Twitter has recently defended itself against accusations surrounding a misleading tweet from the U.S. Securities and Exchange Commission’s (SEC) account. This tweet erroneously declared the approval of 13 Bitcoin ETFs, causing a stir in the cryptocurrency community.
Upon a swift inquiry, Twitter’s Safety team clarified that the incident didn’t stem from a breach in Twitter’s systems. Instead, an unauthorized individual gained access to the @SECGov account’s phone number via a third-party service.
Interestingly, the SEC account lacked two-factor authentication, a safety recommendation often advocated by SEC chair Gary Gensler. Twitter Safety emphasized the importance of this additional security layer, advising users to enable it to prevent such breaches.
The unauthorized tweet had immediate market consequences, as Bitcoin’s value plunged from its two-year peak, dropping over $2,000 in response to the fake approval news.
See Related: Twitter Brings Tweet Tiles Pilot to NFT Marketplaces
SEC’s Response To The Issue
Gary Gensler promptly addressed the situation, confirming that no Bitcoin ETFs had been authorized. The SEC acknowledged the unauthorized access, vowing to collaborate with law enforcement to investigate and address any associated misconduct.
While Twitter hasn’t divulged specific details, some speculate that the hacker might have used SIM jacking—a technique where a mobile provider is deceived into transferring a phone number to a SIM card controlled by the hacker. This method was reportedly used in last year’s Robinhood Twitter account breach.
Another theory is that an SEC employee might have been tricked through social engineering, a tactic involving psychological manipulation to extract confidential information.