Rumors that the US Treasury Department will impose penalties on some financial institutions for “laundering money using cryptocurrency” caused havoc in the cryptocurrency market.
Bitcoin fell to the $ 51,000 level, and the top altcoins saw even harder losses.
The headline of the news allegedly triggering the accident was published by a suspicious Twitter account called FXHedge. The tweet managed to delete $ 288 billion from the cryptocurrency market within 54 minutes after it spread on social media. While this article was written, the tweet received more than 4,700 likes, despite citing anonymous sources and disabling comments.
Compound Finance’s general adviser, Jake Chervinsky, said he did not find the tweet credible, as cases of money laundering are covered by the US Justice Department. He added that it would be “unusual” to punish several financial institutions at the same time:
“I don’t find this credible. The tweet itself is suspect: the Treasury does not request money laundering (DOJ does) and a lawsuit against several financial intermediaries at the same time would be unusual. Also, criminal investigations are kept strictly confidential and rarely leaked. I am not convinced by anonymous “sources”. ”
It should be noted that FXHedge has made false claims in the past, which means that its content should not be taken too seriously.
The fact that such a claim could wipe hundreds of billions of dollars from the market revealed the fragility of the crypto market, which is highly susceptible to such rumors.