The SEC announced charges against eight individual influencers in a $100 million securities fraud scheme. They used the social media platforms Twitter and Discord to manipulate exchange-traded stocks.
Dec. 14, 2022, Washington D.C, – Securities and Exchange Commission (SEC) press release stated “today announced charges against eight individuals in a $100 million securities fraud scheme in which they used the social media platforms Twitter and Discord to manipulate exchange-traded stocks.”
In the statement SEC, The individuals allegedly sold their shares without disclosing their plans while promoting themselves as successful traders on Twitter and other social media platforms. They are accused of defrauding investors out of hundreds of thousands of dollars.
The SEC says the defendants used social media to amass a large following of novice investors and then took advantage of their followers by feeding them a “steady diet of misinformation”.
Daniel Knight, of Texas, is charged with aiding and abetting the alleged scheme. Criminal charges were filed by the Department of Justice’s Fraud Section and the U.S. Attorney’s Office.
The investigation was prompted by a referral from the U.S. Department of Justice’s Criminal Fraud Section. It is being handled by the SEC’s Boston Regional Office.
In Previous Danske Bank, a Denmark-based global financial institution, pleaded guilty earlier this week and will forfeit $2 billion to settle a federal investigation into its fraud against US banks.
In a December 13 press release from the Dept. of Justice (DOJ), Danske Bank defrauded US banks by providing false information about customers of its Estonian branch as well as its anti-money laundering controls. This allowed “high-risk customers,” including Russians, access to the US financial system.