Elon Musk’s X is criticized by skeptics for the SEC’s X account security incident, which sparked a cryptocurrency market uproar.
Tuesday’s breach of the official X account of the U.S. Securities and Exchange Commission has reignited concerns regarding the security of Elon Musk’s social media platform.
However, the X safety team has verified that the account intrusion occurred as a result of the SEC’s failure to enable two-factor authentication, as opposed to an actual compromise of X’s systems.
Security Concerns Regarding X Following Elon Musk’s Takeover
The hackers disseminated inaccurate information regarding the SEC-approved spot Bitcoin ETFs.
Meanwhile, the SEC removed the post approximately 30 minutes after it was published, according to a Reuters report on January 10.
An investigation by X confirmed that the SEC’s account had been compromised after an unidentified individual obtained control over a phone number associated with the security agency via a third party.
X further stated in a post that the SEC official account did not support two-factor authentication.
Additionally, X stated that no breach of the platform’s systems had occurred.
Nonetheless, security analysts express concern regarding the incident.
Others are attributing the incident and the platform’s inadequate security measures to Elon Musk.
“Something like that, where you can take over the SEC account and potentially affect the value of bitcoin in the market – there’s a massive opportunity for disinformation,” said Austin Berglas, a former cybersecurity official at the FBI’s New York office and a senior executive at the security firm BlueVoyant.
According to data from Coinglass, the fake SEC announcement caused enormous volatility in the Bitcoin price, resulting in the liquidation of more than $140 million in a matter of hours.
The current BTC price is less than $46,000 due to the fabricated SEC post.
Currently, law enforcement and other government agencies are collaborating with the SEC to investigate the incident.
Meanwhile, members of Congress demand explanations from the SEC and Gensler regarding the error.
