You probably didn't miss it. For a moment yesterday, it seemed as if the first Bitcoin (BTC) was on the scene exchange traded fund (ETF) was finally approved in the USA.
However, it quickly became apparent that this was not true. The announcement was made via X (Twitter), but the US Securities and Exchange Commission (SEC) account was hacked.
Now US senators are demanding a comprehensive investigative report into the incident from SEC Chairman Gary Gensler.
Bitcoin exchange funds are taking a decisive step towards approval
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Bitcoin ETF and the SEC hack
On January 9th, amid the excitement surrounding the decision on a spot Bitcoin ETF, the SEC's Twitter account was hacked.
The hacker then used the Twitter account to spread a false report. According to the report, the SEC had approved all applications for spot Bitcoin ETFs, but this was quickly debunked by Gensler. The chairman then confirmed that the account had been hacked.
Still, it caused a lot of volatility in the market and several prices made violent moves. Nearly $90 million in leveraged positions were also liquidated.
Senators are calling for an investigation into the incident
Two US Senators, JD Vance and Thom Tillis, are expressing concern about the SEC's internal cybersecurity procedures.
In a letter to Gensler, they emphasize that this breach raises serious concerns about the security of the SEC.
🚨BREAKING: Senators @JDVance1 & @SenThomTillis Demand Statement for SEC's Erroneous Announcement Approving Spot Bitcoin ETFs
“It is unacceptable that the agency charged with regulating the epicenter of the world’s capital markets should make such a colossal mistake.” pic.twitter.com/xG77jM9xAM
— Senator Vance Press Office (@SenVancePress) January 10, 2024
This led to market manipulation and the purpose of the SEC is precisely to protect investors.
The letter also includes a reminder to the SEC of the requirement for companies to report any business impact within just four days of such an incident.
The senators say they doubt the SEC will be able to submit a report to the US Congress within that deadline.
The SEC has now announced that it has opened an investigation into the incident. She wants to work with law enforcement to find out who is behind the hack.
Crypto Insiders reported today that the hacker gained access to the SEC account because it did not have two-factor authentication (2FA) set up.
After the fake news became known, the Bitcoin price briefly shot to a new annual high of $48,000. However, the price then plummeted again to $44,800. At the time of writing, BTC price is $45,600.
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