Washington SEC probes suspected $100 million insider scheme
PUBLISHED Jul 2, 2026, 7:39 AM ET
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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.
By Ayesha A. | JQJO News
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
News Intelligence
- 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.
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