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ASIC reveals how it infiltrated crypto ‘pump and dump’ Telegram groups -Breaking

by Mike Robinson

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The Australian Securities and Investments Commission (ASIC) has revealed the details of how it took down crypto “pump and dump” Telegram groups back in October.

A pump-and-dump schemeIt involves the use of social media to organize users to purchase large quantities of thinly traded tokens to artificially inflate their price. They then cash out with massive gains after other investors, who aren’t in on the scheme, succumb to FOMO and buy in on a momentum trade.

The cycle of pump-and-dump programs is cyclical. They peak in 2018 and then again in 2021. SourcePresentation to ASIC by Talis Putnins
In less than one second, the result of September FXS pumps was a price rise of 90%. SourcePresentation to ASIC by Talis Putnins

What’s behind pump-and-dump schemes?

Screenshot from an announcementTelegram chat with ASIC about the ASX Pump OrganisationSourcePresentation to ASIC by Talis Putnins

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