New Developments in SEC’s Hacked Fake Bitcoin Spot ETF Approval: Impact on Bitcoin (BTC) Market

• Crypto journalist Eleanor Terrett has revealed a new development regarding the SEC’s hacking incident in January.
• The hacking incident, which led to an unauthorized early announcement regarding the approval of Bitcoin Spot ETFs, is being investigated by various external agencies including the SEC, Office of the Inspector General, and the FBI.
• Despite the severity of the incident, SEC Chairman Gary Gensler did not mention this report in his responses to Congress members about the hack.

Unveiling new information about the infamous SEC hack, crypto journalist Eleanor Terrett raises serious questions about the SEC’s cybersecurity stance and accountability in such incidents.

SEC Was Warned by Cybersecurity Experts Prior to Hack

The latest update from the SEC on January 22 indicated that the investigation was ongoing. However, Terrett’s revelation shows that the SEC’s Office of the Inspector General (OIG) had commissioned an independent company to review its information security program, which includes cybersecurity and infrastructure security, for 2023. The review found the program to be lacking; this fact was not widely known because the report was inconspicuously placed on the SEC’s website and dated December 20, 2023.

Significant Consequences of the Hack

According to CoinDesk, the consequences of the hack were significant, with reported losses of approximately $90 million in Bitcoin liquidations. Despite the severity of the incident, SEC Chairman Gary Gensler did not mention this report in his responses to Congress members about the hack.

Questioning the SEC’s Cybersecurity Stance

This situation raises serious questions about the SEC’s stance on cybersecurity and its accountability in such incidents. Terrett poses a thought-provoking question: “Consider what the SEC would do if a public company knew about a security vulnerability, failed to fix it, and then was attacked? Would there have been any response from the SEC?”

Conclusion

The recent revelations about the SEC hack and the subsequent lack of action raise serious concerns about the agency’s approach to cybersecurity. With significant losses reported and questions about accountability looming, it’s clear that more needs to be done to ensure such incidents do not occur in the future.