Influencers Are Using Discord and Twitter in Pump and Dump Schemes

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

Discord
Andria Moore

This week, the FBI indicted eight men, two of whom reside in Beverly Hills, for allegedly using Discord and Twitter to artificially raise stock values in an illegal “pump and dump” scheme.

According to the indictment released Wednesday, the accused made an estimated $114 million off the sale of stocks they pumped up in a Discord server called Atlas Trading. The defendants were also active on financial Twitter (referred to as, “fintwit”), where influencers use social media to spread misinformation about stocks.


Atlas Trading, the Discord server the eight defendants ran and claimed by the defendants to be the “largest free stock trading community,” the Discord server Atlas Trading has been taken offline. Whether that’s through the Justice Department or the alleged fraudsters remains unclear: Discord didn’t immediately return dot.LA’s request for comment on the recent indictment.

In the wake of this news, let’s take a brief look at what the platform is, and how prevalent these types of scams are on Discord.

Why Discord?

A text, voice and video chat app, Discord is well known for having a huge community of young and impressionable users (according to Statista, users aged 16-24 made up roughly 22% of its audience) and it’s been dubbed the “teens’ favorite chat app,” partly because it interfaces perfectly with all their favorite games. Users can chat, game and build community.

All of which explains why Discord is ripe for these types of schemes. For starters, anonymity allows users the feeling they are shielded from legal consequences. But more importantly, a private Discord channel can cultivate the sense that you’re a part of a close-knit community of insiders tooled with information not yet known to the greater public.

In the case of Atlas Trading, the group promised its followers surefire gains on securities it was seeking to pump. Though the indictment notes that once people began to lose money, the Discord server’s members then started questioning the scammers’ guarantees in the Discord server. Throughout it all, though, the scammers of course denied they were selling securities and that they were part of a pump and dump scheme.

How Do Influencers Use Discord for Pump and Dump Schemes?

Using their Instagram pages full of pictures of exotic cars, multiple credit cards and designer clothes to lure in marks, finance influencers typically offer access to an “exclusive” Discord server where they promise private, and valuable communication about trading. As such, it’s not uncommon for these influencers to ask people to pay to get access to servers.

In the case of Atlas Trading, the influencers banded together to buy the same securities then posted false information on Discord and other social platforms hyping the stock up. Then, they all sold covertly while still encouraging their followers to buy to increase their profits.

In other cases, the scammer(s) even send specific messages to the Discord about when to buy or sell a stock with a promise of guaranteed returns, in a bid to further control the market.

How Common Are These Types of Scams on Discord?

The Better Business Bureau’s site notes no shortage of recent anonymous complaints about Discord. Many reference cryptocurrency scams being conducted on the app. One report from July 1 noted the mark lost $5,700 to a stock trading scam after getting a message from a Facebook page called OBR Investing asking them to join a Discord server. After joining the Discord, the person began making deposits but couldn’t withdraw their cash and received a fraudulent check.

Many others reported fake messages on Discord claiming they won Bitcoin or Ethereum and had to deposit funds to retrieve the payout. One person avoided losing any money but another reported losing $8,501 to a broker going by PigyTrade. “Upon requesting for withdrawal the company refused to give me information regarding my transaction and stopped replying all together,” the report read.

Another person reported in September that Yan Stavisski, founder of Los Angeles-based “financial education” King Credit, allegedly scammed them out of $1,500 under the guise of getting investing classes and access to a private Discord server. “I have never heard back from him, ever since. I paid $1500 to this LLC,” the person wrote.

What Can I Do to Avoid Being Scammed?

Be wary of any trade promising fast cash, and assume every offer is a scam until proven otherwise. In addition, you should seek verification of claims about any developments that could bump up a stock’s value; the SEC includes “product developments, lucrative contracts, or the company’s financial health.” If these claims are real, it shouldn’t be hard to find an accredited news source reporting on it. Or, check the SEC’s database for recent filings; publicly traded companies are mandated to keep the regulators updated too.

But, for that reason, pump and dump schemes usually target smaller companies that don’t require a lot of volume to move the price. In that case, verification is doubly important.

