Reddit Scam Alert: Coordinated Penny Stock Promotion Investigation

Reddit users identified a coordinated campaign across penny stock subreddits featuring likely botted posts promoting a fake story about a WallStreetBets moderator alerting users to a penny stock that jumped from $2 to $19. Key concerns raised include:

• Posts originating from a sketchy .io site operated by “Stockton john”
• Associated Discord server attempting to mass-friend users and push actions
• Use of fake CNN logos in promotional materials
• Users warning that anyone acting overly friendly in trading communities is likely running a scam

Despite these warnings, one user defended a specific Discord group as legitimate with good daily calls, though acknowledged the associated site looked unprofessional.

Investigation revealed several important developments:

• A former WallStreetBets moderator operates a Discord server called “Making Easy Money” that posted alerts about Leifras Co. (LFS) rising from $2.28 to $19.20 on November 11, 2025
• Stock data confirms LFS experienced significant volatility on November 11, 2025, rising 576.79% from $1.68 to $11.37, though not reaching the claimed $19.20 high
• The Making Easy Money Discord operates as a paid subscription service ($25/month) offering stock alerts
• WallStreetBets maintains strict rules against market manipulation, prohibiting false or misleading information intended to manipulate security prices
• No official regulatory warnings or SEC enforcement actions specifically naming “Stockton John” were found
• General pump-and-dump schemes targeting penny stocks remain a persistent concern in trading communities

The Reddit warnings appear to reference real events but may contain some inaccuracies. While there was indeed significant movement in LFS stock on November 11, 2025, and a former WSB moderator does operate a paid Discord alert service, the specific details about “Stockton John” and coordinated bot posting patterns lack official verification. The core concern about paid Discord services promoting penny stocks with exaggerated claims appears valid, particularly given the discrepancy between claimed ($19.20) and actual ($11.37) price targets for LFS.

• Paid Discord services may engage in pump-and-dump schemes by promoting penny stocks to subscribers
• Coordinated social media campaigns could artificially inflate stock prices
• Fake news and manipulated media (like fake CNN logos) can lend false credibility to scam operations

• Enhanced awareness of scam tactics can help investors avoid manipulation
• Verification of legitimate trading communities vs. fraudulent operations
• Regulatory scrutiny of paid trading alert services may increase market transparency

Investors should exercise extreme caution with any paid trading service promising extraordinary penny stock gains, particularly those using coordinated social media promotion. While the LFS movement was real, the promotional tactics and exaggerated claims raise serious concerns about market manipulation.