SEC says it will work with law enforcement following ‘unauthorized access’ to X account

The Securities and Exchange Commission said Tuesday that a false post about approval of spot bitcoin ETFs had been the result of unauthorized access by an unknown party, and the regulator plans to work with law enforcement to investigate.

“That unauthorized access has been terminated,” an SEC spokesperson said in an email to The Block.

“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,” they continued.

The crypto industry was thrown for a major loop on Tuesday after a post went out on X around 4 p.m. ET via the SEC’s account that said the agency had granted approval for listing bitcoin ETFs on all registered securities exchanges, which was not the case. Chair Gary Gensler quickly posted from his personal account about the compromise and said no such approval had occurred.

The industry is waiting for the agency to decide whether to greenlight a spot bitcoin ETF, and many analysts have been expecting approval to come as early as Wednesday. The SEC so far hasn’t commented on the status of the individual applications it’s received from more than a dozen asset managers.

Lawmakers weigh in

Sen Bill Hagerty, R-Tenn., posted on X later on Tuesday asking for answers about what happened.

“Just like the SEC would demand accountability from a public company if they made such a colossal market-moving mistake, Congress needs answers on what just happened. This is unacceptable,” Hagerty said.

Sen. Cynthia Lummis, R-Wyo., also wanted an explanation.

“Fraudulent announcements, like the one that was made on the SEC’s social media, can manipulate markets,” Lummis said in a post on X. “We need transparency on what happened.”

Both lawmakers have seats on the Senate Banking Committee, which has jurisdiction over the securities markets.

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