Khaby Lame’s $975M Deal Prompts ‘Pump-and-Dump’ Accusations From Securities Experts

[ad_1] by Sharelle B. McNair February 2, 2026

The sudden pivot from a printing enterprise to a worldwide influencer platform with inventory benefits, has brought on authorized and market analysts to provide side-eye reactions.

Whereas fashionable TikTok influencer Khaby Lame is celebrating the $975 million acquisition of his firm, securities and alternate specialists are sounding the alarm on the rise in shares, prompting “pump-and-dump” accusations, Complicated experiences.

Crimson flags have been raised after the inventory from Wealthy Sparkle Holdings, a small Hong Kong-based agency, surged greater than 650% earlier than climbing over $180 per share after buying Lame’s Step Distinctive Restricted in an enormous all-stock deal. The rise in shares seems to provide Lame a big stake, because of his possession construction, however for the reason that agency is smaller, monetary specialists declare the valuation isn't reflective of its real-world worth.

Whereas Wealthy Sparkle labeled the transfer as influencer-driven commercialization — pushing a plan to create an “AI Digital Twin” of the viral star to provide him shareholder management — the sudden pivot from a printing enterprise to a worldwide influencer platform with inventory benefits has prompted authorized and market analysts to provide the deal the side-eye.

Wealthy Sparkle has solely been public for the reason that summer season of 2025, promoting simply over a million shares at $4 every, placing the corporate’s worth at near $50 million on the time. However filings with the U.S. Securities and Trade Fee revealed the agency made lower than $6 million in income in 2024. Hamilton & Associates Legislation securities legal professional Brenda Hamilton known as the scenario “very suspect,” highlighting how Wealthy Sparkle has but to file a proper SEC doc confirming the deal’s completion whereas the corporate introduced the deal was closed.

Veteran quick vendor Jim Chanos of Chanos & Firm stated the deal seems to be “fully like a Chinese language inventory promotion,” as Enterprise Insider Africa experiences Lame’s deal pushed the corporate’s valuation to $16.3 billion, with the Senegalese-born star’s stake being price $6.6 billion. “The entire thing simply appears nuts.”

Laura Posner, accomplice at Cohen Milstein and an investor safety knowledgeable, stated the deal seems to be very acquainted. “I’ve solely seen that type of inventory chart in a pump and dump scheme,” Posner stated.

Regardless of the backlash, Lame spoke out almost per week after the announcement, saying, “Congratulations to the group at ANPA, very excited to be a shareholder and searching ahead to doing nice issues!” to his 160 million TikTok followers. His recognition has continued to develop since changing into the app’s most-followed influencer, cherished for his satirical reactions to overly difficult life-hack movies.

After shedding his job because of the COVID-19 pandemic, Lame began posting on TikTok, gaining huge momentum in simply two years — and an estimated annual revenue of $20 million.