SEC Chairman Paul Atkins Suspends Trading of China-Linked Ramp-and-Dump Stocks

The Securities and Exchange Commission (SEC) has ramped up enforcement actions against stocks suspected of being involved in “pump-and-dump” or “ramp-and-dump” schemes, particularly those linked to foreign-based companies, including operations in China. Chairman Paul Atkins emphasized that the agency is intensifying its efforts to protect U.S. investors from these manipulative practices.

In September 2025, the SEC announced the establishment of a Cross-Border Task Force within its Division of Enforcement. This task force is dedicated to investigating potential violations of U.S. securities laws by foreign-based companies, including market manipulation. Atkins noted that the agency began investigating a specific case just last week.

Atkins highlighted a concerning trend: the rise of “ramping-and-dumping” schemes, where stock prices are artificially inflated before insiders sell their shares at these elevated levels. Such practices can lead to significant losses for retail investors.

KEVIN O’LEARY WARNS CANADA OVER CHINA TIES AS TRUMP THREATENS 100% TARIFF ON NORTHERN NEIGHBOR

Paul Atkins, chairman of the US Securities and Exchange Commission (SEC), prior to a Bloomberg Television interview in Washington, DC, US, on July 18, 2025 (Stefani Reynolds/Bloomberg via Getty Images)

Atkins remarked, “Especially it’s some East Asia, China-related, companies where they’re small, kind of penny stocks on Nasdaq.” He referenced a recent investigation involving a New York Stock Exchange-listed company, where trading was halted due to the firm’s inability to provide a satisfactory explanation for a sudden spike in its stock price.

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The company informed regulators that it had no material news or information to justify the unusual rise in its stock price. “So we halted that. New York Stock Exchange is investigating it. So hopefully, you know, we’ll get to the bottom of that,” he added.

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The SEC’s Cross-Border Task Force is focused on “investigating potential U.S. federal securities law violations related to foreign-based companies,” including market manipulation schemes like pump-and-dump and ramp-and-dump. The task force will also scrutinize gatekeepers such as auditors and underwriters that assist these companies in accessing U.S. capital markets.

Securities and Exchange Commission Chair Paul Atkins wears a hat reading “Make IPOs Great Again” on the floor of the New York Stock Exchange in New York City on Dec. 2, 2025. (Spencer Platt / Getty Images)

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Atkins stated, “We welcome companies from around the world seeking access to the U.S. capital markets.” However, he firmly asserted, “But we will not tolerate bad actors – whether companies, intermediaries, gatekeepers, or exploitative traders – that attempt to use international borders to frustrate and avoid U.S. investor protections.”

The Securities and Exchange Commission (SEC) has ramped up enforcement actions against stocks suspected of being involved in “pump-and-dump” or “ramp-and-dump” schemes, particularly those linked to foreign-based companies, including operations in China. Chairman Paul Atkins emphasized that the agency is intensifying its efforts to protect U.S. investors from these manipulative practices.

In September 2025, the SEC announced the establishment of a Cross-Border Task Force within its Division of Enforcement. This task force is dedicated to investigating potential violations of U.S. securities laws by foreign-based companies, including market manipulation. Atkins noted that the agency began investigating a specific case just last week.

Atkins highlighted a concerning trend: the rise of “ramping-and-dumping” schemes, where stock prices are artificially inflated before insiders sell their shares at these elevated levels. Such practices can lead to significant losses for retail investors.

KEVIN O’LEARY WARNS CANADA OVER CHINA TIES AS TRUMP THREATENS 100% TARIFF ON NORTHERN NEIGHBOR

Paul Atkins, chairman of the US Securities and Exchange Commission (SEC), prior to a Bloomberg Television interview in Washington, DC, US, on July 18, 2025 (Stefani Reynolds/Bloomberg via Getty Images)

Atkins remarked, “Especially it’s some East Asia, China-related, companies where they’re small, kind of penny stocks on Nasdaq.” He referenced a recent investigation involving a New York Stock Exchange-listed company, where trading was halted due to the firm’s inability to provide a satisfactory explanation for a sudden spike in its stock price.

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The company informed regulators that it had no material news or information to justify the unusual rise in its stock price. “So we halted that. New York Stock Exchange is investigating it. So hopefully, you know, we’ll get to the bottom of that,” he added.

PALANTIR EXECUTIVE PREDICTS AI BECOMING ‘MASSIVELY MERITOCRATIC FORCE’ IN WORKPLACE

The SEC’s Cross-Border Task Force is focused on “investigating potential U.S. federal securities law violations related to foreign-based companies,” including market manipulation schemes like pump-and-dump and ramp-and-dump. The task force will also scrutinize gatekeepers such as auditors and underwriters that assist these companies in accessing U.S. capital markets.

Securities and Exchange Commission Chair Paul Atkins wears a hat reading “Make IPOs Great Again” on the floor of the New York Stock Exchange in New York City on Dec. 2, 2025. (Spencer Platt / Getty Images)

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Atkins stated, “We welcome companies from around the world seeking access to the U.S. capital markets.” However, he firmly asserted, “But we will not tolerate bad actors – whether companies, intermediaries, gatekeepers, or exploitative traders – that attempt to use international borders to frustrate and avoid U.S. investor protections.”