The bogus news that sent Litecoin to the stars and back in a couple of hours earlier this week could be more serious than it appears since, unlike in the crypto-verse, the stock market is regulated to the millimeter.
According to Reuters, Walmart Inc. has initiated an investigation into a piece of fake news that circulated through press release distributor Globe Newswire, alleging that the business has established a deal with the Litecoin Foundation to accept the cryptocurrency.
Furthermore, in response to Walmart Inc’s activities, Globe NewsWire stated in an email that it will engage with the right authorities to examine the situation.
“We will work with the appropriate authorities to request – and facilitate – a full investigation, including into any criminal activity associated with this matter.”
Millionaire Fines and Prison
In the realm of Crypto Twitter, it is fairly typical to see prices move to the rhythm of rumors without additional research. This is the essence of markets, and traders take advantage of the lack of regulation to execute manipulation schemes ranging from bogus advertisements to enormous coordinated Pump and Dump operations.
However, when someone conducts a prank like this with the intent of potentially influencing the stock market, things alter substantially. This is significant since Walmart Inc is a publicly traded corporation, and potential cooperation could have an impact on the firm’s fundamentals or risk.
On the surface, the “troll’s” actions appeared to be targeted at inflating the price of LTC, but it is conceivable to demonstrate that, by extension, they may have affected Walmart’s stock prices.
A person commits securities fraud if he or she willfully engages in deceptive practices with the intent of manipulating financial markets or inducing investors to make financial investment decisions based on deceptive or false information, as defined by the Securities Act of 1933 and the Securities Exchange Act of 1934. According to FindLaw, securities fraud is defined as follows:
In general, securities fraud happens when someone makes a misleading statement about a company or its stock value, and others make financial decisions based on incorrect information.
One type of securities fraud is a third-party misrepresentation, which occurs when a third party provides incorrect information about the stock market or a specific firm or industry. Convictions for federal securities fraud offenses can result in a 5-year federal prison sentence and fines of up to $5 million per conviction.
The Lie About the Litecoin-Walmart Partnership
According to official accounts, a person impersonated a Walmart employee and passed the note to Globe Newswire for replication. Following the spread of the news, Globe Newswire issued a disclaimer instructing readers to disregard the news release.
The news had little impact on Walmart’s stock price. However, Litecoin (LTC) had an unexpected increase, only to plummet with the same ferocity. Someone made a lot of money off of that maneuver, which caused enormous harm to investors. Walmart’s stock price fell slightly as well. Litecoin (LTC) is represented by hollow candlesticks in the chart below, while Walmart (WMT) is represented by standard candlesticks.
So far, neither Walmart nor Global Newswire has revealed what actions they intend to take; but, the masterstroke could be costly to whoever pulled it off – if discovered.
Also Read: Uzbekistan Has No Intentions To Ease The Restriction On Crypto Payments
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