Washington, D.C., January 9, 2024 – In a major security breach, the official Twitter account of the Securities and Exchange Commission (SEC) was compromised on Tuesday afternoon, sending a false tweet claiming approval for Bitcoin Exchange-Traded Funds (ETFs). The incident underscores the vulnerability of social media platforms and the potential for significant market manipulation through misinformation.
Misleading Announcement Triggers Price Surge: Shortly after 4 PM EST, the @SECGov account tweeted that the agency had “granted approval for #Bitcoin ETFs for listing on all registered national securities exchanges.” This news, highly anticipated by the crypto community, caused a dramatic spike in Bitcoin’s price, briefly reaching nearly $48,000 before the error was corrected.
Swift Clarification and Investigation: Recognizing the misinformation, SEC Chairman Gary Gensler promptly responded via his personal Twitter account, stating that the agency’s account had been compromised and the ETF approval claim was “unauthorized.” The SEC confirmed regaining control of the account and launched an investigation into the hacking incident.
Market Recovers, Impact Remains: Bitcoin’s price rapidly dipped back down upon confirmation of the false news. Nevertheless, the episode highlights the potential for significant market manipulation and investor losses through social media misinformation. Additionally, it exposes vulnerabilities in security measures deployed by even high-profile government agencies.
Moving Forward: The SEC reiterated its commitment to investor protection and vowed to conduct a thorough investigation. The incident is likely to lead to increased scrutiny of social media platforms and calls for stricter security measures on sensitive government accounts.
