- Coinbase executives have offered assistance to the SEC after its X account was compromised
- The SEC’s X account was supposedly hacked on Tuesday, leading to a fake BitcoinETF approval being posted
- Coinbase’s tongue-in-cheek offer has not been responded to
Coinbase executives have made what they call a “serious offer” to the Securities and Exchange Commission (SEC) following a security breach that allegedly saw the agency’s X account compromised. The breach famously resulted in the posting of a fraudulent spot Bitcoin ETF approval message, with the SEC quickly denying that it was genuine and claiming that the account had been breached. Coinbase has leaped to its adversary’s aid, offering to assist with internet security, although many have noted the tongue-in-cheek nature of the offer.
SEC Left Red Faced
The SEC made headlines on Tuesday when its X account posted a genuine-looking post approving the slew of Bitcoin ETFs a day ahead of the anticipated approval. The agency and Chair Gary Gensler came out soon after to state that the post was fake and that, against its own published advice, the device used to access the account did not have two-factor authentication, which allowed a malicious third party to carry out the deed.
Philip Martin, Chief Security Officer at Coinbase, took to X to offer his company’s experience in keeping hackers at bay:
hey @GaryGensler and @SECGov, serious offer: as a crypto exchange we’ve had a lot of experience with security protocols around social media, and as a veteran and patriot I love to help my country. If you’d like any suggestions feel free to reach out. https://t.co/w3z2yU6FZw
— Philip Martin (@SecurityGuyPhil) January 10, 2024
Paul Grewal, Coinbase’s Chief Legal Officer, who has been at the spearhead of Coinbase’s efforts to get some sense out of the SEC over its crypto regulation, upped the ante, putting the entire company at the SEC’s disposal:
The entire @coinbase team offers its help. We are committed to doing our part to ensure fair, orderly and efficient markets for all Americans. https://t.co/eYI8mQtmCT
— paulgrewal.eth (@iampaulgrewal) January 10, 2024
The SEC has declined to respond to Coinbase, which is in keeping with its approach to regulatory matters where the exchange is concerned, but given the legal entanglements between the two the authority is more likely to consult North Korean hacking group Lazarus than Coinbase over security matters.
For its part, the SEC says it is collaborating with law enforcement to investigate the breach, although some believe it was simply someone in control of the account jumping the gun, but whatever the truth of the matter it is deeply embarrassing for the agency, with many pointing out that if it can’t protect its X account how can it hope to protect the American public.
