In an unexpected turn of events, the cryptocurrency community was thrown into chaos as the official X (formerly Twitter) account of the US Securities and Exchange Commission (SEC) appeared to be “compromised” when an unauthorized post claimed that the SEC had approved all Bitcoin ETF applications simultaneously.
Fake Post Claims Bitcoin ETF Approval
SEC Chair Gary Gensler addressed the situation, clarifying that the SEC’s X account had indeed been compromised, and the tweet was not legitimate. Gensler emphasized that the SEC had not granted approval for the listing and trading of spot Bitcoin ETFs. Gensler stated:
The SEC twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.
This incident occurred at a critical juncture as the crypto community eagerly awaited the SEC’s decision on the pending Bitcoin ETF applications.
The industry had anticipated that the SEC would provide an answer by Wednesday, which coincided with the predicted deadline. The outcome could result in either rejection, approval, or further delays.
What makes the situation intriguing is that the “compromised” SEC account’s tweet mentioned the approval of Bitcoin ETFs for listing on all registered national securities exchanges.
The tweet also highlighted the implementation of surveillance and compliance measures to ensure investor protection. Surprisingly, the post has not been deleted at the time of writing.
Bitcoin Price Plummets After Fake News
The dissemination of this false news had an immediate impact on the market. Bitcoin, being at the center of these anticipated ETFs, experienced a significant price plunge. The cryptocurrency retraced to the $45,200 level after previously trading at $46,600 before the fake news surfaced.
Moving forward, the crypto community awaits further details about the ETFs and the SEC’s official stance on this matter.
It remains to be seen how the SEC will address the industry following this incident. Additionally, the statements from asset managers in the coming days are likely to shed more light on the implications of this event.
Featured image from Shutterstock, chart from TradingView.com
