The Bank of Russia has identified market manipulation activities involving certain securities by Boris V. Smirnov through his trading account during 2023 and 2024. The investigation revealed that Mr. Smirnov employed a “pump and dump” strategy, which involved purchasing low-liquid assets at inflated prices and then selling them for profit. This practice led to increased volatility in the markets and posed financial risks to other traders.
The findings indicate that Mr. Smirnov’s transactions with 14 securities are classified as market manipulation under Clause 5 of Part 1 of Article 5 of Federal Law No. 224-FZ, dated July 27, 2010, ‘On Countering the Misuse of Insider Information and Market Manipulation.’
Furthermore, Mr. Smirnov used his Telegram channel, Fibo Trade, which has over 13,000 subscribers, to disseminate false information about his trades. This misinformation affected security prices and trading parameters while he conducted reverse transactions or refrained from executing announced trades. Such actions resulted in excessive asset volatility and positive financial outcomes for him.
These activities are also considered market manipulation under Clause 1 of Part 1 of Article 5 of Federal Law No. 224-FZ, breaching the prohibition stated in Part 2 of Article 6.
Mr. Smirnov now faces administrative proceedings for these violations. The Bank of Russia has issued orders demanding he cease such practices in the future.
Additionally, the Bank has instructed professional securities market participants including Moscow Exchange and PJSC SPB Exchange to suspend on-exchange trades using Mr. Smirnov’s accounts.
