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SEC Twitter ‘Compromised,’ Sparking Chaos in Bitcoin Market After ETF Tweet

In a bizarre turn of events, the official SEC X (formerly Twitter) account was compromised, leading to a fake tweet announcing the approval of spot bitcoin exchange-traded funds (ETFs). This false information triggered a rapid market reaction and a subsequent sell-off as traders initially believed the SEC had given the green light to BTC ETFs.

Key Points:

  1. False Tweet and Market Reaction:
    • The misleading tweet claimed that the SEC had approved Bitcoin ETFs for listing on all registered national securities exchanges.
    • Bitcoin’s price experienced a quick pump, reaching nearly $48,000, before plunging when the misinformation was clarified by SEC Chair Gary Gensler via his personal Twitter account.
  2. Calls for Investigation:
    • Lawmakers and crypto advocates expressed concern over the SEC’s compromised account disseminating false information that could manipulate markets.
    • Senator Cynthia Lummis called for transparency and an investigation into the incident.
  3. Irony in Timing:
    • The hoax occurred as the crypto community anticipated a potential approval of spot bitcoin ETFs, with expectations heightened ahead of the SEC’s decision day.
  4. SEC’s Past Statements:
    • The SEC had previously cautioned against relying on unofficial sources for information, emphasizing the importance of accurate details from the SEC itself.
    • The incident raises questions about the SEC’s ability to protect its official communication channels.
  5. Regulatory Credibility Concerns:
    • Crypto commentators highlighted the irony that even the SEC, responsible for regulatory oversight, could not be trusted for accurate information about its own decisions.
    • The compromised account adds uncertainty to the credibility of the SEC’s public statements.
  6. Investigation and Next Steps:
    • The SEC announced its intention to collaborate with law enforcement and partners to investigate the unauthorized access to its social media account.
    • Questions arise about the level of security measures in place to safeguard official communication channels.

Conclusion: The incident involving the compromised SEC Twitter account adds a layer of complexity to the ongoing discussion about the potential approval of spot bitcoin ETFs. It underscores the challenges and risks associated with misinformation in the crypto space and prompts a reevaluation of the security protocols for regulatory communication channels.

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