Paraguay Denounces False Claim That Bitcoin Is Legal Tender

Paraguay has dismissed a false claim that it has adopted bitcoin as legal tender, following a hack on President Santiago Peña’s official X account. The compromised account posted a misleading message on Monday, stating that the country had made Bitcoin an official currency and launched a crypto bond program.

Those claims quickly drew skepticism from the crypto community. Skepticism grew when Reuters confirmed “irregular activity” on Peña’s profile, suggesting the post did not originate from the president himself.

Hacked Post Claims Bitcoin Reserve

The fraudulent X message, which was quickly deleted, claimed that Paraguay had established a $5 million Bitcoin reserve. The post further claimed that the government has launched a bond program for “crypto-enabled citizens.” It is also linked to a little-used BTC address holding just about $4 worth of Bitcoin.

Suspicions deepened because the message appeared in English, even though Peña typically posts in Spanish. This language shift, combined with the unusual claims, strongly suggested that his account had been compromised.

Meanwhile, the timing of the breach is notable, as Paraguay is actively working to shape its digital asset landscape. Lawmakers are developing crypto regulations and building closer ties with El Salvador, the first country to officially adopt Bitcoin. 

Crypto Scams Linked to High-Profile Accounts

Cybercriminals have become accustomed to targeting high-profile accounts for crypto scams. In 2020, hackers took over the accounts of figures like Elon Musk, Barack Obama, Joe Biden, and Bill Gates. They also impersonated companies such as Apple and Uber to promote fake crypto giveaways. They effectively stole thousands of dollars in digital assets.

Separately, the U.S. Department of Justice (DOJ) recently sentenced Eric Council Jr. to 14 months in prison for hacking the official X account of the U.S. Securities and Exchange Commission (SEC). Court records show that Council coordinated a SIM-swap attack in January 2024 to hijack the account and publish a fake announcement suggesting that the SEC had approved a Bitcoin ETF.

According to a CoinTab report, the false message was posted under the identity of SEC Chair Gary Gensler and briefly shook crypto markets before being debunked. U.S. Attorney Jeanette Ferris Pirro, alongside other officials, confirmed the sentence in a recent DOJ statement.