SEC and Gary Gensler to be sued

Several members of the crypto community are preparing to sue the head of the US Securities and Exchange Commission (SEC), Gary Gensler, and the Commission itself for market manipulation. The reason for bringing forward the charges was a fake about the approval of a spot Bitcoin ETF in the United States, which on January 9, 2024, was posted by unknown persons on the regulator’s microblog.

Crypto community against SEC

Crypto investor, Onchain Capital co-founder Ran Newner wants to sue the SEC and Gary Gensler for market manipulation. With information about this he shared with readers of your microblog.

In the comments under his post about his intention to seek punishment from the SEC and Gensler through the court also stated AltcoinGordon, a popular analyst in the crypto community. He claims his lawyers are already working on the case. Netizens suggestedthat the court will consolidate the complaints against the SEC into a class action lawsuit.

What will the Commission and Gensler be judged for?

The reason for initiating legal proceedings with the SEC and Gensler was a fake about a spot Bitcoin ETF. The message about the launch of the tool appeared on the Commission’s microblog on January 9, 2024. After 20 minutes it was removed. Representatives of the SEC and Gensler complained about the hacking of the regulator’s account. Attackers could gain access to the Commission's microblog due to the absence of two-factor authentication in its settings.

The publication of a fake about a spot Bitcoin ETF on the SEC microblog and subsequent denials provoked a wave of liquidations in the market. There are a lot of complaints from traderswho suffered due to a false message on the Commission's microblog.

By an evil irony of fate earlier SEC called market participants believe only the information that the Commission publishes in its official sources. Following the regulator’s advice, as the fake story showed, resulted in serious losses for many traders.

Although Team X confirmed hack SEC account, many members of the crypto community believe that this is not so. results survey Bloomberg analyst Eric Balchunas showed that 83% of network users do not believe the Commission’s version. In their opinion, the message about the approval of spot Bitcoin ETFs was written by the commissioners themselves. There may be several reasons why they could retract their words. For example, the Commission may have set the publication date incorrectly. This theory, including supported former Assistant to the President for Communications Anthony Scaramucci.

Questioning Balchunas about who actually authored the scandalous SEC report: the Commission itself or outsiders

There is also a version according to which the scammers posted a post prepared in advance by the SEC team.

It turns out that the regulator, which judges participants in the crypto industry for market manipulation, turned out to be the biggest manipulator itself. Representatives of the crypto community considerthat the SEC should be punished for its wrongdoing.