A bizarre incident shook the Latin American crypto landscape this week as Paraguay’s President Santiago Peña’s verified X (formerly Twitter) account was ha
cked to falsely announce Bitcoin as legal tender. The fraudulent post, which was deleted within minutes, not only misled thousands but also triggered a short-lived rally in Bitcoin’s price, a stark reminder of how fragile perception can be in the crypto space.
Paraguay’s Fake Bitcoin Policy Goes Viral
On June 9, the President’s account posted a message in both English and Spanish declaring Bitcoin’s immediate adoption as legal tender and the formation of a $5 million Bitcoin reserve fund. The post also included a Bitcoin wallet address, calling on the public to “join the future of Paraguay.”
The announcement caused widespread confusion, given that Paraguay has never passed any legislation to legalize BTC as an official currency. The tweet’s timing and international language use raised immediate red flags. Soon after, Paraguay’s official government X account released a statement labeling the tweet as “Información falsa”, a false announcement. Authorities confirmed that the president’s account had been compromised in a coordinated cyberattack.
CERTPY, the country’s cybersecurity agency, responded swiftly. The agency announced it is working with X’s trust and safety team to investigate the breach and restore the integrity of the president’s online communication channels.
Market Reaction: Bitcoin Spikes Briefly
The impact of the fake announcement was immediate. Bitcoin surged more than 4%, breaching the $110,000 level before quickly correcting once the hoax was confirmed. Analysts described the spike as a classic case of FOMO-driven micro volatility, where rumors spread faster than verification mechanisms.
“Even a single tweet from a verified government account can shift market sentiment dramatically,” said Clara Ruiz, a Latin American crypto policy analyst. “This incident is a case study in how misinformation can move markets.”
While the scam caused no reported losses, the wallet address embedded in the post reportedly received less than $5 in total transfers, suggesting the intent may have been more about publicity or market disruption than financial gain.
Pattern of Political Crypto Hoaxes in Latin America
This is not an isolated incident. Just months earlier, Argentina faced a similar hack, where an impostor account falsely announced the country’s own digital currency called “Libra.” These events expose a troubling trend: crypto-related scams leveraging the credibility of political leaders and official channels to spread misinformation.
In Paraguay, the situation is even more sensitive. The country has emerged as a hotspot for Bitcoin mining thanks to its abundant hydroelectric power from the Itaipú Dam. Yet, the country still lacks clear crypto regulatory frameworks, making it vulnerable to manipulation and confusion.
Call for Better Cybersecurity Protocols
The hack has reignited calls for stronger cybersecurity measures for public officials, especially those operating in regions experiencing fast-paced crypto adoption.
CERTPY has since urged government staff to enable multi-factor authentication (MFA) and avoid using shared devices. Meanwhile, X (formerly Twitter) has yet to release a detailed statement but reportedly cooperates with Paraguayan authorities.
“This type of breach not only harms a nation’s reputation but can distort financial markets in real time,” said cybersecurity expert Diego Meneses. “We need better safeguards, especially when crypto narratives are involved.”
Conclusion: A Reminder to Verify Before You Trade
The Paraguay presidential hack is a reminder that social media is still the most powerful weapon in the crypto narrative war—one capable of moving markets and altering public sentiment in minutes.
As Latin America continues its journey into digital finance, investors and citizens alike must remain vigilant. Misinformation can cost more than just credibility, it can cause real financial chaos.
Before responding to any major policy news—especially on platforms like X—always confirm through official government websites or trusted news outlets.
Frequently Asked Questions (FAQs)
What happened to the President of Paraguay’s X account?
President Santiago Peña’s verified X (formerly Twitter) account was hacked on June 9, 2025. The hackers falsely announced Bitcoin’s adoption as legal tender in Paraguay.
Was Bitcoin actually made legal tender in Paraguay?
No. The announcement was fake. The Paraguayan government quickly confirmed that the message was a hoax and that no such law or policy exists.
Did the fake Bitcoin post affect the market?
Yes. Bitcoin briefly surged over 4%, climbing above $110,000 before correcting after the news was debunked. The hoax caused temporary volatility.
Who is investigating the hack?
Paraguay’s cybersecurity agency (CERTPY) is working with X (formerly Twitter) to investigate the breach and prevent future incidents.
Glossary of Key Terms
Bitcoin: A decentralized digital currency that allows peer-to-peer transactions without a central authority.
Legal Tender: An official form of money recognized by a government for the payment of debts.
X (formerly Twitter): A social media platform frequently used by public figures and governments for official announcements.
Hack: Unauthorized access to digital systems or accounts, often used to spread false information or steal data.
CERTPY: Paraguay’s national cybersecurity agency responsible for managing and responding to digital security incidents.
Phishing Scam: A fraudulent attempt to trick users into giving sensitive information, often using fake websites or social posts.
Sources and References
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