Social media platform X accused the Securities and Exchange Commission (SEC) of failing to use basic security measures.
Twitter (X) Made a Statement Regarding the SEC's Twitter Account
Late yesterday, X's Security team announced that it had completed its “preliminary investigation” into the SEC's market-shattering false post regarding the approval of Bitcoin ETF applications.
In the statement made from X's Security account, it was said: “The seizure was not caused by any breach of X's systems, but by an unidentified person gaining control of a phone number associated with the @SECGov account through a third party.”
Twitter also stated, “We can also confirm that two-factor authentication was not enabled at the time the account was compromised. We encourage all users to enable this extra layer of security.”
This incident raised new questions about the basic security measures taken by the SEC, the most powerful investment regulator in the United States, whose statements are closely followed. Gensler has previously encouraged investors to take their security seriously. In fact, Gensler has mentioned two-factor authentication many times and said that it should be used.
U.S. Senators J.D. Vance and Thom Tillis sent a letter to the SEC, demanding an explanation for its negligence in cybersecurity.
“It is unacceptable that an institution charged with regulating the epicenter of the world capital markets would make such a colossal mistake,” they wrote.
This incident served as a stark reminder of the importance of robust cybersecurity measures, especially for organizations with significant influence on financial markets.
*This is not investment advice.