Apr 16, 2026
Months after signing a massive six-figure deal, TikTok superstar Khaby Lame's big payday appears to be riddled with mystery and confusion.
Lame, who boasts the largest audience on TikTok with 160 million followers, reportedly signed a $975 million deal back in January that will allow everyday investors to purchase a position in his business, according to Business Insider (1).
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As per the agreement, Step Distinctive Limited — the company that monetizes Lame's brand (2) — would merge with Rich Sparkle Holdings, a corporate services provider and financial printing firm based in Hong Kong that's publicly traded. When the deal was announced, day traders reportedly jumped at the opportunity, and Rich Sparkle's stock surged as a result.
But it didn't take long for that initial excitement to fade. Just three months after the merger was announced, Rich Sparkle's stock plummeted more than 90% as investors became confused and concerned about the reported deal (3).
In a January press release, Rich Sparkle reportedly said the deal had been "completed," but according to Business Insider, the company's SEC filing on March 31 described the acquisition as "contingent on certain conditions."
Why trading platforms are blocking Rich Sparkle's stock
As Business Insider notes, there appear to be no filings that indicate Lame's agreement was a done deal, nor is there any indication that Lame received the 75 million shares that he was reportedly promised.
Now, with the deal shrouded in mystery, several prominent investment platforms have made the cautious decision to restrict trading in Rich Sparkle's shares.
A spokesperson for Interactive Brokers — which has listed Rich Sparkle's stock as non-tradable (4) — told Business Insider the company "periodically reviews the securities it makes available for its clients to trade and restricts those it has determined are not appropriate to offer."
Other brokerages including Merrill Lynch, Fidelity, ETrade, Vanguard and Charles Schwab have also reportedly put restrictions on Rich Sparkle's stock or blocked its online trading entirely (5).
As of April 8, Rich Sparkle had a reported market cap of roughly $133 million. James Angel, a finance professor at Georgetown University, told Business Insider that some brokers intentionally limit trading in stocks that have a low market cap under the assumption that these stocks may not be around for long. Angel also said trading such stock can be a logistical nightmare for firms if said stock were to disappear.
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"Brokers feel they are doing their customers (as well as their back offices) a favor by not letting customers buy them [low market-cap stocks]," Angel shared with Business Insider (6).
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Lame goes silent as $975 million deal is questioned
While he was reportedly "excited" about the deal back in January, Lame hasn't made any public comments about it since it was announced. He did, however, remove Rich Sparkle's stock ticker from his TikTok and Instagram bios, and his team reportedly hasn't responded to Business Insider's multiple requests for comment (7).
The Senegalese-Italian influencer became a social media sensation with his dialogue-free videos that typically focus on "life hacks" that he proves to be overly complicated. As the biggest influencer on TikTok, Lame's massive $975 deal appeared to place him among social media's elite creators — including Mr. Beast, who has built a company that's currently valued at approximately $5 billion.
When Lame's deal was announced, creator economy insiders greeted it with optimism as they considered it to be proof of the industry's rising value. But as the questions continue to mount, the vibes around Lame's deal appear to be anything but exciting.
Meanwhile, the value of Lame's potential stake in Rich Sparkle appears to be falling along with the value of the latter's stock, which could add another wrinkle to this developing story.
Making matters even worse for Lame is his impending divorce. According to Art Threat, Lame's wife — Wendy Thembelihle Juel — reportedly filed for separation in early April and is seeking half of his fortune, which as of now is around $80 million (8).
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Business Insider (1, 4, 6, 7); LinkedIn (2); Complex (3); TechSpot (5); Art Threat (8)
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Chase Kell is an associate editor for Moneywise.
