US Senators J.D. Vance and Thom Tillis have requested detailed information from SEC Chair Gary Gensler regarding an “unacceptable” hacking incident on the SEC’s official Twitter account. The hack falsely announced the approval of spot Bitcoin ETFs on US securities exchanges, which was quickly refuted by Gensler, stating the SEC had not approved any pending ETFs.
The senators expressed serious security concerns about the SEC’s internal cybersecurity procedures, suggesting the incident contradicts the SEC’s mission to protect investors and maintain fair and efficient markets. They demanded answers to six questions related to the event, which has led to widespread speculation on social media.
The letter inquires whether the tweet was made by someone within the SEC and if the security breach will alter the SEC’s timeline for making a final decision on spot Bitcoin ETFs. It also questions whether the SEC plans to compensate for any financial losses resulting from the error.
Gensler has been given a deadline of January 23, 2024, to respond to the letter. Meanwhile, the SEC confirmed an investigation into the hack of its Twitter account, which was verified by Twitter’s security team. The breach was executed by an unidentified individual who took control of a phone number associated with the account, which lacked two-factor authentication.
Following the initial fake ETF approval announcement and subsequent clarification by the SEC, Bitcoin’s price fluctuated, rising to $47,950 before falling to $45,285. At the time of writing, Bitcoin has seen a 1.84% decrease in the past 24 hours, trading at $45,656.