Two United States senators, J.D. Vance and Thom Tillis, are urging the United States Securities and Exchange Commission (SEC) to provide a report to Congress regarding the breach of its X (formerly Twitter) account on January 9th.
In a letter addressed to SEC Chair Gary Gensler on the same day as the incident, Senators Vance and Tillis expressed serious concerns about the breach and its implications for the SEC’s internal cybersecurity procedures. They also characterized the breach as contrary to the SEC’s mission to protect investors, maintain fair and efficient markets, and facilitate capital formation.
Given their concerns about the recent hack, which they noted caused widespread confusion, the senators have requested that the SEC furnish Congress with a report about the incident, citing a recently finalized rulemaking related to cybersecurity disclosures.
The letter, sent on January 9th, sets a deadline of January 23rd for the SEC to provide the report. The senators also reminded the SEC of the mandate requiring all businesses to disclose the impact of a cybersecurity incident on their business within four days:
“If this ‘compromised’ social media post was indeed a result of a cybersecurity attack, would it be possible for the Commission (SEC) to provide Congress with a report on the breach within four business days? If not, please explain why.”
The incident occurred on January 9th when the SEC’s X account shared a false tweet suggesting that spot Bitcoin exchange-traded funds (ETFs) had been approved in the United States. However, the excitement in the crypto community was short-lived as Gensler later revealed that the SEC’s X account had been compromised and used to send out an unauthorized tweet.
Amidst the confusion, investors and markets reacted unpredictably, and many pointed out the SEC’s lack of preparedness against cyberattacks and online threats. An internal investigation by X confirmed that the SEC account was not using two-factor authentication at the time of the breach. The investigation also found that the compromise occurred because an unidentified individual gained control over a phone number associated with the @SECGov account through a third party.
Several prominent government officials, including Senators Cynthia Lummis and Bill Hagerty, as well as Representative Ann Wagner, echoed the concerns of their fellow members of Congress. Hagerty called for full disclosure about the incident, while Lummis emphasized the risks associated with fraudulent announcements and sought clarity on incidents that can manipulate markets.
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