Key facts
- A global pump-and-dump scheme using AI-generated deepfakes cost investors over $110 million.
- The scheme impersonated prominent market and business figures, including Elon Musk and Bill Ackman.
- Victims were lured through fabricated videos and ads on Facebook and Instagram.
- The fraud centered on Ostin Technology Group, a Cayman-registered, Nanjing-based display-screen maker listed on Nasdaq.
- Investors were directed to fake WhatsApp investment clubs promising high short-term returns.
A global pump-and-dump scheme, leveraging AI-generated deepfakes of prominent market and business figures, has defrauded retail investors of more than $110 million. U.S. prosecutors stated that the fraud was centered on Ostin Technology Group, a Cayman-registered company based in Nanjing that manufactures display screens and is listed on Nasdaq.
Investors across North America, Europe, and the Middle East were targeted through fabricated videos and advertisements that impersonated well-known personalities such as Elon Musk, Bill Ackman, Kevin O’Leary, and market commentator Tom Lee. Individuals who clicked on ads on Facebook and Instagram were redirected to WhatsApp groups that posed as private investment clubs. Within these groups, purported "advisers" promised several short-term stock picks each month, with anticipated returns ranging from 20% to 30% per trade.