Categories: Market

ASIC aims to pump and render groups of telegrams

The Australian Securities and Investments Commission (ASIC) monitors pumping and dumping groups on Telegram.

On Monday, an account called “ASIC” in the “ASX Pump Organization” on Telegram posted a warning in front of 300 members of the group that “we are monitoring this platform and possibly investigating you.”:

“Coordinated pumping of stocks for profit can be illegal. We can see all transactions and have access to the identity of the merchant. […] You risk criminal records, including fines in excess of $ 1 million and jail time. “

Many members of the group claimed the account was fake, but ASIC confirmed the validity of the now-deleted notice to The Australian.

While some members of the community laughed at ASIC’s news, others vented their frustration that they were being targeted instead of corporations and corporate traders.

“What ASIC needs to do is keep an eye on the consortium within the trade and the short sellers, and not spend precious time pissing off 300 retail investors who did nothing wrong by sharing stock recommendations. That has to be the greatest joke in history, ”wrote one member.

On September 23, ASIC issued a warning of the “relevant trend” of social media groups engaging in “blatant” pumping and sales campaigns. It claims that “in some cases, posts on social networking forums can mislead subscribers by suggesting that the activity is legitimate” before facing jail sentences of up to 15 years and fines in excess of $ 1 million .

“ASIC has worked closely with market operators to identify and pause pumping and dumping campaigns, and we will continue to take action that threatens the integrity of the market.

However, ASIC does not specifically target crypto-based pumps and dumps, a regulator spokesman told Cointelegraph:

“The campaign is targeting publicly traded stocks, but the message is relevant to all financial products, including all crypto assets that may be or related to other financial products.

Related: Senator Bragg tells NFT Fest there could be new Australian crypto laws by 2022

“Even if activities related to cryptocurrencies / products are not a financial product within the meaning of the Corporations Act, pumping and dumping are still a matter of concern as this could lead to damage to investors and unnecessary price volatility,” added the representative.

Pump and dump groups became popular this year after the r / wallstreetbets and Robinhood sagas in January. The Reddit team – more about pumping than dumping, admittedly – worked together to promote stocks that were shorting hedge funds, such as GameStop (GME) and AMC Entertainment (AMC).

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.