SEC Probes $100 Million Alleged Insider Trading Scheme Targeting Futu and Tiger Brokers Ahead of China Crackdown

According to ChainCatcher citing sources, on June 29, the U.S. SEC launched an investigation into alleged insider trading involving unknown traders who profited approximately $100 million through options bets ahead of China's regulatory crackdown on cross-border brokers Futu Holdings and Tiger Brokers on May 22. Susquehanna International Group publicly disclosed the allegations in a lawsuit filed in Manhattan federal court on June 29, claiming it lost over $70 million as the counterparty to most of the suspected insider trades.

The SEC is reviewing the transactions described in Susquehanna's complaint, though the scope and phase of the investigation remain unclear. Futu received a regulatory fine of 1.85 billion yuan, and founder Leaf Li's wealth declined by $1.7 billion in a single day following the crackdown announcement.