Recommendations
The SEC revealed that multi-factor authentication (MFA) on its Twitter account had been disabled since July 2023, contradicting SEC chair Gary Gensler’s recommendations against identity theft and fraud. This disabling of MFA was due to issues accessing the account. Gensler had previously tweeted in October 2023, emphasizing the importance of MFA in preventing cyber threats. The SEC’s failure to enable MFA raised concerns over its cybersecurity procedures.
Cryptocurrency Market Chaos and Subsequent Approval
The fake Twitter announcement caused chaos in the cryptocurrency market as it awaited news on the approval or rejection of spot Bitcoin ETFs. After chair Gensler retracted the false announcement and the SEC issued a follow-up tweet, Bitcoin’s price experienced a significant drop. The following day, the SEC officially approved the rule change enabling spot Bitcoin ETFs to begin trading.
Senators Demand Explanation from SEC Chair
Senators JD Vance and Thom Tillis demanded an explanation from SEC chair Gary Gensler regarding the social media blunder. They expressed serious concerns about the regulator’s cybersecurity procedures in light of the incident.
Hot Take: SEC Faces Backlash for SIM Swap Attack and Lack of MFA
The SEC’s disclosure of a SIM swap attack behind the fake Twitter announcement has raised concerns about its cybersecurity measures. The disabling of multi-factor authentication contradicts previous recommendations made by SEC chair Gary Gensler, adding to the scrutiny. The incident caused chaos in the cryptocurrency market, leading to a significant drop in Bitcoin’s price. The subsequent approval of spot Bitcoin ETFs by the SEC did little to appease critics. Senators are demanding answers from Gensler, highlighting the need for improved cybersecurity procedures within the regulatory agency.
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