Hackers disseminated misleading information on a highly anticipated SEC announcement regarding Bitcoin
The US Securities and Exchange Commission (SEC) announced on Wednesday that it is collaborating with the FBI to probe a fraudulent message posted on its X social media account. Hackers had posted deceptive information on Tuesday, spreading false news about an eagerly awaited SEC announcement on Bitcoin. This led to a surge in the cryptocurrency’s price, causing concern among onlookers. An SEC spokesperson, in a statement to The Guardian, confirmed that the unauthorized post on the @SECGov account “was not drafted or created by the SEC.”
The SEC is actively investigating the incident and is collaborating with relevant law enforcement bodies, including the SEC’s Office of the Inspector General and the FBI,” stated the spokesperson. The FBI did not respond immediately to the request for further comments.
X confirmed later on Tuesday, after a preliminary inquiry, that the SEC’s account had been compromised. An unidentified individual gained control through a third party, using a phone number associated with the account.
The deceptive post on @SECGov falsely claimed that the securities regulator had endorsed exchange-traded funds for holding bitcoin. This eagerly awaited development was anticipated to enhance bitcoin’s mainstream acceptance and attract more investment. The initial SEC tweet led to a significant surge in Bitcoin’s price, reaching nearly $48,000.
Approximately 30 minutes after its appearance, the SEC deleted the post. SEC Chair Gary Gensler later confirmed in a post that the agency’s account had been compromised, and the tweet was deemed “unauthorized.” Gensler clarified, “The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.”
Nevertheless, on Wednesday, the SEC granted approval to 11 spot bitcoin exchange-traded funds. This approval marks a significant development for bitcoin, providing both institutional and retail investors with exposure to the world’s largest cryptocurrency without direct ownership. It also serves as a substantial boost for the crypto industry, which has faced challenges such as the high-profile trial and conviction of FTX CEO Sam Bankman-Fried and allegations of money laundering at cryptocurrency giant Binance.
Perianne Boring, founder and CEO of the cryptocurrency and blockchain advocacy group, the Chamber of Digital Commerce, remarked, “Retail investors seeking exposure to bitcoin now have much easier and more direct access to the asset through many of the top financial institutions.” She emphasized that this development is transformative for hundreds of millions of investors and the bitcoin community.
