Musk Takes Jab at SEC Hack; DOGE Crumbles Below Key Support

• Faux Bitcoin ETF approval announcement sets investors back $230M.
• Elon Musk makes fun of the SEC’s mishaps on X, mentioning DOGE.
• Dogecoin (DOGE) falls below 8 cents with over $1bn in daily trades.

The famed tech mogul Elon Musk regained his status as the world’s wealthiest man, beginning 2024 with 245.6 billion to his name, despite the growing pains of X. Acquiring the platform in late 2022, Elon Musk axed around 80% of the initial team at Twitter Corp.

However, the highly publicized entrepreneur’s fight against Twitter’s spam bots and rising hacks has yet to bear fruit. Even the U.S. Securities and Exchange Commission (SEC) fell victim to X’s scrupulous hackers.

In the posted message, the SEC’s account falsely claimed that the looming Bitcoin exchange-traded fund (ETF) decision was made, congratulating crypto enthusiasts on the game-changing development, completely changing the financial landscape.

While the belief that this message is real lasted, the leading digital asset soared to $47,680 but retraced back to $45,528 in ten minutes. When the crypto investors on X noticed what really happened, $230 million in short and long bets were wiped out across exchanges.

The Real Reason Behind SEC’s X Account Hack

Following the message, Twitter’s owner Elon Musk said that the SEC’s password was “LFGDogeToTheMoon!!”. Receiving 11,000 likes on the answer, the hilarious answer failed to inspire the top dog memecoin to reach the moon – quite the opposite. Dogecoin (DOGE) slid to new monthly lows of $0.07607, unable to pick up on Bitcoin’s recent rally with a negative price correlation.

Notably, the hacking incident set off a wave of mockery by crypto traders on X, who asserted that the SEC Chair Gary Gensler should turn on his two-factor authentication (2FA) protection. While the culprits of the cyberattack are still unknown, the reasons have been revealed: the Securities and Exchange Commission has yet to set up a multifactor authentication process on X.

On The Flipside

• Tech mogul Elon Musk and the U.S. Securities and Exchange Commission have a long history of battling in courts, including a $20M fine for the famous ‘Tesla 420’ tweet.
• Late last year, Mr. Musk refused to attend a hearing about the SEC’s probe of him acquiring the social media giant Twitter for $44 billion in October 2022.

Why This Matters

Cybersecurity issues on social media led to a drastic price fluctuation of the top digital asset.

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