SEC’s account compromise was ‘not due to any breach of X’s systems,’ company says

Key Points

Compromised SEC Account and False Bitcoin ETF Approval Post:

• • Social media company X (formerly Twitter) conducted a preliminary probe into the compromised account of the U.S. Securities and Exchange Commission (SEC) that falsely claimed the SEC had approved bitcoin exchange-traded funds (ETFs) for trading.
  • X confirmed that the compromise was not a result of any breach in its systems. Instead, an unidentified individual gained control over a phone number associated with the @SECGov account through a third party.
  • Notably, at the time of the compromise, the compromised account did not have two-factor authentication enabled, according to X’s post.

Bitcoin Price Fluctuations and SEC Clarification:

• • Following the unauthorized post on the compromised SEC account, bitcoin prices experienced a surge. However, they subsequently fell below $46,000 after the SEC clarified that it had not approved the bitcoin ETF.
  • At approximately 12:20 a.m. ET, bitcoin was trading at nearly $45,958. The false claim regarding the SEC’s approval had triggered market reactions.

SEC’s Stance on Bitcoin ETF and Gensler’s Regulatory Actions:

• • An SEC spokesperson confirmed that the @SECGov X/Twitter account had been compromised, and the unauthorized tweet claiming approval of bitcoin ETFs was not made by the SEC or its staff.
  • The article notes that the market is anticipating the SEC to potentially approve the bitcoin ETF, and the decision is expected later in the week after years of opposition to the idea.
  • Gary Gensler, the Chair of the SEC, known for his regulatory approach to cryptocurrencies, has taken legal action against crypto entities such as Coinbase and Ripple. The SEC has accused both of selling unregistered securities during his tenure.