The Walmart-Litecoin scammer could face harsh criminal charges if he gets buster because he made plenty of money spreading fake news about the so-called partnership between Walmart and Litecoin as we reported previously in our Litecoin news.
The fake news reported recently took Litecoin to the moon and back to the ground in only a few moments which was a serious blast for the coin because unlike what happens to teh crypto market, teh stock market is regulated to the millimeter. As per the Reuters reports, Walmart Inc launched an investigation regarding the fake news that spread through Globe Newswire which claimed that the company secured a partnership with the Litecoin Foundation to accept the cryptocurrency. Walmart Inc’s actions Globe NewsWire said in an email that it will work with the authorities to investigate the case and to catch the Walmart-litecoin scammer.
“We will work with the appropriate authorities to request – and facilitate – a full investigation, including into any criminal activity associated with this matter.”
Globe NewsWire’s Statement. Source Globe NewsWire
It’s a very common thing in the crypto space to see the prices move to a rumor without further investigation. This is the nature of the markets and the traders so they take advantage of the lack of regulation to dump different kinds of manipulation schemes that go from fake ads to coordinated Pump and Dump operations. However, when someone puls a stunt like this to impact the stock market, things change. Walmart is a publicly-traded company and with a potential partnership with a crypto company, it can influence the fundamentals of the company or risk. On the surface, the troll’s actions were aimed at spiking the LTC price but is possible to prove that by extension, it could also affect Walmart’s stock prices.
Performance comparison between Litcoin and Walmart before, during and after the fake news. Image Tradingview
Under the Securities Act of 1933 and the Securities Exchange Act of 1934, a person has been involved ins securities fraud if it engages in deceptive practices that have a goal to manipulate teh financial markets or induce investors to make financial investments decisions based on deceptive or false information. Third-Party Misrepresentation is one kind of securities fraud and it happens when a third party gives false information about the stock market or a particular company or industry. The convictions for federal securities fraud can reach up to 5-years in prison. According to the official versions, a person posed as a Walmart staff member and passed a note to Globe Newswire for reproduction so after the news spread, the news media published a statement to disregard the news release.