The crypto market collapsed after a move from the US Treasury Department

The whole crypto market is reeling in the midst of rumors that the US Treasury Department may soon accuse some financial institutions of using cryptocurrencies to launder money.

Popular Twitter account FXHedge was the first to warn of a potential move by the Treasury Department, where former Fed chairman Janet Yellen just took office.

The tweet, citing anonymous sources, quickly went viral.

Earlier, on May 15, the US Treasury Department issued sanctions on 32 Russian organizations and individuals that they believe are involved in meddling the US presidential election. The ministry alleges that digital currencies have been used for payments between several institutions, one of which is handling 31,000 transactions worth more than $ 3 million.

Minutes after the tweet was published, the crypto market sank into a deep red zone, with Bitcoin falling from around $ 59,000 to as low as $ 50,990 on the Binance exchange.

Ethereum dropped from around $ 2,260 to as low as $ 1,970 and BNB dropped from around $ 501 to as low as $ 440, according to Coin360.

The US Treasury Department has accused some individuals of using crypto assets to launder money in the past.

In March 2020, the agency sanctioned two Chinese citizens and accused them of laundering stolen cryptocurrencies on behalf of Lazarus – a group of hackers that the FBI has labeled a hacking organization run by the Korean state. Tien sponsor.

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