SEC security breach update: The recent hack of the Security and Exchange Commission (SEC) and the fake post of approval of a Bitcoin Exchange Traded Fund (ETF) on January 9, 2024, before the approval of a spot Bitcoin ETF, raised concerns about security measures. However, recently, the chairman of the SEC, Gary Gensler, made a statement that, till now, there is no clear evidence found, as the SEC staff is still assessing the scope of the incident.
Security breach and fake Bitcoin ETF approval
According to Gensler in the SEC report, on January 9, 2024, an unauthorized party took control of the SEC official X (previously Twitter) account over the phone at 4:11 pm ET and made a post that the SEC approved a Bitcoin ETF. Apart from this ETF approval on X, an unauthorized party made another post two minutes later that said “$BTC.” However, according to the report, the second post got deleted, and the first one of ETF approval remains there on X.
Additionally, Gensler strongly highlights that the SEC does not use X or any other social media platform to announce any development. He also mentioned that,
“SEC staff is still assessing the scope of the incident, and there is currently no evidence that the unauthorized party gained access to SEC systems, data, devices, or other social media accounts.”
However, after this incident, the SEC staff reached out to X for assistance in terminating the unauthorized access. But, as per X safety officials, they found that the unauthorized access was terminated between 4:40 pm ET and 5:30 pm ET.
SEC Chair collaborative efforts with security agencies
Gensler, in a report, said the SEC is taking the cybersecurity incident seriously and is currently evaluating the impact of this security breach on crypto agencies, investors, and marketplaces. The SEC is currently taking the help of law enforcement and other security agencies, including the Federal Bureau of Investigation and the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, amongst others, in their investigations.
The hack of the SEC official X account and the post of Bitcoin ETF approval created a huge impact on the price of BTC. After this fake post on X, the Bitcoin price gained 7.45% momentum, and significant volatility and liquidation were also observed in the marketplace. Currently, Bitcoin is trading near $43,150, and in the last 24 hours, it has significantly fallen by over 6%. Additionally, crypto investors are still looking for bullish moves as the Bitcoin ETF approves.
