SEC lawyers launch inquiry into market manipulation following dissemination of false information about Bitcoin ETF
Lawyers representing the U.S. Securities and Exchange Commission (SEC) are urging for an investigation into potential market manipulation. In a conversation with Fox Business, SEC lawyers revealed that the regulatory body will be conducting an internal investigation into market manipulation after the price of Bitcoin (BTC) experienced fluctuations as a result of a false post published on the SEC’s X account. The price surge occurred following the dissemination of a fake message regarding the approval of a spot Bitcoin exchange-traded fund (ETF) on January 9th.
Furthermore, American lawyers and senators are also demanding an inquiry into the SEC due to the dissemination of false information. Senator Cynthia Lummis specifically called for the SEC to provide transparency regarding the events that led to the deletion of the aforementioned post.
According to Bloomberg ETF analyst James Seyffarth, SEC Chairman Gary Gensler is likely to be enraged by the actions of the employee responsible for the alleged security breach. However, the identity of the individual behind the distribution of the fake news post on X remains unknown.
Bitcoin reacted to the publication refuting the false information by experiencing a decline of over 6%, with its price dropping to $44,700. At the time of writing, Bitcoin is being traded at approximately $46,000.
Read more:
BTC experiences significant surge due to expectations of ETF approval; Bitcoin Minetrix presale reaches $8 million.
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