CDS Crypto News SEC’s Security Oversight: Multi-Factor Authentication Disabled Ahead of False X Post on Bitcoin ETF Approval
Crypto News

SEC’s Security Oversight: Multi-Factor Authentication Disabled Ahead of False X Post on Bitcoin ETF Approval

On Monday, an SEC spokesperson offered insights into the recent security lapse that allowed a fraudulent post to be published on its X account earlier this month.

163
SEC's Security Oversight Multi-Factor Authentication Disabled Ahead of False X Post on Bitcoin ETF Approval

Crypto News- The Securities and Exchange Commission revealed on Monday that its X account experienced a security breach leading to a false post just prior to the official approval of spot bitcoin ETFs. Multi-factor authentication (c) for the @SECGov X account had been disabled in July 2023, following issues accessing the account at the staff’s request, only to be re-enabled after the compromise on January 9.

SEC’s Security Oversight: Multi-Factor Authentication Disabled Ahead of False X Post on Bitcoin ETF Approval

X Support disabled MFA due to access problems, but it was not reactivated promptly after access was restored. The SEC confirmed that the compromise occurred when an unauthorized party gained control over a phone number associated with the account through a “SIM swap” attack, a technique transferring a phone number to another device without authorization.

SEC Faces Scrutiny After Security Breach: Multi-Factor Authentication Disabled in Lead-up to Bitcoin ETF Approval

Criticism arose in Washington D.C. due to the SEC’s lack of MFA, prompting calls for an investigation. The agency clarified that the unauthorized access occurred via the telecom carrier and not SEC systems. The compromise allowed the intruder to reset the X account’s password.

Law enforcement is currently investigating how the unauthorized party convinced the carrier to change the SIM and how they knew the specific phone number linked to the account. The SEC is collaborating with the SEC’s Office of Inspector General, the FBI, the Commodity Futures Trading Commission, the Department of Justice, and other law enforcement entities in the ongoing investigation.

SEC's Security Oversight: Multi-Factor Authentication Disabled Ahead of False X Post on Bitcoin ETF Approval

Leave a comment

Leave a Reply

Related Articles

USDG Stablecoin: Paxos Teams Up with Robinhood, Kraken, and Galaxy Digital

Paxos has launched the USDG stablecoin, backed by major financial firms like...

Ethereum White Paper Anniversary: From Concept to Global Smart Contract Platform

Ethereum White Paper Anniversary: From Concept to Global Smart Contract Platform

Bitcoin Liquidations Spike: Over $150M in Longs Wiped Out as Price Slides

Bitcoin Liquidations Spike: Over $150M in Longs Wiped Out as Price Slides

Memecoins Explained: The Intersection of Internet Culture and Crypto

Binance Research's report analyzes the rise of memecoins, highlighting their cultural impact,...