X Clarifies SEC Account Security Breach, Dispels Rumors of ETF-Linked Market Manipulation

If the SEC Approves BTC ETF, Individuals Can Access Bitcoin Without the Need to Register on a Crypto Platform.

Unidentified notorious miscreants managed to hack the X account of the US Securities and Exchange Commission (SEC) last night, sending the global crypto community into a frenzy. Elon Musk-headed X confirmed on Wednesday, January 10 that SEC’s confirmation of BTC ETFs being approved – was indeed a ruse hatched by whoever hacked the SEC’s X account. While the intention behind this hacking remains unknown, it did lead to notable market manipulation sending Bitcoin price to as high as over $48,000 (roughly Rs. 39.8 lakh) briefly, before dropping to around $45,917 (roughly Rs. 38 lakh).

In a detailed update to the global crypto community, X explained that it was not the SEC but the hackers who were controlling its X account who claimed that all the BTC ETFs were approved in the US. If BTC ETF do get a nod from the SEC, people will be able to engage with Bitcoin without actually having to register with a crypto platform. Bitcoin ETFs are exchange-traded funds that track the value of the asset and trade on traditional market exchanges rather than crypto exchanges.

The topic has been crucial in-terms of directing market trends these recent months and the SEC was expected to give its decision on the topic on January 10 – which is when hackers took control of SEC’s X account and posted that ETF were approved.

In its explanation, X disclosed that SEC’s account had not activated two-factor authentication at the time the account was compromised.

“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 associated with the @SECGov account through a third party,” published the official account of X Safety on Wednesday.

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

It was SEC chief Gary Gensler who first made the announcement that the SEC account was hacked. The update left the crypto market reeling under volatility.

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

Crypto Market Experiences High Volatility Amid Bitcoin ETF Approval Speculations Triggered by SEC’s X Account, Later Confirmed as Account Compromise.