The U.S. Securities and Exchange Commission’s (SEC) official X account, previously known as Twitter, has been compromised by a cyberattack.
Discovered late last night, the breach involved the distribution of a false announcement regarding the SEC’s approval of spot bitcoin Exchange-Traded Funds (ETFs), leading to significant misinformation spreading rapidly.
SEC X Account Hacked: Misleading Tweet Triggers Bitcoin Price
The hacked SEC X account posted a tweet claiming, “Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.” The tweet on the SEC X account hacked included a graphic with a purported quote from SEC Chair Gary Gensler, along with a second tweet simply saying “$BTC.”
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Despite being promptly deleted, the unauthorized post briefly led to a spike in bitcoin prices, only to quickly drop below US$46,000.
To address the situation, SEC Chair Gary Gensler clarified via Twitter, stating, “The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.”
A subsequent tweet on the SEC’s X platform reiterated the compromise and emphasized the lack of approval for spot bitcoin ETFs.
In a later statement, an SEC spokesperson confirmed unauthorized access and activity on the account by an unknown party. The SEC has regained control and is collaborating with law enforcement to investigate the incident, aiming to determine appropriate actions related to the breach.
The timing of the cyberattack on the SEC X account coincides with the SEC’s impending decision on bitcoin ETFs, a decision expected this week after years of opposition. Over a dozen asset managers, including those filing updated registration statements, await the SEC’s verdict. The anticipation of spot bitcoin ETF approval has contributed to the recent climb in bitcoin prices.
Crypto experts believe that the introduction of spot bitcoin ETFs could attract a new wave of investors into the digital assets space. ETFs, being a familiar instrument for financial advisors, could ease concerns about the complexities of bitcoin custody.
SEC Chair Gary Gensler, known for his skepticism towards cryptocurrencies, had cautioned investors earlier in the week about the risks associated with crypto products. Despite his previous stance, the incident has triggered discussions about the potential approval of bitcoin ETFs.
Rising Threats Targeting Verified Accounts
This cyberattack on the SEC Twitter account sheds light on an alarming trend where hackers strategically target verified government and business accounts, leveraging the credibility associated with the blue checkmarks.
The trend extends beyond the SEC X account, as recent hacks on technology giant Netgear and Hyundai MEA illustrate. These incidents serve as reminders of the evolving tactics employed by hackers to exploit reputable entities for their malicious purposes, even infiltrating well-secured accounts with two-factor authentication enabled, as witnessed in the hijacking of Mandiant’s Twitter account.
Media Disclaimer: This report is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.
