SEC’s X Account Hacked: How a Fake Bitcoin ETF Approval Shook the Crypto Market
On Tuesday, January 9, 2024, the crypto market was stunned by a surprising announcement from the US Securities and Exchange Commission (SEC). The regulator’s verified X account posted a message that said-
“Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges. The approved Bitcoin ETFs will be subject to ongoing surveillance and compliance measures to ensure continued investor protection.”
The message seemed to confirm the long-awaited approval of Bitcoin exchange-traded funds (ETFs). The Commission has been reviewing several applications for Bitcoin ETFs but has not approved any so far.
The fake news quickly spread across the internet and the media, causing Bitcoin’s price to spike by over 2.5% in a matter of minutes. Many crypto enthusiasts celebrated the news and expressed their optimism for the future of Bitcoin.
However, the celebration was short-lived, as the Securities’s chair Gary Gensler intervened from his personal X account to clarify the misinformation. He said:
Source: X
Despite Gensler’s denial, the false post remained visible on X for about 30 minutes, during which Bitcoin’s price experienced a sharp decline. The post was eventually deleted, but the damage was already done.
How did the hacker compromise the SEC’s account?
According to X’s safety team, the hacker managed to gain access to the Commission’s account by obtaining control of the phone number associated with the account. The hacker then used the phone number to bypass the account’s security and post a fake message.
The Commission confirmed that its account was compromised by an unknown party for a brief period and said it would work with law enforcement and other partners to investigate the matter and determine the next steps.
The incident raises serious questions about the security practices of X and the the Commission, especially for official government accounts. Despite the requirement to use multi-factor authentication for all US government social media accounts, the SEC did not have this feature enabled, leaving its account vulnerable to takeover.
X has a history of security breaches, including the compromise of high-profile accounts such as President Donald Trump, CEO Jack Dorsey, and Elon Musk. The platform has been trying to improve its safety measures, but the latest incident shows that it still faces challenges in keeping up with evolving threats.
What are the implications of the incident?
The incident exposes the potential impact of fake news on the crypto market, which is highly sensitive to news and trends. The incident also shows the importance of verifying the sources of information and understanding the risks involved in crypto investments.
The incident could also worsen the relations between the SEC and Elon Musk, who is the owner of X and a vocal supporter of Bitcoin. Musk has had a turbulent history with the SEC, including an ongoing investigation into his purchases of X shares before he acquired the platform in 2022. Musk responded to the incident with humour, making light of the situation on X.
Disclaimer
The opinions and views expressed by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
