BlockBeats reported on July 27 that Futu Clearing, the U.S. clearing arm under Futu Securities, and TradeUP, the U.S. brokerage entity under Tiger Brokers, have provided plaintiffs in related litigation with information on more than 310 accounts suspected of involvement in options insider trading. The figure was previously around 100 accounts and has now risen to 310. Preliminary analysis cited in the report said the alleged illegal gains were concentrated among a small group of traders. Just eight traders made more than $80 million from the transactions, accounting for nearly 60% of the plaintiffs’ estimated total illegal profit of $137 million. Those traders were accused of making large early purchases of short-dated options tied to Futu and Tiger Brokers before regulators released broker rectification documents. The related accounts were later frozen. The report added that not all account holders have been formally named as defendants, and participation in the trading does not by itself mean insider trading has been legally established. The case remains under investigation and in litigation.
BlockBeats reported on July 27 that Futu Clearing, the U.S. clearing entity under Futu Securities, and TradeUP, the U.S. brokerage entity under Tiger Brokers, have provided plaintiffs in related litigation with information on more than 310 accounts suspected of participating in options insider trading.
The report said the number of accounts involved had previously been around 100 and has now increased to 310.
Preliminary analysis showed that while the number of accounts was large, the alleged illegal gains were heavily concentrated. Just eight traders made more than $80 million from the transactions, nearly 60% of the plaintiffs’ estimated $137 million in total illegal profit.
According to the report, those traders were accused of making large early purchases of short-dated options related to Futu and Tiger Brokers before regulators released broker rectification documents. The accounts were later frozen.
Not all of the account holders have been formally named as defendants. The report also noted that participation in the trading does not by itself mean insider trading has been legally established. The case remains under further investigation and litigation.
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