The US Securities and Exchange Commission just announced that its X (formerly Twitter) account was "compromised" this Tuesday after it posted fake approvals for bitcoin exchange-traded funds.
SEC Chair Gary Gesler first reported the hijacking on his personal account warning that "an unauthorized tweet was posted."
Gesler clarified that the listings and trading posted were not approved by the SEC or any of its affiliated bodies.
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
The SEC eventually retrieved its account 20 minutes after Gesler's post, reiterating his message.
X is already investigating the "root cause" of the sudden hijacking, Reuters reported.
Also Read: Crypto Scammers Exploiting X Links to Impersonate Accounts: How to Not Fall for Scam
Bitcoin Stocks Surge After Fake SEC Post
The value of bitcoin notably spiked after the unauthorized SEC post went live, surging up to $48,000 at its peak.
Reuters reported that several executives, ETF financers, and investors have been scrambling to get hold of more of the cryptocurrency following the notification.
As of writing, it had gone down to $45,513 after the SEC clarified the incident, almost $2,000 lower when it closed on Monday.
The SEC has yet to comment on how the sudden surge and fall in crypto value will affect future trading as the digital currency has just started to recover from its "Crypto Winter" in 2022.
Many users expressed disappointment to the SEC and X for allowing such a compromise to happen, especially to a government account.
Crypto Scams Surge on X
Since the platform allowed the trading for cryptocurrency, online scams and hijackings have been reported more frequently on X.
Several ads have already been taken down for promoting fake crypto sales or including bogus links that could contain malware and digital wallet scrubbers.
More bots are also popping up in comment sections, promoting fake NFT and cryptocurrency platforms. Many appear with links to the bogus accounts when the words "NFT," "bitcoin," and "crypto" are mentioned.
X continues to clamp down on the growing number of scam bots with its "Not a Bot" program where users can report bots and spammers.
Related Article: Crypto Hedge Fund CEO Apparently Does Not Exists at All
