X Explains SEC Account Hack, Curbs ETF-Related Market Manipulation Rumours

If BTC ETF do get a nod from the SEC, people will be able to engage with Bitcoin without actually having to register with a crypto platform.

Written by Radhika Parashar, Edited by Siddharth Suvarna | Updated: 10 January 2024 17:05 IST

X Explains SEC Account Hack, Curbs ETF-Related Market Manipulation Rumours

Photo Credit: Reuters

The SEC has, for now, held its silence on BTC ETF approvals in the US

Highlights

SEC was expected to give its decision on BTC ETF on January 10
Excitement around BTC ETF has sent its price over $45,900
Experts predict the market to remain volatile for the next week

Unidentified notorious miscreants managed to hack the X account of the US Securities and Exchange Commission (SEC) last night, sending the global crypto community into a frenzy. Elon Musk-headed X confirmed on Wednesday, January 10 that SEC's confirmation of BTC ETFs being approved – was indeed a ruse hatched by whoever hacked the SEC's X account. While the intention behind this hacking remains unknown, it did lead to notable market manipulation sending Bitcoin price to as high as over $48,000 (roughly Rs. 39.8 lakh) briefly, before dropping to around $45,917 (roughly Rs. 38 lakh).

In a detailed update to the global crypto community, X explained that it was not the SEC but the hackers who were controlling its X account who claimed that all the BTC ETFs were approved in the US. If BTC ETF do get a nod from the SEC, people will be able to engage with Bitcoin without actually having to register with a crypto platform. Bitcoin ETFs are exchange-traded funds that track the value of the asset and trade on traditional market exchanges rather than crypto exchanges.

The topic has been crucial in-terms of directing market trends these recent months and the SEC was expected to give its decision on the topic on January 10 – which is when hackers took control of SEC's X account and posted that ETF were approved.

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“Many security lawyers have now been calling for the SEC to investigate itself for market manipulation due to this event,” the CoinSwitch Market Desk told Gadgets360.

In its explanation, X disclosed that SEC's account had not activated two-factor authentication at the time the account was compromised.

“Based on our investigation, the compromise was not due to any breach of X's systems, but rather due to an unidentified individual obtaining control over a phone number associated with the @SECGov account through a third party,” published the official account of X Safety on Wednesday.

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We can confirm that the account @SECGov was compromised and we have completed a preliminary investigation. Based on our investigation, the compromise was not due to any breach of X's systems, but rather due to an unidentified individual obtaining control over a phone number…
— Safety (@Safety) January 10, 2024

It was SEC chief Gary Gensler who first made the announcement that the SEC account was hacked. The update left the crypto market reeling under volatility.

The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.
— Gary Gensler (@GaryGensler) January 9, 2024

“The crypto market had a highly volatile day due to the rapid developments around Bitcoin ETF approval by the SEC. The social post on the SEC's X account led to a lot of speculations around the approval granted by the SEC, but later SEC issued a statement that its account had been compromised and there is no approval granted yet. The market is expected to remain volatile this week,” Shivam Thakral, CEO of BuyUcoin told Gadgets360.

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Further reading: Cryptocurrency, BTC ETF, X, Crypto Market

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More