Posted by Sponsored Post Posted on 21 February 2024

SEC Forced to Approve BTC ETF – Vladimir Okhotnikov

The U.S. Securities and Exchange Commission (SEC) has started a dangerous game: someone hacks the official Twitter account and publishes information about the approval of a spot Bitcoin (BTC ETF) – Vladimir Okhotnikov considers this a farce 

The SEC Compromised Itself: Someone Wanted to Turn ETFs into Fanatics’ Wet Dreams – Vladimir Okhotnikov


On the eve of making the key decision on the Bitcoin ETF listing the crypto community witnessed events that could undo the long-term work of the SEC (US Securities and Exchange Commission). X (formerly Twitter) account @SECGov was hacked. A tweet was published on the social network with information that the Commission approved trading in spot bitcoin exchange. However, after access was restored, the post was immediately deleted.


The tweet caused a wave of indignation among investors, increasing uncertainty ahead of a major decision regarding the Bitcoin ETF. The situation may give rise to serious proceedings with the subsequent abolition of a structure that cannot protect itself, not mentioning the investors.


So far, there have been 28 attempts to obtain approval from the Securities and Exchange Commission to launch a spot BTC-ETF but any attempts ended in failure.


Let us remind you that on January 10, 2024, the SEC accidentally posted a pre-prepared tweet about the approval of the BTC-ETF. According to the source, this was done a whole day before the planned date. Prior to this, there were rumors that the Securities Commission was going to make a corresponding statement on Bitcoin-ETF, and apparently, the message was ready for publication.


According to Bloomberg the FBI has initiated an investigation into the hacking of the SEC account. The partner of the law firm Haynes Boone and former SEC regional director Kurt Gottschall weighed in on the situation, “The SEC did not respond adequately to cybersecurity incidents in the past.”


The irony, Gottschall said, is that the SEC has shown little sympathy for companies and asset managers that have faced similar situations in the past.


The event shook up the crypto community, leaving behind a bitter aftertaste. Against the backdrop of a mass of conflicting information, market participants are still waiting for developments and official comments from representatives of the Commission. 

If the SEC is unable to protect itself, then what should investors do – Vladimir Okhotnikov


The work of the SEC as a supervisory body raises a lot of questions. In light of what happened, market participants saw the agency’s failure to ensure adequate protection of its own data. Then what can we say about protecting the interests of investors?


Vladimir Okhotnikov expressed concern and considered the incident a farce, “How come that organization of this kind took its security so lightly, having forgotten to enable two-factor authentication. It’s hard to believe, since entire departments with highly qualified specialists are working on this.”


The incident involving the compromised X @SECGov account poses a serious problem. In the SEC’s information security context, reporting unconfirmed decisions regarding the listing and trading of Bitcoin ETFs will clearly have implications for financial markets and increase misunderstanding among investors.

The SEC made claims, but we did not let outrage and lawlessness triumph – Vladimir Okhotnikov


There is a huge number of scammers on the Internet, and their turnover is amazing in scale. However, the problem is not the volume, but the difficulty of identifying and suppressing such acts. Many dishonest organizers masterfully bypass existing security measures, and the money they earn disappears as quickly as it appears.


Due to the difficulty of identifying scammers, the situation becomes a stalemate for ordinary citizens. Therefore, the Securities Commission, in order not to discredit itself, prefers to fight with people like us – those who conduct business honestly and are in plain sight.


Throughout this time, the SEC has not identified a single person who was defrauded as a result of participating in the program. Our community has called for evidence that someone was harmed. But so far this has not been done. And all because such people do not exist.


Not a single participant ended up in a financial pyramid situation and lost their invested funds. The project did not stop, the organizers did not mislead and did not participate in the dissemination of distorted information. Unlike fraudulent schemes that exist on the Internet, our community is transparent, operates on fair terms and does not deceive.


If the SEC had real grounds, the Commission would take measures similar to those that affected Changpeng Zhao (CZ), the former head of the Binance cryptocurrency exchange.


In light of recent events, different opinions have arisen regarding the decision in the CZ case. Some have suggested that it was easier for him to buy his way out of potential problems, and perhaps that is exactly what happened.

Gary Gensler reports on account X exploit


In an attempt to show confidence, the SEC posted a dry message on its X @SECGov account. It seemed as if nothing serious had happened and the compromise was a minor misunderstanding.


Some market participants note that this reaction creates the image that losing several hundred million dollars is a common occurrence in retail.


Vladimir Okhotnikov notes the negligent attitude and says that waste in such situations leads to a loss of trust on the part of institutions, “The situation emphasizes that the SEC is not able to protect itself, and this is a fact. We will soon see what steps the Commission will take to prevent similar incidents in the future.


I’m sure this is a planned action to once again create the illusion that the cryptocurrency market is unstable and carries unjustified risks. However, this is not the case, because without outside intervention, the market is completely readable,” added Vladimir Okhotnikov.


At the same time, the SEC’s official website has not yet said a word about what happened. And those who don’t follow the tweets may not even be aware of what happened. 

False start: the sensation did not happen


As X (formerly Twitter) reports, company specialists conducted an internal investigation in connection with the compromise of the @SECGov account. According to experts, the incident was not a consequence of the hacking of the X system.


According to the source, it is likely that the exploit occurred due to an unknown person gaining control of the phone number associated with the Commission account through a third party.


It is difficult to imagine that someone was able to gain access to the mobile phone of a company that has significant influence not only on the cryptocurrency market, but on the entire US stock market. Perhaps Harry had some stomach problems that day and had to make frequent trips to the restroom. Choosing a favorable moment, a cleaning lady Linda, noticing Gensler’s smartphone on the table, decided to take advantage of the situation. She boldly sat down at the office computer, logged into the account using the phone number, and quickly sent a message about accepting spot Bitcoin. This story would probably become a legend, but it is unlikely to be true,” Vladimir Okhotnikov about the comical nature of the whole situation around the SEC.


It took almost 90 years for Roosevelt to return the confiscated gold. Much effort has been made to ensure that decentralization is once again the driving force of the global financial system. Now the world has entered a new round of history, albeit in a different iteration.


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