by Sharelle B. McNair
February 2, 2026
The sudden pivot from a printing business to a global influencer platform with stock advantages, has caused legal and market analysts to give side-eye reactions.
While popular TikTok influencer Khaby Lame is celebrating the $975 million acquisition of his company, securities and exchange experts are sounding the alarm on the rise in stocks, prompting “pump-and-dump” accusations, Complex reports.
Red flags were raised after the stock from Rich Sparkle Holdings, a small Hong Kong-based firm, surged more than 650% before climbing over $180 per share after purchasing Lame’s Step Distinctive Limited in a massive all-stock deal. The rise in shares appears to give Lame a large stake, thanks to his ownership structure, but since the firm is smaller, financial experts claim the valuation is not reflective of its real-world value.
While Rich Sparkle labeled the move as influencer-driven commercialization — pushing a plan to create an “AI Digital Twin” of the viral star to give him shareholder control — the sudden pivot from a printing business to a global influencer platform with stock advantages has prompted legal and market analysts to give the deal the side-eye.
Rich Sparkle has only been public since the summer of 2025, selling just over one million shares at $4 each, putting the company’s value at close to $50 million at the time. But filings with the U.S. Securities and Exchange Commission revealed the firm made less than $6 million in revenue in 2024. Hamilton & Associates Law securities attorney Brenda Hamilton called the situation “very suspect,” highlighting how Rich Sparkle has yet to file a formal SEC document confirming the deal’s completion while the company announced the deal was closed.
Veteran short seller Jim Chanos of Chanos & Company said the deal looks “completely like a Chinese stock promotion,” as Business Insider Africa reports Lame’s deal pushed the company’s valuation to $16.3 billion, with the Senegalese-born star’s stake being worth $6.6 billion. “The whole thing just seems nuts.”
Laura Posner, partner at Cohen Milstein and an investor protection expert, said the deal looks very familiar. “I’ve only seen that kind of stock chart in a pump and dump scheme,” Posner said.
Despite the backlash, Lame spoke out nearly a week after the announcement, saying, “Congratulations to the team at ANPA, very excited to be a shareholder and looking forward to doing great things!” to his 160 million TikTok followers. His popularity has continued to grow since becoming the app’s most-followed influencer, loved for his satirical reactions to overly complicated life-hack videos.
After losing his job due to the COVID-19 pandemic, Lame started posting on TikTok, gaining massive momentum in just two years — and an estimated annual profit of $20 million.
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