The Australian Securities and Investments Commission (ASIC) oversees groups that pump and dispose of stocks on Telegram. There is a high probability that if these groups issue a suppression order, they will no longer be able to signal and conduct pumping and dumping games for these projects.

ASIC clears pools of pooling, pumping and dumping on Telegram

Earlier this week, an account called ASIC in Telegram’s 300-strong ASX Pump Organization posted a warning that “we are monitoring this platform and may investigate you”. The specific content of the warning message is as follows:

“Coordinated pumping of stock prices for profit is illegal. We can track all transactions and get access to the identities of merchants. […] You run the risk of getting into legal trouble, having a criminal record, paying fines of more than one million US dollars and going to jail. “

Many members of the group believe this account is fake. However, the ASIC side has confirmed the validity of this deleted notice to the newspaper The Australian.

While some members of the community laughed repetitively at ASIC’s news, others expressed disappointment that they were being targeted for the warning instead of the larger corporations and trade organizations.

“What ASIC needs to do is focus on monitoring insider trading companies and short sellers. You shouldn’t spend your precious time here pestering 300 retail investors who won’t go wrong with just sharing stock recommendations. That must be the greatest joke in history, “one member expressed his despair.

On September 23, ASIC issued a warning about the involvement of social media groups involved in blatant pumping and dumping campaigns. They claim that many posts can mislead subscribers by implying that these activities are legitimate. They even imposed sentences of up to 15 years and fines of more than $ 1 million.

“ASIC has worked closely with market operators to identify and mitigate pumping and dumping campaigns. At the same time, we will continue to target behaviors that compromise market integrity. Of course, enforcement action will be taken if necessary, ”said ASIC Commissioner Cathie Armor.

While ASIC is not specifically targeting crypto dumping and pumping pools, a regulator spokesman told Cointelegraph, “The campaign is targeting publicly traded stocks. However, that message applies to all other financial products, including cryptocurrencies or those involved in financial products Connected. “

“Even if the activity related to cryptocurrencies / products may not be a financial product in terms of trade law, pumping and dumping are still a concern as it could harm investors and cause unnecessary price fluctuations,” the spokesman added.

Pumping and dumping groups have grown in popularity this year after a popular subreddit r / wallstreetbets and Robinhood surfaced in January. Together they pumped and devalued stocks that were selling short hedge funds, such as GameStop (GME) and AMC Entertainment (AMC).

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mango

According to Cointelegraph

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