#1 and #2 are both acceptable; we normally do not use 'being' as a gerund (as an awkward passive gerund), however, but let the nonfinite clause stand as an adjectival, as in #2. I hope that you did not read that in a reputable newspaper, though, because the sentence has other errors.
New words, one handy idiom, and a 2-minute quiz — delivered to your inbox to keep your streak alive.