5 Biggest Stock Scams In Recent Years

4. Luckin Coffee

Very few of our entries are outside the United States, and perhaps the biggest such example is Luckin Coffee in China. The company was only founded in 2017 in Beijing and in 2020, the number of outlets of the company were even more than that of Starbucks (NASDAQ:SBUX). Later, in 2020, it was revealed that the profits had been inflated by $310 million for the year ending in 2019, and saw the stock price crash massively. Many executives were fired while trading was suspended and the company even ended up being de-listed from the NASDAQ stock exchange. On February 2021, the company had to file for bankruptcy, after admitting that more than a quarter of all business was faked.