After “social media manipulators” created fake Twitter accounts through fake company news to drive up prices, the SEC suspended trading of 15 “penny stocks,” whose prices skyrocketed
- The US Securities and Exchange Commission suspended trading of 15 pence stocks last Friday until March 11
- Regulators say social media manipulation has been used to drive up prices
- It seems that they are all companies that have gone bankrupt, and the transaction price was $0 before the interest rate hike.
- Scammers seem to have created fake Twitter profiles for certain companies
- Touting false company news to arouse interest in worthless stocks
- This is similar to the distorted Wall Street Wolf plot on social media
- Out of concerns about rising prices of “meme stocks”
The US Securities and Exchange Commission has suspended trading of 15 so-called penny stocks, saying that social media manipulators are trying to fraudulently raise their stock prices.
The order last Friday froze the stock trading of 15 little-known companies, all of which appear to have been dissolved, and until recently they were trading at $0 in the over-the-counter market.
Penny stocks are the stocks of small companies. Compared with major listed companies, their supervision is looser and they are usually highly volatile. The focus of the “Wolf of Wall Street” movie was a similar plan to increase penny stocks in the 1980s.
In this case, an investigation by DailyMail.com revealed that the unknown party created a fake Twitter account, claimed to represent the failed company, and published false company news with the purpose of raising the stock price.
After obvious social media manipulation, Ehouse Global’s stock price actually jumped from $0 on February 23 to a high of $0.0013.The stock has been frozen by the U.S. Securities and Exchange Commission
Twitter handle @EHOS14 is said to represent Ehouse Global
In one case, the Twitter handle @EHOS14 is said to represent Ehouse Global, which was established in 2005 as an acquisition tool for the cannabis department, and on the surface it has all disappeared.
Ehouse Global’s website is offline. The company’s Las Vegas shopping center headquarters in San Diego is now a bank branch. According to the SEC, it has not filed any financial statements for more than a year.
But earlier this month, a Twitter account was registered to represent Ehouse and is expected to release exciting new company news.
Ehouse Global’s stock actually jumped from $0 on February 23 to $0.0013 this week. Although it is still a small number, it is a potentially huge gain for anyone who holds a large number of stocks.
The @EHOS14 account no longer exists on Twitter, and DailyMail.com cannot identify its creator. The SEC has not confirmed which social media platforms are involved in the alleged social media scam.
Ehouse Global’s website is offline. The company’s open-air shopping center headquarters in San Diego is now a bank branch (as shown above), and it has not submitted any financial statements for more than a year.
Some Twitter users expressed doubts about the authenticity of the @EHOS14 account
SEC’s Acting Director of Enforcement, Melissa Hodgman (Melissa Hodgman) said in a statement: “We will proactively monitor suspicious trading activities related to stock promotions on social media and will take prompt action when appropriate. Stop trading to protect the public interest.”
She added: “We also remind investors to exercise caution and conduct due diligence before making general investments, including companies promoted on social media.”
The new order will freeze the stock trading of the following companies: Bebida Beverage Co. (BBDA); Blue Sphere Corporation (BLSP); Ehouse Global Inc. (EHOS); Eventure Interactive Inc. (EVTI); Eyes on the Go Inc. (AXCG) ; Green Energy Enterprise Co., Ltd. (GYOG); Helix Wind Corp. (HLXW); International Power Group Co., Ltd. (IPWG); Marani Brands Inc. (MRIB); MediaTechnics Corp. (MEDT); Net Talk.com Inc. (NTLK) ); Patten Energy Solutions Group (PTTN); PTA Holdings Inc. (PTAH); General Apparel and Textile Company (DKGR); and Wisdom Homes Corporation of America (WOFA).
The SEC said in its order that as of March 11, trading of these 15 stocks was suspended.
After being accused of manipulation, Blue Sphere Corporation (BLSP) also rose from $0
MediaTechnics Corp. (MEDT) is another penny stock that was frozen on Friday
According to the federal securities laws, the US Securities and Exchange Commission can suspend trading of stocks for 10 days and usually prohibits broker-dealers from inviting investors to buy and sell stocks again before meeting certain reporting requirements.
The agency said in a statement: “Today’s action is before the stocks of many other issuers were recently suspended. Many of these stocks may also have become obvious social media attempts to artificially increase stock prices.”
The SEC continues to review market and transaction data to identify other securities that need to be suspended for public interest and investor protection. “
Following this, small investors who use platforms such as Robinhood have seen a surge in interest in stock trading, and many people turn to social media for tips or share their trading strategies.
In recent weeks, the enthusiasm for “meme stocks” such as GameStop has attracted the attention of regulators and politicians as the stock prices of troubled video game retailers have soared due to interest in Reddit.