SEC chair Gary Gensler addresses lawmakers regarding false Bitcoin ETF tweet

United States Securities and Exchange Commission (SEC) Chair Gary Gensler has responded to four members of the U.S. House of Representatives concerning an “unauthorized” tweet sent from the official SEC X account on January 9th. 

The communication, conveyed in a letter dated February 6th, elucidates the timeline of events surrounding the commission’s discovery of a SIM swap attack.

SEC unauthorized tweet incident unveiled

In his correspondence to Representatives Patrick McHenry, French Hill, Bill Huizenga, and Ann Wagner, Gensler confirmed earlier reports of a hacker exploiting a SIM swap attack to gain control of the SEC’s X account. 

This unauthorized access resulted in the dissemination of false information suggesting that the commission had greenlit spot Bitcoin exchange-traded funds (ETFs) for listing and trading on U.S. exchanges.

Immediate response and ongoing investigation

According to Gensler’s letter, the hacker managed to make two posts and like two tweets using the compromised account before the SEC could rectify the situation. The SEC swiftly terminated the unauthorized access by 5:30 pm on the same day. 

Gensler asserted that the agency is working in conjunction with law enforcement agencies, including the Federal Bureau of Investigation (FBI), the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, and the SEC’s Office of Inspector General, to conduct a thorough investigation into the incident.

Serious commitment to cybersecurity

Highlighting the SEC’s commitment to cybersecurity, Gensler emphasized the gravity with which the agency takes its obligations in this realm. He assured the lawmakers that the SEC is actively engaged in exploring the circumstances surrounding the unauthorized access, including how the hacker persuaded the carrier to execute the SIM swap and how they obtained the phone number linked to the SEC’s account. 

Gensler underscored that the SEC remains in contact with officials from the Department of Justice as part of its collaborative efforts to address the situation comprehensively.

Invitation for further inquiry

In a gesture of transparency and cooperation, Gensler extended an invitation to the lawmakers to seek additional clarification or pose further inquiries if necessary. This willingness to engage with congressional representatives underscores the SEC’s commitment to ensuring accountability and addressing concerns related to the security of its digital platforms.

SEC Chair Gary Gensler’s letter to members of the U.S. House of Representatives provides a detailed account of the SEC’s response to the unauthorized tweet incident and outlines the ongoing efforts to investigate the matter.