The official X account (formerly Twitter) of the U.S. Securities and Exchange Commission (SEC) is the latest account to be hacked to promote a crypto scam . Several other business accounts have been hacked by scammers in recent days . Specifically, the SEC account was hacked to display a fake announcement regarding the approval of Bitcoin ETFs on security exchanges.
The announcement was made sometime yesterday and the tweet has now been deleted from the hacked SEC X account.
“Today the SEC grants approval for Bitcoin ETFs to be listed on registered security exchanges,” the fake X post read. “Approved Bitcoin ETFs will be subject to ongoing oversight and compliance measures to ensure continued investor protection.”
See also: Netgear and Hyundai's X accounts hacked to promote crypto scam
The tweet also included an image of SEC Chairman Gary Genslerwith a quote promoting the supposed approval. Apparently, the scammers was to give it an extra sense of legitimacy.
The announcement spread quickly, with many cryptocurrency and news sites covering the story. In fact, the price of Bitcoin rose sharply, briefly, after the news broke. There was another drop when it was learned that the SEC account at X had finally been hacked as part of a scam .
“ The @SECGov Twitter account was hacked and an unauthorized tweet was posted ,” SEC Chairman Gary Gensler wrote on Twitter, stressing that the commission has not given such approval for Bitcoin ETFs
X's security team said that the US did not have two-factor authentication (2FA) enabled on its account, and thus the account was compromised by a hacker.
Such scams, such as the Bitcoin ETF approval announcement, can lead to significant market turmoil. Investors may buy or sell based on incorrect information, which can cause volatility in the price of crypto assets.
See also: Hackers hijack government and business accounts on X for crypto scams
Furthermore, investor confidence in the system may be undermined, as investors may doubt the reliability of the information they receive. This may lead to reduced participation in the markets and loss of investment capital.
Finally, a false announcement can lead to legal consequences for those responsible. Disseminating incorrect information can be considered misleading advertising or fraud, and can lead to criminal penalties and civil lawsuits.
In recent days, X has been inundated with account breaches for spreading crypto scams and promoting links that lead to crypto wallet drainers.
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Yesterday, it was revealed that the accounts of Netgear and Hyundai MEA X to promote fake cryptocurrency sites.
See also: X users frustrated by constant stream of malicious crypto ads
Web3 security firm CertiK was also breached last Friday, as was cybersecurity firm Mandiant last Wednesday, despite having two-factor authentication enabled.
In addition to account hacks, scammers also display many malicious crypto ads to X users.
Source: www.bleepingcomputer.com
