SEC to investigate itself after false Bitcoin ETF approval post on X

I thought today's episode was just going To be preparation for the later Announcement by the SEC on the spot Bitcoin ETF applications but it isn't You need to know about Yesterday good morning you're listening To the ryzen crypto podcast by coin Telegraph with me Robert bags steering You through the crypto Cosmos with daily Dispatches from the digital Frontier if You want a comprehensive understanding Of every debacle that occurs in crypto Make sure you click that follow button Grab yourself a coffee a strong one and Let's get into it Right it's the 10th of January at last And that means we should be today Getting the decision from the SEC on the Spot Bitcoin ETF applications as soon as The announcement happens we will be Going live on the cointelegraph X Account and the YouTube account where We'll be speaking to experts about what The decision means for bitcoin's price And crypto as a whole so make sure you Keep an eye out for that hop in and feel Free to fire us any questions you might Have as a result my plan for this Episode was to be a brief recap of the Recent takeaways about the spot Bitcoin ETF applications to get you ready for The later announcement but that got Fully derailed yesterday when the SEC Had an absolute disaster there's just no

Way I can miss giving you a debrief on This it feels as if the entire crypto World's eyes are locked on the SEC ahead Of the announcement later today so you Can imagine our surprise when yesterday The official secx account formerly Twitter posted the following today the SEC grants approval for hash Bitcoin ETFs for listing on all registered National Security exchanges the approved Bitcoin ETFs will be subject to ongoing Surveillance and compliance measures to Ensure continued invester protection Attached to the Tweet was a graphic with A quote from the chair of the SEC Gary Gendler and a small picture of his head The quote read today's approval enhances Market transparency and provides Investors with efficient access to Digital asset Investments within a Regulated framework so naturally the Crypto World erupted but we were Somewhat confused despite the Tweet Being from the official SEC account There was nothing on the sec's website No press release and no approved filings Either it was all a bit bizarre then the Tweet just vanished in its place was a Tweet by Gary Gensler who said the Following the secg 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 in a statement

To coin Telegraph the SEC said that the Unauthorized tweet was not made by the SEC or its staff everything happened all At once from here price skydived the Rumor mill fired up like it was nuclear Powered and every word of gensler's Tweet was dusted by forensics the big Overarching question is whether gendler Is saying that the ETFs have been Rejected or that they haven't been Accepted yet we have more or less no Answers at the time of recording this But we do have some damning evidence About the SEC security practices the Safety team at X decided to take a look Into the sec's purported hack and Tweeted the following we can confirm That the account at SEC gu 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 at SEC gov 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 it didn't take long Before people started retweeting a post From Gary gendler on the 24th of October Last year it said this is a reminder to

Secure your financial accounts as well As protect against identity theft and Fraud remember to use strong pass Phrases or passwords set up multiactor Authentication keep account alerts Turned on whoops there's also another Thread to this story that hasn't seen Widespread coverage the sec's account Posted just the dollar sign BTC ticker And nothing else but it was deleted a Few minutes later before the officiall Looking announcement was then tweeted so Of course this debacle received Attention from everyone from crypto Deens all the way up to US senators so Let's look at the most interesting and Insightful reactions one of the big Angles was a legal one and Charles Gasparino of the Fox Business Network Wrote Breaking security lawyers tell Fox Business that the SEC will have to Investigate itself for Market Manipulation after moving the price of BTC up and down following the Hacked Tweet that it had approved the first Spot Bitcoin ETF and then saying it was Fake that said for the SEC not to Approve tomorrow would be unprecedented It has never rejected ETF applications That have gone as far as these the Crypto lawyer John E Deon quickly Replied that he would lead the Investigation on this pro bono one Commenter added to this asking how they

