The US Securities and Exchange Commission (SEC) is facing a barrage of criticism after its X account was hacked, leading to the fake approval of spot Bitcoin ETFs (exchange-traded funds). Ripple’s CEO Brad Garlinghouse <a href="https://twitter.com/bgarlinghouse/status/1744840361715904695" target="_blank" rel="noopener noreferrer nofollow">said</a> the SEC should be under investigation while Gemini’s co-founder, Cameron Winklevoss, <a href="https://twitter.com/cameron/status/1744842137949048911" target="_blank" rel="noopener noreferrer nofollow">said</a> the event demonstrated that what the financial regulator does best is “manipulating markets and hurting US investors.” At around 21:00 UTC on January 9, the SEC’s official Twitter account tweeted that all spot Bitcoin ETFs were approved. This announcement saw Bitcoin shoot above $47K. The hype was short-lived, with SEC Chair Gary Gensler quickly denying the news. https://twitter.com/GaryGensler/status/1744833049064288387 The fiasco saw over $51 million liquidated from the crypto market per <a href="https://www.coinglass.com/LiquidationData?ref=coinnounce.com" target="_blank" rel="noopener noreferrer nofollow">Coinglass</a>.&nbsp;The crypto community is now looking for answers from the regulatory body, whose role is to protect investors from such market-moving mistakes. X blamed the breach on the SEC and said its account didn't have two-factor authentication. “Based on our investigation, the compromise was not due to any breach of X’s systems, but rather due to an unidentified individual obtaining control over a phone number associated with the @SECGov account through a third party,” said the X safety team. “We can also confirm that the account did not have two-factor authentication enabled at the time the account was compromised.” 
<h2 id="the-sec-should-investigate-itself">The SEC Should Investigate Itself</h2> Lawyers told Fox Business that the SEC will have to “investigate itself for market manipulation” after the fake tweet from its account moved Bitcoin’s price. https://twitter.com/CGasparino/status/1744838264698057082 One X user said the SEC was <a href="https://twitter.com/MetaLawMan/status/1744839550235521341" target="_blank" rel="noopener noreferrer nofollow">negligent</a> and added that its security failure had ''just wrecked some real live investors.'' <a href="https://twitter.com/LayahHeilpern/status/1744836349734125587" target="_blank" rel="noopener noreferrer nofollow">According</a> to Bitcoin advocate Layah Heilpern, the event was “absolute market manipulation.” Ripple’s Chief Legal Officer, Stuart Alderoty, believes the SEC should use its own playbook. As is required of public companies in such situations, the regulator should publish a comprehensive report on what happened within four days. https://twitter.com/s_alderoty/status/1744871138818179513 
<h2 id="us-politicians-also-gunning-for-gensler">US Politicians Also Gunning For Gensler</h2> US legislators are also weighing in with criticism of their own with Senator Bill Hagerty calling the development a “colossal market-moving mistake” that was “unacceptable.” https://twitter.com/SenatorHagerty/status/1744843824654885024 Pro-crypto senator Cynthia Lummis has also <a href="https://twitter.com/SenLummis/status/1744860826392047845" target="_blank" rel="noopener noreferrer nofollow">demanded transparency</a> on what transpired. ``Fraudulent announcements, like the one that was made on the SEC’s social media, can manipulate markets,'' she said. ``We need transparency on what happened.'' Gensler has already started receiving Congressional letters regarding the breach. https://twitter.com/EleanorTerrett/status/1745037098887893239 
<h3 id="also-read">Also Read</h3>
<ul>
 <li><a href="https://insidebitcoins.com/news/x-blames-sec-for-hacked-account-that-led-to-fake-announcement-of-spot-bitcoin-etf-approvals-says-regulator-didnt-have-2fa" rel="noopener noreferrer nofollow">X Blames SEC For Hacked Account That Led To Fake Announcement Of Spot Bitcoin ETF Approvals, Says Regulator Didn’t Have 2FA</a></li>
 <li><a href="https://insidebitcoins.com/news/bitcoin-price-prediction-as-valkyrie-says-its-95-sure-spot-btc-etfs-will-start-trading-thursday-bitcoin-minetrix-presale-blasts-past-8-million" rel="noopener noreferrer nofollow">Bitcoin Price Prediction: As Valkyrie Says It’s 95% Sure Spot BTC ETFs Will Start Trading Thursday, Bitcoin Minetrix Presale Blasts Past $8 Million</a></li>
 <li><a href="https://insidebitcoins.com/news/bitcoin-etf-fee-war-breaks-out-as-competitors-prepare-to-slug-it-out-for-market-share" rel="noopener noreferrer nofollow">Bitcoin ETF Fee War Breaks Out As Competitors Prepare To Slug It Out For Market Share</a></li>
</ul> [in-content-heros name="a-default-box"]

SEC Hit By Barrage Of Criticism After Hacked X Account Caused Fake Spot Bitcoin ETF Approval Announcement

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