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The United States Securities and Exchange Commission (SEC) said on Monday that multi-factor authentication (MFA) had been disabled in the lead-up to a false post announcing that bitcoin ETF (exchange-traded fund) spot products had been approved.
“While multi-factor authentication (MFA) had previously been enabled on the @SECGov regulator said on January 22 statement.
He It added that MFA “remained disabled” once access was restored and was only enabled again after the account was compromised on January 9.
<img width="1920" height="1080" decoding="async" alt="SEC Desperate to Hide crypto Regulatory Shortcomings in 2022″ src=”https://technicalterrence.com/wp-content/uploads/2024/01/SEC-Says-Multi-Factor-Authentication-Was-Disabled-for-Your-X-Account”https://technicalterrence.com/crypto”>crypto-Regulatory-Shortcomings.jpeg”/>crypto-Regulatory-Shortcomings.jpeg” alt=”SEC Desperate to Hide crypto Regulatory Shortcomings in 2022″/>
X shifts the blame for the hack
X quickly shifted the blame for the hack in a Jan. 9 post. The platform said the SEC account was compromised after someone was able to gain control over a phone number associated with the account. In his statement, the SECOND corroborated this claim and said it was the victim of an apparent “SIM swapping” attack.
We can confirm that the account @SECGov was compromised and we have completed a preliminary investigation. According to our investigation, the compromise was not due to any breach of X's systems, but rather due to an unidentified individual gaining control of a phone number…
— Security (@Segurity) January 10, 2024
An agency spokesperson said access to the phone number occurred through the telecommunications operator. “SEC staff has not identified any evidence that the unauthorized party gained access to the SEC's systems, data, devices or other social media accounts,” the spokesperson added.
SEC criticized by the crypto community
The regulator's account was hacked around 21:00 UTC on January 9. The unauthorized third party then published a post claiming that the SEC had approved spot bitcoin ETFs in the US. This sent the cryptocurrency market into a frenzy as the price of bitcoin rose above $47,000.
The price of the cryptocurrency market leader retreated shortly after, as SEC Chairman Gary Gensler denied the news.
He @SECGov The Twitter account was compromised and an unauthorized tweet was posted. The SEC has not approved the listing or trading of spot bitcoin exchange-traded products.
—Gary Gensler (@GaryGensler) January 9, 2024
Following the hack, the SEC received an avalanche of criticism. Brad Garlinghouse, CEO of Ripple saying that the SEC should be under investigation.
Cameron Winklevoss, co-founder of Gemini saying The event demonstrated that what the financial regulator does best is “manipulate markets and harm American investors.”
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