The Bank of Russia has uncovered instances of market manipulation in 2023-2024 involving private trader Boris Smirnov, who operated a trading account and managed a Telegram channel with over 13 thousand subscribers.
Smirnov allegedly engaged in the PUMP and DUMP scheme, artificially inflating prices for low-volume assets through aggressive buying, only to sell them at a much higher price. This pattern of behavior was repeated during trading sessions, allowing Smirnov to profit financially. The Bank of Russia has highlighted that these manipulations led to significant price fluctuations and increased risks for other market participants.
Reports indicate that Smirnov utilized his personal account to trade 14 securities, including shares of companies such as Kaluga sales company, Rosseti North-West, TNS Energy Voronezh, Yakovlev, and Red October. The resulting transactions reportedly caused significant deviations in asset values.
In addition to his trading activities, Smirnov, who also managed the Fibo Trade Telegram channel with thousands of subscribers, allegedly disseminated false information about transactions. By announcing purchases in the channel while actually executing sell orders, Smirnov reportedly incited market activity among traders dealing in those particular securities.
Following an investigation, the Bank of Russia has held Smirnov accountable for violations of the law “On counteracting the illegal use of insider information and market manipulation.” The regulator has directed PJSC Moscow Exchange, PJSC “St. Petersburg Exchange,” and other professional market participants to cease any dealings on the trader’s accounts.