Hackers used the president’s X account to promote a fake Bitcoin program with a misleading wallet address.
The government denied the false Bitcoin post and urged people to follow only official sources for information.
Bitcoin price jumped after the fake news even though the wallet linked to the post had received no funds.
Hackers took control of Paraguayan President Santiago Peña’s official X account on Monday. The account briefly shared a false statement declaring Bitcoin as legal tender in Paraguay.
https://twitter.com/WuBlockchain/status/1932132228643037309
The post claimed Paraguay had officially adopted Bitcoin as national currency. It also announced a $5 million Bitcoin reserve. In addition, it promoted a government-backed bond scheme for crypto users. The message included an image titled “Presidential speech about Bitcoin legalization as legal tender.” It asked users to send cryptocurrency to a wallet address.
The post implied that contributions would influence the rollout scale of the program. However, on-chain data showed the wallet held only $4. No transaction had reached the address at the time of writing.
Government Responds Swiftly
Minutes after the post appeared, Paraguay’s official presidency account labeled the information as false. The government clarified the president did not authorize the message. Authorities removed the misleading post from Peña’s personal X account shortly afterward.
https://twitter.com/PresidenciaPy/status/1932129445172654226
Officials said they were working with the platform to investigate the breach. They urged citizens to trust only verified government sources for announcements.
Regional Context Raises Concerns
The hack follows growing regional interest in Bitcoin as a reserve asset. Several Latin American nations have explored crypto adoption. In 2021, El Salvador made Bitcoin legal currency. But an IMF agreement last year raised questions about its continued legal status there.
Cybersecurity experts noted the incident fits a wider pattern. Hackers have increasingly used social media to spread crypto scams. They often target verified or high-profile accounts for better reach.
History of Similar Attacks
Since Elon Musk’s takeover of X in 2022, multiple attacks have followed the same playbook. Criminals hijack major accounts, post fake crypto schemes, and lure users into sending funds.
In recent months, hackers targeted the Indian Supreme Court’s YouTube page. They streamed XRP promotions using the compromised channel. Earlier attacks included fake posts from accounts linked to Neymar Jr., Oliver Stone, and Yahoo News UK.
Crypto Market Reacts
Despite the false nature of the post, the market reacted quickly. Bitcoin rose 3.5% and briefly reached $109,450. Ethereum and other altcoins also posted gains. The market’s total value surged to $3.42 trillion.
Over $443 million in crypto positions were liquidated. Bitcoin futures Open Interest increased from $71 billion to $76.79 billion. Analysts linked the spike to increased activity and rising investor fear of missing out.
Paraguayan authorities have not reported any losses from the incident. However, they continue investigating the breach. Officials reiterated warnings against interacting with unverified wallet addresses online.
