Ripple’s Chief Legal Officer Urges for Clarification on Fake Bitcoin ETF Approval Within 4-day Deadline

The long-awaited spot Bitcoin ETF approval was announced by the official X account of the SEC, only to later reveal a security breach. Chairman Gary Gensler clarified that the misinformation was the result of unauthorized user activity. Although the tweet was quickly removed, its consequences still remain.

Ripple’s Chief Legal Officer, Stuart Alderoty, promptly responded with a tweet, setting a deadline and reminding the SEC of its own regulations. Adhering to SEC rules, Alderoty demanded accountability within four days. He emphasized the urgency of understanding the extent of the breach and its impact on the market. This action demonstrates Ripple’s commitment to transparency and compliance with regulatory standards.

The incident has brought the SEC’s recently implemented cybersecurity rules into the spotlight. The tweet from the compromised SEC account, identified as ‘Safety,’ confirms that the account @SECGov was compromised. A preliminary investigation has revealed that an unidentified individual gained control of a phone number associated with the SEC account through a third party.

Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, drew attention with his recent tweet, posing four important questions regarding the security breach. These questions include identifying the responsible individual and the third party involved, as well as determining whose phone number was obtained and whether the intruder composed the tweet or found it in the drafts folder.

Charles Gasparino, FBN Senior correspondent, reported that despite the challenges and controversies surrounding the spot Bitcoin ETF at the SEC, legal experts he consulted believe that rejecting the applications at this stage of the process would be unprecedented. Gasparino anticipates that Wednesday could be a significant day for the mainstreaming of cryptocurrencies, suggesting potential positive developments for the approval of spot Bitcoin ETFs.

The confusion caused by the fake ETF approval tweet has highlighted Ripple’s proactive stance and the demand for proper justification. As the crypto space is currently in shock following the aftermath, concerns persist about the SEC’s ability to effectively manage its communication.