The Securities and Exchange Commission (SEC) reportedly neglected fundamental security measures on its X (formerly Twitter) account, which was “compromised” to disseminate false information about bitcoin ETF approval, as stated by the social media company. On Tuesday, X’s Safety team concluded its initial investigation into the SEC’s misleading post that impacted the market, falsely endorsing the approval of bitcoin ETF applications. The SEC attributed the incident to a “compromised” account, seemingly dispelling notions of an “inside job” or a “fat finger” mistake during the midday post. The post initially led to a surge in Bitcoin (BTC) prices but plummeted after SEC Chair Gary Gensler clarified its inauthenticity.
SEC Phone Number Hijacked by Hacker for Posting False Bitcoin ETF Approval
This occurrence has raised concerns about the SEC’s adherence to basic security protocols. As the most influential investment regulator in the U.S., the SEC’s statements carry significant weight in the financial markets. Gary Gensler himself has previously emphasized the importance of investors taking their security seriously.
In response to the incident, U.S. Senators J.D. Vance and Thom Tillis have written a letter to the SEC, demanding an explanation for its cybersecurity lapse. They expressed their dissatisfaction, stating, “It is unacceptable that the agency entrusted with regulating the epicenter of the world’s capital markets would make such a colossal error.”
“We can also confirm that the account did not have two-factor authentication enabled at the time the account was compromised. We encourage all users to enable this extra layer of security,” X posted.
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