SEC Dismisses Latest Post, Says it’s X Account Was Hacked 

SEC Dismisses Latest Post, Says it’s X Account Was Hacked 

The U.S. Securities and Exchange Commission (SEC) unexpectedly became entangled in a cryptocurrency issue when it revealed that an X account connected to the regulatory agency had been compromised.

Due to the incident, there was a sharp spike and subsequent decline in the price of Bitcoin after a scam social media post purporting to be the endorsement of a Bitcoin Exchange-Traded Fund (ETF) went viral. The SEC’s hacked X account posted the false X claiming regulatory approval for a Bitcoin ETF.

The cryptocurrency market saw a spike in Bitcoin values almost immediately following the announcement as traders and investors reacted to the alleged news. The abrupt price surge demonstrated the market’s reaction to regulatory developments, particularly about big financial instruments like ETFs.

Stakeholders Awaits SEC’s Approval Amid Recent Hacking Disclosure 

Market players eagerly awaited official confirmation of the purported approval from the SEC as the news spread. The SEC quickly released a statement revealing that the report was untrue and that the regulatory body had not approved a Bitcoin ETF, realizing the seriousness of the situation.

The spike in the prices of cryptocurrency  brought on by the false information swiftly phased out, and the value of the cryptocurrency saw a significant decline after it was officially debunked. Jon Brodkin from Ars Technica explained that the event demonstrated how vulnerable the cryptocurrency market is to outside influences, particularly false information supplied via official channels.

SEC Reassures the Public, Starts Investigation on Recent Hack 

Recent observation shows that the event also made people wonder about the security measures for official accounts connected to regulatory organizations and the possible effects of security lapses on the market’s stability.

Following the incident, the SEC reassured the public that it was looking into the breach and improving security to stop future illegal access. The event sparked a broader conversation in the cryptocurrency industry over the necessity of more stringent cybersecurity measures for individual investors and the regulatory bodies in charge of policing the market.

The commission said it will work with security authorities and other government agencies to conduct a thorough investigation. The commission wants to disclose the identity behind the unauthorized access and any other misconduct that might have followed during the hack.

SEC Recommend Two-factor Authentication, Reaffirms the Relevance of the Approval 

SEC, on its official X handle, announced that the recent breach of its X account was done by an anonymous individual who gained control of the chairman’s phone number, which is linked to his X account.

The post said that the number was obtained through a third-party source, and SEC also noted that it has confirmed that the boss’s X account didn’t have a two-factor authentication function at the time of the hack.

They went ahead to advise all X users to enable a two-factor authentication. After the estrange post was deleted, the SEC announced that the approval of the BTC ETF would be subject to continuous compliance and surveillance procedures to protect investors.

SEC’s recent post also had an image containing Gensler’s quote, which affirmed that the approval would enhance the cryptocurrency market transparency, providing investors with solid access to cryptocurrency assets investments in an adequately regulated law. Meanwhile, update from the Wall Street Journal says that the price of BTC had doubled now compared to it’s performance lady year – as a result of the incident. 

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Jesse Rosenbalm
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Jesse Rosenbalm

Jesse Rosenbalm stands out in the crypto journalism realm, seamlessly blending intricate blockchain concepts with accessible prose. Known for his deep dives and accurate forecasting, Jesse's articles are a must-read for both novices and experts. As crypto trends shift, his insightful writings remain a beacon in the digital currency space.

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