Following a fake news release put out by GlobeNewswire that referenced a partnership with Walmart, the cryptocurrency litecoin gave up a 20% gain and fell back to earth.
Randy Hargrove, a spokesman for Walmart, verified that the news release is fake. He also stated that the business has contacted the newswire company to inquire about how the bogus press release was distributed.
Intrado, a telecommunications corporation, owns GlobeNewswire. At 11:18 a.m. EST, it issued a “notice to disregard” the initial release.
The announcement was reported by a number of media sources, including CNBC. Walmart's stock hasn't moved much in the last few days. According to Coin Metrics, Litecoin was down roughly 2.2 percent at the time of writing.
The release was made using a fraudulent user account, according to GlobeNewswire.
“This has never happened before, and we have already enhanced authentication measures to prevent this rare occurrence from happening again,” stated a representative. “We will work with the appropriate authorities to request – and support – a thorough investigation into this occurrence, including any criminal activity.”
At 9:50 a.m. ET, Litecoin issued a news release via its official account. One of Litecoin's social media team employees "was a little too excited and tweeted the storey from the Litecoin Twitter account" in response to the numerous media outlets that covered it, the Litecoin Foundation said in a statement Monday afternoon. “We quickly remedied the situation, and we've taken efforts to prevent future problems.”
The Securities and Exchange Commission has stated that it will not comment on such problems.
The news release said that, Walmart, the country's largest retailer, will accept cryptocurrency payments from litecoin users. It mentioned a broken website in the email of one of the listed contacts, which raised suspicions.
The media release was never published on Walmart's official corporate website and has since been taken down from GlobeNewswire.
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