In a surprising turn of events, the official Twitter account of the Securities and Exchange Commission (SEC) was hacked by an unknown individual.
The supposed imposter falsely declared the approval of a highly anticipated Bitcoin exchange-traded fund (ETF), which caused a momentary surge in Bitcoin's price.
However, the SEC quickly dismissed the announcement as fake, leading to a rapid drop in the cryptocurrency's value.
As per CoinDesk, the aftermath of this incident resulted in a massive $90 million worth of long and short positions being liquidated.
Investigating the SEC Twitter Hack
Responding to the breach, the SEC launched an inquiry, revealing the culprit compromised the account by manipulating the associated phone number through a third party.
Shockingly, the SEC's account lacked two-factor authentication during the incident, drawing criticism from the crypto community. Enthusiasts even attempted to guess the email address, highlighting the concerning absence of security measures.
How the Market Reacted, and Memes Took Over
When the fake news hit, the crypto world went through a rollercoaster of emotions. Bitcoin's value jumped by 2.2% at first, but then, as the SEC clarified things, it took a dive, skyrocketing by 4.5%.
Social media exploded with memes, and influencers, in a light-hearted way, pointed fingers at people like Sam Bankman-Fried and BitBoy.
However, as experts went deeper into the incident, serious questions emerged—was it a hack, a social media blunder, or a deliberate move by the SEC to influence the fate of spot bitcoin ETFs?
Was It an Inside Job or an External Hack? The Crypto Community Discusses
The quick and well-coordinated response from the SEC left the crypto community wondering. Could the SEC truly detect and fix a hacked tweet, recover an account, and respond within minutes?
The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.
— Gary Gensler (@GaryGensler) January 9, 2024
Theories surfaced, hinting that the incident might be an inside job aiming to sway opinions on Bitcoin ETF approval.
Gabor Gurbacs from VanEck asked a critical question: "Does creating an event like this become the only way to halt or delay a Bitcoin ETF?"
Adding to the complexity, evidence suggested a potential Bitcoin enthusiast might be behind the hack. The SEC's account had once tweeted "$BTC" before deleting it.
Moreover, liked posts on the account featured content unrelated to the SEC—a strange move for a government entity.
Unveiling The Mystery
The strange details of the incident made the whole situation with the hacked SEC account even more confusing. Using #Bitcoin in the fake post, not following the usual design, and deleting a previous "$BTC" tweet made people wonder if the hack was real.
Crypto fans found themselves in a detective story, asking if it was a hack, a mistake by an intern, or a plan by the SEC to affect the market.
Market Impacts and Bitcoin's Response
The fake announcement had real effects, leading to more than $300 million in Bitcoin markets getting sold off.
Even though people were upset about Blackrock's ETF not being approved, some thought it might be the lowest point, signaling a potential positive cycle in the future.
Algorithmic trading caused ups and downs, and the incident made experts take a closer look at the TD Sequential indicator, suggesting a possible dip before an upward trend.
Bitcoin Price Fluctuation Amid Fake News
The most recent data shows Bitcoin at $45,608, marking a 2.13% drop on the daily chart. A false news event caused a $2,000 volatility in BTC price, highlighting the impact of misinformation in the cryptocurrency market.
The SEC denies staff involvement in the incident, leaving the crypto community uncertain about the anticipated spot bitcoin ETF decision.
As the SEC Twitter investigation continues, the crypto industry remains uneasy, concerned about compromised social media accounts affecting the volatile market. Keep an eye out for updates on the SEC ETF approval saga.