A few days ago, something very remarkable happened. The price of Litecoin (LTC), and subsequently virtually the entire crypto market seemed to suddenly rise explosively. The reason behind this would be big news that the giant American retail chain Walmart would start accepting payments with litecoin.
It soon became apparent that this was fake news. However, the news was hugely believable as established news platforms such as Reuters and CNBC presented this news as if it were real. Even the Litecoin Foundation fell for the disinformation campaign.
Hunt for the perpetrator
According to Reuters Walmart has since opened an investigation into how this fake news managed to obtain substance and who the perpetrator was. GlobeNewsWire, the first news platform to report the fake news, has also indicated that it has a start research.
“We will work with the relevant authorities to facilitate a full investigation, including any criminal activity involved in this case.”
It is clear that the parties involved are not going to leave it at that. The hunt for the perpetrator, or perpetrators, is on. Should this perpetrator eventually surface as a result of this investigation, it would cost him dearly.
punishment
It is unfortunately common in the world of crypto that certain actors are actively engaged in market manipulation. Pump & dump scenes are almost the order of the day and few people get too excited about this. It is also not really prohibited by law.
It changes once the traditional stock market gets involved. Of course, such forms of market manipulation within the stock market are out of the question.
In this case, this market was indeed affected. This was, of course, the retail chain Walmart. Walmart is a publicly traded company and is listed on the stock exchange. Although Walmart’s stock price is barely affected by the fake news, the company’s image is illegitimately tarnished.
For that reason, if the offender is caught, he can face a considerable punishment. It would be about ‘third party misrepresentation‘. This is seen as a form of securities fraud. Convicts can face a sentence of up to 5 years in prison and a fine of up to $5 million.