More US senators are demanding answers from the U.S. Securities and Exchange Commission (SEC) regarding Tuesday’s high-profile social media fiasco related to the approval of Bitcoin (BTC) exchange-traded funds (ETF).
Senators Ron Wyden (D-Oregon) and Cynthia Lummis (R-Wyoming) wrote to the inspector general of the SEC on Friday requesting an investigation into the hack on the regulator’s X account.
“The SEC’s failure to follow cybersecurity best practices is inexcusable, particularly given the agency’s new requirements for cybersecurity disclosure. Additionally, a hack resulting in the publication of material information for investors could have significant impacts on the stability of the financial system and trust in public markets, including potential market manipulation.”
Someone compromised the SEC’s X account on Tuesday and issued a false statement claiming the regulator had approved spot Bitcoin ETF applications, whipping the crypto world into a temporary frenzy.
SEC Chair Gary Gensler took to the social media platform 15 minutes later to explain that his agency’s profile had been hacked, and the false statement was deleted later that day. The SEC legitimately approved 11 spot Bitcoin ETFs the following afternoon.
X’s update page confirmed the SEC hack on Tuesday evening but claimed it wasn’t due to any breach of the social media giant’s systems. Rather, an unidentified individual reportedly secured control of a phone number associated with the SEC’s account.
X also noted that the regulator failed to set up multi-factor authentication (MFA) for its profile, despite the fact that Gensler publicly encouraged investor
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Author: Conor Devitt
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