Digital Assets: Kroger Thwarts Likely Pump-and-Dump Fraud Notice On Bitcoin Cash

November 5, 2021 | Digital Assets, News

A fake press release announced Kroger had begun accepting bitcoin cash at its stores.

Store chain Kroger (NYSE: KR) has denied that it issued a press release announcing the acceptance of bitcoin cash at its stores. The fake release apparently originated at PR Newswire, and was automatically updated into Kroger’s investor relations page. This is the second such case involving a retail chain and a crypto-related pump-and-dump case. (CNN Business)

According to MarketWatch, the price of the bitcoin cash cryptocurrency rose 3.6% after the fake memo, but later collapsed to its previous levels.

Denials, denials…

Though it did not detail how the fake release managed to get past its authentication systems, PR Newswire issued a notification advising that the release be ignored.

Kroger issued the following e-mailed statement:

“This morning a press release was fraudulently issued claiming to be The Kroger Co that falsely stated the organization will begin to accept Bitcoin Cash. This communication was fraudulent and is unfounded and should be disregarded.”

In September, a scam with a similar modus operandi hit Walmart (NYSE: WMT). A press release was faked and released through GlobeNewswire. It said Walmart would soon commence accepting litecoin in payment for online purchases.

The price of litecoin shot up over 25% after the news broke.

It fell back after a Walmart spokesman confirmed the news as fake.

“We will work with the appropriate authorities to request – and facilitate – a full investigation, including into any criminal activity associated with this matter,” a spokesperson for GlobeNewswire said at the time.

Related Story: Coinstar Bitcoin ATMs Seen At Walmart Stores

Image Credit: Flickr

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