X: Compromised phone number caused SEC hack that led to false bitcoin post

Jan. 10 (UPI) -- Social media platform X said that the Security and Exchange Commission's account was compromised due to a third party gaining access to a related phone number.

X confirmed the account was breached Tuesday leading to an unauthorized post from the SEC's account falsely claiming the agency had approved the listing and trading of spot bitcoin exchange-traded funds, or ETFs, which was removed in less than an hour.

"We can confirm that the account @SECGov was compromised, and we have completed a preliminary investigation," X said. "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."

X said the SEC account lacked two-factor authentication which may have prevented the hack.

Gary Gensler, chair of the SEC confirmed the hack and that the commission had not produced any cryptocurrency information.

"The @SECGov Twitter account was compromised, and an unauthorized tweet was posted," Gensler said on the social media account. "The SEC has not approved the listing and trading of spot bitcoin exchange-traded products."

The SEC had been expected to approve bitcoin ETFs by as early as Wednesday to comply with a federal court ruling after opposing the practice for years.

Bitcoin prices jumped to about $48,000 following the compromised post but fell back to $45,958 as of early Wednesday morning.

Sen. Bill Hagerty, a member of the Senate Banking Committee demanded answers on how the hacking occurred.

"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 just happened," Hagerty said on X. "This is unacceptable."