FBI probes false tweet on bitcoin fund causing price surge.

Cybercriminals spread fake information on an eagerly awaited SEC announcement regarding bitcoin.

The SEC, in collaboration with the FBI, is probing a fraudulent message on its X social media account. Hackers disseminated fake news on Tuesday regarding an eagerly anticipated SEC announcement on bitcoin, causing a surge in its price and causing concern among observers. An SEC spokesperson assured the Guardian that the post on the @SECGov account was unauthorized and not created by the SEC.

The SEC is actively investigating the issue and collaborating with relevant law enforcement agencies, such as the SEC’s Office of the Inspector General and the FBI,” the spokesperson stated. The FBI has not provided an immediate response to requests for further comments.

X confirmed on Tuesday, after an initial investigation, that the SEC’s account was compromised when an unidentified person gained control through a third-party-associated phone number.

The fabricated post on @SECGov falsely claimed that the securities regulator had greenlit exchange-traded funds for holding bitcoin. This much-anticipated development was anticipated to enhance bitcoin’s mainstream integration and attract more investment. The initial SEC tweet led to a nearly $48,000 spike in bitcoin’s price.

Approximately 30 minutes after its appearance, the SEC deleted the post. SEC Chair Gary Gensler later confirmed in a post that the agency’s account had been compromised, emphasizing that the tweet was “unauthorized.” He clarified that the SEC had not approved the listing and trading of spot bitcoin exchange-traded products.

Nevertheless, on Wednesday, the SEC granted approval to 11 spot bitcoin exchange-traded funds, marking a significant turning point for bitcoin. This approval provides both institutional and retail investors with a means to be exposed to the world’s largest cryptocurrency without holding it directly. It also serves as a substantial boost for the crypto industry, which has been grappling with various scandals, including the high-profile trial and conviction of FTX CEO Sam Bankman-Fried and money laundering allegations at cryptocurrency giant Binance.

Perianne Boring, the founder and CEO of the cryptocurrency and blockchain advocacy group, the Chamber of Digital Commerce, remarked, “Retail investors seeking exposure to bitcoin now have much easier and more direct access to the asset through many of the top financial institutions.” She emphasized that this development alone is transformative for hundreds of millions of investors and the bitcoin community.