Paraguay President's Hacked Tweet Causes 4% Bitcoin Spike

A tweet from the verified X account of Paraguayan President Santiago Peña on June 10, 2025, at around 00:53 GMT, caused a stir in the crypto world. The tweet, which was later deleted, claimed that Paraguay had officially approved Bitcoin as legal tender. It also mentioned that President Peña had signed into law a $5 million Bitcoin reserve and bond access for crypto-enabled citizens, along with a wallet address prompting users to stake BTC. The tweet was written in English, which raised suspicions given that the president is Spanish-speaking. The official Paraguayan government account quickly issued a correction, stating that the president’s account had been compromised and the information was false. However, the damage to market sentiment had already been done.

The tweet caused Bitcoin to spike over 4%, reaching a local high of $110,450. This price surge was one of the highest intraday price jumps of the quarter. Other top tokens, including Ether, Solana, XRP, and Cardano, also saw temporary boosts. The upward movement was not solely due to the Paraguay news but was also influenced by a confluence of bullish signals, including ongoing trade talks between the US and China, which provided a macroeconomic tailwind to risk assets. Additionally, the CLARITY Act, a bipartisan US bill clarifying regulatory authority over digital assets, passed both the House Agriculture and Financial Services committees around the time of the fake tweet. Major exchanges like Gemini and Coinbase were also set to secure MiCA licenses, reinforcing institutional confidence in Europe’s regulatory framework.

This incident is not the first time a high-profile figure’s account has been hacked to influence crypto markets. In 2020, accounts of Barack Obama, Joe Biden, Elon Musk, and others were hijacked in a massive coordinated scam asking for Bitcoin donations. In 2021, Indian Prime Minister Narendra Modi’s X account was hacked, falsely claiming Bitcoin had become legal tender in India. In 2024, the SEC’s official X account was compromised, falsely announcing the approval of a long-awaited spot Bitcoin ETF. The goal in most cases is to pump-and-dump schemes or direct scams that lure unsuspecting users into sending Bitcoin or tokens to fraudulent addresses. In the Paraguay incident, the wallet address posted in the hacked tweet reportedly held only $4, indicating this was likely more about market influence than theft.

Crypto markets are fast, global, and emotional. Many traders rely on headline momentum, scanning social media and news feeds for hints of what to buy or sell. When the tweet hit, algorithmic trading bots likely picked it up before humans had time to fact-check. These bots are trained to react to keywords like “legal tender,” “Bitcoin,” and “reserve,” triggering automatic buy orders that amplify price action. Paraguay has long been rumored to be friendly toward Bitcoin mining, thanks to its cheap hydroelectric power. That lent some surface-level plausibility to the announcement, giving it just enough credibility to move markets, even if only for a short while.

As of mid-June 2025, there’s no official move by Paraguay to adopt Bitcoin as legal tender. However, the country remains relevant in crypto circles due to its cheap hydroelectric power from the Itaipu Dam, which supports a growing number of mining operations. While Paraguay’s energy profile makes it a natural fit for mining, the leap from mining hub to legal tender adoption is substantial. El Salvador remains the only country in Latin America to have taken that step. The Central African Republic followed suit in 2022, but both moves were met with skepticism from international financial institutions like the IMF and World Bank. Other Latin American nations, including Argentina, Brazil, Colombia, and Mexico, have explored crypto adoption in more cautious, regulatory-focused ways. Adopting BTC officially requires more than favorable conditions; it demands legislative backing, central bank alignment, and geopolitical preparation. For now, Paraguay doesn’t appear to be on that path.

To identify and protect against fake crypto tweets, always verify the source, watch for scams, and use trusted tools before taking action. In the fast-moving world of crypto, one fake tweet can send prices soaring or crashing. It is critical to know how to spot misinformation before it affects your trades or wallet. Always examine the username for subtle misspellings, extra characters, or missing verification badges. Impersonation accounts often look nearly identical to real ones at first glance. If a tweet from a non-English-speaking government is written in English, it could be a red flag. Official announcements are usually made in the country’s primary language. Before reacting, confirm the news through official websites, press releases, or reliable media. If it’s real, multiple credible outlets will report it. Phrases like “Act now” or “Limited time only” are classic hallmarks of scams. They’re designed to push you into quick, emotional decisions. No legitimate government or public figure would include a wallet address in a tweet. If you see one, it’s almost certainly a scam. Install tools like Wallet Guard and Revoke.cash or phishing filters to block malicious links and detect suspicious activity. These tools can add an extra layer of protection. In crypto, speed isn’t always safe. Take a moment to verify information before making any trades or transactions.