The story trending over social media platforms alleging SEC chair Gary Gensler is resigning, turned out to be fake, as sources from a prominent news outlet confirmed from the SEC PR. It turned out Gensler is not resigning, which most crypto community members who are not fond of him wished to be true.
The news of Gensler’s resignation surfaced over a website that published an article on Saturday June 1, claiming its sources have confirmed Gary Gensler’s resignation. The article cited an anonymous official claiming the SEC chair is to step down from his post after an “internal investigation.” However, as it turns out, the rumors in the news were fake, and primarily generated by artificial intelligence (AI).
Crypto reporter Wu Blockchain reported the “fake website” has only published a few articles. In addition, some crypto bloggers were also said to partake in “spreading this rumor.”
A fake website recently started spreading rumors that SEC Chairman Gary Gensler has resigned. The site has only published a few articles. Some crypto bloggers are also spreading this rumor. SEC PR told FOX reporters that Gensler is not resigning. https://t.co/X7q5z6JX5k…
— Wu Blockchain (@WuBlockchain) July 3, 2023
When asked for confirmation and clarification on the issue from prominent crypto figures like lawyer John Deaton, Fox Business reported Eleanor Terrett came forward with one. She cited the sources’ official comment who stated “BS on this.”
Wu Blockchain also had the confirmation from another Fox reporter, Charles Garparino, who noted in his tweet that the Securities and Exchange Commission (SEC) PR confirmed “Gary Gensler is not resigning.”
Breaking: As expected @SECGov PR says @GaryGensler is not resigning
— Charles Gasparino (@CGasparino) July 2, 2023
The trend of fake news in the crypto sector has elevated in the past, and is not a good sign for the market with trillion dollars worth capitalization. Earlier, another fake website containing a blog surfaced with the claim of Ripple buying back 10 Billion XRP tokens.
TheCoinRepublic reported the claim soon caught the attention of prominent crypto personalities. Ripple’s Chief Technology Officer, David Schwartz, denied any such possibility. Others were seen to raise concerns over the feasibility of the decision even if it would be true, which was proven a false claim eventually.
Artificial intelligence (AI) has started to be used for ill activities resulting in fatalities with visible after effects. For example- the instance of a morphed picture of an attack on the US Defence Department, the Pentagon. With the picture and rumor picking up pace over social media, financial markets had started to tremble. Major stocks and indices had seen a fall in the wake of the alleged incident. However, the investigations later found the near-perfect image to be processed, given the use of AI for its creation.
Given such concerns around the use of AI in regulated and controlled ways, lawmakers in the United States and United Kingdom have reportedly started taking actions.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/07/03/gary-gensler-resignation-turned-out-fake-and-ai-generated-claim/