U.S. Lawmakers Urge SEC to Strengthen Cybersecurity After Fake Bitcoin ETF Tweet Fallout
Posted: Jan 13, 2024 7:07 AM Updated: Jan 13, 2024 7:07 AM
Edit and fact check date: January 13, 2024, 7:07 AM
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US lawmakers have pressed the SEC for a cybersecurity review after the breach prompted fake Bitcoin ETF tweets to raise concerns about the SEC’s security measures.
U.S. lawmakers have urged the Securities and Exchange Commission (SEC) to reevaluate its cybersecurity preparedness following a security breach earlier this week that posted market-sensitive information from the regulator’s official X account.
The incident began Tuesday when an unauthorized individual accessed the SEC’s
The SEC said such announcements about Bitcoin ETF approval on social media were incorrect.
“The SECGov Twitter account was hacked and unauthorized tweets were posted,” said U.S. SEC Chairman Gary Gensler. The SEC has not approved the listing and trading of spot Bitcoin exchange-traded products.”
The SEC officially approved the first U.S.-listed ETF tracking Bitcoin on Wednesday, but unauthorized posts the day before had a tangible impact on the cryptocurrency market. The price of Bitcoin surged to around $48,000 before plummeting below $45,000 within minutes.
SEC’s Cybersecurity Preparedness Requires Thorough Review
Twitter customer service confirmed the unauthorized access. “We can confirm that the SECGov account has been hacked and we have completed our preliminary investigation,” X’s safety account said.
“Our investigation indicates that these compromises were not caused by a breach of “We can also confirm that two-factor authentication was not enabled on the account when it was hacked,” he added.
The breach has sparked concerns about the SEC’s cybersecurity measures and the potential impact on market integrity. Lawmakers are particularly emphasizing the need for a thorough review of the SEC’s cybersecurity preparedness to prevent future incidents of this nature.
Two-factor authentication (2FA), a two-layer security protocol that requires both a password and a security key sent via email or phone, stands out as a recommended privacy tool for enhancing access to Internet accounts.
The incident highlights the importance of strong cybersecurity practices, especially for regulators tasked with protecting sensitive financial information.
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Kumar is an experienced technology journalist specializing in the dynamic intersection of emerging fields including AI/ML, marketing technology, cryptocurrency, blockchain, and NFTs. With over three years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and providing comprehensive insights. Kumar’s specialty is producing high-impact content including articles, reports and research publications for prominent industry platforms. With a unique skill at combining technical knowledge and storytelling, Kumar excels at communicating complex technical concepts in a clear and engaging way to diverse audiences.
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Kumar is an experienced technology journalist specializing in the dynamic intersection of emerging fields including AI/ML, marketing technology, cryptocurrency, blockchain, and NFTs. With over three years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and providing comprehensive insights. Kumar’s specialty is producing high-impact content including articles, reports and research publications for prominent industry platforms. With a unique skill at combining technical knowledge and storytelling, Kumar excels at communicating complex technical concepts in a clear and engaging way to diverse audiences.