The crypto-markets are buzzing amid rumors that the US Treasury Department may soon accuse a number of financial institutions of using digital assets to launder money.
The popular Twitter account FXHedge was the first to cover the agency’s potential move, sending a warning to 122,700 followers.
The tweet, citing unnamed sources, quickly went viral.
US Treasury to charge various financial institutions for money used by CRYPTOCURRENCIES – sources
– FXHedge (@Fxhedgers) 18 April 2021
Minutes after the tweet was published, crypto markets plunged into deep red territory, with Bitcoin falling from about $ 59,000 to a minimum of $ 52,800.
Ethereum dropped from about $ 2,260 to a minimum of $ 1,970 and Binance Coin dropped from about $ 501 to a minimum of $ 440, according to CoinGecko.
According to analytics tracker Bybt, the move caused at least $ 7.9 billion in liquidations.
The U.S. Treasury has accused individuals of using cryptocurrencies in the past to launder money.
In March 2020, the agency approved two Chinese citizens and accused them of laundering stolen cryptocurrency on behalf of Lazarus – a group that the FBI described as a North Korean state-backed hacking organization.
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Suggested image: Shutterstock / Yurchanka Siarhei