Also, be wary of any “high-pressure pitches,” the SEC says. If anything is marketed as a “once in a lifetime opportunity,” it isn’t, it’s just a bid to pressure you into selling against an invisible deadline.
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Standing Together Through the Flames

🔦 Spotlight

To our Los Angeles family,

This week’s wildfires have brought immense pain and hardship to our beloved city. Many of our friends, neighbors, and colleagues have faced evacuations, power outages, and the devastating loss of homes and livelihoods. Our hearts go out to everyone affected by this tragedy.

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    A Strong Finish to 2024 for LA Tech: Crosscut Ventures Leads the Way

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    Happy Friday LA!

    As we close the book on 2024, Los Angeles has had a remarkable year in tech and venture capital. From groundbreaking funding rounds to industry-defining innovations, the city’s tech ecosystem has showcased its ability to adapt and thrive. Among the year’s final highlights was the announcement that Crosscut Ventures, one of LA’s premier early-stage venture capital firms, has added Jon Ylvisaker as its newest Partner.

    Crosscut Ventures’ Bold New Direction

    Announced in late December, Jon Ylvisaker’s appointment reflects Crosscut Ventures’ commitment to advancing its focus on the energy transition. Ylvisaker brings decades of experience in driving investments in energy technologies and digital infrastructure. As the founding partner and managing director of Yield Capital Partners, he led investments in startups and established companies shaping the future of sustainability. At Wolfacre Global Management, a Tiger Management hedge fund, he further honed his expertise in supporting impactful climate-focused solutions.

    Brian Garrett, Managing Director and Co-Founder of Crosscut Ventures, said, “Jon's extensive experience in climate and digital infrastructure investments, coupled with his impressive track record of bringing groundbreaking technologies to market, makes him the ideal partner to help lead our focus.”

    Since its founding in 2008, Crosscut has played a key role in shaping LA’s tech landscape. Ylvisaker’s addition reinforces the firm’s commitment to addressing global challenges like energy transition and sustainability, further solidifying its leadership in venture capital innovation.

    What’s Next for LA Tech in 2025

    The momentum from 2024 has set the stage for an even bigger year ahead. Entrepreneurs, investors, and innovators in LA are poised to take on new challenges and create meaningful change across industries.

    As we step into 2025, we want to thank everyone who helped make 2024 such a standout year. Here’s to another year of progress, innovation, and success. From all of us at dot.LA, Happy New Year!

    🤝 Venture Deals

    LA Companies

    • First Resonance, a company specializing in digital manufacturing software through its ION Factory OS, has raised a $20M funding round led by Third Prime with participation from Blue Bear Capital and others. This brings its total funding to $36M and will be used to accelerate product development, grow its customer base, and enhance support for advanced manufacturing sectors like aerospace, robotics, and clean energy. - learn more
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    LA Exits

    • Thirteen Lune, an inclusive beauty e-commerce platform, has been acquired by SNR Capital, marking a significant milestone in the platform's mission to amplify underrepresented beauty brands while fueling its next stage of growth. - learn more
    • Ergobaby, a leading brand in juvenile products known for its high-quality baby carriers, has been acquired by Highlander Partners. The acquisition aims to bolster Ergobaby’s growth, expand its product offerings, and strengthen its position in the parenting solutions market. - learn more

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    Salt AI’s $3M Bet, Snapchat’s Creator Cash, Rivian’s EV Tech, and ŌURA’s $200M Win

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    Happy Friday, LA - let’s dive right in to this week’s highlights:

    Salt AI, a forward-thinking AI startup based in Los Angeles, has secured a $3 million seed funding round led by Morpheus Ventures with participation from Struck Capital, among others, to tackle the complexity of managing workflows.Salt AI's blog details how its platform centralizes tools like CRM systems, project management software, and data trackers into one interface, eliminating inefficiencies and freeing up teams to focus on meaningful work. With new funding in hand, Salt plans to scale its platform and expand its reach, a move that underscores how AI can solve everyday business challenges.

