This fraudulent event took place at a time when investors were anxiously awaiting the SEC's decision on multiple bitcoin ETF applications from major financial institutions.
The method by which the SEC's social media accounts were compromised remains a mystery: shortly after Gensler's announcement about the breach, the SEC managed to reestablish control over his account.
Following the SEC's false announcement approving the listing and trading of spot bitcoin exchange-traded products, the cryptocurrency experienced a notable increase in value. Its value skyrocketed from $46,730 to almost $48,000. However, it later fell to around $45,000 after the SEC refuted claims of approving the investments.
Misleading information about the future of bitcoin is not new. Previously, in October, there was a false claim that BlackRock had received clearance for a bitcoin ETF, which similarly caused a temporary spike in the price of bitcoin.
Maintaining the integrity and security of information poses a significant challenge for regulators in the rapidly changing landscape of digital finance, as this recent development highlights.
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