- Fake Bitcoin ETF approval tweet briefly crashes markets.
- The SEC account lacked two-factor authentication, highlighting the need for strong security protocols.
- Crypto figures are surprised by the breach and urge investigation.
In a significant event, the U.S. Securities and Exchange Commission’s (SEC) Twitter account, managed via the X platform, was recently compromised. This incident sent shockwaves through the cryptocurrency world. Initially, a tweet about the approval of a Bitcoin ETF caused Bitcoin’s value to surge. However, SEC Chair Gary Gensler quickly clarified that the tweet was unauthorized and a result of hacking.
The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.
— Gary Gensler (@GaryGensler) January 9, 2024
One major concern arising from this incident was the absence of two-factor authentication (2FA) on the SEC’s Twitter account. This lack of 2FA played a crucial role in allowing unauthorized access. The incident highlighted the need for strong security protocols to protect sensitive accounts.
How the Breach Happened: A Detailed Look
The X platform’s Safety Team confirmed the breach and stated that their system was not compromised. The breach occurred when an individual gained control of a phone number associated with the SEC account through a third-party service. This incident revealed the vulnerabilities in interconnected digital systems and showcased the sophistication of modern cyber threats.
We can confirm that the account @SECGov was compromised and we have completed a preliminary investigation. Based on our investigation, the compromise was not due to any breach of X’s systems. but rather due to an unidentified individual obtaining control over a phone number…
— Safety (@Safety) January 10, 2024
The breach led to calls for a thorough investigation due to c
