CRIME & LAW

Washington SEC probes suspected $100 million insider scheme

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The U.S. Securities and Exchange Commission has opened an investigation into an alleged $100 million insider trading scheme linked to China’s recent regulatory crackdown on cross‑border brokerages, according to a person familiar with the matter on Wednesday, July 1, 2026. The probe follows a lawsuit filed earlier in the week by Susquehanna International Group, a major options market maker. Unknown traders allegedly bought about 200,000 short‑dated put options on Futu Holdings and Up Fintech (Tiger Brokers) ahead of a May 22, 2026 crackdown announcement, turning roughly $12 million in premiums into more than $100 million, while Susquehanna incurred losses exceeding $70 million.

Prepared by Emily Rhodes and reviewed by editorial team.

Timeline of Events

Weeks before May 22, 2026 Traders accumulate Futu, Tiger put options
May 22, 2026 China announces crackdown on offshore brokerages
May 22, 2026 Futu and Tiger Brokers shares plunge
Late May 2026 Short‑dated put options surge in value
Late May 2026 Susquehanna faces over $70 million losses
Earlier this week Susquehanna files federal insider trading lawsuit
July 1, 2026 SEC investigation into trades is confirmed

Why This Matters to You

This insider trading scheme could impact your investments. If you own shares in Futu Holdings, Up Fintech, or Susquehanna, your portfolio might have taken a hit. Check your investments and consider talking to a financial advisor.

The Bottom Line

Insider trading can destabilize markets and hurt everyday investors. This case underscores the importance of market transparency and regulatory oversight. Worth forwarding if you know someone invested in these companies.