X Confirms Compromise of SEC Account
X, formerly known as Twitter, has confirmed that the X account of the U.S. Securities and Exchange Commission (SEC) was compromised. The company stated that someone gained control over a phone number associated with the SEC account. This incident follows a fake post on the approval of spot bitcoin exchange-traded funds that was tweeted from the compromised account.
Preliminary Investigation by X’s Safety Team
The safety team at X has conducted a preliminary investigation into the event. They have determined that the compromise was not a result of any breach in X’s systems. Instead, an unidentified individual gained control over the @SECGov account through a third party by obtaining control over a phone number associated with it.
SEC’s Lack of Two-Factor Authentication
X’s security team noted that the SEC did not have two-factor authentication set up for its account when it was compromised. This lack of additional security measures likely contributed to the successful hack.
Anticipated Approval of Bitcoin ETFs
There is widespread anticipation that spot bitcoin exchange-traded funds will be approved by the U.S. financial regulator on Wednesday, with trading expected to commence the following day.
Bitcoin Price Reaction
Following the fake announcement, the price of bitcoin experienced a spike to around $47,900 before dipping to approximately $46,100 at noon Hong Kong time on Wednesday.
Hot Take: SEC Twitter Account Compromised in Bitcoin ETF Scam
The recent compromise of the SEC’s Twitter account highlights the vulnerability of high-profile social media accounts to hacking attempts. This incident raises concerns about cybersecurity and emphasizes the importance of implementing strong security measures, such as two-factor authentication. As the SEC prepares to potentially approve spot bitcoin exchange-traded funds, it is crucial for organizations and individuals to remain vigilant against phishing attempts and ensure the protection of their digital assets.
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