The U.S. Department of Justice (DOJ) is charging two Chinese tech firm executives with crimes related to a securities fraud case.
In a new press release, the DOJ is alleging that Lai Kui Sen and Yan Zhao masterminded a scheme to defraud American investors using the stock of Ostin Technology Group (OST).
According to the authorities, Sen, the firm’s co-chief executive, and Zhao, a financial advisor, orchestrated a pump and dump scheme involving OST, netting them over $100 million.
The indictment alleges that on April 15, 2025, the defendants sold millions of shares to co-conspirators at a heavily discounted price, then began to artificially inflate the price and trading volume of the stock. Then they sold the stocks at a higher price, netting them millions.
According to the press release, on June 26th, OST lost a staggering $950 million in market valuation, or 94% of its value.
As stated by U.S. Attorney Erik S. Siebert for the Eastern District of Virginia,
“Protecting the integrity of our financial markets remains a top priority. Anyone who picks the pockets of American investors in violation of the law will be aggressively prosecuted.
The Department of Justice has established whistleblower programs to encourage corporations and individuals to come forward with timely information regarding misconduct and criminal behavior. Failing to do so invites serious consequences.”
The duo faces charges of wire fraud, securities fraud, and conspiracy to commit both. If convicted, they face decades behind bars.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/alphaspirit.it
