On January 9th, the official X (Twitter) account of the U.S. Securities and Exchange Commission (SEC) posted, asserting the approval of spot Bitcoin exchange-traded funds (ETFs). The tweet claimed this milestone marked the first-time approval of such ETFs by the regulatory body. However, confusion ensued when SEC Chair Gary Gensler promptly contradicted the post, clarifying that the commission had not endorsed the listing and trading of spot Bitcoin exchange-traded products.
Gary Gensler took to the X platform to announce that the SEC’s official X account, SEC Gov, had fallen victim to unauthorized access, leading to the dissemination of a false message. Gensler emphasized that the SEC had not approved any Bitcoin ETFs and disavowed the misleading information. The incident raised concerns and prompted an investigation into the security breach.
Bitcoin Market Reacts
Santiment, a blockchain data platform, reported that the false announcement by the SEC caused a significant sell-off in the Bitcoin market, resulting in over $300 million worth of Bitcoin being liquidated within 15 minutes of the initial post. Crypto investors were taken aback by the sudden market movement, reminiscent of a similar incident three months ago when a reputable publication made an inaccurate post about Blackrock’s ETF approval.
The SEC promptly responded to the situation, with an official spokesperson stating in an email that the unauthorized access to the X (Twitter) account had been terminated. The regulatory body is now collaborating with law enforcement agencies to conduct a thorough investigation into the breach and any potential misconduct associated with it.
Senators Bill Hagerty (R-Tenn.) and Cynthia Lummis (R-Wyo.) expressed their concerns on social media. Senator Hagerty demanded accountability, drawing parallels between the SEC and public companies, stating that Congress needs answers on the unprecedented market-moving mistake. Senator Lummis stressed the potential market manipulation caused by fraudulent announcements, urging transparency in understanding the details surrounding the SEC’s compromised social media account.
However, the cryptocurrency market remains on edge as the SEC works towards resolving the security breach and investigating the unauthorized access, with investors closely monitoring whether this incident will trigger a “sell the news” event or contribute to a renewed bullish sentiment in the crypto space.
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