Last Tuesday, the crypto world got a taste of Bitcoin (BTC) approval. Exchange-traded fund (ETF) applications. The American's X account (formerly Twitter). Securities and Exchange Commission (SEC) was hacked and a fake bulk approval was released. The financial regulator, which had failed to implement a simple security measure, is now responding to the incident for the first time.
The success of Bitcoin ETFs is overwhelmed by blocking asset giants
Fake BTC ETF approval: SEC responds
Yesterday, the SEC released a statement in response to the hack of its X account.
“The unauthorized party published a post purporting to announce the Commission’s approval of spot Bitcoin exchange-traded funds at 4:11 p.m. ET, and a second post about two minutes later that read “$BTC.” , Gensler wrote. “The unauthorized person then deleted the second post, but not the first.”
The social media platform
SEC Chairman Gary Gensler wrote in the statement that the SEC was still assessing the extent of the incident, but noted that there was no evidence that the unauthorized party gained access to other systems, data or other social media accounts SEC.
Despite the failed rollout of 2FA, “the SEC takes its cybersecurity obligations seriously,” Gensler said. According to the statement, Commission staff are currently assessing the impact of this incident on the agency, investors and the market.
Finally, Gensler explained that the regulator is cooperating with the US Federal Bureau of Investigation (FBI), the internal Office of the Inspector General and that Department of Homeland Security is working to track down the perpetrators behind the fraudulent X message.
Bitcoin price volatility
The SEC's X account breach caused significant volatility in the price of Bitcoin, leading to a flood of liquidations. After a big price jump to around $48,000, the price quickly plummeted to below $45,000.
Sellers have also taken over market leadership in recent days. On Thursday the price rose to an all-time high of around $49,000, but since then it has only gone downhill. The price has been trading below $43,000 since yesterday evening.
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