1min read
Published on: Jan 10, 2024
#Bitcoin ETF
Tuesday, 10 January, proved to be a day full of hiccups for crypto enthusiasts as the news of Bitcoin exchange-traded fund (ETF) approval proved to be nothing but a lie.
At first, the Securities and Exchange Commission (SEC) announced that it had approved Bitcoin ETFs for listing.
However, the announcement turned out to be fake as the SEC Chair Gary Gensler revealed within 15 minutes that the regulatory body’s X account had been hacked and a misleading tweet about the approval was sent out.
The SEC confirmed the hack within a few minutes.
However, to every action its consequences – especially in the crypto market.
In the few minutes of frenzy, we saw BTC’s price skyrocketing to approximately $48k. It plummeted around 6% to $45k following the confirmation of the hack soon enough.
X’s Safety team said that the hack occurred because the SEC’s account didn’t have two factor (2F) authentication enabled.
Shortly after the news went viral, both Senators J.D. Vance (R-OH) and Thom Tillis (R-NC) sent a letter to the SEC, demanding an explanation for the colossal debacle.
This incident happened at a specifically bad timing, and raises concerns about both the security and credibility of official regulatory channels.
Users mocked the SEC for its emphasis on cyber security as the agency’s original account itself wasn’t sufficiently secure.
This isn’t the first time that misleading information about Bitcoin ETFs has gone around.
In October 2023, a leading news outlet erroneously announced that the SEC had approved BlackRock’s Bitcoin ETF. Guess what... It turned out to be fake news.
The same month, a prominent ETF analyst at another leading news group reported that the same Bitcoin ETF had been listed in the market. Again, it was nothing but pure rumours.
Bitcoin significantly rallied after both incidents.
How could the SEC's official account get hacked on such a crucial day? And most importantly, is there something behind the scenes that is going on?
This article is for informational purposes only and not intended as investment or financial advice. It contains opinions and speculations that are subject to change without notice.
The author and publisher disclaim any liability for decisions made based on the content of this article. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions.
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