FINANCE

U.S. Firm Sues Over $100 Million Insider Trading Tied to China Brokerage Crackdown

Published: Jul. 6, 2026 1:20 p.m. GMT+8

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U.S. options market maker Susquehanna International Group (SIG) has sued 100 unidentified traders in a Manhattan federal court, alleging they used leaked Chinese regulatory information to reap more than $100 million in illicit profits.

Between May 7 and May 21, the defendants allegedly spent $12 million on short-term put options on Chinese online brokerages Futu Holdings Ltd. and UP Fintech Holding Ltd.

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SIG sued 100 unidentified traders for using leaked Chinese regulatory info to gain over $100 million in illicit profits.
Defendants spent $12 million on put options on Futu and UP Fintech; returns exceeded 900% after a $338 million penalty was announced.
A federal judge froze related accounts; SEC is investigating.

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Who’s Who

Susquehanna International Group (SIG): Susquehanna International Group (SIG), a U.S. options market maker, sued 100 unidentified traders for using leaked Chinese regulatory information to illicitly profit over $100 million. The traders bought put options on Futu Holdings and UP Fintech before a penalty announcement caused a 30% stock plunge. SIG reported $70 million+ in losses.

Futu Holdings Ltd.: Futu Holdings Ltd. is a Chinese online brokerage sued by Susquehanna International Group over alleged insider trading. In May, unidentified traders used leaked regulatory info to buy put options before China’s regulator fined Futu 2.3 billion yuan, causing its U.S. stock to plunge over 30%. Accounts at Futu were frozen amid SEC investigation.

UP Fintech Holding Ltd.: UP Fintech Holding Ltd. (Tiger Brokers) was involved in an alleged insider trading case. Between May 7-21, 2024, unnamed traders bought put options on the firm. On May 22, China's regulator fined UP Fintech and Futu for illegal cross-border securities activities, causing shares to drop over 30%. SIG sued, claiming the trades used leaked regulatory information.

Interactive Brokers: Interactive Brokers is one of three brokerages where a federal judge froze accounts linked to alleged insider trading by 100 unidentified traders. They are accused of using leaked Chinese regulatory information to profit over $100 million from put options on Futu and UP Fintech.

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What Happened When

Between May 7 and May 21, 2026：: Defendants allegedly spent $12 million on short-term put options on Futu Holdings Ltd. and UP Fintech Holding Ltd.

May 22, 2026：: China’s securities regulator announced a combined 2.3 billion yuan ($338 million) penalty against Futu Holdings Ltd. and UP Fintech Holding Ltd. for illegal cross-border securities activities, causing their U.S.-listed shares to plunge more than 30%.

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