*Khaby Lame built his empire one wordless video at a time — but a reported $975 million deal that was supposed to cement his status among social media’s elite is now looking more like a cautionary tale.
The Senegalese-Italian influencer holds the title of TikTok’s most-followed creator with 160 million followers, and reportedly signed the landmark agreement in January — but months later, the numbers don’t add up and the questions keep mounting, Money Wise reports.
The deal was structured around a merger between Step Distinctive Limited, the company that monetizes Lame’s brand, and Rich Sparkle Holdings, a Hong Kong-based publicly traded firm. The arrangement was designed to allow everyday investors to buy into Lame’s business and reportedly included licensing rights to his AI-generated digital twin. When the news broke, Rich Sparkle’s stock surged. That enthusiasm didn’t last — the stock has since collapsed more than 90%.
At the heart of the confusion is a glaring contradiction. Rich Sparkle issued a press release in January declaring the transaction completed, yet the company’s own SEC filing two months later told a different story, describing the acquisition as “contingent on certain conditions.”
Court documents have yet to confirm the deal crossed the finish line, and there is nothing on record to suggest Lame ever received the 75 million shares that were reportedly part of the arrangement.
Major brokerages have taken notice. Interactive Brokers, Merrill Lynch, Fidelity, ETrade, Vanguard, and Charles Schwab have all restricted or blocked trading in Rich Sparkle’s stock.
Source: Khaby Lame: TikTok Influencer’s $975 Million Deal Raises Scam Concerns
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