The US Securities and Exchange Commission (SEC) Acknowledges Hacking of Official Account in a Cybersecurity Breach

The SEC's official account, known as X, has been confirmed as a victim of hacking, leading to the unauthorized posting of false approval for the listing and trading of spot Bitcoin exchange-traded products. The now-deleted post pre-empted an impending SEC announcement regarding the approval status of spot bitcoin ETFs.

Featuring a photo of SEC chair Gary Gensler and a seemingly authentic quote, the fraudulent post claimed, "Today's approval enhances market transparency and provides investors with efficient access to digital asset investments within a regulated framework." Gensler promptly refuted the approval within fifteen minutes of the post going live on X.

This cybersecurity lapse by the SEC, a key player with significant influence on market movements, proved to be a major incident. Despite its deletion, the post had garnered millions of views and attracted coverage from major media outlets, including Reuters.

In a statement, X exacerbated the cybersecurity implications by revealing the absence of two-factor authentication on the compromised SEC account, leading to ridicule on the platform. The oversight sparked outrage among politicians and pundits, raising concerns about the SEC's cybersecurity practices in safeguarding crucial market information.