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The crypto markets have stumbled overnight. This amid rumors that the U.S. Treasury Department are looking into financial institutions who may have used digital assets to launder money.
FXHedge, a popular Twitter account was first to report on the threat and send an alert out to 122,700 followers.
Although the Tweet did not name any sources, it quickly went viral:
Within a few minutes, the crypto markets took a nosedive into the red, 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 some analytics trackers, $7.9 billion in liquidations were done.
While the exact reason for the sudden crash remains unknown, the mood may have diminished in the midst of other news. Albeit based on old reports. It was CNBC that tweeted out a month-old report on India preparing to possibly ban cryptocurrencies in the country. This old report combined with the fears of a new crypto ban in Turkey could have contributed.
It is not the first time that the U.S. Treasury has accused individuals of using crypto assets to launder money. In March of 2020, two Chinese nationals were accused of laundering stolen cryptocurrency on behalf of Lazarus. This is a group labeled by the FBI as a North Korean state-sponsored hacking organization.