A broker who was suspended by regulators for failing to pay an arbitration award in 2011 allegedly turned to social media to dupe investors in a failed trading scam.
In a newly unsealed indictment, U.S. authorities charged Kenneth Thom — also known online as K Money and K$ — with securities fraud and investment adviser fraud. They alleged that after his registration was suspended by the U.S. Financial Industry Regulatory Authority (FINRA), Thom used platforms such as Facebook, Twitch and Instagram to promote himself as a successful trader and to solicit money from investors for “shared accounts” that would purportedly distribute trading profits.
According to the indictment, between 2023 and 2025, Thom allegedly raised about US$800,000 from investors but diverted more than half for personal use. Of the US$350,000 that he did trade, he lost more than US$250,000 on options trading.
It also alleged that he published false performance reports, claiming his trading activity was highly profitable, with returns ranging from 4% to 120%. However, in January, the K$ Facebook group changed its name to AYBABTU — an acronym for the “all your base are belong to us” meme inspired by a Japanese video game — and Thom stopped responding to investors, U.S. authorities said.
In a parallel proceeding, the U.S. Securities and Exchange Commission (SEC) also filed charges against Thom, alleging violations of securities laws.
“After his suspension as a broker, Kenneth Thom used social media to steal from investors,” said Jay Clayton, U.S. attorney for the Southern District of New York, in a release.
“If you’re getting investment advice from someone who is not registered as a broker or investment advisor, the risk of fraud is much higher. We will hold accountable anyone who preys on everyday investors who rightly expect their trading professionals to be in good standing and act in their best interests,” Clayton, a former chair of the SEC, added.
None of the allegations have been proven, and Thom is presumed innocent of the criminal charges.