Global Hive Buzz

The SEC's Twitter account was compromised, leading to a misleading tweet about Bitcoin ETF approval that caused price fluctuations.

Today, the price of Bitcoin underwent significant volatility following a security breach of the official Twitter account of the U.S. Securities and Exchange Commission (SEC). At 4:11 PM EST on Tuesday, a fraudulent tweet was posted, falsely announcing the approval of a spot Bitcoin exchange-traded fund (ETF).

Within 15 minutes, SEC chair Gary Gensler issued a statement alerting the public that the agency's Twitter account had been compromised, leading to an "unauthorized tweet." Gensler explicitly denied any approvals for a Bitcoin ETF, causing a sharp decline in Bitcoin's price after the initial surge.

In response to the fake SEC tweet, Bitcoin's price surged from approximately $46,600 to $47,680, reaching what seemed to be a two-year high for the cryptocurrency, as per CoinGecko data. However, the price swiftly plummeted to nearly $45,500 following Gensler's prompt clarification that regulators had not approved the listing and trading of spot Bitcoin exchange-traded products.

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The stablecoin associated with PayPal is now a component of the third-largest liquidity pool on Curve.

The adoption of PayPal's PYUSD dollar-backed stablecoin in the decentralized finance (DeFi) space appears to be gaining momentum. A newly established liquidity pool featuring PYUSD on the Curve automated market maker (AMM) platform has reached a total value locked (TVL) of $135 million, ranking as the third-largest pool, following the widely-used 3pool.

The growth of liquidity in DeFi is seen as a positive indicator, suggesting that PayPal is actively investing resources to expand the stablecoin's utility beyond payments, especially within the realm of crypto trading activities. Clara Medalie, Research Director at Kaiko, highlighted this development, stating, "It seems that Paypal is investing resources into expanding the stablecoin's usage for crypto trading activities, beyond just payments and within the Paypal app."

This liquidity pool, named FRAXPYUSD, not only includes PYUSD from the regulated entity Paxos but also features Frax Finance's collateralized algorithmic stablecoin, FRAX. The pool was launched on December 27, marking a recent addition to the DeFi landscape.

Attorneys from the (SEC) are set to probe market manipulation following false information regarding a Bitcoin ETF.

In a discussion with Fox Business, SEC attorneys revealed that the regulatory body is launching an internal investigation into potential market manipulation. This comes after the price of Bitcoin (BTC) experienced fluctuations based on a false post published on the SEC's X account, falsely announcing the approval of a spot Bitcoin ETF on January 9.

Bloomberg ETF analyst James Seyffarth speculated that SEC Chairman Gary Gensler may express strong dissatisfaction with the employee allegedly responsible for the security breach. However, the origin or culprit behind the dissemination of the false news post on X is yet to be determined.

Concerns have prompted American lawyers and senators to call for an inquiry into the SEC's actions concerning inaccurate information. Senator Cynthia Lummis, in particular, has urged the SEC to provide transparency regarding the events leading to the now-deleted post.

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