Coinbase Executives Offer Security Support to SEC Following Account Hack

Coinbase executives have offered to help the U.S. Securities and Exchange Commission (SEC) following the Monday hack of the federal agency’s account on X. 

Coinbase offers to assist with “security protocols”

“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,” Coinbase’s Chief Security Officer, Philip Martin, posted to X Tuesday night. “If you’d like any suggestions feel free to reach out.”“The entire @coinbase team offers its help,” said the crypto exchange’s Chief Legal Officer Paul Grewal. “We are committed to doing our part to ensure fair, orderly and efficient markets for all Americans.”

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

A moving market

The Coinbase executives’ offers follow a turbulent day for the SEC after their official X account was hacked and posted a tweet falsely claiming the federal agency had approved a spot bitcoin ETF.“The @SECGov twitter account was compromised, and an unauthorized tweet was posted,”  SEC Chair Gary Gensler posted to X Tuesday afternoon. “The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.”Following the SEC hacker’s post, the price of Bitcoin shot up to $48,000 before ultimately dwindling back down to $44,000. As of late Wednesday morning, Bitcoin was trading at around $45,000.

Senators demand answers following account hack

Shortly after Gensler’s post, Senators Thom Tillis (R-NC) and JD Vance (R-OH) drafted a letter to the SEC chair demanding an explanation for the hacking.“The United States is home to the world’s deepest and most liquid capital markets and stability and soundness are imperative if investors are to maintain their trust in our markets,” the letter reads in part. “It is unacceptable that the agency entrusted with regulating the epicenter of the world’s capital markets would make such a colossal error.”Moreover, Tillis and Vance are demanding to know whether the post has complicated the timing of the approval of a spot bitcoin ETF and the SEC’s ability to compensate those who bore financial losses due to the post.“These developments raise serious concerns regarding the Commission’s internal cybersecurity procedures and are antithetical to the Commission’s tripart mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation,” the Senators’ letter reads in part.Gensler has yet to respond publicly to the letter, with recent discussion suggesting spot bitcoin ETF approval by Thursday.