Gary Gensler stated that the person who hacked SEC X account regarding Bitcoin ETFs did not hack other devices or systems.
The United States Securities and Exchange Commission (SEC), under the leadership of Chair Gary Gensler, faced an unauthorized access to its X (formerly Twitter) account on January 9th. Gensler assured that there is currently no indication that this breach extended to other systems, data, or devices.
Incident Overview
The breach occurred when an intruder hijacked the SECGov X account using its associated phone number at around 4:11 pm Eastern Time. Furthermore, this incident was notable for the false announcement posted about the SEC approving a Bitcoin exchange-traded fund (ETF), which raised immediate concerns. The SEC swiftly coordinated with X, successfully regaining control of the account between 4:40 pm and 5:30 pm Eastern Time.
Gensler highlighted the SEC’s proactive stance towards this breach. The organization is not only investigating the immediate impact but also considering the broader implications for crypto investors and marketplaces. This comprehensive evaluation underscores the SEC’s commitment to maintaining the integrity and security of its operations and communications.
Collaborating closely with major law enforcement and security agencies, including the U.S. Federal Bureau of Investigation and the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, the SEC is pursuing a thorough investigation. This collaborative effort aims to prevent such incidents in the future and reinforce cybersecurity measures.
Clarification on SEC Communications
Importantly, Gensler clarified that the SEC does not use X or any other social media platforms for official announcements. This statement is crucial in maintaining the trust and reliability of the information disseminated by the SEC to the public and market participants.
This cybersecurity incident has garnered attention at the legislative level as well. Senators Ron Wyden and Cynthia Lummis addressed the issue, urging a detailed investigation into the SEC’s cybersecurity practices. Additionally, this call for action indicates the significance of cybersecurity in safeguarding sensitive information and the functioning of critical financial institutions.
Further controversies arose with the erratic approval process on the official date, marked by a post-and-delete incident on the SEC website, fueling market volatility and liquidations. Despite these issues, the eventual approval of Spot Bitcoin ETFs highlights a crucial moment in the crypto sector, especially with the upcoming BTC halving event, and casts a shadow on the SEC’s regulatory approach, leading to skepticism on US regulators but optimistic anticipation for future developments like ETH ETFs.