The crypto markets are reeling amid rumors that the U.S. Treasury Department may soon accuse a number of financial institutions of using digital assets to launder money.
The popular Twitter account FXHedge was first to cover the potential move from the agency, sending an alert out to 122,700 followers.
The tweet, which cites unnamed sources, quickly went viral.
https://twitter.com/Fxhedgers/status/1383611847144730626
Minutes after the tweet was published, the crypto markets plunged into deep red territory, with Bitcoin dropping from about $59,000 to a low of $52,800.
Ethereum dropped from about $2,260 to a low of $1,970 and Binance Coin fell from about $501 to a low of $440, according to CoinGecko.
The move triggered at least $7.9 billion in liquidations, according to the analytics tracker Bybt.
The U.S. Treasury has accused individuals of using crypto assets to launder money in the past.
Back in March of 2020, the agency sanctioned two Chinese nationals and accused them of laundering stolen cryptocurrency on behalf of Lazarus – a group the FBI has labeled as a North Korean state-sponsored hacking organization.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxCheck Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Yurchanka Siarhei
