SEC Chairman Gary Gensler Addresses Unauthorized Bitcoin ETF Approval Tweet
Summary:
Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), addresses a misleading tweet released from the official SEC account by a hacker. The tweet falsely stated the approval of spot Bitcoin ETFs, causing temporary disruption in the cryptocurrency market. An investigation is underway involving several agencies, including the FBI, to ascertain the hacker's tactics. The incident has underscored the importance of enhanced cybersecurity measures.
Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), has addressed a misleading tweet posted illegally by a hacker on January 9th through the official SEC X account. The communication was in response to concerns raised by four members of the House of Representatives, namely Patrick McHenry, French Hill, Bill Huizenga, and Ann Wagner. The hacker had managed to control the SEC's X account by implementing a SIM swap attack, erroneously announcing that the SEC had sanctioned spot Bitcoin (BTC) exchange-traded funds (ETFs) for listing and trading on American exchanges. Gensler confirmed that the hacker utilized the account twice and liked two tweets before the SEC could intervene and correct the issue.
The current understanding of the staff at SEC is that the unauthorized access to the account was ended by 5:30 pm, as relayed by Gensler. An investigation is underway by law enforcement to ascertain the hacker's tactics to prompt the SIM swap for the account and how they identified the associated phone number.
It was further noted by Gensler that the SEC is collaborating extensively with its Inspector General's Office, the Federal Bureau of Investigation, the Department of Homeland Security's Cybersecurity and Infrastructure Security Agency, and the Department of Justice to examine the incident. Assuring them of his commitment to cybersecurity, Gensler invited further queries from the elected officials.
The false tweet from the SEC X account on January 9th caused temporary committee in the cryptocurrency market, with many anticipating the SEC's decision on spot BTC ETFs. The very next day, the SEC endorsed the listing and trading of 11 spot Bitcoin exchange-traded products on U.S exchanges. It was revealed by X’s security team and later acknowledged by the SEC that two-factor authentication had not been enabled on the account resulting in the security breach.
Following the approval of spot BTC ETFs by the SEC, experts anticipate a decision on spot Ether (ETH) exchange-traded products. Asset management firm VanEck is expected to be among the first to receive such a decision, with an SEC deadline slated for May 2024.
Published At
2/12/2024 11:22:00 PM
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