Gary Gensler Confirms Compromise as Bitcoin Price Swings Following Fake Announcement
In a bizarre turn of events, the official Twitter account of the U.S. Securities and Exchange Commission (SEC), known as SEC X, declared the approval of spot Bitcoin ETFs in a tweet, only to have the announcement refuted by SEC Chair Gary Gensler, who confirmed that the SEC X account was compromised.
The misleading tweet, stating that the SEC had granted approval for Bitcoin ETFs to be listed on all registered national securities exchanges, triggered a surge in Bitcoin’s price to nearly $48,000. However, the excitement was short-lived as the information was promptly debunked by Gensler himself on his personal Twitter account.
Gensler clarified that the SEC had not approved any spot Bitcoin ETF applications, and the tweet from the compromised SEC X account was unauthorized. An SEC spokesperson also confirmed the compromise, stating that the tweet regarding Bitcoin ETFs did not originate from the SEC or its staff.
The tweet from the compromised account included a graphic with a purported quote from Gensler, detailing ongoing surveillance and compliance measures for the approved Bitcoin ETFs to ensure investor protection. A second tweet with the simple caption “$BTC” was posted but swiftly deleted.
The false announcement resulted in a rapid market response, with Bitcoin’s price plummeting nearly 6% to $45,100 after the truth emerged. The volatile period saw over $50 million in leveraged derivatives trading positions wiped out within an hour, according to CoinGlass data.
While the cryptocurrency community eagerly awaits the official SEC decision on Bitcoin ETFs, this incident underscores the susceptibility of financial markets to misinformation and the potential for significant market fluctuations based on false announcements.