SEC Chairman Addresses US Lawmakers Regarding Fake Bitcoin-ETF Tweet
Date: 2024-02-13 Author: Dima Zakharov Categories: IN WORLD
Fake Tweet Controversy
Gary Gensler, the head of the U.S. Securities and Exchange Commission (SEC), has penned a response to four lawmakers in the House of Representatives regarding a controversial tweet sent out on January 9th from the official SEC account.
Unauthorized Access
In his letter dated February 6th, Gensler confirmed earlier reports that a hacker gained access to the SEC's account through a SIM-swapping attack. The hacker falsely claimed that the SEC had approved Bitcoin exchange-traded funds (ETFs) for listing and trading on U.S. exchanges.
Investigation and Response
Gensler revealed that the SEC staff believes the unauthorized access was halted by 5:30 PM on the same day. Law enforcement agencies are currently investigating how the unauthorized party convinced the telecom operator to swap the SIM card and ascertain which phone number was linked to the account.
Market Reaction
The compromised tweet caused a stir in the cryptocurrency market as many anticipated the SEC's decision on approving Bitcoin ETFs. However, on January 10th, the SEC officially approved 11 Bitcoin exchange-traded products for listing and trading on U.S. exchanges.
Two-Factor Authentication Oversight
On January 9th, the X security team reported that the SEC had not enabled two-factor authentication on its account, leading to the security incident. The Commission confirmed these details in a statement issued on January 22nd.
Future Decisions
Following the approval of Bitcoin ETFs by the SEC, many experts anticipate a decision on Ethereum exchange-traded products. Asset management firm VanEck is likely to be among the first to hear the decision, with the SEC deadline set for May 2024.
