BUSINESS

New York SEC probes $100 million China brokerage trades

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U.S. regulators are examining allegations that unknown traders reaped at least $100 million from timely options bets against Chinese online brokerages Futu Holdings and Up Fintech Holding (Tiger Brokers) ahead of a major regulatory crackdown in China. The U.S. Securities and Exchange Commission has opened an investigation after Pennsylvania-based market maker Susquehanna International Group filed a federal lawsuit on June 29, 2026, in Manhattan against 100 unidentified “John Doe” defendants. The complaint alleges the traders spent about $12 million buying some 200,000 short-dated put options before Chinese authorities penalized Futu and accused several offshore firms of unlicensed services on May 22.

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

May 22 Chinese regulators announce brokerage crackdown
May 22 Futu receives 1.85 billion yuan penalty
May 22 Futu and Up Fintech shares plunge
Late May traders’ short-dated put options surge
June 29 2026 Susquehanna files Manhattan lawsuit
June 29 2026 complaint targets 100 John Doe
Recently SEC opens insider trading investigation
Ongoing probe focuses on cross-border trading activity

Why This Matters to You

This probe could impact your investments. If you own shares in Chinese brokerages like Futu or Up Fintech, be aware. Their value may fluctuate due to this investigation. Keep an eye on your portfolio.

The Bottom Line

The SEC is serious about cross-border trading activity. It's a reminder that investing isn't just about picking winners. It's also about understanding the risks, including regulatory ones. Worth forwarding if you know someone investing in international markets.