An alleged pump-and-dump scheme that amassed an estimated $100 million since January 2020 has been brought to the attention of the US Securities and Exchange Commission.
The stock market was manipulated by eight social mediainfluencers.
The complaint was filed in the US District court for the Southern District of Texas.
According to the SEC, the eight worked together to identify a stock to manipulate before promoting it, leading to increased demand and an inflated share price, and then later selling their shares.
In order to promote a stock, the eight would use different platforms.
The forums "Atlas Trading" and "Sapphire Trading" were co-created by Constantin and Matlock, and both of them were promoted by a YouTube channel hosted by Cooperman and Deel.
Camber Energy, Alzamend Neuro, Vislink Technologies, Torchlight Energy Resources, and ABVC Biopharma are listed as being manipulated by the eight.
The complaint states that the defendants have promoted themselves as trustworthy stock-picking guru to their legions of followers on social media. They are seasoned stock dealers.
More than 1.5 million. Seven of the eight accused have a combined number of followers on the social media site. The account of Matlock has been deleted.
There has been a spike in content creators on TikTok promoting investment techniques. The personal finance and stock trading communities that were hosted by Constantin, Matlock and Rybarcyzk are no longer hosted by the platforms they used to use. The rise of the Dogecoin, which recorded an all-time high of $0.70 after it was promoted by Musk and other users, was influenced by the influence of the social networking site.
How much does it cost to teach Gen Z how to invest? There is a magazine called "Forbes."
The U.S. authorities have charged eight social media experts with securities fraud.
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