Surprisingly on Tuesday, a fake tweet sent from an official US Securities and Exchange Commission (SEC) account via X (formerly Twitter) briefly sent shockwaves through the cryptocurrency market. The misleading tweet claimed that the SEC had approved spot Bitcoin exchange-traded funds (ETFs), causing Bitcoin’s value to drop to $46,091 within minutes of posting.
Bitcoin ETF not approved, SEC account hacked
SEC Chairman Gary Gensler quickly intervened and announced that the commission had not approved any such products. SEC Chairman Gary Gensler quickly clarified that the securities agency does not approve the listing and trading of spot Bitcoin exchange-traded products. It caused liquidations of over $140 million in a few hours. The incident shed light on the vulnerability of official accounts on social media platforms, highlighting the urgent need for enhanced security measures, including two-factor authentication. X conducted a preliminary investigation and discovered that the breach occurred when an individual gained control of a phone number linked to an SEC account through a third-party channel. It was also announced that the compromised account lacked the additional security of two-factor authentication at the time of the incident.
This incident is a stark reminder of the influential role social media plays in shaping market dynamics and the importance of ensuring the security of information shared by authorized organizations. It underlines the need for regulators and social media platforms to cooperate in implementing robust security measures to prevent misinformation from causing unnecessary market volatility. While the investigation is ongoing, X is urging its users to enable two-factor authentication for greater account security.
ETF decision has not been announced yet
Separately, the US Securities and Exchange Commission (SEC) remains firm on its plans to rule on spot Bitcoin exchange-traded funds (ETFs) despite the recent social media attack. The seizure of the institution’s official account ‘SEC’s X’ on January 9 led to a misleading post that shook both the markets and social media platforms for a short time. Currently, global cryptocurrencies and exchanges are awaiting the decision of the US Securities and Exchange Commission (SEC) on the spot Bitcoin ETF today. The deadline for the SEC to approve or reject the ARK 21Shares Bitcoin ETF (ARKB) is today, January 10. Experts expect all 11 spot Bitcoin ETF prospectuses to be approved at the same time.
While concerns have arisen about the potential impact on the decision-making process, insiders and industry experts remain optimistic that the SEC will stick to its original timeline. Speculation had suggested a possible delay, but the prevailing consensus is that the SEC’s decision on spot Bitcoin ETFs is on track. The SEC’s determination to proceed with its planned resolution of the social media account breach underscores the agency’s commitment to maintaining operational integrity and complying with previously established timelines. As cryptocurrencies and exchanges eagerly await the SEC’s decision on spot Bitcoin ETFs, the incident underscores the importance of securing information channels and maintaining confidence in financial markets.
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