Not surprising since we have seen these kind or similar fuds back in the past on cryptoworld which do really make some effect on bitcoin and altcoins price. For now this is entirely a FUD or Fake news which for those people who did easily panic or sell off because of such fud then for sure most of them are on loss now seeing that the entire cap did able to recover immediately after the government of Korea did announce that it is not actually true.
We are seeing some manipulation by the big investors. In my point of view, news can be bought a news can easily break down a good reputation and it is now being used as a tool.