The SEC said on Tuesday that someone briefly accessed their social media accounts for a short time and posted a fake message regarding the approval of exchange-traded funds for bitcoin. The SEC said it was not posted by them, and their X account was compromised by an unknown party. However, the unauthorized access has been terminated, according to them.
The hackers posted a statement from the SEC’s X account that they had approved some much-awaited products, which caused a price hike in Bitcoin for some time. This incident received criticism from citizens and raised a question about the cybersecurity of federal agencies such as the SEC. The hacker had also started to like the posts that were supporting the false approval of Bitcoin ETFs. The post, which was on the platform for a short amount of time, managed to trigger the price of Bitcoin.
Due to this incident, more than a dozen businesses have requested permission to list bitcoin-backed ETFs in the United States. The SEC has to respond to at least one of the applications by January 10, and the crypto traders are thinking it might announce something important. ETFs, or exchange-traded funds, are assets similar to mutual funds, with ETF shares on exchanges like stocks. A bitcoin ETF will make it easier for investors to keep an eye on the bitcoin price. It will also help them avoid setting up cryptocurrency wallets. All the attempts for a Bitcoin ETF were rejected by the SEC earlier.