ASIC Tracks Pump and Dump Groups in Telegram

The Australian Securities and Investment Commission (ASIC) monitors pump and dump groups on Telegram.

On Monday, in the ASX Pump Organization group on Telegram, an account called ASIC posted a warning to 300 members of the group that the Commission is reviewing and monitoring the activities of this group and its members:

“Coordinated pumping of stocks for profit can be illegal. We track all transactions and have access to the trader’s personal data. […] You run the risk of being sued and fined over $1 million and a prison sentence.”

Many members of the group believed the message was sent from a fake account, but the ASIC confirmed the message to an Australian newspaper.

Some community members laughed at the ASIC’s message, while others expressed their disappointment that the Commission was targeting them instead of targeting firms and corporate traders.

One contributor wrote that ASICs should be harassing corporations and not wasting precious time harassing 300 small investors who are doing nothing wrong by sharing stock recommendations.

On September 23rd, ASIC issued a warning that some social media groups were running “egregious” pump and dump campaigns. In some cases, posts on social media forums may mislead subscribers into believing that the activity is legal, pending a warning of jail time of up to 15 years and fines of more than $1 million, according to the Commission’s statement.

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