Stockal investors allege unauthorised sale of US stocks worth millions
Approximately 30 Indian investors using Stockal Securities to trade US stocks discovered unauthorized access to their accounts, resulting in the forced sale of blue-chip holdings worth millions and their replacement with shares in Zhibao Technology Inc. (ZBAO). One affected investor lost approximately Rs 4.26 crore after $335,768 in holdings were converted to ZBAO shares that subsequently declined 60% in value. Stockal attributed breaches to phishing attacks, while partner DriveWealth blamed security weaknesses at Stockal. Investors have filed complaints with SEBI, US SEC, and other authorities.
Key points
- 30 Indian investors' Stockal accounts compromised; blue-chip stocks liquidated
- Holdings converted to ZBAO shares that lost ~60% value
- Alleged pump-and-dump scheme across multiple coordinated accounts
- Stockal blamed phishing; DriveWealth cited Stockal security weaknesses
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