The US Securities and Exchange Commission has confirmed that its X account was hacked and used to post false information regarding the approval for the listing and trading of spot Bitcoin exchange-traded products.
The misleading post, which has since been removed, came just before an important announcement from the SEC about the potential approval of spot bitcoin ETFs. It included an image of SEC Chair Gary Gensler along with a fabricated quote claiming, “Today’s approval enhances market transparency and provides investors with efficient access to digital asset investments within a regulated framework.”
Shortly after the post went live, Gensler responded on the platform, clarifying that no such approval had been granted.
“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,” he stated.
This incident highlights significant cybersecurity lapses within the SEC, especially considering the potential market impact of such misinformation. By the time the post was deleted, it had amassed millions of views and garnered attention from major news organizations, including Reuters.
In response to the breach, X noted that the SEC account did not have two-factor authentication enabled, prompting criticism of the agency’s security practices.
The incident has sparked outrage from politicians and commentators alike. Senator Bill Hagerty remarked, “Just like the SEC would demand accountability from a public company if they made such a colossal market-moving mistake, Congress needs answers on what just happened. This is unacceptable.”