US SEC says its X account was compromised to falsely say bitcoin ETFs approved
- US authorities are investigating how the @SECGov’s account was compromised by ‘an unknown party’
- The regulator has clarified that no decision on spot bitcoin ETFs had been made
A highly anticipated decision by the US Securities and Exchange Commission (SEC) on whether to approve a spot-bitcoin exchange-traded fund (ETF) quickly morphed into a major cybersecurity incident on Tuesday.
The SEC’s X account was compromised and a fake post claiming that the agency had greenlit plans for the products fuelled a brief surge in the price of the world’s biggest cryptocurrency. It also has sparked an investigation by US authorities into how a social media account at Wall Street’s main regulator was compromised.
“It really shows the breadth and frequency of cyberattacks,” said Kurt Gottschall, a partner at law firm Haynes Boone and former SEC regional director. “The irony here is that the SEC has not shown much sympathy to public companies and asset managers that have experienced cybersecurity incidents.”
The breach gave fodder to crypto faithful who have long viewed the commission’s chairman, Gary Gensler, as an enemy due to his zeal to rein in the industry.
The irony of a cybersecurity incident befalling a regulator that has repeatedly warned of crypto’s online vulnerabilities was not lost on critics who have spent years waiting for the SEC to approve a bitcoin ETF. Traders have been speculating for weeks that the agency could approve several of the products as soon as Wednesday.