US Senator Calls for Investigation into SEC Hack
US Senator Ron Wyden, along with crypto advocate Cynthia Lummis, has sent a letter to the Inspector General of the US Securities and Exchange Commission (SEC) requesting an official investigation into the recent hack of the SEC’s X account. The letter also criticizes the SEC for its failure to implement proper cybersecurity measures to protect its digital presence.
SEC X Account Hack Raises Concerns
The hack of the SEC’s X account occurred on January 9 when a false announcement about the approval of Bitcoin spot ETF trading was made. The SEC’s Chairman later confirmed that the account had been compromised and that the announcement was fake. While the Bitcoin spot ETF launch was eventually approved, unauthorized access to the SEC’s social media platform has raised concerns among US Senators.
Senators Demand Explanation and Investigation
In their letter to the SEC’s Inspector General, Senators Wyden and Lummis expressed disappointment in the commission’s cybersecurity practices. They demanded an investigation into the incident and criticized the SEC for not implementing multi-factor authentication (MFA) on its account. The Senators also recommended using security keys protocol, which is highly recommended by industry experts.
Cybersecurity Negligence is Inexcusable
The Senators stated that the SEC’s failure to follow cybersecurity best practices is inexcusable, especially considering its new requirements for cybersecurity disclosure. They highlighted that such negligence can result in market manipulation and have significant impacts on the stability of the financial system and trust in public markets.
SEC Inspector General Expected to Report by February 12, 2024
The Senators have urged the SEC’s Inspector General to investigate this incident and identify any existing vulnerabilities in the commission’s cybersecurity protocol. A report on the investigation is expected to be delivered by February 12, 2024.
Hot Take: SEC Under Scrutiny for Cybersecurity Lapses
The recent hack of the SEC’s X account has brought attention to the commission’s cybersecurity practices. Senators Wyden and Lummis have demanded an investigation into the incident and criticized the SEC for its failure to implement proper security measures. This negligence can have serious consequences, including market manipulation and loss of trust in public markets. The SEC’s Inspector General is expected to provide a report on the investigation, shedding light on the vulnerabilities and potential improvements needed in the commission’s cybersecurity protocols.
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