Cryptocurrency journalist Eleanor Terrett shed new light on the infamous SEC hack that occurred on January 9. The hack, which led to an unauthorized early announcement regarding the approval of Bitcoin Spot ETFs, is being investigated by several outside agencies, including the SEC, the Office of the Inspector General, and the FBI.
SEC Was Warned Before Hack by Cyber Security Experts
The last update from the SEC on January 22 showed that the investigation was continuing. However, Terrett's statement reveals that the SEC's Office of Inspector General (OIG) has appointed an independent company to review the information security program, which includes cybersecurity and infrastructure security, in 2023. Upon examination, it was determined that the program was incomplete; This fact was not widely known because the report was located inconspicuously on the SEC's website and was dated December 20, 2023.
According to CoinDesk, the fallout from the hack was significant, with losses of approximately $90 million reported in Bitcoin liquidations. Despite the seriousness of the incident, SEC Chairman Gary Gensler did not mention this report in his responses to members of Congress about the hack.
This raises serious questions about the SEC's stance on cybersecurity and its accountability in the face of such incidents. Terrett poses a thought-provoking question: “Imagine what the SEC would do if a public company became aware of a security vulnerability, failed to fix it, and was then hacked? Would the SEC have any reaction?”
*This is not investment advice.
