Tag: Bitcoin

Unauthorized post on sec social media account exposes security gaps at wall street regulator

Unauthorized Post on SEC Social Media Account Exposes Security Gaps at Wall Street Regulator

A fabricated announcement that appeared on the Securities but also Exchange Commission’s X account on Tuesday afternoon jolted Bitcoin prices upward – downward along with left the agency that polices market fraud facing public scrutiny over its own defenses. The post, which claimed the SEC had approved spot Bitcoin exchange traded funds, originated from an account that lacked basic protections the SEC routinely demands from the companies it oversees.

At 4:11 p.m. Eastern time the @SECGov profile issued a single sentence: “Grayscale Bitcoin Trust and ten additional spot Bitcoin ETFs receive formal authorization.” Within sixty seconds the statement traveled across algorithmic feeds, private chat rooms in addition to trading terminals. Bitcoin leaped from $46,735 to $47,863 on spot exchanges.

At 4:26 p.m. SEC Chair Gary Gensler wrote from his personal X account: “The @SECGov account suffered compromise. No ETF approval has been granted.” At 4:42 p.m. the agency removed the original post and labeled it “unauthorized.” Bitcoin slid to $45,120.

The price swing erased roughly ninety billion dollars in market capitalization in less than one hour.

X Safety posted a technical summary at 9:03 p.m. An unidentified party seized control of a voice-over-IP number linked to the @SECGov profile through a carrier that resells telephone lines. The attacker reset the account password via SMS and posted the false statement. The SEC had disabled two factor authentication for the profile, a safeguard that requires a second credential beyond the password.

John Reed Stark, who founded the SEC Office of Internet Enforcement in 1998 and now advises corporations on cyber defense, called the lapse “textbook hypocrisy.” Stark noted that the SEC’s 2023 examination priorities letter warns broker-dealers and investment advisers of enforcement action when social media controls fall short. “They fine firms for missing a quarterly risk assessment, yet their own premier channel had no second factor,” he said.

In October the SEC filed civil charges against SolarWinds Corporation and its chief information security officer – alleging that internal presentations understated known vulnerabilities before Russian intelligence breached the software vendor and harvested data from federal agencies. The SEC now confronts a mirror image scenario – its own communication channel served as the attack vector.

Senators J.D. Vance besides Thom Tillis dispatched a two page letter to Chair Gensler within three hours of the incident. “The credibility of the deepest capital market on Earth rests on competent stewardship,” the letter stated. “An agency that mandates cyber hygiene must exemplify it.” The senators requested a timeline of the intrusion, a copy of the SEC’s incident response plan, and the date on which multi factor authentication last protected the @SECGov profile.

The SEC press office issued a four sentence statement at 10:14 p.m. The agency pledged cooperation with the Federal Bureau of Investigation, the Department of Homeland Security, and the multi agency Cyber Unified Coordination Group. No spokesperson agreed to an on record interview.

Tuesday’s event revived memories of prior SEC breaches. On August 22, 2017, the commission revealed that attackers penetrated its EDGAR filing system in 2016 and extracted non public earnings from corporate issuers. The SEC filed suit in 2019 against a Ukrainian hacker and six traders who allegedly netted more than four million dollars in illicit profits.

CloudSEK, a threat intelligence firm, reported on January 5 that dark web marketplaces listed more than four hundred compromised “gold check” business accounts for sale. Prices ranged from two hundred to two thousand dollars – depending on follower count. Government “grey check” accounts commanded higher premiums, though fewer circulated.

The SEC’s X profile carried a grey checkmark and 3.4 million followers at the time of the intrusion. Screenshots posted to Breach Forums on Tuesday evening displayed a user auctioning “@SECGov access” for five bitcoin, approximately two hundred and fifteen thousand dollars. The post vanished within minutes.

Bitcoin traders proved especially susceptible to the false announcement. Derivatives markets recorded one hundred and twenty million dollars in liquidations during the spike and collapse. A trader who operates under the alias “Kronos” and manages a twenty-million-dollar fund described the reaction: “No filings on EDGAR, no press release, no Gensler quote – just a tweet. Half the desks hit buy anyway.”

Stark warned that cryptocurrency markets remain fertile ground for rumor based manipulation. “Equity investors parse 10-Ks, earnings calls, supplier data. Crypto traders react to memes,” he said. “When the regulator’s own channel emits noise, the signal disappears.”

The SEC’s October 2023 tweet – “Careful what you read on the internet. The best source of information about the SEC is the SEC” – now appears beneath a community note that reads: “On January 9, 2024, the SEC’s X account posted false ETF approval news. Verify statements through sec.gov.”

