TikTok Star Khaby Lame’s $6.6 Billion Stake in Rich Sparkle Raises Investor Red Flags
Khaby Lame’s $6.6 Billion Rich Sparkle Stake Sparks Investor Concerns TikTok star Khaby Lame made headlines in January when a $975 million deal with Hong Kong-based Rich Sparkle Holdings (NASDAQ: ANPA) temporarily valued his stake at $6.6 billion. The company’s stock soared over 650% after the announcement, hitting $180.64 per share, only to plunge more than 77% days later, raising alarm among investors.
The all-stock deal involved Rich Sparkle acquiring Lame’s Step Distinctive Limited. The company promised a “platform-style commercialization system” around Lame, including plans for an “AI Digital Twin” of the influencer. Despite the hype, it remains unclear whether Lame sold any shares, as disclosure rules for foreign companies are limited.
Rich Sparkle went public just six months prior, with a modest IPO that valued the company at roughly $50 million. Its reported 2024 revenue was under $6 million, primarily from printing financial materials. The sudden pivot to social media monetization and the explosive, volatile stock movement have led experts to raise red flags.
Securities attorney Brenda Hamilton described the situation as “very suspect,” noting the company shifted focus, issued large amounts of shares, and changed control within a year. Former SEC investigator Ron Geffner said the valuation “appears to be predominantly based on Khaby Lame’s following on TikTok.” Laura Posner of Cohen Milstein added, “I’ve only seen that kind of stock chart in a pump-and-dump scheme.”
Jim Chanos, founder of Chanos & Company, compared the stock surge to a “Chinese stock promotion,” where small firms with limited revenue see dramatic price spikes due to hype. Such patterns often benefit early investors while leaving late buyers exposed when the stock collapses.
About the Companies
Step Distinctive Limited was incorporated in the British Virgin Islands in July 2025, around the same time Rich Sparkle went public. The IPO was underwritten by Eddid Securities USA, which has been involved in other listings that surged before crashing. Compounding concerns, Rich Sparkle’s independent auditor resigned in December 2025, and ownership of Step Distinctive’s secondary shareholders remains unclear.
At its peak, Rich Sparkle’s market capitalization reached $16.3 billion, but it has since fallen to roughly $7.5 billion.
Khaby Lame: From Viral Star to Controversial Shareholder
Born in Senegal and raised in Italy, Lame rose to fame on TikTok during the COVID-19 pandemic. He became one of the platform’s most followed creators, with over 160 million followers, known for his silent, expressive reactions to overly complicated life hacks. He earns an estimated $20 million annually and ranks No. 10 on Forbes’ 2025 Top Creators list.
Despite the headlines, experts caution that Lame’s brief $6.6 billion valuation may reflect market hype more than actual wealth. Lame himself has emphasized patience and creativity over rushing into money: “Start by making the content you like.”