    Image Source: Salt AI - Aber Whitcomb

    While Salt AI focuses on the workplace, Snapchat is doubling down on creators, with its latest updates introducing revenue-sharing opportunities and direct monetization features. The company’snewsroom update outlines how enhanced analytics will help creators better understand their audiences and sustain their work. The platform's latest updates introduce revenue-sharing opportunities and direct monetization features, along with analytics that give creators deeper insights into their audience. By making it easier for creators to grow and sustain their work, Snapchat positions itself as a key player in the creator economy, offering features that rival platforms like YouTube and TikTok.

    Image Source: Snap

    On the roads, Rivian is redefining what it means to drive an electric vehicle. The company’s latest software update includes advanced route planning, energy management tools, and customization options that make every trip more intuitive and efficient. Additionally, Rivian has introduced new entertainment features, including Google Cast, YouTube, and SiriusXM, as featured in Rivian’ssoftware spotlight, enhancing the in-cabin experience for drivers and passengers alike. This isn’t just about convenience; Rivian is showing how thoughtful software design can elevate the entire EV experience, blending practicality with sophistication.

    Image Source: Rivian

    ŌURA is making headlines with a fresh $200 million Series D funding round, with participation from Fidelity Management & Research Company and Dexcom, which now values the company at $2.55 billion. This investment, as reported byBusiness Wire, highlights the growing demand for wearable health technology and positions ŌURA as a leader in the space. With its sleek design and emphasis on actionable health insights, the funding will enable ŌURA to expand its reach and further integrate wearables into daily health management, strengthening its position in the competitive health tech market. With this funding, ŌURA aims to reach more users and expand its capabilities, further embedding wearables into daily health management.

    Image Source: ŌURA

    Stay tuned as Salt AI, Snapchat, Rivian, and ŌURA continue to evolve, offering us new ways to work, connect, and live better.

    🤝 Venture Deals

      LA Venture Funds
        • Undeterred Capital participated in a $7M Seed funding round for Portal, a Watertown, Mass.-based biotech company specializing in advanced intracellular delivery technology to drive innovations in biological research and cellular therapeutics. - learn more
        • Vamos Ventures participated in a $7.9M Series A funding round for Culina Health, a Hoboken, NJ-based company that provides personalized, science-based virtual nutrition care by connecting patients with registered dietitians, with plans to use the funds to expand its offerings for dietitians and patients, implement AI-driven tools to enhance care efficiency, and strengthen its leadership team through key hires. - learn more
        • Humans Ventures participated in a $3.8M Seed funding round for Hamming.ai, a San Francisco-based company specializing in automated tools for testing and optimizing voice agents, with plans to expand its platform, enhance reliability and perform, and accelerate product development. - learn more
        • Fifth Wall led, with participation from Starshot Capital and others, in a $9.5M Series A funding round for Mojave, a Sunnyvale, CA-based company developing energy-efficient commercial air conditioning technology. The funds will be used to accelerate the adoption of its innovative systems and reduce energy consumption in the cooling industry. - learn more
        • ReMY Investors participated in a $17M Series B funding round for Scripta Insights, a company that leverages data analytics to help employers and healthy plans reduce prescription drug costs, with the funds aimed at expanding its platform and scaling operations. - learn more
        • Mantis VC participated in a $16.5M funding round for Nuon, a company specializing in Bring Your Own Cloud (BYOC) solutions that streamline AI, data, and infrastructure software deployment. The funds will support product development, readiness for general availability in 2025, and efforts to expand customer acquisition. - learn more
        • B Capital participated in a $102M Series C funding round for Precision, a company developing minimally invasive brain-computer interfaces to treat neurological disorders, with plans to use the funds to expand its team, advance clinical research, and refine its AI-powered brain implant for helping users with severe paralysis operate digital devices using their thoughts. - learn more
        • The Games Fund led a $3M Seed funding round for Dark Passenger, a Poland-based game studio founded by veterans of The Witcher 3 and Cyberpunk 2077, to create an unannounced, innovative, first-person multiplayer PvPvE stealth-action game set in a distinctive universe inspired by feudal Japan and martial arts cinema. - learn more

            LA Exits

            • Calliope Networks, a generative AI company providing licensed media content like movies, TV shows, and news, has been acquired by Protege to strengthen its platform’s capabilities in advancing AI development. - learn more

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