Anatomy of a WhatsApp Stock Scam
The latest stock to get sunk. And more details on how these scams operate.
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▶No sooner did I write yesterday that the next China stock scam is likely to be Park Ha Biological Technology ($PHH) than – presto...
In a blink today the stock is down 90%, or as I write this trading at around $4 – down from $40. It’s almost a repeat of what happened a week or so ago with Ostin Technology $OST, which is now trading for pennies.
If the history of these What’sApp scams is any guide, pennies is probably where Park Ha is headed...
If you missed my comment yesterday, you can read it here under the “The Golden Age of Fraud” section, where I noted that Park Ha is yet another example of a Chinese stock that trades on the NasdaqCM, or Nasdaq Capital Markets, which I refer to as the “Nasdaq’s come-one, come-all version of the Vancouver Stock Exchange.”
And it’s just the latest, but the bigger question is, what really goes on here?
How These Scams Work
Since my first reports on these scams ran, I’ve been inundated with emails from victims...
What’s striking is how similar their stories are. This one, in particular, laid it out best. Two, thanks to their detail, stand out. Here they are in their entirety, but with names of actual investment firms that were impersonated deleted....
I’m reaching out to you as an investigative journalist known for your in-depth work uncovering corporate misconduct. I recently became a victim of what appears to be a coordinated pump-and-dump scheme involving a NASDAQ-listed company, Ostin Technology Group Co. Ltd. (Ticker: OST) — and I believe this case involves possible insider trading and corporate complicity.
This was not a one-off scam – it was a 3-month-long grooming process that began with a Facebook ad promoting a seemingly legitimate investment group. I was gradually drawn into private WhatsApp chats, where scammers impersonating licensed advisors offered stock tips and pretended to represent credible institutions.
At first, they recommended solid large-cap stocks that performed well, which helped build trust. Once I felt safe, they began heavily promoting OST, claiming it would "soar in 20–30 days."
Relying on their guidance, I invested — only to lose over $40,000 USD when the stock collapsed.
Key Timeline:
June 26, 2025: OST surged above $9.00, was halted during trading, then resumed around $0.70 — wiping out many retail accounts.
June 30, 2025: OST announced a $5 million direct offering at $0.12/share, issuing over 41 million shares/warrants — confirming massive dilution.
I believe individuals behind the WhatsApp group may have had ties to OST insiders or executives, as public data indicates shares were sold by insiders shortly before the collapse, raising strong suspicions of insider trading.
The timing and alignment between the scam and the company’s offering suggest that OST may have been complicit or negligent in enabling this fraud.
I’ve submitted formal complaints to the SEC, IC3, Canadian Securities Administrators, and the Canadian Anti-Fraud Centre. However, I believe greater public awareness is urgently needed.
This was not just about one stock – it’s part of a growing trend where foreign-based pump schemes target retail investors through social media and then dump inflated shares into the market with potential corporate coordination.
I’m asking for your help not only in investigating this case – but in raising media attention around it to warn others before more people fall victim to similar operations.
I would be very grateful to share all my evidence and details with you directly.
And This...
I just read your article. I'm part of the Discord server for the victims of this scam, they've told me about you. My story is just like many others'. I just want to add my voice to hopefully trigger more attention by the authorities, hoping that your access to a trusting audience, through the work you've done, may generate the momentum to see that enough manpower is put towards taking down these criminals. I've already reported this to all competent bodies (6 of them) including the FBI.
My story:
After clicking on an Instagram ad showing a video of Tim Ferriss (known author), between May 8th and June 26th, 2025, I was the victim of a highly coordinated pump-and-dump fraud involving the security OST (Ostin Technology Group Co., Ltd.), which is listed on the NASDAQ.
Over a period of approximately 6 weeks, I was manipulated, partly through recommendations for a series of small wins, into making what I now understand to be extraordinarily risky and irrational purchases of OST stock, resulting in financial losses of around US $70,000. These purchases were executed via the Wealthsimple trading platform.
This fraud was orchestrated through a WhatsApp group that impersonated legitimate investment advice communities
The perpetrators used sophisticated psychological manipulation, time-sensitive pressure, and fabricated trading activity to compel participants (myself included) to invest heavily in OST under false pretenses. They start off with small trades that actually return on the investment, and then gradually grow towards "the big one," which turns out to be the scam.
He went on to wonder why some brokerage firms, like the one he traded through, allowed the trades.
It’s a good question...
But a better one is, why does the Nasdaq allow these companies to trade. Maybe because the Nasdaq is self-regulated – and self-regulating these would regulate the company out of fees? I’m asking, not telling.
One other thing, as I and the victims have noted, these companies are impersonating legitimate financial planning firms. They create false websites and even use photos of real partners from these firms as administrators and leaders of WhatsApp chats.
I’ve spoken with a few of these firms, and heard from one today, which put their frustration like this...
I’ve spent hours discussing this with our compliance/legal counsel, filing reports with government agencies, and corresponding with the few cautious investors who have reached out. Sadly, our attempts to have the fake profiles and the “U.S. Stock Tip” groups removed truly feels like a game of whack-a-mole. The WhatsApp/Meta campaign touting the privacy of activity on their platform creates a breeding ground for bad actors and makes shutting these types of scams down nearly impossible.
That’s why I believe this scam will be extremely hard to eradicate... or for regulators to crack down on. It’s worldwide.
P.S... So far most of these frauds appear to involve Chinese companies. Then again, one pal who is keeping close tabs on this scam says that out-of-the-blue a group he’s part of started chatting up KalVista ($KALV), which is based in Massachusetts and has had a messy past tied to a drug that this week finally got approved. Arguably, this is the perfect company for a scamster to use as a way to gain trust... and in this case, as a way to help compensate for Ostin losses.
Here’s a post from yesterday from one of these groups. Note the mention of Ostin...
The kicker, per my friend, “Except they never sent out the first recommendation” – the one they claim they did on July 1.
Sounds to me as if KalVista, in the least, is merely being dangled as bait to lure investors into their next scammy rug pull, likely a non-U.S. company, such as (drumroll!) ...
AnBio Biotechnology ($NNNN), which is German-based, Chinese-owned and went public on the Nasdaq Global Markets in February. he Nasdaq GM is a step up, it appears, from the Nasdaq Capital Markets. Its name is now making the rounds in these same chat rooms, so...
will it be next? Martin Svanda who has been tracking these in his Short Ideas newsletter – and it turns out has been nailing one Chinese scam stock after another – just wrote up AnBio today. Stay tuned.
Bottom Line
I don’t offer investment advice, but this I can tell you: If somebody touts:
A “trading strategy"
A “missed opportunity"
Future “trading products with an expected return rate of over $150”
Then asks you if you “want to participate in the profit?"
Or any combo thereof – don’t just hold onto your wallet, digital or otherwise, but run the other way as fast as you possibly can because you are about to be scammed.
The beat goes on...
The beat goes on...
DISCLAIMER: This is solely my opinion based on my observations and interpretations of events, based on published facts and filings, and should not be construed as personal investment advice. (Because it isn’t!) I do not have a position in any stock mentioned here.
Feel free to contact me at herb@herbgreenberg.com