FILE PHOTO: The seal of the U.S. Securities and Exchange Commission (SEC) is seen at their headquarters in Washington, D.C., U.S., May 12, 2021. REUTERS/Andrew Kelly/File Photo
Threat actors hacked the X account of the US Securities and Exchange Commission (SEC) and used it to publish the fake news on the Bitcoin ETF approval.
Hackers hijacked the X account of the US Securities and Exchange Commission (SEC) and used it to publish fake news on the Bitcoin ETF approval.
“Today the SEC grants approval to Bitcoin ETFs for listing on registered national security exchanges,” read the fake massage which was promtly removed. “The approved Bitcoin ETFs will be subject to ongoing surveillance and compliance measures to ensure continued investor protection.”
The message also included a picture of the SEC Chair Gary Gensler with a fake message applauding the approval.
The news had an immediate impact on the Cryptocurrency industry, the price of Bitcoin temporarily jumped up to $48,000 before dropping to around $45,000 after the SEC’s denial.
A Bitcoin ETF (Exchange-Traded Fund) is a financial product that mirrors the price of Bitcoin. Traded on major stock exchanges like stocks and bonds, ETFs enable investors to trade Bitcoin indirectly without direct involvement with the cryptocurrency.
Regulating ETFs in the United States, the SEC (Securities and Exchange Commission) imposes specific criteria for approval. This includes a requirement for a transparent and well-regulated Bitcoin market.
Despite increasing investor and financial institution support, the SEC has been cautious about approving a Bitcoin ETF, expressing concerns about Bitcoin’s volatility and the absence of a regulated cryptocurrency market.
The SEC Chair Gensler published the following message from its account revealing the hack of the SEC’s X account.
“The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.” Gensler wrote.
It’s unclear how threat actors hijacked the SEC’s social media account or whether it was protected with 2FA.
The SEC notified the law enforcement and launched an investigation into the security breach.
Recently, several prominent accounts have been hacked, including the X account of the cyber security firm Mandiant and networking vendor Netgear.
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