The SEC stated that multi-factor authentication was disabled for account X until after the approval of the fake spot Bitcoin ETF.

The U.S. Securities and Exchange Commission (SEC) announced. On Monday, it stated that multi-factor authentication (MFA) had been disabled, preparing a fake post claiming that a spot Bitcoin exchange-traded fund (ETF) product had been approved.

“Multi-factor authentication (MFA) was previously enabled on @SECGov 22 Statement.

that It added that MFA “remained inactive” even after access was re-established and was only reactivated after the account was compromised on January 9.

X shifts responsibility for hacking

X quickly took responsibility for the hack in a post on January 9. The platform told the SEC its account was compromised after someone gained control of the phone numbers associated with the account. In that statement, secretary corroborated this statement and said it had fallen victim to an apparent “SIM swap” attack.

We can verify your account @SECGov It has been damaged and a preliminary inspection has been completed. According to our investigation, this compromise was not caused by a breach of X’s systems, but by an unknown individual taking control of the phone number…

— Safety (@Safety) January 10, 2024

A spokesperson for the agency said the phone number was accessed through a telecommunications company. “SEC staff has not identified any evidence that unauthorized parties have accessed SEC systems, data, devices, or other social media accounts,” the spokesperson added.

Crypto Community Criticizes SEC

The regulator’s account was hacked around 21:00 UTC on January 9. An unauthorized third party subsequently published a post claiming that the SEC had approved a spot Bitcoin ETF in the United States. This sent the cryptocurrency market into a frenzy as the price of Bitcoin surged upwards. $47K.

The price of the cryptocurrency market leader soon fell after SEC Chairman Gary Gensler denied the news.

that much @SECGov The Twitter account was compromised and unauthorized tweets were posted. The SEC has not approved the listing and trading of spot Bitcoin exchange-traded products.

— Gary Gensler (@GaryGensler) January 9, 2024

Following the hack, the SEC suffered the following attacks: Criticism. Ripple CEO Brad Garlinghouse said The SEC needs to investigate.

Gemini Co-Founder Cameron Winklevoss said The incident showed that what financial regulators do best is “manipulate markets and harm American investors.”

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