Today, the cryptocurrency community on X(twitter) found itself buzzing with a purported official document claiming Democratic Senator Elizabeth Warren had proposed a 1% wealth tax on personal crypto assets exceeding $500,000.
However, there was a significant catch:
The document was a forgery. Despite Senator Warren’s well-known skepticism towards cryptocurrencies, she had not endorsed any such tax proposal. The letter, supposedly bearing her signature, was entirely fabricated. The hoax was cunningly revealed through a subtle alteration in the spelling of Warren’s name, substituting the letter “Z” for the correct “S” in her first name.
Even individuals typically vigilant in the crypto space fell prey to confirmation bias. Notably, Jameson Lopp, many prominent media channels among others, shared the false information before its debunking.
Despite subsequent corrections, some users had already spread the misinformation unchecked. Confirmation bias, a common cognitive error, played a pivotal role in the dissemination of the fake news. People tend to accept information aligning with their existing beliefs more readily. Given Senator Warren’s known stance on wealth taxation, the fabricated letter found fertile ground for propagation.
While Senator Warren has previously advocated for wealth taxes, such as a 2% tax on fortunes exceeding $50 million, she has not proposed taxing crypto holdings above $500,000 at a 1% rate. The circulating document was pure fabrication, yet another instance of misinformation in the digital age.