SEC Clarifies Post-Hack Situation
The U.S. Securities and Exchange Commission (SEC) has provided an update regarding the recent security incident involving a fake Bitcoin ETF approval announcement. Contrary to initial concerns, the SEC confirmed that its systems and devices were not compromised during the incident.
Details of the Twitter-like Platform Hack
On Tuesday, a misleading tweet was sent from the SEC’s official X account (formerly Twitter), @SECgov, falsely stating the approval of several spot Bitcoin ETFs. The SEC now reveals that the unauthorized access was achieved through the phone number linked to the account. The first false post appeared at 4:11 p.m. ET, and SEC Chair Gary Gensler responded with a clarification just 15 minutes later.
SEC’s Swift Response
The SEC maintains that it never lost control of the account. Within 30 minutes of the false tweet, SEC staff deleted the unauthorized post, corrected other mistakenly liked bitcoin-related tweets, and communicated an update via the main SECgov account. They also contacted X.com to terminate the unauthorized access, which was achieved between 4:40 pm ET and 5:30 pm ET.
Ongoing Investigations
An SEC spokesperson clarified on Wednesday that the FBI was investigating the breach. The SEC also dispelled rumors that the false approval announcement was a premature release of a planned message. Additionally, the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) is involved in the investigation.
Legitimate Approval of Bitcoin ETFs
In a coincidental but unrelated development, the SEC did approve nearly a dozen Bitcoin ETF applications on Wednesday, with trading commencing the following day.
Lawmakers Demand Answers
The incident has raised concerns among lawmakers about the SEC’s cybersecurity practices. Senators Ron Wyden (D-Ore.) and Cynthia Lummis (R-Wyo.) have requested an investigation by SEC Inspector General Deborah Jeffrey. They emphasized the potential risks such breaches pose to public market stability.
SEC’s Commitment to Security
This episode highlights the SEC’s commitment to maintaining the integrity and security of its communications channels. The rapid response to the false announcement and the involvement of federal agencies underscore the seriousness with which the SEC addresses cybersecurity threats and misinformation in the financial markets.
