SEC’s X Account Hacked to Announce Fake Bitcoin ETF Approval

The United States Securities and Exchange Commission’s (SEC) account on the X platform was compromised to publish a false message claiming approval of spot Bitcoin ETFs.

The now-deleted tweet falsely stated that the regulator had approved the listing of products on all registered national securities exchanges, allegedly quoting SEC Chairman Gary Gensler.

“The SEC’s account on the X platform was hacked, and an unauthorized post was published. The Commission has not approved the listing and trading of spot Bitcoin exchange-traded products,” wrote the head of the agency.

The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.

— Gary Gensler (@GaryGensler) January 9, 2024

The price of the leading cryptocurrency surged to $48,000 following the fake SEC announcement. After the misinformation was corrected, the price adjusted. At the time of publication, it was near $46,000, down 1.5% over the day (CoinGecko).

The security team at X confirmed the compromise of the SEC’s page following a preliminary investigation. According to their statement, the attacker gained control over a phone number linked to the account. There was no breach of the social platform’s systems. Experts also noted that two-factor authentication was not enabled on the Commission’s account.

We can confirm that the account @SECGov was compromised and we have completed a preliminary investigation. Based on our investigation, the compromise was not due to any breach of X’s systems, but rather due to an unidentified individual obtaining control over a phone number…

— Safety (@Safety) January 10, 2024

The SEC stated it would contact law enforcement and government agencies regarding the investigation and subsequent steps, reports The Block.

Community Raises Questions

Bloomberg analyst Eric Balchunas suggested that the Bitcoin ETF approval message might have been the result of an error by someone at the agency.

On TV right on talking about this.. and yes, I think someone prepped a planned tweet and put wrong date, bc the tweet would have made PERFECT sense tomorrow at this time. The language sounds legit SEC-ish IMO vs a crypto knucklehead pulling a prank but I guess we’ll see.. https://t.co/lP6Nghi6fq

— Eric Balchunas (@EricBalchunas) January 9, 2024

“I think someone prepped a planned tweet and put the wrong date, because the publication would have made PERFECT sense tomorrow at this time. The language sounds quite legitimate, in my opinion, in the spirit of the SEC, rather than a crypto prankster, but we’ll see,” he wrote.

His conclusion was shared by several commentators, including SkyBridge Capital founder Anthony Scaramucci.

I agree. Very on point language, graphic, everything.

— Scott Johnsson (@SGJohnsson) January 9, 2024

“I agree. Very precise language, graphics, everything else,” noted lawyer Scott Johnsson.

Other users doubted the authenticity of the tweet, noting that it used a hashtag and Bitcoin emoji, which they believed the regulator would unlikely do.

Nah, we got Punk’d.

The “tell” on the official SEC account was when it used the btc emoji cashtag:

” #Bitcoin  “

on the “official” Tweet. pic.twitter.com/mW3b5nt339

— Compound248 ? (@compound248) January 9, 2024

Some noted that control over the SEC’s X account was restored very quickly — only 15 minutes elapsed between the fake tweet and the correction.

The SEC are engaging in market manipulation. pic.twitter.com/w71ujcH6d1

— THE Bitcoin Podcast (@titcoinpodcast) January 9, 2024

This speed raised suspicions that it was deliberate market manipulation rather than the result of a hack.

Incident Draws Attention from U.S. Lawmakers

Senator Bill Hagerty called the incident with the Commission’s account “unacceptable” and stated that Congress “needs a clear answer.”

“Fraudulent announcements like the one made on the SEC’s social media can manipulate markets. We need transparency on what happened,” wrote his colleague Cynthia Lummis.

Senators J.D. Vance and Thom Tillis demanded that the Commission provide explanations regarding the erroneous Bitcoin ETF approval message within four days.

“It is unacceptable that the agency entrusted with regulating the epicenter of the world’s capital markets would make such a colossal error,” the letter stated.

?BREAKING: Senators @JDVance1 & @SenThomTillis Demand Explanation For The SEC’s Errant Announcement Of The Approval Of Spot-Bitcoin ETFs

“It is unacceptable that the agency entrusted with regulating the epicenter of the world’s capital markets would make such a colossal error.” pic.twitter.com/xG77jM9xAM

— Senator Vance Press Office (@SenVancePress) January 10, 2024

Earlier in January, hackers breached the X accounts of Netgear and Hyundai to promote crypto scams.