In an unexpected turn of events, the U.S. Securities and Exchange Commission (SEC) categorically denied approving a bitcoin exchange-traded fund (ETF) after a suspicious post on X (formerly Twitter) claimed otherwise. The alleged approval sparked a momentary surge in Bitcoin prices, with the cryptocurrency peaking at over $46,000. Investors, anticipating the green light for the ETF, had driven up the price in anticipation.
The message that the hacker posted on SEC's account, which has since been taken down. (Source: X.com @TheCryptoLark)
The purported ETF approval raised hopes among cryptocurrency investors, offering an alternative means of investing in Bitcoin without directly purchasing the cryptocurrency on platforms like Binance or Coinbase. However, SEC Chairman Gary Gensler swiftly clarified on his personal account that the SEC had not granted approval for any Bitcoin ETFs. The chairman attributed the misleading post to a compromise of the SEC's social media account, providing no further details on the breach.
The aftermath of the unauthorised announcement was evident in the fluctuating Bitcoin prices. The cryptocurrency experienced a surge from $46,730 to nearly $48,000, only to plummet to around $45,200 following the SEC's denial. As of 6:15 p.m. ET, Bitcoin was trading at approximately $46,150. The sudden market shifts left investors grappling with uncertainty.
The revelation of the SEC's compromised account prompted swift criticism, particularly from Republican politicians dissatisfied with Gensler's handling of the situation. Senator Bill Hagerty, a member of the Senate Banking Committee, demanded accountability from the SEC, emphasising the need for a thorough investigation into the security lapse.
This incident is not the first time false information has caused market turmoil regarding Bitcoin. A similar occurrence took place in October, falsely suggesting that BlackRock had received approval for a Bitcoin ETF. The ensuing market frenzy mirrored the recent events, highlighting the susceptibility of cryptocurrency markets to misinformation.
Elon Musk's restructuring of Twitter's content moderation and security teams in late 2022 drew attention to concerns about account integrity. Internet watchdog groups flagged an increase in toxic content on X, coupled with worries about the platform's vulnerability to account takeovers.
As the SEC navigates the aftermath of the hacking incident, questions surrounding the integrity of regulatory bodies and their communication channels arise. Investors, already on edge due to market uncertainties, now grapple with concerns about the security of official announcements. The need for a thorough investigation and enhanced security measures is underscored by the potential consequences of such misinformation, particularly in the context of financial markets and election years.
The recent events serve as a stark reminder of the fragility of cryptocurrency markets and the impact of misinformation. Rebuilding trust requires not only improved cybersecurity measures but also a concerted effort to enhance transparency and accountability in regulatory communications. As the cryptocurrency landscape continues to evolve, a resilient and secure foundation becomes imperative for sustainable growth.
Trump Media launched Truth.Fi, a new platform focused on investing in cryptocurrencies and traditional assets. The platform is backed by a partnership with Charles Schwab for asset custody services.
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Catherine"Bitcoin Jesus" Roger Ver has appealed to Donald Trump for help in avoiding extradition to the U.S. after being charged with tax evasion linked to cryptocurrency transactions. Elon Musk initially hinted at a possible pardon but later reversed his stance, while Trump has yet to comment on the matter.
JoyRoss Ulbricht, founder of Silk Road, was granted a full pardon by President Trump after 11 years in prison. He expressed gratitude for his release and is now focused on reuniting with his family and rebuilding his life.
JoyStandard Chartered encouraged investors to buy Bitcoin during price dips, projecting it could reach $200,000 by 2025. The bank attributed recent market corrections to regulatory uncertainty but expects institutional investments to drive future growth.
AnaisDonald Trump granted a full pardon to Ross Ulbricht, the Silk Road founder, after over ten years in prison. The pardon was announced on 22 January, fulfilling Trump’s campaign promise.
JoyAn Australian couple has made the local headlines by putting their home in Ballarat up for sale in a BTC only auction. The couple, Melissa Bower and Trudy Purcell initially wanted to renovate the old miners' cottage into something "magnificent", but it proved to be a harder task than the couple thought. But why did they choose Bitcoin specifically?
XingChiArthur Hayes is skeptical about Donald Trump's plan to establish a U.S. Bitcoin reserve, questioning its practicality and priority among other government needs. Despite Trump's past interest in crypto, Hayes believes the Bitcoin reserve is unlikely to happen, as other political concerns will take precedence.
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BeincryptoEuler Fianance protocol was attacked almost a week ago, which resulted in a loss of more than $180 million. And ...
BitcoinistThe community criticized the airdrop announced by the AllianceBlock team.
BeincryptoFTX confirmed recovering over $5 billion in crypto, cash and liquid securities, $415 of which was stolen through hacks.
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cryptopotatoIt is worth noting that funds have not moved from the now-defunct Mt.Gox exchange’s cold wallets since 2018.
cryptopotatoNorth Korea seems to be using hacked funds to finance their new nuclear adventures.
Others
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