Obscure Chinese Stock Scams Dupe American Investors by the Thousands (msn.com) 28
Thousands of American investors have lost millions of dollars to sophisticated pump-and-dump schemes involving small Chinese companies listed on Nasdaq, prompting the Justice Department to declare the fraud a priority under the Trump administration's white-collar enforcement program.
The scams recruit victims through social media ads and WhatsApp messages, directing them to purchase shares in obscure Chinese firms whose stock prices are artificially inflated before collapsing. Since 2020, nearly 60 China-based companies have conducted initial public offerings on Nasdaq raising $15 million or less each, with more than one-third experiencing sudden single-day price drops exceeding 50%. In one recent case, seven traders earned over $480 million by defrauding 600 victims who purchased shares in China Liberal Education Holdings.
The scams recruit victims through social media ads and WhatsApp messages, directing them to purchase shares in obscure Chinese firms whose stock prices are artificially inflated before collapsing. Since 2020, nearly 60 China-based companies have conducted initial public offerings on Nasdaq raising $15 million or less each, with more than one-third experiencing sudden single-day price drops exceeding 50%. In one recent case, seven traders earned over $480 million by defrauding 600 victims who purchased shares in China Liberal Education Holdings.
A fool and his money... (Score:3)
What are people thinking?
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What are people thinking?
Um, I should have "invested" in $TRUMP coin instead? :-)
Re: A fool and his money... (Score:2)
Can't help yourself can you?
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What are people thinking?
That this a regulated market? Scam companies shouldn't be able to list or IPO without being appropriately audited and compliant...
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I think this is a pump and dump scam.
The companies may be legit but the scam isn't.
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They probably had their brokerage accounts breached by chinese hackers who then entered fraudulent Buy orders.
This stupid shit is the penny stocks scam all over again. Nasdaq should add market cap value and executive vetting requirements before you're allowed to be listed on an exchange. They should be at least twice as tough for overseas companies - require proof of compliance with SEC reporting regulations, etc.
Re: A fool and his money... (Score:2)
More typical business behavior coming from China and the CCP
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What happens to the scammers? (Score:2)
Does the Chinese government do anything to these people?
Re: What happens to the scammers? (Score:2)
LOL
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BTW, before anyone says "but the traders weren't Chinese" read this :
https://vir.com.vn/china-liber... [vir.com.vn]
"The Staff noted that the Private Placement resulted in an equivalent price per share sold of $0.006, which was a 96% discount from the $0.15 Minimum Price as defined by the Nasdaq Listing Rules for the Private Placement. Accordingly, as set forth in the letter, this matter serves as a basis for delisting the Company's securities from Nasdaq."
This was planned in China.
Re: What happens to the scammers? (Score:2)
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Does the Chinese government do anything to these people?
I don't think the Chinese government has a whole lot of motivation to make life easier for gullible Americans at the moment.
Yay golf pants (Score:1)
Looks like China's pump and dump schemes are eating into Trump's pump and dump schemes. They should go after non-Trump owned social media so that the policing of these things can be locked down. Make sure all currency flows into Trump's pockets, and THEN out of the country to golf courses worldwide.
Re: Yay golf pants (Score:2)
Another tds victim, that can't get over it and move on.
This article has nothing to do with Trump.
"Investors"? (Score:3)
Those American "investors" were probably gambling rather than investing.
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That gives them too much credit. These are people who are willing to sink actual money into "investments" suggested to them by unknown people who contact them on WhatsApp.
If someone on the street walked up to you and asked you to invest in his "ground floor opportunity" would you do it? Even if you were gambling? I doubt it. That's not gambling, that's being a sucker.
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WTF? (Score:4, Insightful)
Who dafuq gets stock tips from social media ads and anonymous WhatsApp messages? They'd have better odds with lottery scratch-offs.
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Professor from Utah ? what does he teach ? Darwin' (Score:1)
Professor from Utah ? what does he teach ? Darwin's Law ?
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Paranormal phenomena, apparently.
480 Million from 600 victims? (Score:2)
With this amount of profit from so few patsies it doesn't sound like a driveby pump and dump, but a longer term personalised scam ... a ridiculously effective one.
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Greed (Score:2)
In other news... (Score:2)
Average american still dumb as fuck.