The cryptocurrency community was stirred by an official announcement from the U.S. Securities and Exchange Commission (SEC) Twitter account stating that all spot Bitcoin ETFs had been approved. However, the excitement was short-lived as it was revealed that the information was false. SEC Chairman Gary Gensler clarified via his personal Twitter that the SEC’s account was hacked and no ETF had been approved.
The security team associated with the SEC confirmed that the breach resulted from an unidentified individual gaining control of a phone number linked to the SEC, not from a compromise of their systems. They also confirmed that two-factor authentication was not active on the account at the time of the hack.
The crypto community reacted strongly to the incident, criticizing the SEC for failing to secure its Twitter account and thereby potentially manipulating the market. The incident raised concerns about the SEC’s ability to protect investors if it couldn’t protect its own digital presence.
High-profile figures in the cryptocurrency industry, such as Ripple CEO Brad Garlinghouse and MicroStrategy Chairman Michael Saylor, commented on the situation with a mix of criticism and humor. Their remarks underscored the SEC’s need for self-investigation and the resilience of crypto-related humor on social media.
Senator Bill Hagerty also expressed his concern, emphasizing the need for accountability similar to that expected of public companies making significant errors affecting the markets. He called for Congress to demand answers regarding the unacceptable breach.