Paraguay President’s X Account Hacked, Spreads False Claim of Bitcoin as Legal Tender

On June 9, the personal X account of Paraguayan President Santiago Peña posted a fraudulent claim that Paraguay had adopted Bitcoin (BTC) as legal tender and established a $5 million Bitcoin reserve. The post, which also directed users to a scam wallet address to “secure [their] stake in Bitcoin,” was swiftly deleted. Paraguay’s government issued a statement confirming the account was likely compromised and urged the public to rely on official channels for accurate information.

Details of the Suspected Breach

The unauthorized post on Peña’s personal X account falsely declared (in English) that Paraguay had made Bitcoin legal tender, a move that would have positioned the nation alongside El Salvador in crypto adoption. It also promoted a fictitious $5 million Bitcoin reserve and a “bond access for crypto-enabled citizens,” encouraging investors to send funds to a specified wallet address. The official Paraguay presidency account quickly clarified the post was false, warning against acting on the fraudulent post.

A Pattern of Crypto Scams Targeting Prominent Accounts

The suspected compromise of Peña’s account aligns with a series of similar incidents targeting high-profile X accounts. In January 2024, the U.S. Securities and Exchange Commission’s X account was breached, posting a false claim about spot Bitcoin ETF approvals, which briefly influenced markets. Similarly, in 2021, hackers targeted Indian Prime Minister Narendra Modi’s Twitter account, falsely announcing Bitcoin as legal tender in India, causing temporary market confusion. These events highlight how cybercriminals exploit trusted accounts to manipulate sentiment or steal funds.

As digital assets gain traction, Bitcoin’s $2.17 trillion market capitalization makes it a prime target for misinformation campaigns. Chainalysis reported $40.9 billion in crypto scam losses globally in 2024, emphasizing the scale of the threat.

What’s Next for Paraguay and Crypto

Due to the swift response from Paraguayan authorities, the hacking incident caused no significant losses. Bitcoin’s price appears largely unaffected by the event, trading at approximately $109,200 as of this report, up 3.4% over the past 24 hours.

The incident serves as a reminder of the risks posed by crypto scams, particularly when targeting influential figures. While the suspected hack did not cause a verifiable market disruption, it underscores the potential for misinformation to sow confusion. For Paraguay, the event may prompt a review of cybersecurity protocols, though no plans for Bitcoin adoption have been signaled.

Investors are urged to verify crypto-related announcements through official sources to avoid falling victim to scams. As the investigation continues, the crypto community remains vigilant, balancing the promise of digital assets with the need for robust security.