The cryptocurrency market experienced unprecedented volatility on January 9, 2024, after the U.S. Securities and Exchange Commission’s official X (formerly Twitter) account was compromised by hackers who posted a fake announcement claiming the approval of spot Bitcoin exchange-traded funds.
TL;DR
- The SEC’s @SECGov X account was hacked around 4 PM ET on January 9, 2024
- A fake tweet announced the approval of spot Bitcoin ETFs, triggering massive market volatility
- Bitcoin spiked to nearly $48,000 before crashing back to $45,700 after the denial
- Altcoins including Ethereum, Lido DAO, AAVE, and PEPE showed unusual resilience, decoupling from Bitcoin’s price drop
- Over $140 million in liquidations occurred within hours due to the fake announcement
The Hack That Shook Crypto Markets
At approximately 4:00 PM Eastern Time on January 9, 2024, cybercriminals seized control of the SEC’s official @SECGov account on X and posted an unauthorized message announcing the approval of spot Bitcoin exchange-traded funds. The fake post remained live for roughly 30 minutes before being deleted, during which time it triggered a whirlwind of market activity and confusion across the crypto ecosystem.
The tweet came at a particularly sensitive moment, as the crypto community had been eagerly anticipating an official SEC decision on spot Bitcoin ETFs. Multiple news outlets and prominent online personalities initially reported the announcement as legitimate, amplifying the confusion before the SEC could issue a correction.
Bitcoin’s Wild Ride
The fake announcement sent Bitcoin’s price surging to nearly $48,000, reaching its highest level in approximately two years. The rally was swift and aggressive, driven by a wave of buying pressure from traders who believed the long-awaited ETF approval had finally arrived. However, the euphoria was short-lived.
SEC Chair Gary Gensler quickly took to his personal X account to issue a denial: “The @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.” Following this correction, Bitcoin’s price plummeted to approximately $45,700, erasing the gains from the fake rally and then some.
According to CoinMarketCap data, Bitcoin was trading at $46,139 at the daily close, reflecting the intense volatility of the session. The 24-hour price swing resulted in over $140 million in liquidations across the derivatives market, devastating leveraged traders on both sides of the trade.
Altcoins Defy the Pullback
Perhaps the most remarkable aspect of the January 9 market event was the behavior of altcoins. According to on-chain data from Santiment, several major altcoins demonstrated an unusual decoupling from Bitcoin’s price trajectory. While Bitcoin dropped roughly 3% from its fake-rally highs, Ethereum held steady with a 3.35% gain over the previous 24 hours, trading at $2,344.
Lido DAO (LDO) was the standout performer, surging 19% during the same period. Other altcoins including AAVE, HEX, and PEPE also maintained their upward momentum despite Bitcoin’s sharp reversal. This represented one of the rare instances in recent market history where the altcoin market diverged significantly from Bitcoin’s price correlation.
On individual exchanges, top gainers included Threshold Network Token (T) with a 34.9% increase, Ethereum Naming Service (ENS) rising 25.74%, and Algorand (ALGO) climbing 23%. The broad-based altcoin strength suggested that investor appetite for alternative cryptocurrencies remained robust regardless of Bitcoin’s intraday volatility.
Security Failures Exposed
X’s security team confirmed on the morning of January 10 that the SEC’s account had not activated two-factor authentication, a basic security measure that could have prevented the breach. This meant the attacker likely only needed to gain control of a phone number tied to the account through a SIM-swap or similar attack to take over the high-profile government account.
The SEC announced it was investigating the incident with its Office of the Inspector General and the FBI. The breach raised serious questions about the security practices of one of the most influential financial regulatory bodies in the world, particularly given that the hack occurred during one of the most anticipated regulatory decisions in cryptocurrency history.
Solana’s Continued Momentum
Even amid the chaos, Solana continued its impressive market run, trading at $99.41 and having recently overtaken XRP in market capitalization. The Solana ecosystem saw significant growth in NFT volumes and decentralized application usage, reinforcing the narrative that capital was rotating from Ethereum into Solana among risk-on traders.