Were hacked but still able to almost Immediately delete the tweet this line Of inquiry was also highlighted by Gabor Gerb an advisor at Van e who wrote I'm No cyber security expert but it seems Almost impossible to notice a bad tweet From the a account tweet from the Chair's account to correct it then Recover a hacked social media account Then tweet about incident and response To it from the hacked account all in a Few minutes now X has of course Confirmed that the account was Compromised though the question of Whether it was someone inside the SEC is Being posed by a lot of people and that Could mean that both statements were True that is it was compromised but it Was also someone from the SEC it seems Unlikely but who knows on Monday I Covered the better Market CEO Dennis Kellerer who wrote the open letter to The SEC urging them to reject the spot Bitcoin ETFs well it's no surprise he Jumped on this story tweeting if anyone Still thinks that Bitcoin crypto markets Were not full of speculators predators Fraudsters and criminals today's market Manipulation with the fake SEC gov Approval tweet should convince them Don't know facts yet but 22 billion Market move equals lots of ill-gotten Gains Bloomberg's ETF analyst James Saart responded to this post saying part

Of me is like yeah he has a point this Is a bad look but at the same time time This is on the SEC for not having 2 FAA On their account would it still be Bitcoin or crypto's fault if the Compromiser tweeted that the SEC was Filing an enforcement action against Tesla he wasn't alone on trying to focus The blame on the SEC Cameron winlos Co-founder of Gemini and winlos capital Gave a scathing review of the error Stating today the SEC showed what it Does best manipulating markets and Hurting us investors and finally many United States senators have weighed in On what happened and none of them are Holding back the US senator Cynthia Lumus tweeted fraudulent announcements Like the one that was made on the SEC Social media can manipulate markets we Need transparency on what happened lumus Wasn't alone either the United States Senators JD Vance and Tom Tillis wrote An open letter to gendler just after This happened they criticized the agency For its lack of operational security and Asked for an explanation for the Incident within the next 4 days Meanwhile the US senator Bill haggy also Posted the following just like the SEC Would demand accountability from a Public company if they made such a Colossal Market moving mistake Congress Needs answers on what happened this is

Unacceptable we certainly do need Transparency on what happened and I'm Not convinced that initially we've had Any for one the lack of two Factor Authentication came from X themselves Secondly and I doubt I'm alone in this Thinking that tweet looked oddly Official obviously that could have been The Hacker's intent and as a few have Pointed out the hashtag in the word Bitcoin could be a tell and there were Also some odd tweets liked by the Account during that time but it was a Really convincing graphic just after it Happened I made a prediction that the SEC account did get compromised but the Person who got access saw that tweet in The drafts or scheduled and then just Hit publish at the time of recording the Debate about this is still very much Raging so let us know what you think by Tweeting us on @ cointelegraph or RK Bags right that's everything you need to Know about the hack so far but does it Change anything about today many are Worried but most experts seem to believe That it won't impact the decision the Question is whether it affects the Timeline Reuters reported that two of The issuers had spoken to them under the Condition of anonymity saying it wasn't Immediately clear whether it would Impact the timeline however the President of the ETF store Nate gachi

Wrote my take there's a hard deadline Tomorrow all indications Point toward Approval there's a regulatory process to Follow here that doesn't involve x a few Have even commented suggesting that this Debacle could be an inside job to delay The ETF decision I've got to say that Sounds unlikely to me because even a Delay as a result of just the sec's Incompetence with their security would Cause a backlash just not worth the pain As for when today we will hear about the Announcement which would include the Announcement of a delay if there is one We're not sure some analysts are Predicting around 400 p.m. Eastern and Given what happened yesterday I'd say Later in the day does seem more likely The only other thing I wanted to keep You informed of is that that fee war Between the ETF issuers is still ongoing We've already seen revised s ones with a Lot of movement for example Valkyrie has Lowered their fee from 0.8% down to 0.49% plus a waiver of 3 months where It's just 0% Wisdom Tree have lowered Theirs from 0.5% to 0.3% as well as Adding the waiver of 6 months or $1 Billion at 0% and Fidelity have Basically done the same thing too and They're not the only ones and this data Is still rapidly changing some of the ETF experts were saying they've never Seen a fee War quite like this

Before okay that is it for today Remember to tune in to our live streams As soon as the announcement lands we'll Be on YouTube and X but for now consider Yourself informed thank you for Listening to the ryzen crypto podcast by Coin Telegraph if you're enjoying these Daily updates please make sure you let Us know by following subscribing or Leaving a review have a great day let's Do this again [Music] Tomorrow [Music]