U.S. Senators Ron Wyden and Cynthia Lummis have called for an investigation into the Securities and Exchange Commission (SEC) following a hacked tweet about a spot Bitcoin exchange-traded fund (ETF) approval. This request, made public in a letter on January 11, 2024, highlights congressional concerns over the SEC's cybersecurity measures.
The senators expressed their dismay at the SEC's apparent failure to implement multifactor authentication and phishing-resistant hardware tokens for its social media accounts. This lapse in security led to a hacker posting a fraudulent message on January 9, falsely suggesting that a spot Bitcoin ETF had been approved for listing.
Wyden and Lummis stressed the potential severe impacts of such a hack on the financial system's stability and public market trust. They emphasized the risk of market manipulation due to the publication of material misinformation. As a response, the senators have requested an update on the investigation and the SEC’s cybersecurity improvements by February 12, 2024.
The senators’ concerns were echoed by other policymakers, including Senators J.D. Vance and Thom Tillis, who also called for investigations following the incident. The false Bitcoin ETF approval tweet, which remained online for approximately 20 minutes, caused confusion and skepticism in the crypto market, especially since the SEC officially approved spot Bitcoin ETF listings the following day, on January 10.
The SEC subsequently announced plans to investigate the incident in collaboration with the Federal Bureau of Investigation and the commission’s Office of the Inspector General. The identity of the individual responsible for the post remains unknown.
This incident underscores the importance of robust cybersecurity practices for regulatory bodies like the SEC, especially given the potential for significant market impact due to false information dissemination.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
