Concerns Addressed by SEC Chairman
SEC Chairman Gary Gensler has addressed the unauthorized access to the SEC’s ‘@SECGov’ X account, offering reassurance that no evidence suggests the breach extended to SEC systems or data.
Official SEC Response
Gensler emphasized that, based on the current assessment, there is no evidence that the unauthorized party gained access to SEC systems, data, devices, or other social media accounts. The SEC is taking the incident seriously, recognizing concerns about the security of its social media accounts. SEC staff is coordinating with law enforcement agencies, including the SEC’s Office of Inspector General, the Federal Bureau of Investigation, and the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency. The SEC commits to providing updates on the incident as appropriate.
Immediate Actions Taken
Upon discovering the breach, the SEC staff, through the Office of Public Affairs, promptly informed the public about the compromise. They also reached out to X.com for assistance in terminating unauthorized access. The unauthorized post was deleted, and a new post confirmed the account’s security breach. The SEC believes that access was terminated between 4:40 pm ET and 5:30 pm ET on the same day. In response to the breach, members of the U.S. Congress, including Senators Ron Wyden and Cynthia Lummis, have called on the SEC Inspector General to initiate a probe into the commission’s cybersecurity practices.
Details of Unauthorized Access
The incident unfolded on January 9, 2024, just before the day of Bitcoin spot ETF approval, when an unauthorized party gained control of the SEC’s official X account, and made a false announcement about the approval of spot Bitcoin ETFs. Despite the unauthorized party’s attempt to manipulate information, SEC staff swiftly responded, deleting the unauthorized post and alerting the public. Since this incident, the SEC’s credibility has been questioned, with accusations of market manipulation and demands for transparency.
Hot Take
The incident of unauthorized access to the SEC’s social media account raises concerns about the security of regulatory organizations and their ability to prevent manipulation and misinformation. The swift response by SEC staff is crucial in maintaining credibility and addressing public concerns regarding market manipulation.
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