X Confirms 'Bitcoin ETF' Breach Was Not Of Any Of Its Systems, SEC Failed To Use 2-Factor Authentication On Phone
Update (2300ET): And the hits keep coming for the SEC...
With fingers being pointed and blame being apportioned for the SEC screw-up, X's Safety team have provided a rather awkward statement on the results of their probe of the breach.
We can confirm that the account @SECGov was compromised and we have completed a preliminary investigation.
Based on our investigation, the compromise was not due to any breach of X’s systems, but rather due to an unidentified individual obtaining control over a phone number associated with the @SECGov account through a third party.
We can also confirm that the account did not have two-factor authentication enabled at the time the account was compromised.
We encourage all users to enable this extra layer of security.
And there it is, just as the mainstream establishment would have loved to blame Elon Musk, or X, it turns out the world's leading securities regulator was incapable of utilizing two-factor authentication on an account that by all standards can be extremely market-moving in its capabilities.
Of course, these FACTS did not stop 'journalists' running with the narrative that it's all Elon's fault...
The only thing it "amplifies" is the glaring incompetence of the idiots at the @SECgov who can't even enable 2FA account.
— zerohedge (@zerohedge) January 10, 2024
But nice spin guys pic.twitter.com/5aFW9dbsiw
* * *
In a stunning update, just minutes later, Gensler has posted on X that this is false and that his account has been hacked:
The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.
— Gary Gensler (@GaryGensler) January 9, 2024
One wonders if this was really "compromised' - or was it an intern accidentally hitting 'send' on the post (that we will discover shortly is probably real anyway).
Honestly. Scott makes a good point here. If this was indeed a compromise of the account. The person who compromised the account screwed up. Coulda made way more money tweeting about denial and going short... Everyone was mostly expecting an approval https://t.co/q5UorRPkFT
— James Seyffart (@JSeyff) January 9, 2024
And if it really was hacked, what was the motive? What did the person get out of it?
Be careful though!!!
There is always a tweet https://t.co/DEaFgbiHN1
— zerohedge (@zerohedge) January 9, 2024
As a reminder, the SEC has an open window until January 10 in which it could approve multiple applications simultaneously.
The first stage in approval of a spot Bitcoin ETF would be the SEC signing off on 19b-4 filings by the exchanges planning to list the ETFs, all of which were submitted by 6 p.m. ET on Friday.
The SEC would then need to approve the issuers' S-1 applications; with both approved, the ETFs could technically begin trading the next business day.
Ethereum is extending gains since the fake tweet and denial, Bitcoin is lower, but rising off the lows...
Reversing the relative weakness YTD...
* * *
SEC Chair Gary Gensler - having issued his pre-emptive warning at just how terrifyingly dangerous cryptos are - proudly proclaimed the approval of Spot Bitcoin ETFs on X:
“Today’s approval enhances market transparency and provides investors with efficient access to digital asset investments within a regulated framework,” SEC Chair Gary Gensler said.
We have inserted an image of the allegedly hacked tweet...
There are more than a dozen applications pending with the SEC, according to Decrypt (and the implication of Gensler's post is that they are all approved):
iShares Bitcoin Trust (BlackRock)
Jane Street Capital, JP Morgan Securities, Macquarie Capital, and Virtu Americas have all been named as authorized participants for BlackRock's Bitcoin ETF.
VanEck Bitcoin Trust (VanEck)
Jane Street Capital, Virtu Americas LLC, and ABN AMRO Clearing have all signed agreements to act as authorized participants.
Franklin Bitcoin ETF (Franklin Templeton)
Jane Street Capital and Virtu Americas have each signed authorized participant agreements with Templeton.
Fidelity Wise Origin Bitcoin Trust (Fidelity)
Fidelity names Jane Street Capital, JP Morgan Securities, Macquarie Capital, and Virtu Americas LLC as authorized participants for its Bitcoin ETF.
Valkyrie Bitcoin Fund (Valkyrie)
Jane Street Capital and Cantor Fitzgerald & Co. have signed authorized participant agreements with Valkyrie.
WisdomTree Bitcoin Fund (WisdomTree)
The latest filing from WisdomTree shows lists Jane Street Capital, Macquarie Capital, and Virtu Americas as authorized participants.
Invesco Galaxy Bitcoin Fund (Invesco, Galaxy Digital)
JP Morgan Securities, Virtu Americas, Jane Street Capital, and Marex Capital Markets Inc. have all signed authorized participant agreements with Inveso.
Bitwise Bitcoin ETF (Bitwise)
Jane Street Capital, Macquarie Capital, and Virtu Americas have signed on to be authorized participants for Bitwise's Bitcoin ETF.
Grayscale Bitcoin Trust (Grayscale)
Jane Street Capital, Virtu Americas, Macquarie Capital, and ABN AMRO Clearing have all signed authorized participant agreements with Grayscale.
ARK 21Shares Bitcoin ETF (ARK Invest, 21Shares)
Jane Street Capital, Macquarie Capital, and Virtu Americas will be authorized participants for ARK's Bitcoin ETF.
Bitcoin spiked up to $48,000 on the headline... and right back down...
Testing its highest since March 2022...
Interestingly, while BTC is fading, ETH is ramping higher (playing catch up to recent relative weakness) in anticipation of a Spot Ethereum ETF...
Meanwhile, in the Senate...
Elizabeth Warren pic.twitter.com/8mmtlrcrDg
— zerohedge (@zerohedge) January 9, 2024
Finally, this...
One thing to keep in mind if you're considering listening to @GaryGensler and the @SECGov: these cartoons can't even keep their twitter/X account safe https://t.co/NNdxr9q4Hu
— zerohedge (@zerohedge) January 9, 2024