ASIC Probes Whitehaven Hoax

The Australian Securities and Investments Commission is looking into the Whitehaven hoax that saw its shares tumbling down by more than $314 million.

ASIC confirmed that the body is investigating the hoax initiated by Jonathan Moylan, an anti-coal activist. In a statement, ASIC said it will speak with the people involved in the hoax.

A hoax press release, created by Moylan, sent investors in a frenzy after it said that the ANZ Bank has withdrawn its $1.2 billion loan to the Whitehaven Coal project. The press release carried the ANZ logo, including a phone number of an ANZ staff member named Toby Kent.

Moylan was actually the one manning the phone and answered inquiries from several journalists.

The hoax resulted to Whitehaven shares dropping close to nine percent, which was equivalent to some $314 million value. When trading was put to a halt by midday, shares bounced back to $3.50, just two cents lower than its original value of $3.52.

Moyland admitted that he was involved with the hoax and said his actions were justified because of the environmental destruction that the mine causes. He emphasized that his primary concern is to show the mine’s negative impact to the environment.

ANZ and Whitehaven, meanwhile, have not sent any word on whether they would pursue legal actions against the anti-coal activist. ASIC, however, said it is investigating whether the hoax violated any rules of the commission.