Securities Lawyers say that the SEC will have to launch an investigation into itself for market manipulation after the price of Bitcoin dramatically shifted following a hack into its X account. Earlier Tuesday afternoon, the SEC’s X account posted “Today, the SEC grants approval for Bitcoin ETFs for listing on all registered national securities exchanges.” However, it was a false alarm. The SEC’s chair Gary Gensler shortly after the “announcement” would make his post, claiming the announcement was false and that the SEC’s X account was compromised.
“The SEC Twitter account was compromised, and an unauthorized tweet was posted,” Gensler says in the post. “The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.”
Following the hack, Bitcoin’s price dramatically shifted in the markets. Bitcoin price both benefitted and suffered from the announcement. At 4:15 PM ET, Bitcoin skyrocketed to $47,893, up nearly $1,000 from just minutes before the announcement. However, following the news being reported as faults, it immediately crashed down to under $46,000. Now, lawyers suggest that the SEC must launch an investigation into itself for manipulating the markets following the hack.
The Bitcoin ETF announcement hack would have violated new SEC rules adopted in July that require a high level of “cyber security risk management,” securities lawyers told Fox Business.
Spot Bitcoin ETFs are expected to be decided on this week, possibly tomorrow according to experts. However, that decision date might be in jeopardy after this hack scandal. Charles Gasparino of Fox Business says that an SEC decision to not approve Bitcoin ETFs now “would be unprecedented.”