Crypto media platform CoinTelegraph has provided a detailed account of the circumstances that led to the erroneous release of news concerning the approval of a Spot Bitcoin ETF, which was posted on its Twitter and Telegram channels and later retracted. This incident created a significant stir within the crypto community and had ripple effects in the broader crypto market.
The genesis of CoinTelegraph’s post can be traced back to an “unconfirmed screenshot” shared by a user on the platform X, who claimed it was sourced from the Bloomberg Terminal. The CoinTelegraph team became aware of this rumor through a Telegram channel, where they typically gather information for developing news stories.
Upon receiving the unverified information, one of the platform’s employees shared it in an internal Slack channel. However, the story was published on their X and Telegram platforms without the necessary editorial validation, as its authenticity had not been confirmed.
The initial post stated that the SEC had approved the iShares Bitcoin Spot ETF, a product that asset manager BlackRock intends to offer if granted SEC approval.
CoinTelegraph’s post triggered a wave of skepticism, with analysts from Bloomberg ETF, including James Seyffart and Eric Balchunas, questioning the news. During this period, the employee who initially shared the rumor in the Slack channel reported that the source was untraceable, as the associated Telegram account appeared to have been deleted.
In response to these uncertainties, another employee revised the X and Telegram posts, appending the word “reportedly” to the original statement. Ultimately, CoinTelegraph deleted the posts after BlackRock confirmed the inaccuracy of the report and issued an official statement correcting the information.
Notably, following CoinTelegraph’s post, the price of Bitcoin surged to $30,000, signaling a bullish sentiment. However, the subsequent revelation of the post’s inaccuracies led to considerable repercussions in the crypto market. Approximately $100 million worth of Bitcoin positions and over $157 million in crypto positions were liquidated within a 24-hour period, predominantly impacting traders who had assumed short positions betting against a rise in Bitcoin’s price.
As Bitcoin’s price spiked, over $71 million in short positions were swiftly wiped out. The incident also spawned conspiracy theories, with some speculating that CoinTelegraph may have been incentivized or willingly participated in market manipulation.
An online crypto casino, Rollbit, presented a screenshot of a trade that seemed to be linked to someone at CoinTelegraph, indicating a long trade in Bitcoin coinciding with the publication of the erroneous Spot Bitcoin ETF approval news. This trade purportedly generated over $2 million in profit. However, its veracity remains unconfirmed.