SEBI helps US regulator bust social media investment scam

In one of the reportedly biggest cross-border regulatory cooperation, markets regulatory body, Stock Exchange Board of India (SEBI) has helped its counterpart in the US bust a major investment scam being run through online social media platforms. The ‘Profit Paradise’ scam was being run by two Indians — one based in Mumbai and another in Hyderabad — in the name of a ‘High Yield Investment Product (HYIP)’ wherein gullible investors were being enticed through pervasive social media pitches on Facebook, Twitter, Google Plus and YouTube. Although operating from India, they disguised Profits Paradise’s physical location by providing the false Internet data, indicating that Profit Paradise’s operations were within the United States when they were not. While probing the case, the US markets regulator SEC ( Securities and Exchange Commission) sought assistance from its peers in India, Canada and Hong Kong.


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