FBI investigates fake tweet about bitcoin investment fund that led to price spike
The US Securities and Exchange Commission (SEC) said Wednesday that is working with the FBI to investigate a fake message posted on its X social media account.
On Tuesday hackers posted false news about a widely anticipated announcement that the SEC was expected to make about bitcoin, leading the cryptocurrency’s price to spike and alarming observers.
The false post on @SECGov said the securities regulator had approved exchange-traded funds to hold bitcoin. The SEC deleted the post about 30 minutes after it appeared.
“The SEC continues to investigate the matter and is coordinating with appropriate law enforcement entities, including the SEC’s Office of the Inspector General and the FBI,” the agency said in a statement to cryptocurrency trade publication The Block.
On Wednesday the SEC approved 11 spot bitcoin exchange-traded funds. The approval is a game-changer for bitcoin, offering institutional and retail investors exposure to the world’s largest cryptocurrency without directly holding it, and a major boost for a crypto industry beset by a string of scandals such as the blockbuster trial and conviction of FTX CEO Sam Bankman-Fried and money laundering at cryptocurrency giant Binance.
X confirmed later on Tuesday, following a preliminary investigation, that the SEC’s account was compromised because an unidentified individual gained control over a phone number associated with the account through a third party.
Reuters contributed to this story