US Lawmakers Urge SEC to Strengthen Cybersecurity After Fake Bitcoin ETF Tweet Fallout
In Brief
US lawmakers press SEC for cybersecurity review after a breach led to a fake Bitcoin ETF tweet raised concerns about SEC’s security measures.
US lawmakers are calling on the Securities and Exchange Commission (SEC) to reassess its cybersecurity readiness following a security breach that resulted in the posting of market-sensitive information from the regulator’s official X account earlier this week.
The incident unfolded on Tuesday when an unauthorized individual gained access to the SEC’s X account, formerly known as Twitter, and disseminated a fraudulent message falsely claiming approval of exchange-traded funds (ETFs) for Bitcoin.
The SEC said that any such announcement about Bitcoin ETF approval on social media was incorrect.
Gary Gensler, chairperson at the U.S. SEC tweeted stating, “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.”
Although the SEC officially approved the first U.S.-listed ETFs to track bitcoin on Wednesday, the unauthorized post on the previous day had a tangible impact on the cryptocurrency market. Bitcoin’s price surged to approximately $48,000 before swiftly plummeting to below $45,000 within minutes.
SEC’s Cybersecurity Preparedness Require Thorough Review
Twitter’s help center confirmed the unauthorized access. “We can confirm that the account SECGov was compromised and we have completed a preliminary investigation,” said X’s Safety account.
“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. We can also confirm that the account did not have two-factor authentication enabled at the time the account was compromised,” it added.
The breach has sparked concerns about the SEC’s cybersecurity measures and the potential implications for market integrity. Lawmakers are particularly emphasizing the need for a thorough review of the SEC’s cybersecurity preparedness to prevent future incidents of this nature.
It is essential to note that two-factor authentication (2FA), a dual-layered security protocol requiring both a password and a security key sent via email or phone, stands out as a recommended privacy tool to fortify internet account access.
The incident highlights the significance of robust cybersecurity practices, especially in regulatory bodies tasked with safeguarding sensitive financial information.
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Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.
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Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.
