The SEC blunders billions?

in #hive-16792211 months ago

If you've been living under a rock and have no idea what's going on, check out this post.

The deadline for the SEC to make a decision is today, January 10.

Yesterday, the SEC published a post on X mentioning that the BTC ETF had been approved, which caused a huge pump in Bitcoin and other cryptocurrencies. A few minutes later, Gary Gensler posted on his personal account saying that the SEC account had been compromised and that the news were fake, causing a huge dump. Both of these event liquidated a lot of money. It all came to be a fake news event.


So let's break this all down.


SEC account compromise Timeline:

15:11 — @SECGov tweets all #Bitcoin ETFs are approved.

15:26 — @GaryGensler says SEC account was hacked.

15:38 — SEC “regains control” of their account & deletes original tweet.

15:42 — SEC tweets they were hacked & have not approved ETFs.

Fishy?


Ok so first things first, the wording is interesting. Gary never said the SEC's account was compromised by an external hacker. It could have been compromised by internal incompetence.

The first interpretation by the crypto space was that the SEC account had been hacked, but if you look at the wording, and then the timeline, it's very clear that it wasn't a hack.

It takes months, dozens of support tickets, reaching out to people inside X to recover a hacked account on X. Granted, the SEC would have a fast pass and would recover it faster, but not in a matter of minutes.

A good guess is the SEC scheduled the announcement in their account to go out on the 10th and messed up, and the intern messed up the date so the post went out a day earlier; or it might have been a fat finger mistake, who knows?


A few hours later, Elon Musk confirmed that the account was compromised due to a SIM swap and that the SEC account didn't have a 2FA security measure.

But then some people started to notice that the SEC account was liking some of the meme replies the first announcement got. This goes completely against the normal behavior the SEC account has, and it strengthens the theory that the bad actor was an outside entity and not a fat finger or a draft post that went out earlier than planned.

So what was it?

There are other theories

There's a theory that the SEC orchestrated all of this, and there's two main reasons that do not cancel each other:

  • The post went out to test the waters and create FUD, generating a lower entry price for big tradFi players.
  • The post went out to generate very short term volatility so that Gary has the argument that BTC is too volatile, it's highly manipulative, and reacts to strongly to fake news - even if the fake news come from the official SEC account.

Now the latter would be just an excuse to reject the BTC ETF. A mere excuse, because traditional markets react harder to smaller news. Let's say Elon Tweets that he's selling X, the stock price could drop by double digits in a matter of minutes. So yeah, this would just be an excuse, but a strong enough excuse for Gary to pull it off, even if it meant antagonizing billions of dollars from Blackrock, Greyscale, Ark, and many more.

What's your theory?

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Interesting Eric, you are probably right. The simplest solution is usually the correct one.

We got an answer already, but it was fun writing about the possibilities.

Greetings, boss, this is Danny..Jay06 One of the winners mentioned in today's space meeting has tried reaching you on X; maybe it didn't go through.

Please boss, what am to send across to receive my prize boss?

Thanks boss.

Has this been fixed fren?

Now the latter would be just an excuse to reject the BTC ETF.

What excuse would that be?

They legally can't use "market manipulation" as a reason after the Grayscale loss.
I'm thinking they delay until March and kick ARK down the road.
Nobody respects ARK investments anyway.

We got an answer on this, but it was pretty plausible, they've used weaker reasons and excuses for crap like this lol

The answer we got was hilarious though.
Gensler acting like a pouty child.
"We didn't want to but Daddy Government scolded us."

It doesn't take months to recover an account, specially if it is an important account. Recently the Brazil first lady's account got hacked, and she complained that it took 1 1/2 hours for X support to recover the account for her. The funny part was she saying that X support lagged to respond on purpose so that X could profit of the fake posts on her account.

Yeah it doesn't for big entities, but it doesn't take minutes hehe, no matter who you are because of the human factor involved.

The same day Richard Heart drops this bombshell.

One of his over 11 lawyers is the same one that Elon Musk hired who beat the SEC and saved Elon from a $12B fine.

The other lawyers are also killers… read the 4 pages it’s golden, they even suggest the SEC is breaking the law!

Crypto as a whole should stick together

SEC is taking so many L’s lately

Feels like a an attempt to shake the tree, which it didn't really do. Approval and 50k US later then?

I think this is the way. I do believe there will be another shakeout but it'll be gobbled right back. Anyone serious who owns btc will not sell after the news, the space sentiment is too bullish, and not the kind of bullish that you can profit from if you counter position.

Looks like the next shake is on! They don't fool us :)

If this hack is genuine, things would resume next week or so. If this hack is accidental and was done with some market movement intention, I think SEC would then approve things at their pace either way. But they would surely move the market. They should keep these things one company every 15 days this way market would move all year around.

We now have an answer but at the same time, I still expect someone to poke on what really happen and there are real consequences man.

You've painstakingly raised intriguing theories about the SEC's role in recent crypto events I must say . Their role in all these seems to suggest a calculated move to influence entry prices or manipulate BTC's perceived volatility for ETF rejection.

They are definitely shady, them and the senators, everyone is dirty man