SEC Reveals Cause of X Account Breach

Multi-factor authentication on the U.S. Securities and Exchange Commission’s (SEC) X profile was disabled prior to the release of a fake news story about the approval of spot Bitcoin ETFs, according to a statement from the regulator.

“Two days after the incident and following consultations with the telecommunications operator, the SEC determined that an unauthorized party gained control of the mobile phone number associated with the account as a result of an apparent ‘SIM swap’ attack,” the agency stated.

According to the investigation, once the attacker gained control of the phone number, they immediately changed the account password. Law enforcement is currently investigating the details of the unauthorized access.

The SEC also reported that six months before the attack, an employee removed multi-factor authentication due to access issues with the profile. All security measures were restored only after the breach.

The Commission found no evidence that the attacker had access to other systems, data, or the regulator’s social media accounts.

On January 9, unknown individuals gained control of the SEC’s X account and posted a fake news story about the approval of a spot Bitcoin ETF, causing high market volatility.

The Federal Bureau of Investigation quickly joined the investigation into the incident.

Previously, Ripple CEO Brad Garlinghouse suggested the agency investigate “itself.” Coinbase CSO Philip Martin offered the SEC assistance in organizing social media cybersecurity.

In January, the regulator approved all 11 applications for spot Bitcoin ETFs. Trading began the following day.