Coinbase Offers to Assist SEC After Hack: A Crypto Exchange to the Rescue!

Coinbase's top management has extended aid to the U.S. Securities and Exchange Commission following the hacking of the federal agency's account on X on Monday.

Coinbase executives are supporting the SEC after a hack on accounts.

📅 Last updated: January 9, 2024 23:18 EST ⏱️ Reading time: 2 min

SEC chair Gary Gensler. Source: A video screenshot, YouTube / SEC

Coinbase, the popular cryptocurrency exchange, has extended a helping hand to the U.S. Securities and Exchange Commission (SEC) after the agency’s X account was hacked. The exchange’s executives have offered their expertise in security protocols to assist the SEC in preventing such incidents in the future.

Coinbase Offers to Assist with “Security Protocols”

“Hey [@GaryGensler](https://twitter.com/GaryGensler) and [@SECGov](https://twitter.com/SECGov), serious offer: as a crypto exchange we’ve had a lot of experience with security protocols around social media, and as a veteran and patriot I love to help my country,” Coinbase’s Chief Security Officer, Philip Martin, tweeted on Tuesday night. “If you’d like any suggestions, feel free to reach out.”

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“The entire [@coinbase](https://twitter.com/coinbase) team offers its help,” added Coinbase’s Chief Legal Officer Paul Grewal. “We are committed to doing our part to ensure fair, orderly, and efficient markets for all Americans.”

A Moving Market

The offers of assistance from Coinbase executives come after a turbulent day for the SEC. Their official X account was hacked, and a false tweet claiming the federal agency’s approval of a spot bitcoin ETF was posted. SEC Chair Gary Gensler quickly took to X to clarify the situation: “The [@SECGov](https://twitter.com/SECGov) 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.”

The tweet from the SEC hacker caused the price of Bitcoin to shoot up to $48,000 before ultimately settling back down to $44,000. As of late Wednesday morning, Bitcoin was trading at around $45,000.

Senators Demand Answers Following Account Hack

In response to Gensler’s post, Senators Thom Tillis (R-NC) and JD Vance (R-OH) drafted a letter to the SEC chair, demanding an explanation for the hacking. The senators expressed their concern about the impact of such incidents on the trust investors have in the financial markets.

“The United States is home to the world’s deepest and most liquid capital markets, and stability and soundness are imperative if investors are to maintain their trust in our markets,” the letter reads. “It is unacceptable that the agency entrusted with regulating the epicenter of the world’s capital markets would make such a colossal error.”

The senators also raised questions about the timing of the approval of a spot bitcoin ETF and the SEC’s responsibility to compensate those who suffered financial losses due to the false tweet.

“These developments raise serious concerns regarding the Commission’s internal cybersecurity procedures and are antithetical to the Commission’s tripart mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation,” the senators’ letter states.

As of now, Gensler has not responded publicly to the letter, but recent discussions suggest that the approval of a spot bitcoin ETF may be imminent, possibly by Thursday.

Q&A: What You Need to Know

Q: How did the hack of the SEC’s Twitter account affect Bitcoin’s price?

A: The false tweet claiming the approval of a spot bitcoin ETF caused Bitcoin’s price to momentarily surge to $48,000 before dropping back down to $44,000. As the market reacts to news and events, such incidents can have a significant impact on cryptocurrency prices.

Q: What are the Senators demanding from the SEC?

A: Senators Thom Tillis and JD Vance have demanded an explanation for the hacking incident and expressed concerns about the SEC’s internal cybersecurity procedures. They have also questioned the timing of the approval of a spot bitcoin ETF and the SEC’s responsibility to compensate those affected by the false tweet.

Q: How is Coinbase offering to assist the SEC?

A: Coinbase has offered its expertise in security protocols to help prevent future breaches. The exchange’s Chief Security Officer, Philip Martin, and Chief Legal Officer, Paul Grewal, have both extended their willingness to support the SEC in ensuring fair and efficient markets.

Looking Ahead

Although the recent hack of the SEC’s Twitter account may have caused temporary market turbulence, the incident highlights the importance of robust cybersecurity measures in the cryptocurrency industry. As the crypto market continues to evolve, it is crucial for regulatory bodies like the SEC to stay vigilant and collaborate with established players in the field, such as Coinbase, to safeguard investor trust and maintain market integrity.

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References: 1. SEC chair Gary Gensler 2. Tweet by Coinbase Chief Security Officer 3. Bitcoin miners reduce BTC holdings as miner price nears $65k 4. Bitcoin ETF decision looming: SEC Chair Gensler says, again, crypto dangerous 5. Bonk price prediction: Bonk falls 68% from recent peak, dip buying opportunity? 6. Bitcoin ETF approval tipped “sell the news” event – CryptoQuant

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Hey readers, what do you think about Coinbase’s offer to assist the SEC? Do you believe it’s a step in the right direction for enhancing cybersecurity in the crypto industry? Share your thoughts in the comments below! And don’t forget to hit that share button to spread the word about this amusing yet informative article. 💫

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