U.S. Attorney Jay Clayton for the Southern District of New York, alongside FBI Special Agent in Charge Terence G. Reilly, announced the recovery of over $19.5 million in cash and stock from two China-based pump-and-dump market manipulation schemes. The schemes involved CTRL Group Limited and Dreamland Limited, both Hong Kong-based companies listed on the Nasdaq stock exchange, with proceeds seized through civil forfeiture Complaints.
One scheme targeted CTRL Group (MCTR), a British Virgin Islands-registered company. In late May and early June 2025, social media accounts extensively promoted MCTR, leading to a dramatic spike in its stock price and trading volume. Ten U.S. brokerage accounts, opened by individuals in China or Hong Kong and showing signs of collusion, engaged in significant trading, selling over 1 million shares for nearly $12 million. Approximately $10.3 million was subsequently seized from these accounts.
The second scheme involved Dreamland (TDIC), a Cayman Islands-incorporated company. Between May 13-14, 2026, TDIC's share price surged more than tenfold, reportedly fueled by social media campaigns touting it as a “short squeeze” opportunity. A U.S. brokerage firm reported unauthorized trades from compromised login credentials. Around the same time, Imperial Vision Fund SPC – Series 1 SP, a Hong Kong-based investment fund, sold nearly 1.5 million TDIC shares for over $17.6 million. Authorities seized approximately $8.4 million in cash and $850,000 worth of securities from Imperial Vision’s account.
“Today’s action demonstrates our unwavering commitment to protecting U.S. investors and safeguarding the integrity of our markets,” said U.S. Attorney Jay Clayton. FBI Special Agent in Charge Terence G. Reilly added, “The recovery of $19.5 million is an important first step toward providing relief for victims and should serve as a reminder that the FBI will vigorously investigate and pursue those who seek to manipulate financial systems for personal gain.”
Mr. Clayton praised the outstanding work of the FBI, and also acknowledged the assistance of FINRA and the Securities and Exchange Commission’s Cross-Border Task Force. The cases are being handled by the Office’s Securities and Commodities Fraud Task Force.