Paraguay’s Peculiar Tweet: The Bitcoin Fiasco That Left Us All in Stitches! 😂

A tweet, a hack and Bitcoin price surge: What happened?

At the stroke of 00:53 GMT on the 10th of June, in the year of our Lord 2025, a most curious event transpired. The verified account of the Paraguayan President, one Santiago Peña, did post a proclamation that sent the crypto world into a veritable frenzy.

The now-vanished tweet declared that Paraguay had, in a most official manner, embraced Bitcoin as its legal tender. It further claimed that President Peña had signed into law a reserve of $5 million in Bitcoin (BTC) and offered bond access to those citizens who were so inclined to engage in this digital currency. A wallet address was included, inviting users to stake their BTC, as if it were a most delightful game of chance.

Written in English, a rather peculiar choice for a president whose tongue is more accustomed to Spanish, this tweet did not deter the rampant speculation that ensued. The inclusion of a wallet address and a rather suspicious call to action raised eyebrows among the more discerning crypto enthusiasts.

Within mere moments, the official Paraguayan government account (@PresidenciaPy) hastily issued a correction: the president’s account had been compromised, and the information was, alas, a fabrication. The post was swiftly deleted, yet the damage to market sentiment was already wrought.

Did you know? Paraguay’s crypto boom has a rather unsavory underbelly; illegal mining farms have been discovered pilfering up to $60,000 in electricity each month, with thousands of machines seized in police raids across the nation in 2024. Quite the scandal! 😏

The price reaction: BTC spikes above $110K

In the whimsical realm of cryptocurrency, even the faintest whisper of good news can send prices soaring to the heavens. The notion of yet another country adopting Bitcoin as legal tender, following the audacious move of El Salvador in 2021, is sufficient to ignite considerable market enthusiasm.

Despite the tweet being a mere ruse, it caused BTC to leap over 4%, reaching a local high of $110,450, as per the aggregated trading data from the most reputable exchanges. At that moment, it was one of the most significant intraday price surges of the quarter.

Several other notable tokens also experienced fleeting boosts:

• Ether (ETH): 7%
• Solana (SOL): 5%
• XRP (XRP): 6%
• Cardano (ADA): 6%

It is worth noting that this upward movement was not solely attributable to the Paraguayan news. A delightful confluence of bullish signals, including ongoing trade discussions between the US and China, provided a macroeconomic tailwind to risk assets.

Moreover, concurrent developments such as 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 poised to secure MiCA licenses, thereby bolstering institutional confidence in Europe’s regulatory framework.

Did you know? The Efficient Market Hypothesis (EMH) posits that asset prices instantaneously reflect all available information. Yet, the crypto markets often defy this logic, as evidenced by the fact that a fake tweet from Paraguay could sway Bitcoin prices before the truth was revealed. Quite the irony! 😂

A history of hacked tweets in crypto

This is not the inaugural instance of a high-profile figure’s account being hacked to sway the crypto markets.

Notable past hacks include:

• 2020: The accounts of Barack Obama, Joe Biden, Elon Musk, and others were commandeered in a grand coordinated scam soliciting Bitcoin donations. The scheme amassed over $100,000 before being curtailed.

• 2021: The X account of Indian Prime Minister Narendra Modi was hacked, falsely asserting that Bitcoin had become legal tender in India.
• 2024: The SEC’s official X account was compromised, falsely announcing the approval of a long-awaited spot Bitcoin ETF. This tweet incited a rapid BTC price surge before being debunked, once again illustrating the sensitivity of crypto markets to misinformation.

The objective in most cases? Pump-and-dump schemes or direct scams that entice unsuspecting users into sending Bitcoin or tokens to fraudulent addresses.

In the Paraguay incident, the wallet address posted in the hacked tweet reportedly contained a mere $4, suggesting that this was more about market manipulation than theft. How quaint! 😄

Why does the market react to crypto news?

Crypto markets are swift, global, and rather emotional. Many traders depend on headline momentum, perusing social media and news feeds for hints of what to buy or sell.

In such a setting:

• News = Fuel.
• Uncertainty = Volatility.

When the tweet emerged, algorithmic trading bots likely seized upon it before mere mortals had the chance to fact-check. These bots are trained to respond to keywords such as “legal tender,” “Bitcoin,” and “reserve,” triggering automatic buy orders that amplify price movements.

Paraguay has long been rumored to be amicable towards Bitcoin mining, thanks to its inexpensive hydroelectric power. This lent a modicum of plausibility to the announcement, providing just enough credibility to sway markets, albeit briefly.

Why does this matter?

• Trust in social media remains fragile: Even in 2025, when deepfake detection and platform security have purportedly improved, high-level social media hacks can still rattle global markets. This underscores how centralized communication channels can become attack vectors in decentralized finance.
• Legal tender = major catalyst: Bitcoin’s official adoption as legal tender in El Salvador (2021) and later the Central African Republic (2022) serves as historical reminders of the symbolic weight such moves carry. Traders remain primed to react strongly to similar headlines, true or not.
• Market maturity? Not quite: While institutional adoption has grown, events like these highlight that crypto remains highly reactive and, in some respects, immature. A mere fake tweet should not be able to move billions in market cap, yet it still can. How delightful! 😅

Could a real legal tender law come from Paraguay?

As of mid-June 2025, there exists no official movement by Paraguay to adopt Bitcoin as legal tender.

However, the nation remains a topic of interest in crypto circles due to its inexpensive hydroelectric power from the Itaipu Dam, which supports a burgeoning number of mining operations.

While Paraguay’s energy profile makes it a natural candidate for mining, the leap from mining hub to legal tender adoption is quite substantial. El Salvador remains the sole 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 such as the IMF and World Bank.

Other Latin American nations, including Argentina, Brazil, Colombia, and Mexico, have explored crypto adoption in more cautious, regulatory-focused manners. Argentina has discussed utilizing Bitcoin for contracts in certain provinces, while Brazil’s central bank has launched a pilot CBDC called Drex. Yet none have pursued legislation to recognize Bitcoin as an official currency.

Adopting BTC officially necessitates more than favorable conditions; it requires legislative backing, central bank alignment, and geopolitical preparation. For the time being, Paraguay does not appear to be on that path. How very intriguing! 🤔

How to identify fake tweets and protect yourself

To identify and protect against fake crypto tweets, one must always verify the source, remain vigilant for scams, and employ trusted tools before taking action.

In the fast-paced world of crypto, a single fake tweet can send prices soaring or plummeting. It is imperative to discern misinformation before it impacts your trades or wallet. Here’s how to stay safe:

1. Check the handle carefully: Always scrutinize the username for subtle misspellings, extra characters, or absent verification badges. Impersonation accounts often appear nearly identical to the genuine article at first glance.
2. Verify the language used: If a tweet from a non-English-speaking government is composed in English, it could be a red flag. Official announcements are typically made in the country’s primary language.
3. Cross-check with trusted sources: Before reacting, confirm the news through official websites, press releases, or reliable media such as Reuters or Bloomberg. If it’s authentic, multiple credible outlets will report it.
4. Watch for urgency cues: Phrases like “Act now” or “Limited time only” are classic hallmarks of scams, designed to compel you into hasty, emotional decisions.
5. Avoid wallet links and QR codes: No legitimate government or public figure would include a wallet address in a tweet. If you encounter one, it is almost certainly a scam.
6. Use browser security tools: Install tools like Wallet Guard and Revoke.cash or phishing filters to block malicious links and detect suspicious activity. These tools can provide an additional layer of protection.
7. Pause before reacting: In crypto, speed is not always synonymous with safety. Take a moment to verify information before executing any trades or transactions.