The Securities and Exchange Commission (SEC) faced a security breach on its X social media account, where a fraudulent post falsely attributed to SEC Chairman Gary Gensler claimed the approval of Bitcoin ETFs. The SEC promptly debunked the misleading post and restored accuracy, clarifying that no Bitcoin ETF approval had been granted.

This incident occurred during a period when investors were eagerly awaiting the SEC’s decision on several Bitcoin ETF applications from major financial institutions. The method by which the SEC’s social media accounts were compromised remains unknown, but the SEC quickly regained control over its account after Gensler addressed the breach.

The false announcement of the SEC approving spot Bitcoin exchange-traded products led to a notable increase in the cryptocurrency’s value, rising from $46,730 to almost $48,000. However, the price subsequently fell to around $45,000 after the SEC refuted the claims of approving the investments.

This incident highlights the challenge of maintaining the integrity and security of information in the rapidly changing landscape of digital finance. The dissemination of misleading information, whether through hacks or false claims, can have a significant impact on market dynamics and investor sentiment. Similar instances of misinformation about Bitcoin’s future have occurred in the past, emphasizing the need for vigilance in the regulatory space.