Key Takeaways
- The X social media account of Paraguay’s President Santiago Peña was compromised and falsely announced a Bitcoin reserve and legal tender status, which the government promptly refuted.
- The hacking incident underscores the growing cybersecurity risks faced by high-profile individuals and the urgent need for vigilance in verifying official cryptocurrency announcements.
- The Paraguayan government swiftly clarified the misinformation, emphasizing that there are no current plans to adopt Bitcoin as legal tender in Paraguay.
On June 9, 2025, hackers breached the official X account of Paraguay’s President, Santiago Peña. They broadcast a $5 million false Bitcoin legal tender plan, as well as a national bond program for crypto-enabled citizens.
According to an official statement from the government, the announcement on X that featured what appeared to be an official government decree, using the national coat of arms and official-looking formatting, was false. The President’s X account has likely been hacked, as the leader appeared to promote the trading of cryptocurrency bitcoin. The statement read:
“The president’s official X account has presented irregular activity, which suggests possible unauthorized entry.”
Paraguayan Government Intervention
The government urged citizens to disregard the post and wait for verified information. Paraguayan authorities did not provide further details about who may have accessed the account or how after a post on Pena’s account in English, with a Spanish-language statement purporting to be from the government, had declared that the Latin American country had made Bitcoin legal tender and that it would roll out a $US5 million ($A7.7 million) Bitcoin-backed reserve fund. El Salvador became the first country globally to declare Bitcoin legal tender in 2021, but Paraguay has not previously announced any such plans.
The false claim that Bitcoin would become a legal tender in Paraguay caused a momentary stir of speculation within the broader cryptocurrency and financial markets before the Paraguayan government intervened. By issuing a formal statement, the government disavowed the false post and reassured the public that there was no such initiative. The fast response was crucial in preventing misinformation from escalating into broader economic uncertainty.
Importance of Crisis Management in the Crypto Sector
Although the false Bitcoin legal tender plan announcement may have sparked some slight speculation in the market, the immediate action by the Paraguayan government helped contain any significant reaction in the crypto market. According to industry experts, the limited impact was a direct result of the rapid identification of the hacking incident and the transparent communication by Paraguayan authorities. The event highlights the importance of crisis management within the cryptocurrency ecosystem, demonstrating that timely intervention can mitigate risks associated with misinformation.
Conclusion
The hacking of President Santiago Peña’s X account and the announcement of a false Bitcoin legal tender plan highlight the persistence of cybercriminals targeting governments and crypto industry players alike. By responding quickly and revealing it was all a hoax, the Paraguayan government stopped the misinformation from deceiving the public and destabilizing the cryptocurrency market. The episode should further remind crypto enthusiasts of the importance of verifying information and remaining vigilant even as they prioritize cybersecurity to safeguard the integrity of cryptocurrency discourse and policy announcements.
Frequently Asked Questions
Is crypto legal in Paraguay?
A post by Paraguay’s President, Santiago Peña, claimed that the country had recognized Bitcoin as legal tender. Still, the official government account soon urged users to “dismiss any recently published content.”
Is crypto taxed in Paraguay?
In Paraguay, not only are there no taxes on cryptocurrency gains, but it is also not necessary to declare either transactions or your cryptos.
Is Paraguay a crypto haven?
Paraguay is a favorable location for crypto mining due to its abundant and inexpensive energy, particularly from hydropower. However, it’s not a “haven” in the sense of having a fully established, crypto-friendly regulatory framework.
