A Securities and Exchange Commission (SEC) account on the platform formerly known as Twitter was compromised on Tuesday after it appeared to announce the approval of multiple Bitcoin investment funds, authorities said. .
“The @SECGov
The SEC's account for X posted a message early Tuesday featuring a photo of SEC Chairman Gary Gensler announcing the approval of an exchange-traded fund (ETF) to hold Bitcoin.
The erroneous post remained online for approximately 30 minutes before being removed and replaced with the SEC's disavowal.
The SEC first responded to the hack through Gensler's official account on X, which posted a nearly identical statement 15 minutes after the SEC apparently approved the Bitcoin ETF.
Gensler and the SEC's official accounts are both verified on X as government officials.
The SEC is expected to announce approval of multiple Bitcoin ETFs by Wednesday, including Grayscale's fund, which holds about $29 billion in Bitcoin, following a federal court ruling.
Bitcoin's price briefly spiked after the false alarm, reaching nearly $48,000, but has since fallen to less than $46,000 from where it started the day.
Cryptocurrency investors and supporters have been eagerly awaiting the approval of a Bitcoin ETF after a year of brutal losses for the industry. Proponents of Bitcoin ETFs argue that they expand crypto investment options and help solidify the digital currency as a pillar of the financial system.
The SEC has opposed approval of a Bitcoin ETF under Gensler, a Democratic lawmaker appointed by Biden who has expressed deep concerns about cryptocurrencies. Cryptocurrency advocates have long accused Gensler of stifling the industry through aggressive enforcement actions and opaque legal guidance.
Updated at 5:24 p.m.. Contributed by Julia Chapero.
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