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Published January 13, 20242 min read

Crypto Chaos: The False Tweet That Shook the SEC and Wiped Out $90 Million

CoinMooner Team

In a recent news article, the Coinmooner team highlighted a statement that shocked the cryptocurrency world yesterday. The statement claimed that the U.S. Securities and Exchange Commission (SEC) had approved Bitcoin exchange-traded funds (ETFs). However, it turned out to be false, causing chaos and leading to the liquidation of positions totaling $90 million.

The Coinmooner team decided to analyze the event in more detail and conduct its own investigation. Initially, a tweet from @SECGov announced a historic moment for the cryptocurrency market - the official approval of Bitcoin ETFs. However, SEC Chairman Gary Gensler soon clarified that the commission did not approve the listing and trading of Bitcoin exchange products. Although SEC quickly deleted the tweet, the consequences were irreversible: millions of users saw the information, which was subsequently spread to various news outlets.

According to subsequent investigations by law enforcement agencies and the SEC itself, a serious cybersecurity gap was identified. The analysis revealed that the SEC account was compromised due to a SIM swap hacking attack - a method of identity theft where the attacker gains control over the victim's phone number.

This incident exposed a critical vulnerability in the SEC account security, as two-factor authentication was not enabled at that time. Such events underscore the importance of strengthening cybersecurity measures in the context of financial institutions and regulators.

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The impact on the financial market and the response from regulatory authorities didn't take long to unfold after a false tweet caused significant volatility. This incident led to a widespread sell-off of Bitcoin positions, totaling nearly $90 million. While there was a brief impressive surge in Bitcoin prices, it eventually returned to the original level.

Some analysts speculate that the Securities and Exchange Commission (SEC) may have violated market manipulation laws. Senator Bill Hagerty is demanding answers from the SEC.

This incident raises a flurry of questions and emotions, with many agreeing that further scrutiny of the event is necessary, calling for an official investigation. Concerns arise about the SEC's ability to protect investors and uphold the integrity of financial markets.

The Coinmooner team pledges to closely monitor the investigation's progress and regularly update its readers on developments. This case underscores the importance of a more careful approach to data security. We urge our readers to always secure their finances and data with reliable protection and verify information from trusted sources, preferably using multiple resources for confirmation.

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