SEC Confirms X Account Hacked

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Facts

• The US Securities and Exchange Commission (SEC) on Tuesday confirmed that an 'unauthorized' post on X, formerly known as Twitter, falsely claiming the approval of spot bitcoin exchange-traded funds (ETF) was the consequence of its account being 'compromised.'¹
• The since-deleted post falsely announced that the SEC would allow Bitcoin ETFs 'on all registered national securities exchanges' while misquoting SEC Chair Gary Gentler as having stated the approval 'enhances market transparency' and provides 'efficient access to digital asset investments within a regulated framework.'²
• The SEC announced it will cooperate with law enforcement's investigation of the matter.³
• X's safety team responded to the incident by announcing it completed a preliminary investigation and concluded the incident wasn't the result of a breach of the social media platform's security.⁴
• Rather, X claimed an 'unidentified individual' gained access to a phone number 'associated” with the SEC, and the account lacked two-factor authentication. X further suggested all users apply two-factor notifications.⁴
• Following the false announcement, Bitcoin's value reached a high of approximately $47.9K before dropping to a low of $45.2K — finishing the day at approximately $46K.⁵

Sources: ¹twitter.com (a), ²twitter.com (b), ³BBC News, ⁴twitter.com (c) and ⁵Yahoo Finance.

Narratives

• Pro-establishment narrative, as provided by LeapRate. This incident is unlikely to instill confidence in X’s security. Elon Musk downsized the platform’s security team when he purchased X, and bad actors have found ways to make a negative impact by exploiting security weaknesses. The future of X is in doubt.
• Establishment-critical narrative, as provided by proactiveinvestor.co.uk. The SEC is at fault here for bizarrely failing to have two-factor authentication on X. This is an unforgivable mistake by the regulatory body that people are supposed to be able to trust to keep the US market safe. This public embarrassment is reason to question whether the SEC is competent.

Predictions