U.S. House of Representatives demands explanation from SEC over fake Bitcoin spot ETF post

10 months ago 42

Request for explanation from Chairman Gensler

A group of Republicans on the U.S. House Financial Services Committee sent a letter to U.S. Securities and Exchange Commission Chairman Gary Gensler on Wednesday.

The four people named in the letter are Rep. Patrick McHenry, Rep. Bill Huizinga, Rep. French Hill, and Rep. Anne Wagner.

The request is for an explanation regarding the fact that the SEC’s X account was hacked and a false tweet about the ETF approval was posted the day before the Bitcoin (BTC) spot ETF was actually approved.

The SEC announced that the unauthorized access occurred through a SIM swap technique. It was said that “two-factor authentication” was not enabled, and there was criticism for the lax security measures.

connection: SIM swap attack or Bitcoin ETF fake announcement behind SEC account breach

The SEC officially approved the Bitcoin (BTC) spot ETF on the 11th Japan time. Currently, long-term capital inflows and increased awareness of the virtual currency market are expected.

ETFs allow investors to invest in the value of Bitcoin while avoiding the complexities of owning it directly, such as managing private keys.

connection: All 11 Bitcoin ETFs listed, SEC approved for the first time in U.S. history for spot ETFs

What is Bitcoin ETF?

An Exchange Traded Fund that includes Bitcoin as an investment. An investment trust is a financial product that collects money from investors into a single fund and invests it in stocks, bonds, etc. The system is such that the investment results are distributed according to each investor’s investment amount. Among investment trusts, ETFs are listed on stock exchanges, so they can be bought and sold just like stocks.

Virtual currency glossary

“You should follow the rules just like in the private sector.”

McHenry and his colleagues pointed out that the price of Bitcoin soared in the 15 minutes after the SEC account made the false post, which was discovered to be false.

According to X’s investigation, the SEC account did not have two-factor authentication enabled, allowing an unknown party to take control of the phone number associated with the SEC account.

This failure is unacceptable, and it is alarming that the SEC itself has failed to meet the security standards it requires of private industry.

Lawmakers noted that the SEC has adopted rules that require companies to disclose relevant information within four business days of a significant cybersecurity event. The SEC also says that this rule must be followed.

It also cited the fact that the Financial Services Committee has the authority under House rules to oversee the SEC’s activities. By January 17th, we are asking for an explanation of how this account hijacking occurred and measures to prevent it from happening again.

connection: U.S. SEC approves “Bitcoin spot ETF” for the first time, ethereum price soars to 20-month high