On January 9, 2024, a false announcement on the U.S. Securities and Exchange Commission’s (SEC) Twitter account (@SECGov X) falsely claimed the approval of bitcoin ETFs.
Key Takeaways
- The SEC clarified that a tweet from its compromised Twitter account falsely announcing the approval of bitcoin ETFs was unauthorized and incorrect.
- Bitcoin’s price experienced a brief surge in response to the false announcement but swiftly fell below $46,000.
- The SEC acknowledged unauthorized access to its Twitter account and committed to investigating the incident with law enforcement and government partners.
- Despite the misinformation, the SEC is expected to decide on bitcoin ETFs this week, with over a dozen asset managers awaiting a verdict.
Unauthorized Tweet Sparks Market Fluctuation
In a surprising turn of events on January 9, 2024, the SEC’s official Twitter account (@SECGov X) posted a tweet falsely announcing the approval of bitcoin exchange-traded funds (ETFs). The unauthorized announcement led to a temporary surge in Bitcoin’s price, reaching heights above $46,000 before quickly retracting.
SEC Responds to Compromised Account
The SEC promptly responded, stating that its Twitter account had been compromised, and the false tweet did not originate from the SEC or its staff. The regulatory body, responsible for overseeing financial markets, clarified the misinformation and emphasized that the incident is under investigation.
Read More: Coinbase vs SEC, How a Bitcoin ETF Approval Could Affect
Market Caution and Regulatory Landscape
The incident underscores the volatility of cryptocurrency markets and the impact of regulatory decisions. SEC Chair Gary Gensler, known for his cautious stance on crypto, had recently urged investors to exercise caution. The compromised tweet incident further highlights the challenges in navigating the crypto landscape.
The SEC says the agency's account on X was comprised and an announcement made on the account was not authorized. https://t.co/rd9H7GvzaC
— NBC News (@NBCNews) January 10, 2024
To Conclude
The false announcement of Bitcoin ETF approval via the compromised SEC Twitter account on January 9, 2024, led to momentary market turbulence. As the SEC investigates the unauthorized access, the crypto community awaits the regulator’s imminent decision on bitcoin ETFs.
The incident reinforces the need for vigilance in the crypto space and highlights the intricate relationship between regulatory developments and market dynamics.