Why This Matters
The SEC hack on January 9, 2024 represents a watershed moment in the intersection of cryptocurrency markets, social media, and institutional credibility. A single compromised social media account moved billions of dollars in market value within minutes, exposing the fragility of information flows in the digital asset space. The altcoin market’s unexpected resilience during the chaos signals a potential maturation of the broader crypto market, where alternative assets are increasingly developing independent price narratives rather than simply following Bitcoin’s lead. For investors and regulators alike, the incident served as a stark reminder that market-moving misinformation can come from even the most authoritative sources, and that robust verification protocols are essential in an era where a single tweet can move markets.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
the SEC of all accounts didnt have 2FA enabled. you cannot make this up. 140M in liquidations because of a single tweet
the SEC suing exchanges for poor security while their own twitter had no 2FA. you cannot write comedy this good
the SEC didnt have 2FA and they were simultaneously suing exchanges for inadequate security. the irony is so thick you could cut it with a knife
a single tweet moved $140M in liquidations. the SEC didnt even have 2FA. regulatory bodies lecturing crypto on security while they cant secure a twitter account
the SEC suing exchanges for security failures while their own twitter had no 2FA enabled is peak regulatory comedy. you cannot script this
two_factor_rage_ the SEC X account had no 2FA while simultaneously prosecuting crypto companies for inadequate cybersecurity practices. this should have been a massive credibility hit
140M liquidated from a sim swap on a government account. if a crypto exchange did this the SEC would have fined them into oblivion
Fake Bitcoin ETF tweet from hacked SEC account spiking BTC to $48k then crashing highlights single-point failure risks.
btc went 48k to 45.7k in like 20 minutes. fastest 10% dump I have ever seen triggered by literally nothing real
degenslovechaos 48k to 45.7k in 20 minutes because gary gensler couldnt be bothered to enable 2FA on the SEC twitter. the memes write themselves
BTC going from 48k to 45.7k in 20 minutes on fake news shows how thin the order books really were back then
$140M in liquidations from a single fake tweet. the order books were already paper thin waiting for real ETF news
Lia P. 140M liquidated from one fake tweet. the leverage in the system was insane. people were 5-10x long on BTC waiting for the real approval and got destroyed by a 30 minute hoax
order books were thin because everyone was positioned for the actual approval. the fake tweet trapped both bulls and bears in the same 20 minute window
PEPE holding strong while BTC dumped 10% on a fake tweet. peak 2024 market structure
orderbook_thin paper thin order books because everyone was positioned long for the real ETF approval. the fake tweet was a liquidity trap that wiped both sides in 20 minutes flat
PEPE and LDO holding while btc dumped is genuinely interesting. alt season signals were flashing even back then
PEPE holding up during that dump was a sign of how degenerate things had gotten. memecoins with more resilience than BTC on a regulatory event tells you everything about that market
the SEC suing exchanges for security failures while their own twitter had no 2FA is peak regulatory irony
SEC didnt even have 2FA enabled while simultaneously suing exchanges for poor security. you literally cannot make this up. 140M liquidated because Gary Gensler couldnt be bothered with basic opsec
Mihail Petrov the 48k to 45.7k dump in 20 minutes was pure leverage flushing. people were 5-10x long waiting for real approval and got wrecked by a sim swap on a government account
@Mihail Petrov SEC suing exchanges for cybersecurity failures while their own X account had no 2FA is peak regulatory hypocrisy. 140M liquidated because of it
$140M liquidated in 20 minutes on a fake tweet. order books were paper thin because everyone was positioned for the actual approval. both sides got trapped
SEC X account breach and subsequent $48k spike then crash shows how fragile sentiment remains around regulatory news.
BTC hit 48K on a fake tweet then crashed to 45.7K in 20 minutes. 140M liquidated. and the SEC didnt even have 2FA on their X account while simultaneously suing exchanges for poor security
PEPE and LDO holding up during that BTC dump was the real signal. money was already rotating out of BTC into alts before the fake tweet even happened