Bitcoin Cash coin crashes after Kroger hoax

Kroger Co is looking into the fake Bitcoin Cash reports after falling prey to a phony media release related to Bitcoin Cash.

Kroger Co is investigating the fake reports, claiming the food retailing company would accept the cryptocurrency Bitcoin Cash at its stores. It is the second major retailer in recent weeks getting hacked by crypto fraudsters.

"This communication was fraudulent and is unfounded and should be disregarded," Kroger spokesperson wrote in an emailed statement.

The price of Bitcoin Cash spiked briefly right after a fraudulent press release appeared onto Kroger’s website confirming the US supermarket chain start to accept Bitcoin Cash (BCH) transactions this holiday season.

Kroger wrote in a public tweet that the press release — which was available on its investor relations page — claiming that customers could pay with Bitcoin Cash was "fraudulent" and "unfounded."

The release also appeared on Kroger’s investor relations page and on PR Newswire, a public relations service, but was later deleted as a fake story.

The grocery company explained that the newswire page gets automatically updated with announcements published on PR Newswire from where the fake story originally came. PRN pulled the fake announcement and said it was "urgently investigating the incident including looking into any criminal activity associated with this matter", according to Reuters.

Pump and dump scheme

The traders gave immediate reaction, Bitcoin Cash jumped from $599 to $618 in a matter of seconds before falling back to the previous levels prior to the fake news release.

Kroger confirms press release was faked

“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,” the company wrote in a statement e-mailed to Reuters.

Bitcoin Cash is a cryptocurrency that is a fork of Bitcoin, it was invented through a hardfork to the Bitcoin blockchain in 2017 letting more transaction data be processed and stored in each new block.

Kroger story is not the first, we already saw such fake press releases circulating this September claiming that supermarket giant Walmart was partnering with Litecoin.

Back in September, a fake press release was posted on GlobeNewswire saying that Walmart would start accepting Litecoin, another popular cryptocurrency, as payment at its stores. The news story was widely reported on in Reuters, Bloomberg News and CNBC before it was exposed as fake causing the price of Litecoin to spike and eventually fall.

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