Security researchers traced the telephone number hijack to a reseller that provides voice-over-IP lines to federal agencies through a General Services Administration contract. The carrier, which operates under the name FirstComm, acknowledged “an isolated incident affecting one federal client” and stated that it “disabled the offending user account.” The SEC has not confirmed the carrier’s identity.

Federal agencies must comply with Homeland Security Presidential Directive 12, which mandates two factor authentication for privileged accounts. The SEC’s Office of Inspector General listed “incomplete implementation of multifactor authentication” as a management challenge in a November 2023 report. The report noted that twenty three percent of the agency’s privileged accounts lacked the safeguard.

The @SECGov profile resumed tweeting at 11:05 a.m. Wednesday with routine enforcement actions. The agency has not posted details of the intrusion. A person familiar with the investigation said the SEC’s Office of Information Technology has until January 16 to brief the five commissioners.

Stark summarized the episode in plain terms: “A regulator that demands layered defenses left its own front door unlocked. Markets noticed.”

Five points for the opening bell

Five Points for the Opening Bell

U.S. equity futures hover near yesterday’s close after the S&P 500 shed 1.8 %. Bitcoin trades above $110,000 for the first time. Snowflake climbs for a second session after the data warehouse group sold $2.5 billion in notes at the tight end of guidance.

The 10-year Treasury yield holds at 4.63 %. West Texas Intermediate crude slips to $66.40 a barrel. Spot gold retreats to $2,640.

Bitcoin’s overnight jump lifts crypto exposed equities. MARA Holdings rises 1.9 % in pre market trade.

Snowflake reports adjusted earnings of $0.24 a share on revenue of $1.04 billion, up 26 % from the prior year. Both metrics exceed the Visible Alpha consensus. Management projects full year product revenue of $4.33 billion – topping the Street’s $4.29 billion estimate.

AT&T agrees to purchase fiber provider Frontier in an all cash deal valued at $9.3 billion. The transaction adds one million fiber subscribers and extends the carrier’s footprint to four million locations across eleven states. AT&T targets a first half 2026 close. The stock shows no clear direction before the open.

CoreWeave posts revenue of $1.92 billion in its debut quarterly report, up from $228 million a year earlier. The cloud computing specialist narrows its net loss to $168 million from $314 million.

The dynamic journey of bitcoin's value

The Dynamic Journey of Bitcoin’s Value

Bitcoin has remained a compelling and frequently monitored asset since its inception in 2009, persistently displaying dramatic fluctuations in value. The volatility is likely to persist as long as there is interest in it as a financially viable asset, as both historical and current trends suggest.

Bitcoin’s Evolution: A Volatile Journey

Bitcoin’s initial cost was zero at its introduction in 2009. On October 26, 2010, its value jumped from its long-standing price of $0.10 to $0.20. By the end of the year, it reached $0.30. In 2011, it exceeded $1, peaking at $29.60 on June 8. However, a dramatic downturn in cryptocurrency markets followed, and it closed the year at roughly $5.

In 2012, Bitcoin experienced a relatively uneventful year, with only minor price increases. But 2013 marked significant price gains. Bitcoin began trading at $13, then rose above $100 by April and hit $200 by October. By November, it surpassed $1,000 and ended the year at $732.

Early 2024

After receiving fund approvals, Bitcoin surged past $60,000 in late February and early March. It reached a high of $69,210 on March 6 and $70,184 on March 8. On March 1, Bitcoin continued setting records, reaching $73,835 on Coinbase.

Bitcoin from 2016 to 2020: Rapid Developments

Bitcoin’s price gradually climbed throughout 2016, surpassing $900 by year-end. In 2017, the value lingered around $1,000 until it broke through to over $2,000 in mid-May, soaring to a close of $19,188 by December 16. This spike drew attention from mainstream investors, governments, economists, and scientists, prompting the development of competing cryptocurrencies.

During 2018 and 2019, Bitcoin’s price moved sideways, with brief activity spikes. A notable resurgence occurred in June 2019 when the price and trading volume spiked, with Bitcoin exceeding $10,000. However, by mid-December, it closed at $6,612.

The COVID-19 pandemic’s onset in 2020 invigorated Bitcoin’s market activity. Opening at $7,161, the economic impacts of the pandemic fueled fears that propelled Bitcoin’s price onward. By closing on November 23, 2020, Bitcoin traded at $18,383, and on December 31, Bitcoin had increased by 416%, closing at $28,993.

Mid 2024

April 19, 2024, marked Bitcoin’s fourth and most recent halving event, decreasing the reward for mining a block from 6.25 BTC to 3.25 BTC. The day ended with a moderate gain, closing at $63,821.

