Coinbase’s top executive offers SEC cybersecurity assistance

Earlier, the regulator’s social media account was hacked to publish a fake that had an impact on the market

10.01.2024 - 15:47

3 min

What’s new? Coinbase crypto exchange security director Philip Martin asked the US Securities and Exchange Commission (SEC) and personally its head Gary Gensler for help in providing protection measures against cyber threats. Earlier, a hacker broke into the SEC’s X account and published a fakeabout the launch of spot bitcoin exchange-traded funds (ETFs), which caused market fluctuations.

Source: Twitter.com

What else is known? In the Senate, the SEC was demanded to report on the reasons for this incident, which jeopardized users and the stability of the market. Participants in the crypto community noted the SEC’s incompetence in cybersecurity issues and also called on officials to be held accountable for allowing market manipulation on behalf of the commission.

The Support X explained that the hack was made possible by the lack of two-factor authentication on the SEC’s official account, which is the most popular way to increase protection against social media hacking.

In a statement, Coinbase’s senior executive noted that the exchange has a lot of experience with social media security protocols. “As a veteran and patriot I love to help my country. If you’d like any suggestions feel free to reach out,” Martin concluded.

The SEC’s pressure was one of the reasons why Coinbase focused more on developing its global business. In June, the exchange received a lawsuit from the commission on charges of trading in unregistered securities. Prior to its filing, Coinbase had petitioned the SEC to clarify industry rules.

Coinbase CEO Brian Armstrong accused Gensler of a “crusade” against the crypto industry. Later, he said that the exchange had unsuccessfully held 30 meetings with the SEC in 18 months in an attempt to understand the principle by which officials classify cryptocurrencies as securities.

At the same time, the exchange does not abandon lobbying efforts to promote crypto-friendly regulation, in 2023 it again topped the ranking of companies in terms of spending in this direction.

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