Gary Gensler, Chair of the United States Securities and Exchange Commission (SEC), addressed four lawmakers in the House of Representatives regarding an “unauthorized” tweet sent from the official SEC X account on Jan. 9.
In a letter dated Feb. 6 to Representatives Patrick McHenry, French Hill, Bill Huizenga, and Ann Wagner, Gensler confirmed that a hacker gained access to the SEC’s X account using a “SIM swap” attack. The hacker falsely announced the approval of spot Bitcoin exchange-traded funds (ETFs) for listing and trading on U.S. exchanges.
Gensler stated that the SEC terminated the unauthorized access by 5:30 pm on Jan. 9. Law enforcement agencies are investigating how the hacker managed the SIM swap and identified the associated phone number. The SEC is collaborating with the Office of Inspector General, the Federal Bureau of Investigation (FBI), and the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency for the investigation.
The SEC emphasizes its commitment to cybersecurity obligations and is actively cooperating with relevant authorities for a thorough investigation. Gensler invited lawmakers to ask further questions if necessary.
The fake tweet on Jan. 9 caused confusion in the crypto market, particularly regarding expectations for SEC decisions on spot BTC ETFs. The SEC later officially approved 11 spot Bitcoin exchange-traded products on Jan. 10.
The SEC’s safety team reported the absence of two-factor authentication on its account, contributing to the security breach. Many anticipate the SEC’s decision on spot Ether exchange-traded products following its approval of spot BTC ETFs. Asset manager VanEck awaits a decision, with an SEC deadline set for May 2024.
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