The U.S. announced its first rate cut since the pandemic started on September 18, 2024, reducing the federal funds target rate to between 4.75% and 5%.

The market responded positively, and Bitcoin continued aligning with stock market trends. On September 19, 2024, it traded around $64,000, notably above its price from just two days earlier.

Bitcoin’s Journey from 2021 to 2023

The year 2021 saw Bitcoin swiftly surpass its 2020 peak, breaking the $40,000 barrier by January 7. By mid-April, the price reached unprecedented levels above $60,000, driven by Coinbase’s public offering. Institutional interest further fueled the surge, pushing Bitcoin to $64,895 on April 14, 2021. However, by summer, it dropped 50% to close at $30,829 by July 19. September saw another bullish phase, but a significant downturn followed, closing at $40,597 two weeks later.

On November 10, 2021, Bitcoin achieved a new high of $69,000, but by mid-December, it fell to $46,211 amid inflation uncertainties and the rise of the COVID-19 Omicron variant. During the first half of 2022, the price consistently declined, closing at $47,459 in March before dipping to $29,000 on May 11. June 13 saw a drop below $23,000, a first since December 2020, eventually closing below $20,000 by year’s end.

In 2023, fortunes reversed as Bitcoin began the year at $16,530 and consistently rose, concluding the year at $42,258.

Late 2024

November 7, 2024, saw Bitcoin hit $76,999 on Coinbase following Donald Trump’s re-election, before closing at $75,820—a 9% rise from November 5. By November 10, Bitcoin crossed the $80,000 mark on Crypto.com. On November 11, prices continued ascending, and by November 13, surpassed $91,000 on Coinbase. Financial exhilaration remained, driving Bitcoin to astonishing heights of $99,637 on Oanda, $99,543 on Coinbase, and $99,555 on Gemini by midday on November 22, 2024.

At approximately 3 p.m. ET, Bitcoin exceeded $100,000 on the European exchange Whitebit, concluding the day at $99,513.13.

These considerable increases stem from investor enthusiasm about Trump’s campaign promises, such as appointing a new Securities and Exchange Commission chairman, establishing America as “the crypto capital,” and creating a “Strategic Bitcoin Reserve.”

The Ever-Inflating Bitcoin Value

Bitcoin prices, like any currency, product, or service within an economy, are driven by perceived value alongside the forces of supply and demand. If individuals deem Bitcoin to hold a particular worth, they will purchase it, particularly if they anticipate its value escalating. With only 21 million Bitcoins ever planned for creation, its finite supply is expected to continually bolster its value as scarcity increases demand.

Bitcoin generation follows a predetermined pace via mining software and hardware. This rate undergoes halvings, slowing coin creation. The most recent halving took place on April 19, 2024. Should events unfold as in the past, Bitcoin’s price could rise further; however, market reactions are inherently unpredictable.

As Bitcoin’s appeal grows while supply falls short of demand, prices are likely to climb. Conversely, decreasing popularity and demand could lead to an oversupply, causing prices to fall unless other value-preserving factors intervene.

New Bitcoin Securities and Their Influence on Price

Bitcoin has evolved into a significant financial entity, utilized by investors and institutions to store value and achieve returns. Derivatives have been developed to diversify access to BTC, broadening its appeal and manipulating demand.

Fear, speculative behavior, and investment hype substantially impact Bitcoin’s valuation due to fluctuating investor sentiment. Regulatory actions, such as the SEC’s approval of Spot Bitcoin ETFs, lead to market participant reactions and resultant adjustments in prices based on supply-demand shifts.

Bitcoin ETFs: Amendments and Impacts

In January 2024, the U.S. Securities and Exchange Commission allowed U.S. exchange-traded products to directly buy and hold Bitcoin on behalf of investors. Previously, ETFs could only access Bitcoin indirectly through futures contracts. The SEC’s approval of options contracts on select spot Bitcoin ETFs occurred in October 2024. By June 2025, 66 Bitcoin spot ETFs were in existence, collectively exceeding $138 billion in assets.

Competitive Cryptocurrency Landscape

The competition among cryptocurrencies also plays a pivotal role in Bitcoin’s price dynamics. As regulatory concerns dissipate and institutions embrace cryptocurrencies as valid financial instruments, their utility and acceptance continue to rise.

If Bitcoin is perceived as less valuable relative to other cryptocurrencies, demand and prices could diminish. Alternatively, if sentiment and trading trends favor Bitcoin, demand and prices could rise.

Is Bitcoin a Worthwhile Investment?

