X account breach unlinked to broader system compromise, SEC clarifies

SEC X account hack: The US Securities and Exchange Commission (SEC) has confirmed that the breach of its X account earlier this week did not extend to compromise the agency's broader systems, devices, data, or other social media accounts, according to an official statement released on Friday.

This clarification comes in the aftermath of a fake post circulated on Tuesday through the compromised X account, suggesting that the SEC had approved the trading of spot bitcoin exchange-traded funds (ETFs). The misinformation triggered volatility in Bitcoin prices as industry executives reacted to the unexpected announcement.

"While SEC staff is still assessing the scope of the incident, there is currently no evidence that the unauthorised party gained access to SEC systems, data, devices, or other social media accounts," stated the SEC in its official release.

The SEC promptly disavowed and removed the misleading post. X, formerly known as Twitter, later attributed the account compromise to an "unidentified individual" gaining control of a phone number.

Despite the incident, the SEC did proceed to officially approve the bitcoin ETFs on Wednesday, as anticipated.

To investigate the breach, the SEC has enlisted the assistance of the Department of Homeland Security's Cybersecurity and Infrastructure Security Agency, joining forces with the FBI and the SEC's inspector general. The collaboration aims to thoroughly examine the details surrounding the breach and enhance the agency's cybersecurity measures.

(With Reuters inputs.)