Bitcoin price surges on Tuesday U.S. Securities and Exchange Commission (SEC) official Twitter/X account Approval of exchange-traded funds (ETFs) for cryptocurrencies appears to have been announced. Unfortunately for cryptocurrency enthusiasts, this is all a lie. The U.S. Securities and Exchange Commission soon revealed that its Twitter/X account had been hacked and that no such approval had been obtained, and Bitcoin quickly plummeted.
The SEC’s Twitter/X account published the false post at 4:11 pm ET, accompanied by an ostensibly fabricated quote from SEC Chairman Gary Gensler.
“Today, the SEC approved the listing of the #Bitcoin ETF on a registered national securities exchange,” read the false post, which has since been deleted. “Approved Bitcoin ETFs will be subject to ongoing oversight and compliance measures to ensure continued investor protection.”
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An ETF is a group of independent securities that can be traded in a bundle on the stock market. They are useful for diversifying investments, thereby minimizing risk. The SEC’s approval of a Bitcoin ETF would have a significant impact on the crypto economy, providing it with a level of legitimacy that proponents hope will attract more investors.
Cryptocurrency fans are excited about the SEC’s seemingly real announcement. The news caused the price of Bitcoin to quickly surge to nearly $48,000.
Sadly, cryptocurrency investors’ joy was short-lived. Just 15 minutes after the fake announcement, the real Gensler posted that the SEC account had been hacked and that the agency had not approved a Bitcoin ETF.
“this @SECGov The Twitter account was compromised and unauthorized tweets were posted,” Gensler wrote on his personal Twitter/X account. “The SEC has not yet approved the listing and trading of spot Bitcoin exchange-traded products.”
Gensler’s statement was Sixteen minutes after his posting, the official SEC account reiterated this, the agency has apparently regained control of its account. This correction caused the price of Bitcoin to plummet to around $45,000.
Mashable has reached out to the SEC for comment.
Tweet may have been deleted
X secure official account said that based on their initial investigation, the breach was “due to an unknown individual taking control of a phone number associated with the company.” @SECGov Through third-party accounts. X Safety further confirmed that the SEC account did not have two-factor authentication enabled.
Twitter/X disabled free two-factor authentication via SMS early last year, making the feature available only to paying subscribers. Free users currently only have access to security through physical security keys or verification apps like Google Authenticator.
This isn’t the first time fake news has caused a surge in Bitcoin prices. Last October, erroneous reports that the U.S. Securities and Exchange Commission (SEC) approved investment firm BlackRock’s iShares Bitcoin ETF pushed the cryptocurrency’s value to a peak of $30,000. After the report was debunked, it quickly fell back. In 2021, false press releases claiming that retailers Walmart and Kroger would accept Litecoin and Bitcoin Cash (not to be confused with Bitcoin), respectively, also caused a brief surge in the value of each cryptocurrency.
In a statement previously shared with multiple publications, an SEC spokesperson said that any announcement such as the approval of a Bitcoin ETF “will be made in [the SEC] website and then published in the Federal Register. “
