SEC probing fake post on its X account, bitcoin ETFs not yet approved

The U.S. securities regulator said someone briefly accessed its X social media account on Tuesday and posted a fake message saying it had approved exchange traded funds (ETF) for bitcoin, a move eagerly awaited by the crypto industry.

However, the Securities and Exchange Commission (SEC) said it has not yet approved spot bitcoin ETFs and its account on X, the platform formerly known as Twitter, had been compromised briefly by an unknown party after about 4 p.m. Eastern time (2100 GMT). The "unauthorised access has been terminated," the agency said.

It will work with law enforcement to investigate the hack and "related conduct," the SEC said.

X confirmed late on Tuesday that the SEC's account was compromised and said it was because of an "unidentified individual" obtaining control over a phone number associated with the agency's account through a third party.

The social media site owned by Elon Musk also said the SEC did not have two-factor authentication enabled at the time the account was compromised and the hack was not due to any breach of X's systems, citing a preliminary investigation.

The unauthorised post said the SEC had granted approval for bitcoin ETFs on all registered national securities exchanges and included a picture purporting to quote SEC Chair Gary Gensler. The price of bitcoin rose after the post, which was picked up by Reuters and other news media that monitor the SEC's account.

The posting came as the SEC was widely expected on Wednesday to finally approve a batch of ETFs that track the price of bitcoin, in a potential watershed moment for the crypto industry. The unauthorised post surprised the industry, with insiders scrambling to find out whether it was true and why the SEC would first publish something on social media.