Australian watchdog revealed how they infiltrated crypto ‘pump and dump channels

The financial watchdogs of Australia explained how they entered in crypto pump dump channel on telegram, to understand how these types of illegal activities are going on. 

This crypto industry is full of opportunities but only for those, who will use the proper strategy. Otherwise, a person can make a huge amount of profits by just holding for long terms for many years. Almost every person wants to make a high profit in a small interval of time and these types of help to trick such people for bad actors to make money. 

There are a number of the crypto pump and dump channels in this crypto industry. Not all the telegram channels but the majority of them are engaged to make a profit through the manipulation of the prices by attacking on a particular coin. On such illegal activities, the Australian Securities and Investments Commission (ASIC) is working to prohibit, to ensure the investor’s interest protection. 

The release documents of the ASIC agency revealed that they are working on this matter for a long time and they are also in talk with the Talis Putnins. 

A 38- slide representation of ASIC, claimed that Pump Dump is just part of the price manipulation and tricked the crypto investors to make a profit for themselves. And such kinds of things were in trend in 2018, but now again in 2021, it is at its peak level. 

Putnins documented that they found around 355 cases of pump dump crypto in only six months time period of 2018. 

Investigation-based published documents also revealed that millions of funds trading in a particular coin manipulate the Market cap and price of the coin at any exchange. And also the admins of telegram groups ensured that they will do a high volume of pumps to give profit to every crypto trader. 

Published documents on this Investigation revealed that the ASIC agency targeted two groups on the telegram. Namely Crypto Binance Trading | Signals & Pumps”. These two groups were based on the algorithm-based pump dump system. 

The outcome of the Sept FXS pump was a 90% price increase in less than one minute. Source: presentation to ASIC by Professor Talis Putnins

An announcement of one of the groups stated:

“Our 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.”

Published documents also claimed that the lack of a regulatory framework to detain or restrict such kinds of activities promotes people toward the misconceptions that Pump and dump in crypto are legal. And also there is huge anonymity of the members in channels, making it easy to operate such kinds of activities. 

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