Bitcoin, intended as a transaction method, has found use among investors as a volatile investment with high financial risks. Consulting with a financial advisor to understand personal financial goals and circumstances is advisable before investing in Bitcoin.

Bitcoin’s Peak Price

Bitcoin’s highest recorded value was $112,509.65 on May 22, 2025.

Future Bitcoin Valuation

Forecasting Bitcoin’s price is challenging due to its volatile nature. By 2030, its value could range from nothing to millions, contingent on supply, demand, competition, and regulatory influences.

The evolution of currency: from barter to bitcoin

The Evolution of Currency: From Barter to Bitcoin

The concepts of “money” and “currency” are often seen as synonymous. However, some theories assert their distinction. While money is considered an abstract idea, currency manifests this notion physically or tangibly.

Money, within this theory, is beyond the senses—untouchable and unscented. On the other hand, currency is its physical embodiment, be it a coin, a banknote, or any tangible representation of monetary value.

Money is fundamentally numerical, while currency takes the form of tangible items such as paper, coins, or modern-day plastic cards like credit or debit. Though the differentiation between money and currency holds relevance in certain scenarios, for the historical exploration here, the terms will be used interchangeably.

The global value of money, whether embodied as a piece of code, a sea shell, or a paper, depends largely on collective human consensus, estimated to be around $432 trillion by the end of 2023. It serves as a unifier for exchanging goods, measuring value, and storing wealth.

The advent of money facilitated indirect trade between individuals, providing a standard valuation and price communication system. It serves as an accounting medium—an accepted benchmark for pricing and transactional credibility. Yet, the form and use of money have continuously transformed through the ages.

Having been a facet of human civilization for about 5,000 years, money in its myriad forms evolved from a presumed barter system—a direct trade of commodities and services. A farmer swapping a bushel of wheat for a pair of shoes with a shoemaker exemplifies such a barter.

Bartering’s direct exchanges, though effective, were often cumbersome—requiring, for instance, the negotiation of an axe trade for a service like mammoth hunting, a complex exchange that necessitated consensus on terms.

Over centuries, a novel currency form was birthed—utilizing items of easy trade, such as animal skins, salt, and weapons. These commodities often functioned as currency themselves, leading to a global barter proliferation that persists in some modern communities.

Efficient transaction speed was among the many boons that monetary adoption brought, revolutionizing the doing of business, from slaying mammoths to constructing monumental edifices.

Fast Fact

The world’s first secure coin minting site dates back to Guanzhuang in China’s Henan Province, where, around 640 BCE, spade coins began as one of the earliest forms of standardized metal coinage.

Simultaneously, in 600 BCE, Lydia witnessed the birth of the first official currency, as King Alyattes endorsed the creation of metal coins—the Lydian stater, employing naturally occurring electrum, a gold-silver alloy stamped with images serving as validation.

By the time Marco Polo journeyed to China in 1271 CE, paper banknotes had replaced metal coins, their issuance regulated around the gold standard established in the 1870s—permitting currency minting proportional to a nation’s gold reserves.

A significant development in North America was Europe’s introduction of paper currency, a necessity owing to the delays in colonial supply shipments. Resultantly, colonial administrations began producing their currency, establishing the first currency market and optimizing currency trading mechanisms.

As digital innovations revolutionize transactions, the modern era witnesses the emergence of virtual currencies, like Bitcoin. Released in 2009 by the pseudonymous Satoshi Nakamoto, Bitcoin, as of August 7, 2024, holds significant value globally, surpassing $1.14 trillion.

Though without physical manifestation, Bitcoin and its digital counterparts such as Ethereum, XRP, and Dogecoin, traded on exchanges, have captured market interest—a testament to their growing acceptance.

The narrative of money is an ongoing saga, continually adapting from bartering skins to minting coins, transitioning to paper currency, and now, shifting towards a digital realm.

Even as traditional transaction means resurface in B2B exchanges or consumer services, the evolution of the monetary system remains inevitable in addressing humanity’s need for a transactional medium.

The titans of bitcoin: who are the cryptocurrency moguls?

The Titans of Bitcoin: Who Are the Cryptocurrency Moguls?

With a market cap of approximately $2.01 trillion on Dec. 5, 2024, Bitcoin stands as a prominent digital asset and payment system. Often regarded as one of the most triumphant digital currencies ever, it traded above $104,000 on that same date.

A remarkable and varied group of millionaires and even billionaires have emerged from Bitcoin’s meteoric rise since its 2009 inception. The ownership of such wealth, however, remains elusive. Wallet addresses, if not linked to the owner’s identity, remain anonymous. Disclosure by the individual is the sole method of confirming ownership.

