Hong Kong SFC Exposes Ramp-and-Dump Scheme: 24 Accused in $191 Million Fraud

The Securities and Futures Commission (SFC) in Hong Kong has accused 24 people of market manipulation after a recent joint investigation with the local police. The operation was directed at a sophisticated syndicate that engaged in ramp-and-dump operations using a sophisticated cross-shareholding network of Hong Kong-listed businesses. The fraudulent operation created $191 million in unauthorized profits by targeting the shares of six publicly traded firms.

The chairman of a Hong Kong-listed company and three accountable officers from two brokers were among the suspects who were arrested. The SFC had discovered many nominee accounts that had been utilized to seize control of the shares of the target companies. A big, sophisticated organization accused of ramp-and-dump market manipulation has two additional defendants under investigation for money laundering charges.

The SFC claims that as more individuals are being targeted online for financial fraud, its characteristics are evolving. Nowadays, scammers are reaching out to individuals using a variety of well-known social media platforms, including Facebook, Instagram, WeChat, Whatsapp, Telegram, and even online dating services.

The Main Role of the Securities and Futures Commission (SFC)

The Securities and Futures Commission (SFC) vigilantly monitors the financial markets in Hong Kong, seeking out and pursuing the fraudulent activity. by keeping a list of authorized brokers, such as Interactive Brokers Hong Kong Limited (IBKR) and Saxo Bank (Saxo Capital Markets HK Limited), publicly available.

The SFC fosters investor vigilance and transparency. The SFC also publishes recommendations, warnings, and instructional materials to help the public make wise choices and stay away from financial fraud.

Fraudsters Attempt To Profit From Fear

The regulator cautioned investors to exercise caution when sharing insider knowledge or investing advice online, especially when total strangers are endorsing small-cap or less liquid companies on social media. Additionally, it was found that this year, pump-and-dump frauds have targeted an increasing number of Hong Kong small-cap businesses.

According to SFC statistics, 20% of the market manipulation cases it is now looking into include these types of dishonest schemes that aim to manipulate the price of a stock by making recommendations based on inaccurate or misleading information.Nowadays, ramp-and-dump scammers concentrate on social networking platforms and use more cunning strategies to get victims to sign up. According to the SFC, they have sometimes used renowned market pundits and well-known financial gurus as fronts to lure victims into the scam. Despite the fact that there are several varieties of these strategies, some advertisements claim to be research reports and forecast precise target values for a stock of a firm.

WikiFX: A Beacon of Trust in the Forex Market

WikiFX has become a trustworthy resource for traders and investors looking for transparency at a time when scammers are plaguing the forex industry in an increasingly severe way. The goal of this worldwide regulatory inquiry app is to safeguard the public from possible financial loss while halting the emergence of dishonest brokers.

WikiFX's main job is to examine forex brokers' regulatory status, company licenses, and compliance with international financial legislation in order to confirm their legitimacy. WikiFX enables consumers to make wise selections before working with a forex broker by giving them reliable and current information.

An extensive database of over 40000+ brokers is available via the app, replete with ratings, customer reviews, and background checks. Users have the option of searching for a particular broker or looking through a list of brokers who have been credibly and historically recommended.

WikiFX also actively looks for and uncovers frauds, warning users of possible dangers and fostering a secure trading environment. Along with instructional materials, market research, and professional assistance, the app also helps users navigate the complicated world of FX trading.

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