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SEC Social Media Hacked, Spreads False News on Bitcoin ETF Approval

2 mins
Updated by Kyle Baird
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In Brief

  • In a post on X, SEC Chair Gary Gensler declares that the agency's social media account has been compromised.
  • The compromised post states that the agency has approved the spot Bitcoin ETF, which a decision is expected to be delivered on this week.
  • Gensler states that the SEC has not in fact approved the listing of the spot Bitcoin ETF — no decision has been made currently.
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Gary Gensler, the chair of the SEC, reveals that the agency’s X (formerly Twitter) account was compromised, spreading false news about the approval of a spot Bitcoin exchange-traded fund (ETF).

“The SEC gov Twitter account was compromised, and an unauthorized tweet was posted,” Gensler posted.

Gensler Declares the Bitcoin ETF Announcement is False

On X, Gensler announced that the SEC’s social media account was compromised. However, the post falsely alerted the significant following to the regulator’s approval of the spot Bitcoin ETF. This week holds high expectations for a crucial decision.

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

The deadline for the SEC to deliver the decision on the ARK 21Shares spot Bitcoin ETF application is January 10.

Despite the positive appearance of the announcement and subsequent correction, the price impact wasn’t substantial. There was a slight drop, but it has since stabilized.

At the time of publication, Bitcoin’s price is $46,066.

Bitcoin Price Chart 1 Month. Source: BeInCrypto
Bitcoin Price Chart 1 Month. Source: BeInCrypto

It caused speculation within the crypto community, with many quickly reacting to the news on social media.

Read more: How To Prepare for a Bitcoin ETF: A Step-by-Step Approach

Meanwhile, prominent crypto figure Mike Dudas, an investor at early-stage venture capital firm 6th Ventures, questioned why the regulator took so long to remove its post following Gensler’s admission that it was a mistake.

“The SEC gov approval tweet is still up, absolute clown town in dc two days of Gary Gensler tweeting out cautionary content from the sec’s twitter account then they get hacked / exploited and release false news of a Bitcoin approval that directly impacts the market.”

Speculation Surrounds SEC Post on Bitcoin ETF Approval

However, ETF analyst Eric Balchunas posits a theory. He suggests that while there are bits of evidence “pointing to a hack,” he believes it originated from within the SEC, possibly a scheduled tweet intended for tomorrow.

This comes after BeInCrypto recently reported that ETF analyst Eric Balchunas has reduced the likelihood of the SEC denying the ETF to a mere 5%.

However, Gensler cautioned against FOMO. Furthermore, this is a term discouraging impulsive investment based on media hype, which could potentially lead to overvaluation.

Read more: Who Owns the Most Bitcoin in 2024?

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Ciaran Lyons
Ciaran is a cryptocurrency journalist based in Sydney, Australia. He particularly enjoys writing about CBDC developments and the practical implementations of cryptocurrency in real-world scenarios. He has also appeared across major television networks in Australia including Channel Ten, Channel Nine and SBS TV. Prior to his foray into cryptocurrency, Ciaran worked as a presenter on national radio station Triple J.
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