Paraguay President’s Social Media Hack Sparks Fake Bitcoin Legal Tender News, Prompt Response Prevents Losses
On June 9-10, 2025, hackers compromised Paraguayan President Santiago Peña’s official X (Twitter) account, posting a false announcement that Paraguay had adopted Bitcoin as legal tender and planned to establish a $5 million Bitcoin reserve and offer Bitcoin-backed bonds. The post, unusual for being written in English and with exaggerated claims, briefly caused confusion and volatility in crypto markets. It was quickly picked up by international media, including Reuters and Bloomberg, before being debunked. The Paraguayan government soon clarified the account was hacked, and no such legal or financial steps regarding Bitcoin had been taken. Blockchain monitoring showed the hackers’ Bitcoin wallet received no new funds, indicating increased vigilance among crypto traders, who proved resistant to the phishing scam. The incident underscores ongoing risks of misinformation and social engineering in the crypto sector through high-profile accounts, while highlighting the improved defenses from traders and markets. No users suffered losses, but the event is a reminder to verify news sources and remain alert to social media-based crypto scams.
Neutral
The hack of President Santiago Peña’s social media account led to a brief market stir by falsely claiming Paraguay had adopted Bitcoin as legal tender. However, the government quickly debunked the news, and the intended scam failed to attract funds from crypto users. The market impact was short-lived because traders recognized the signs of a scam, and no official policy action occurred. Such incidents highlight risks posed by misinformation but, in this case, demonstrate greater community resilience and minimal lasting influence on Bitcoin prices or trading sentiment. Therefore, the overall effect on the Bitcoin market remains neutral.