Bitcoin made its debut in 2009, introducing the world to the first and most prolific blockchain-based cryptocurrency. Bitcoin’s price has experienced volatility, fluctuating from less than $10 in 2010 to trading at over $104,000 on Dec. 5, 2024. Early adopters saw this as a lucrative opportunity, investing or mining and holding onto their bitcoins, thereby accumulating wealth through the overall price increase.

Here is a compilation of entrepreneurs and investors whose most substantial net worth, as publicly acknowledged, originates from Bitcoin. Some individuals amassed wealth not just through holdings but also by crafting products enhancing Bitcoin’s ecosystem. Numerous exchanges and derivatives have been established, aiding the currency’s evolution.

Binance, which emerged in 2017, processes daily transactions worth billions. Although not as familiar to U.S. customers compared to platforms like Coinbase, Binance surpasses competitors by offering a more diverse selection of coins and derivatives.

The rapid ascent of the exchange has led to regulatory challenges. Operating without a central office, it faces scrutiny in several financial jurisdictions.

Fast Fact

On Dec. 5, 2024, Bitcoin finally achieved its long-anticipated peak.

Brian Armstrong ventured into the crypto sphere through the founding of Coinbase. Despite facing numerous challenges, including trading interruptions amid volatile market conditions, Coinbase went public in April 2021, reaching a market valuation of $82.78 billion as of Dec. 5, 2024. Armstrong’s vision was a “global, open financial system that prompts innovation and freedom.”

Over the years, Bitcoin has drawn in a plethora of unconventional investors. Among them is Michael Saylor, the fervent CEO of MicroStrategy Inc.

Saylor has become one of Bitcoin’s staunch advocates, frequently speaking at news outlets and crypto conferences to promote its merits. By December 2021, MicroStrategy had capitalized on market dips to amass $3.5 billion in Bitcoin.

In August 2021, the District of Columbia took legal action against Saylor and MicroStrategy over unpaid personal income taxes. Adjusted to include allegations of false withholding statements, the charges were amended in May 2023. In May 2024, Saylor settled the case with a $40 million payment, without admitting guilt.

In December 2022, MicroStrategy added another 2,500 bitcoins to its portfolio. As of Dec. 5, 2024, the company held approximately 402,100 bitcoins, valued at about $40 billion.

Saylor’s net worth, according to Forbes, stands at $10.2 billion.

An entrepreneur with a background in plastic surgery, Giancarlo Devasini ventured into the crypto domain, eventually becoming the CFO of both a cryptocurrency exchange and Tether, a widely-utilized stablecoin.

After choosing not to pursue a medical career, Devasini transitioned to technology by founding a business that imported computer components. His foray into cryptocurrency began post-retirement upon meeting Bitfinex’s founder in 2012, where he played a pivotal role in the exchange’s growth.

Forbes estimates that Devasini, with a 47% stake in Tether, holds a net worth of about $9.2 billion.

Cris Larsen, co-founder of Ripple, is another prominent player in cryptocurrency. He retains his role as Ripple’s executive chairman. Prior to his involvement with cryptocurrency, he co-founded e-Loan, an online mortgage service sold to Yahoo.

Speaking to Forbes on blockchain and cryptocurrency, Larsen remarked, “The internet of value signifies more than just a novel financial system; it embodies the culmination of globalization.”

As of December 2024, Forbes values Larsen’s wealth at $4.0 billion.

Who Is the Highest Owner of Bitcoin?

Although the identity of Bitcoin’s developer remains shrouded, rumors suggest ownership of over 1 million bitcoins. Due to the cryptocurrency’s pseudonymous nature, this remains unverified. As of December 2024, MicroStrategy under Michael Saylor holds 402,100 BTC.

Who Is the Richest Crypto Billionaire?

According to the Forbes Real-Time Billionaires List, Changpeng Zhao, Binance’s founder, holds an estimated wealth of $33 billion, ranking him as the leading figure in the crypto world.

How Many People Own 1 Bitcoin?

The exact number of one-Bitcoin holders remains uncertain, given multiple addresses per individual. However, BitInfocharts reports that on Dec. 5, 2024, 3,494,128 addresses held balances ranging from 0.1 to 1 BTC.

As cryptocurrencies gained traction, the number of individuals profiting immensely from this asset class surged. Crypto billionaires comprise a diverse group, some generating wealth by offering products and services to the burgeoning ecosystem, while others capitalized on market fluctuations.

For informational purposes only, the views, opinions, and analyses in this article are expressed. For more details, refer to our other resources. At the time of this article’s writing, the author does not hold any cryptocurrency.