The U.S. Securities and Exchange Commission (SEC) has found itself embroiled in controversy and received assistance offers following a compromised tweet from its social media account, falsely announcing the approval of Bitcoin exchange-traded funds (ETFs). This incident occurred amidst heightened anticipation within the crypto community for a positive signal from the regulatory body.
Renowned trader Peter Brandt took to social media to criticize SEC Chair Gary Gensler, citing a 2011 incident during Gensler’s tenure as Chairman of the Commodity Futures Trading Commission (CFTC). Brandt alleged that Gensler was involved in a behind-the-scenes deal with Jon Corzine, enabling MF Global to transfer customer funds to Europe. Accusing Gensler of potential involvement in misappropriation of customer funds, Brandt called for his resignation from the SEC.
Stuart Alderoty, Ripple’s Legal Chief Officer, reminded the SEC of its regulatory obligations. He urged the agency to disclose details and the market impact of the incident within four days, expressing anticipation for transparency regarding the SEC’s assessment processes and preventive measures against cybersecurity threats.
Coinbase’s Chief Legal Officer, Paul Grewal, extended assistance to the SEC, emphasizing Coinbase’s commitment to fair and efficient markets. Grewal proposed support in enhancing security protocols around social media, highlighting Coinbase’s experience as a leading cryptocurrency exchange.
The SEC confirmed that its X account (formerly Twitter) had been compromised, resulting in a false tweet about Bitcoin ETF approval. The unauthorized post briefly boosted Bitcoin prices before correcting to below $46,000 after the SEC clarified the misinformation.
An SEC spokesperson revealed that there had been unauthorized access to the regulator’s X account by an unknown party for a brief period. The SEC pledged collaboration with law enforcement and government partners to investigate the incident and take appropriate actions.
The SEC’s imminent decision on Bitcoin ETFs, expected this week after years of opposition, has heightened tensions in the cryptocurrency industry. Numerous asset managers, including those filing updated registration statements, are seeking approval for a Bitcoin ETF, making the SEC’s decision a focal point of scrutiny.
As the SEC deals with the aftermath of the compromised tweet, the combination of criticism and assistance offers underscores the significance of transparency and robust cybersecurity measures in the evolving landscape of digital asset regulation.
Nevertheless, the global crypto market cap has seen a 1.5% decline over the last 24 hours, now standing at around $1.7 trillion, while the total market volume has increased by 3% to reach $83 billion.
