Feed: Slashdot
Feed Link: https://slashdot.org/
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Title: Obscure Chinese Stock Scams Dupe American Investors by the Thousands

Link: https://slashdot.org/story/25/06/16/1956251/o...

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.

Read more of this story at Slashdot.

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