Concerns regarding the security of Elon Musk's social media platform have been rekindled in the wake of Tuesday's hack of the official X account of the U.S. Securities and Exchange Commission. But rather than a system vulnerability, the X safety team has determined that the account was compromised because the SEC neglected to enable two-factor authentication.
Read Also: Breaking: With the lowest Bitcoin ETF fee, Franklin Templeton breaks records.
Critics Question X's Security Following Elon Musk's Takeover
False information about the SEC's approval of all-spot Bitcoin ETFs was released by the hackers. According to Reuters on January 10, the SEC removed the item approximately thirty minutes after it was published.
Following an inquiry, X verified that the SEC's account was hacked when an unnamed person obtained control of a phone number connected to the security agency via a third party. Additionally, X stated in a post that the SEC official account did not support two-factor authentication.
Furthermore, X stated that there was no security compromise on the platform. Security analysts, however, label the occurrence as worrying. Elon Musk is being held accountable by some for both the event and the platform's lack of security.
"There's a huge opportunity for disinformation, something like that, where you can take over the SEC account and potentially affect the value of bitcoin in the market," stated Austin Berglas, a senior executive at the security firm BlueVoyant and a former cybersecurity official at the FBI's New York office.
According to Coinglass statistics, the fictitious SEC notice led to extreme price volatility for Bitcoin, resulting in a liquidation of over $140 million in a matter of hours. Following the phony SEC post, the price of Bitcoin is currently trading below $46,000.
In order to look into the problem, the SEC is currently collaborating with law enforcement and other government agencies. In the meantime, Congressmen ask Gensler and the SEC for explanations on the error.