SEC Chairman Gary Gensler Comments on X Account Hack and Security Measures

On January 9, 2024, the U.S. Securities and Exchange Commission’s (SEC) Yes. Trading Funds (ETFs). The incident, which occurred shortly after 4 PM ET, involved an unknown party gaining access to the @SECGov account by taking control of a phone number associated with it. The breach resulted in one message being posted at 4:11 PM ET announcing the Committee’s approval of a spot Bitcoin ETF, followed by “$BTC” And liked two unrelated posts​​​​​​​.

The SEC responded quickly to the breach, with public affairs staff informing the public through Chairman Gary Gensler’s official X account that the @SECGov account had been compromised and that the posts were unauthorized. This response was part of a broader effort to manage the situation and included contacting X to request assistance in regaining control of the account. The unauthorized access reportedly ended approximately one hour after acquisition (between 4:40 and 5:30 PM ET).

The false tweet briefly impacted the cryptocurrency market, sending the price of Bitcoin skyrocketing. The incident highlighted the significant impact social media can have on financial markets and raised concerns about the security of officially regulated accounts on those platforms. It also highlighted the ongoing challenges of cybersecurity and the importance of strong security measures, such as two-factor authentication, which the SEC said was not active on X’s account at the time of the incident.

The SEC subsequently reaffirmed its commitment to cybersecurity, emphasizing its continued assessment of the incident’s impact on investors and markets and its exploration of additional remedial actions. Regulators are working with law enforcement and federal regulators to investigate the breach and determine appropriate next steps, with the goal of preventing future such incidents and maintaining the integrity of communications.

The event also serves as a reminder that the SEC does not use social media to publicize official actions. Rather, we use these platforms to amplify what we publish on our website. Therefore, investors and the public are encouraged to check the SEC’s official website for accurate and authoritative information regarding the SEC’s actions and decisions.

The SEC’s This highlights the need for heightened vigilance and advanced security protocols to prevent unauthorized access and prevent the spread of misinformation, which could have far-reaching implications for financial markets and investor confidence.

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