Increasing numbers of U.S. Congress members are urging the Securities and Exchange Commission (SEC) to provide details on a hack that led to a false announcement being posted on X (formerly Twitter) about the approval of a spot Bitcoin exchange-traded fund. Senators Ron Wyden and Cynthia Lummis, in a letter dated January 11, called on SEC Inspector General Deborah Jeffrey to investigate the commission’s cybersecurity measures.
The lawmakers criticized the SEC for its apparent failure to adhere to protocols, which seemingly allowed a hacker to post a message on X on January 9, implying that a spot BTC exchange-traded product had been approved for listing on exchanges for the first time. They expressed concern that such a hack, which disseminates material information for investors, could significantly impact the stability of the financial system and public trust in markets, potentially leading to market manipulation.
Wyden and Lummis requested an update on the investigation and the SEC’s remediation by February 12, 2024. They also suggested that the SEC’s X account should have had multi-factor authentication enabled, a security measure that X confirmed was not in place at the time of the hack. They also recommended securing accounts with phishing-resistant hardware tokens. Their call for an investigation echoes similar requests from Senators J.D. Vance and Thom Tillis and other policymakers following the publication and removal of the fake tweet.
Before the SEC officially approved spot Bitcoin ETF listings on January 10, there was widespread speculation that approvals were imminent. Asset managers started filing amendments to 19b-4 forms on January 5, and the Cboe BZX Exchange announced approved securities listings from several firms. However, the false start to the spot Bitcoin ETF, caused by the SEC tweet that was online for about 20 minutes, created uncertainty in the crypto market and led many to doubt the approval once it was officially announced.
On January 10, following the approval, the SEC announced plans to investigate the tweet in collaboration with the FBI and the commission’s Office of the Inspector General. The individual responsible for the post remains unidentified at the time of writing.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Ron Wyden, Cynthia Lummis, Deborah Jeffrey, J.D. Vance, Thom Tillis |
| Companies | Office of the Inspector General, Axios, Securities and Exchange Commission, Federal Bureau of Investigation, X (formerly Twitter), Cboe BZX Exchange |
| Currencies | Bitcoin |
| Securities | None |
