SEC Hack Exposes False Bitcoin Approval, Sowing Market Confusion

Yesterday, the SEC’s X account suddenly posted that it had approved at least one Bitcoin exchange-traded fund (ETF). For the cryptocurrency community, this is a long-awaited move and is expected to be announced by the SEC in a few days. This tweet quickly attracted nearly 3 million views.

ETFs (Exchange Traded Funds) are investment funds that track the movement of a stock index or bond. ETFs are listed and traded on the US Securities Exchange like stocks and are considered a passive investment method.

Immediately after the content about the approval of the Bitcoin ETF on X, the price of a coin shot up from $45,000 to about $48,000 per coin. Other cryptocurrencies also rose sharply shortly thereafter.

Fake ETF approval

The SEC, however, removed the text shortly afterward and claimed that the announcement was fraudulent. “The SEC’s X account was compromised. The unauthorized post related to Bitcoin ETFs was not posted by the SEC or their staff”, the SEC announced.

Following that, the price of Bitcoin continued to fluctuate when it fell from the level of $48,000 to $44,700 per coin. This token now costs about $46,000.

In response to CNBC, the SEC said that their X account was accessed by an unidentified party for a short time. “The SEC will work with law enforcement and our partners across government to investigate the matter and determine appropriate next steps relating to both the unauthorized access and any related misconduct,” an SEC spokesperson said.

The price of Bitcoin has grown 152% in 2023, mainly thanks to positive news related to two upcoming events the SEC may approve a Bitcoin ETF, and the “Halving” scheduled to take place in May 2024. Halving is an event that occurs every four years when the reward for mining a Bitcoin block is reduced in half. The first Halving was in 2012. Analysts predict that Bitcoin could reach $60,000 per coin, or perhaps $100,000 this year.