Four individuals face up to 15 years in prison for coordinated market manipulation via social media

Australia’s financial watchdog, ASIC, has secured guilty pleas from four individuals involved in a coordinated pump and dump scheme that used Telegram channels to manipulate penny stock prices on the ASX.

The group-Larissa Quinlan, Kurt Stuart, Emma Summer, and Syed Yusuf-admitted to conspiring to commit market rigging and to dealing with the proceeds of crime. The offenses took place in September 2021, and centered around two private Telegram groups named “ASX Pump and Dump Group” and “ASX Pump and Dump Channel.”

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How the Scheme Worked

According to ASIC, the defendants selected low-volume “target” stocks and purchased them in advance. They then promoted those stocks to the public Telegram groups to artificially drive demand and spike prices. Once the pump phase succeeded, they sold their holdings at inflated prices-leaving unsuspecting retail traders to absorb the losses.

ASIC described the actions as having “a false or misleading appearance with respect to the market for, or the price of, financial products,” in breach of the Corporations Act 2001 (Cth).

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The Penalties

The conspiracy charge alone carries a maximum sentence of 15 years in prison and over AUD $1 million in fines. The group also faces charges for dealing in criminal proceeds ranging from AUD $1,000 to over $10,000.

The case has drawn significant attention, not only for the regulatory consequences but for what it signals about how social media platforms are used to coordinate illicit trading activity.

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The Bigger Picture for Traders

As Telegram, Discord, and other social platforms continue to shape the trading culture-especially in retail and prop circles-this case highlights the increasing scrutiny from regulators. It’s also a clear warning: market manipulation in digital communities will not go unnoticed.

Stay tuned. PropInsider will continue monitoring how global regulators are reacting to social-driven market activity -and what it means for the future of community-based trading.

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