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.
More context
Timeline
- 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 it matters
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.
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.
