The U.S. securities regulator said someone briefly accessed its X social media account on Tuesday and posted a fake message saying it had approved exchange traded funds for bitcoin, a move that has been eagerly awaited by the crypto industry.
The Securities and Exchange Commission (SEC) said it has not yet approved spot bitcoin ETFs. The SEC's account on X, the platform formerly known as Twitter, had been compromised briefly by an unknown party after about 4 pm Eastern time but "unauthorized access has been terminated," the agency said.
X's head of business operations, Joe Benarroch, said in a statement that the SEC's account was secure and the company was investigating the "root cause" of the account compromise.
The unauthorized post said the SEC had granted approval for bitcoin ETFs on all registered national securities exchanges and included a picture purporting to quote SEC Chair Gary Gensler. The price of bitcoin rose after the post, which was picked up by Reuters and other news media that monitor the SEC's account.
The posting came as the SEC was widely expected on Wednesday to finally approve a batch of ETFs that track the price of bitcoin, in a potential watershed moment for the crypto industry. The unauthorized post surprised the industry, with insiders scrambling to find out whether it was true and why the SEC would first publish something on social media.
Executives from some ETF issuers, speaking on condition of anonymity because of the sensitivity of the matter, said they were startled and surprised by the initial tweet.
One executive said he was "concerned" that the SEC might delay or withhold approval for spot bitcoin ETFs as a result of the hack.
Two issuers, speaking on condition of anonymity, said it was not immediately clear whether the hack would impact the timeline for approvals of the spot bitcoin ETFs. The SEC is due to deliver a decision on a joint proposal from Ark Investments and 21Shares on Wednesday.
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