The U.S. Securities and Exchange Commission (SEC) reported that its Twitter account was compromised, leading to the posting of a false tweet about approving Bitcoin exchange-traded funds (ETFs).

The fake tweet claimed that the SEC had granted approval for Bitcoin ETFs to be listed on all registered national securities exchanges, causing a spike and subsequent drop in Bitcoin prices.

Gary Gensler, SEC chairman, confirmed that the tweet was unauthorized, and no approval had been granted for Bitcoin ETFs.

The market had been eagerly awaiting the SEC's decision on several spot Bitcoin ETF applications, with the commission expected to make a decision by a specific deadline.

Bitcoin's value has experienced significant fluctuations in the past year, and there were concerns that the price was being influenced by speculation around the potential approval of spot Bitcoin ETFs.

The article questions the security of the SEC's Twitter feed and discusses the need for safeguards to prevent market manipulation through false tweets.

Spot Bitcoin ETFs are viewed as a way for investors to participate in Bitcoin's price movements without directly owning the cryptocurrency, potentially making Bitcoin more accessible to a broader range of investors.

The SEC's Gensler cautioned investors about the risks associated with crypto assets and linked to advice for those considering investments in the crypto market.

Bitcoin initially spiked to $47,900 per coin after the fake tweet but later dropped 1.5% to $46,247.

Twitter reported that the SEC's account was compromised due to an unidentified individual gaining control over a phone number associated with the @SECGov account through a third party. The FBI is said to be investigating the incident.

Despite the fake tweet, the SEC did eventually approve the spot Bitcoin ETF applications.

Source and further reading:

Cluley, G., & Cluley, G. (2024, January 11). Twitter says it’s not its fault the SEC’s account got hacked. Graham Cluley. https://grahamcluley.com/twitter-says-its-not-our-fault-the-secs-account-got-hacked/

Williams, C. (2024, January 10). SEC Twitter hijacked to push fake news of hotly anticipated Bitcoin ETF approval. The Register. https://www.theregister.com/AMP/2024/01/09/sec_bitcoin_etf_hacked/