{"id":386993,"date":"2021-12-29T04:42:01","date_gmt":"2021-12-29T01:42:01","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/asic-reveals-how-it-infiltrated-crypto-pump-and-dump-telegram-groups\/"},"modified":"2021-12-29T04:42:01","modified_gmt":"2021-12-29T01:42:01","slug":"asic-reveals-how-it-infiltrated-crypto-pump-and-dump-telegram-groups","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/asic-reveals-how-it-infiltrated-crypto-pump-and-dump-telegram-groups\/","title":{"rendered":"# ASIC reveals how it infiltrated crypto \u2018pump and dump\u2019 Telegram groups"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a25da4855fa5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a25da4855fa5\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/asic-reveals-how-it-infiltrated-crypto-pump-and-dump-telegram-groups\/#Whats_behind_pump_and_dump_schemes\" >What&#8217;s behind pump and dump schemes?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># ASIC reveals how it infiltrated crypto \u2018pump and dump\u2019 Telegram groups <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>The Australian Securities and Investments Commission (ASIC) has revealed the details of how it took down crypto \u201cpump and dump\u201d Telegram groups back in October. <\/p>\n<p>A pump and dump scheme typically involves using <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social media<\/a> to coordinate users to buy large amounts of a thinly traded token to artificially inflate its price. They then cash out with massive gains after other investors, who aren\u2019t in on the scheme, FOMO in on a momentum trade. <\/p>\n<p>The new documents reveal that ASIC has been taking counsel from finance academic and crypto researcher, Talis Putnins since early Oct. <\/p>\n<p>A 38-slide presentation by Putnins to ASIC investigators revealed that pump and dump schemes are cyclical, peaking back during 2018 and again in 2021. The presentation stated that they tend to \u201ccorrelate with overall market sentiment and prices.\u201d<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/c5f3664d-ec53-49db-b615-78e30151670c.png\"><figcaption style=\"text-align: center;\"><em>Pump and dump schemes are cyclical, speaking in 2018 and again in 2021.\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"\">Source<\/a>: presentation to ASIC by Professor Talis Putnins<\/em><\/figcaption><\/figure>\n<p>According to the presentation, there are a number of factors which have changed between 2018 and the time of publication, during Oct 2021. Over a period of six months in 2018, Putnins documented over 355 cases of crypto market manipulation.<\/p>\n<p>He referenced the schemes\u2019 \u201ctransparent intention to pump,\u201d and the absence of any \u201cgenuine attempt to ignite momentum.\u201d The schemes are \u201ccompletely out in the open for everyone to see,\u201d the presentation noted.<\/p>\n<p>The presentation detailed the Telegram group \u201cCrypto Binance Trading | Signals &amp; Pumps\u201d Sept 19 pump of fractional algorithmic stablecoin system, Frax Share (FXS), which saw a massive 90% on $65 million volume in less than one minute. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/b9a86a2f-3129-4021-9813-0fe7d8ce72c9.png\"><figcaption style=\"text-align: center;\"><em>The outcome of the Sept FXS pump was a 90% price increase in less than one minute. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"\">Source<\/a>: presentation to ASIC by Professor Talis Putnins<\/em><\/figcaption><\/figure>\n<p>\u201cWith our volumes averaging 40 to 80 million $ per pump and peaks reaching up to 450% we are ready to announce our next big pump,\u201d stated a Sept 13 announcement in the group.<\/p>\n<blockquote><p> \u201cOur main goal for this pump will be to make sure that every single member in our group makes a massive profit. We will also try reaching more than 100 million $ volume in the first few minutes with a very high % gain.\u201d<\/p><\/blockquote>\n<h3><span class=\"ez-toc-section\" id=\"Whats_behind_pump_and_dump_schemes\"><\/span>What&#8217;s behind pump and dump schemes?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The presentation cited a perceived lack of legal risk, anonymity in forums and encryption as potential reasons for the groups, adding that there is a \u201cperception that crypto is unregulated therefore pumps are legal.\u201d<\/p>\n<p>The new information was revealed in documents which The Australian <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>paper was able to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.theaustralian.com.au\/business\/mining-energy\/pump-and-dump-how-asic-pursued-the-market-manipulators\/news-story\/e36771a817a90855fa45a7eff9cdc98d\">access<\/a> through a freedom of information request. The Australian published the new information on Dec 28. <\/p>\n<p>Last year, Putnins co-authored a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=3670714\">paper<\/a> titled \u201cA New Wolf in Town? Pump-and-Dump Manipulation in Cryptocurrency Markets.\u201d<\/p>\n<p>The report concluded that crypto pump and dumps have created \u201cextreme price distortions of 65 per cent on average, abnormal trading volumes in the millions of dollars, and large wealth transfers between participants\u201d.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>ASIC targets pump and dump Telegram groups<\/em><\/strong><\/p>\n<p>On Oct 15, Cointelegraph reported that ASIC had been investigating schemes across crypto and traditional markets operated through social channels such as Twitter, Telegram and Aussie stock chat forum, HotCopper. <\/p>\n<p>At the time, a Telegram account named \u201cASIC\u201d posted a message on the \u201cASX Pump Organisation\u201d chat warning its 300 members that the watchdog was \u201cmonitoring this platform,\u201d and its members were being investigated.<\/p>\n<blockquote><p>\u201cCoordinated pumping of shares for profits can be illegal. We can see all trades and have access to trader identities. [&#8230;] You run the risk of a criminal record, including fines of more than $1 million and prison time.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/a630432a-a522-40c0-8a85-86b3a55ffb59.png\"><figcaption style=\"text-align: center;\"><em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"\">Screenshot of an announcement in\u00a0<\/a>ASX Pump Organisation Telegram chat from ASIC.<a rel=\"nofollow noopener\" target=\"_blank\" href=\"\">\u00a0Source<\/a>: presentation to ASIC by Professor Talis Putnins<\/em><\/figcaption><\/figure>\n<p>A spokesperson from ASIC told Cointelegraph at the time: \u201cEven where the activity relates to cryptocurrencies\/products that may not be financial products under the Corporations Act, the pump-and-dump practice is concerning as it can lead to investor losses and create unnecessary price volatility.\u201d<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/asic-reveals-how-it-infiltrated-crypto-pump-and-dump-telegram-groups\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# ASIC reveals how it infiltrated crypto \u2018pump and dump\u2019 Telegram groups &#8221; The Australian Securities and Investments Commission (ASIC) has revealed the details of how it took down crypto \u201cpump and dump\u201d Telegram groups back in October. A pump and dump scheme typically involves using social media to coordinate users to buy large amounts&#8230;<\/p>\n","protected":false},"author":1,"featured_media":386994,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTIvZjQ4MDQ3ZTEtYTUzYy00Yjk1LWI3NzMtNzRiOTg2MjEzNDE5LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75461,91283,20358,70934],"class_list":["post-386993","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-asic","tag-pump-and-dump","tag-australia","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/386993","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=386993"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/386993\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/386994"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=386993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=386993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=386993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}