DOJ and SEC open parallel inquiries
According to Techub News, the U.S. Department of Justice and the U.S. Securities and Exchange Commission are investigating insider trading allegations brought by Susquehanna International Group. At the center of the case is a claim that unidentified traders obtained material non-public information ahead of a Chinese regulatory announcement in May 2026 and used that information to position for a market move. The SEC confirmed on July 2 that it is reviewing the relevant transactions, while the DOJ has already opened a separate investigation, indicating that the matter has moved beyond a private dispute and into active regulatory and enforcement scrutiny.
Trades allegedly targeted short-dated put options on Futu and Tiger
Susquehanna alleges that the traders accumulated large positions in short-term put options on Futu Holdings and Tiger Brokers before the regulatory announcement became public. This type of options positioning is highly sensitive to sharp downside moves in the underlying stocks, which is why the timing of the purchases is central to the case. If the traders had prior knowledge of the announcement, the strategy would have allowed them to capture outsized gains once the news was released and prices reacted. Susquehanna claims the activity generated more than $100 million in profits for the traders and caused the firm losses of more than $70 million.
Susquehanna sues 100 John Doe defendants
On the litigation side, Susquehanna filed suit on June 29 against 100 “John Doe” defendants, reflecting that the identities of the alleged traders have not yet been publicly established. To move the case forward, the firm is seeking discovery through the courts. Reports say Susquehanna has asked the court to subpoena Interactive Brokers in order to obtain account information, identify the individuals or entities behind the trades, and freeze the relevant accounts. That step is significant because it suggests the firm is trying both to preserve evidence and to prevent the dissipation of funds before potential recovery actions can proceed.
Case now hinges on identity, traceability, and evidence
Based on the facts currently available, the next phase of the case is likely to focus on account ownership, trading records, communications, and the origin of the alleged information leak. The SEC’s confirmation that it is reviewing the trades, combined with the DOJ’s independent investigation, puts additional weight on the evidentiary process. At this stage, no identities have been publicly disclosed for the traders in question, and no further enforcement outcome has been announced. The reported facts remain limited to the allegations, the claimed profit and loss figures, the option positions in Futu Holdings and Tiger Brokers, and the procedural steps Susquehanna has already taken in court. The original item was published by Techub and cited cryptobriefing.com as the underlying report.