SEC’s X Account ‘Compromised,’ Bitcoin Exchange-Traded Funds Not Approved

Shortly after announcing the approval of bitcoin exchange-traded funds, the U.S. Securities and Exchange Commission (SEC) clarified that its account on X, formerly known as Twitter, had been “compromised.”

The SEC revealed that it “has not approved the listing and trading of spot bitcoin exchange-traded products.”

The SEC’s X post provided a slight boost in cryptocurrency’s price, but after it was revealed that the agency was not greenlighting bitcoin exchange-traded funds, such prices fell.

“Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges,” the agency’s since-deleted post read. “The approved Bitcoin ETFs will be subject to ongoing surveillance and compliance measures to ensure continued investor protection.”

SEC Chair Gary Gensler announced that the agency has not officially approved bitcoin exchange-traded funds.

“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,” Gensler wrote on X. “The SEC’s @SECGov X/Twitter account has been compromised. The unauthorized tweet regarding bitcoin ETFs was not made by the SEC or its staff.”

In a statement, a spokesperson for the SEC said the agency determined its X account had been briefly hacked and will work with law enforcement to investigate what happened. The spokesperson said the agency’s social media account was compromised on the afternoon of Jan. 9, 2024.

“The SEC will work with law enforcement and our partners across government to investigate the matter and determine appropriate next steps relating to both the unauthorized access and any related misconduct,” the spokesperson said.

On X, Sens. Bill Hagerty (R-TN) and Cynthia Lummis (R-WY) called on the SEC to provide more specifics on the situation.

Hagerty said that Congress “needs answers” on how the SEC’s account was compromised. The Tennessee congressman said the matter was “unacceptable.

“Just like the SEC would demand accountability from a public company if they made such a colossal market-moving mistake, Congress needs answers on what just happened. This is just unacceptable,” Hagerty wrote.

Lummis urged the SEC to be transparent about the issue and warned that “Fraudulent announcements,” such as the one made on the SEC’s X account, can cause massive confusion in the market.

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