US legislators are calling for the SEC to bolster its cybersecurity efforts in response to the misleading Bitcoin ETF announcement on social media.
In Brief
In response to the security incident where a false Bitcoin ETF tweet was posted, U.S. lawmakers are advocating for the SEC to reevaluate its cybersecurity strategies.
Members of Congress are urging the Securities and Exchange Commission to reassess its cybersecurity measures after an incident involving unauthorized access that led to the dissemination of sensitive market information from the agency's official social media account earlier this week. cybersecurity On Tuesday, an unauthorized individual infiltrated the SEC's X account, previously known as Twitter, and circulated a deceptive message that claimed fraudulent approval for Bitcoin exchange-traded funds (ETFs).
The SEC has clarified that any social media posts about ETF approvals are inaccurate. Twitter Gary Gensler, the chair of the SEC, communicated via Twitter that 'The SECGov account was compromised, and an unauthorized tweet was shared. The SEC has not sanctioned any listing or trading of spot Bitcoin ETFs.'
Even though the SEC authorized the first Bitcoin ETFs listed in the U.S. on Wednesday, the unapproved tweet sent market reactions into a frenzy, with Bitcoin's value soaring to about $48,000, only to quickly decline to below $45,000 within moments. Bitcoin ETF A Comprehensive Review of SEC’s Cybersecurity Measures is Essential
Twitter's support confirmed the hacking incident. 'We can verify that the SECGov account was breached and we have completed an initial investigation,' tweeted the Safety team.
'Our findings indicate that the breach did not stem from a compromise of Twitter's infrastructure; instead, an unknown individual gained control over a phone number tied to the SECGov account via a third-party source. Additionally, we can confirm that multi-factor authentication was not enabled at the time of the breach,' it was reported.
This security breach has raised serious concerns regarding the SEC’s protective measures and the broader implications for market integrity. Legislators are stressing the importance of a deep evaluation of the agency’s cybersecurity strategies to prevent similar situations in the future.
It's crucial to highlight that implementing two-factor authentication (2FA)—which adds an extra layer of security requiring a password and a code sent via email or phone—is a highly recommended approach to enhance the protection of online accounts.
This incident underscores the critical need for strong cybersecurity protocols, particularly in regulatory institutions responsible for safeguarding sensitive financial data.
The Securities and Exchange Commission reminds users that the content available on this page should not be construed as legal, tax, investment, or financial advice. It’s vital to only invest amounts you can afford to lose and to seek independent financial guidance if uncertain. For more details, we encourage you to check the comprehensive terms and support pages provided by the relevant issuer or advertiser. MetaversePost is dedicated to delivering truthful and impartial news, but market dynamics can change swiftly and without notice. cybersecurity Kumar is a seasoned tech journalist who excels in the rapidly evolving intersections of AI/ML technologies, marketing innovations, and burgeoning fields like cryptocurrency, blockchain, and NFTs. With over three years in the industry, Kumar has demonstrated a strong ability to create engaging narratives, conduct illuminating interviews, and provide in-depth insights. His expertise extends to crafting high-impact articles, reports, and research pieces for key industry platforms. Blending technical acumen with storytelling, Kumar effectively communicates complex technological ideas to diverse audiences in a relatable and captivating manner.
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