The office of Paraguay’s President, Santiago Peña, confirmed that his official X account had been compromised after it posted a false announcement declaring Bitcoin as legal tender in Paraguay.
Hackers Access President’s X Account
Aside from declaring Bitcoin as a legal tender, the fraudulent tweet also claimed the creation of a $5 million Bitcoin-backed reserve and the issuance of crypto bonds, along with a solicitation for donations to a specified Bitcoin wallet. Notably, the donation wallet had no significant Bitcoin holdings. The account had only $4 worth of bitcoins.
Moments after the post went live, experts highlighted several red flags, including the inclusion of a crypto wallet address, informal phrasing inconsistent with official communications, and typographical errors. Notably, such traits are common in scam posts designed to manipulate public trust and facilitate illicit financial gains.
The suspicions were confirmed as the president’s office swiftly notified the public. It refuted the claims and urged citizens to disregard any related content until official communications were issued through verified channels.
It assured the public that Paraguay’s national cybersecurity team, in collaboration with X, is investigating the cause of the breach. Moments later, the fake post was deleted, hinting at a restoration of the account. Nonetheless, at the time of writing, no further posts have been made from the account.
Why Target Paraguay?
Paraguay has been actively exploring and regulating its crypto industry. The country hosts a growing Bitcoin mining industry powered by its abundant hydroelectric capacity. It recently signed a Memorandum of Understanding (MoU) with El Salvador to collaborate on crypto regulation, focusing on supervision, taxation, and anti-money laundering controls.
Given its initiatives and ties with El Salvador, investors may not have suspected the news of making Bitcoin a legal tender, making it an ideal option for hackers to leverage. Interestingly, the move was foiled as no donations were made to the wallet address posted by the hacker.
Meanwhile, the recent hack event echoes previous high-profile social media breaches, such as the January 2024 incident involving the U.S. Securities and Exchange Commission’s account. A fake tweet about the approval of a Bitcoin ETF briefly jolted the crypto markets. The Alabama man responsible for the hack has been sentenced to 14 months in prison.
