FINANCE

Citadel Securities Joins U.S. Insider Trading Suit Over China’s Broker Crackdown

Published: Jul. 9, 2026 6:02 p.m. GMT+8

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Citadel Securities has joined a federal lawsuit in New York, alleging it lost about $28 million to unidentified traders who used leaked information about a Chinese regulatory crackdown to make highly profitable options trades.

The move follows a June 29 lawsuit by a Susquehanna International unit, which claimed it lost $71.4 million to similar trades.

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Citadel Securities lost about $28 million from put-option trades using leaked info on China’s regulatory crackdown.
Susquehanna International lost $71.4 million in similar trades.
Leaks may have come from regulators or brokerages; CSRC says it has strict internal controls.

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Who’s Who

Citadel Securities: Citadel Securities joined a federal lawsuit in New York, claiming it lost about $28 million from put-option trades on Futu Holdings and UP Fintech. The trades allegedly used leaked information about a May 22 Chinese regulatory crackdown on illicit cross-border stock trading. The defendants remain unidentified.

Susquehanna International: According to the article, a Susquehanna International unit filed a federal lawsuit on June 29, claiming it lost $71.4 million. The firm alleges traders used leaked information about a Chinese regulatory crackdown on offshore brokerages to make highly profitable trades. Susquehanna suspects the leaks originated from Chinese regulators or brokerage personnel.

Futu Holdings Ltd.: The CSRC penalized Futu Holdings Ltd. for unauthorized Chinese mainland operations. Citadel Securities and Susquehanna sued, alleging leaked information about this crackdown allowed traders to profit from put options on the company, causing significant losses.

UP Fintech Holding Ltd.: UP Fintech Holding Ltd. (向上金融控股有限公司), also known as Tiger Brokers, was penalized by China's securities regulator on May 22 for unauthorized mainland operations. This penalty was allegedly leaked, enabling traders to profit from put options, costing market makers like Citadel Securities and Susquehanna millions.

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What Happened When

Before May 22, 2026：: Citadel Securities allegedly lost about $28 million as counterparty to thousands of put-option trades on Futu Holdings Ltd. and UP Fintech Holding Ltd. shortly before Beijing’s crackdown announcement.

Before May 22, 2026：: A Susquehanna International unit allegedly lost $71.4 million to similar trades before the crackdown announcement.

May 22, 2026：: The China Securities Regulatory Commission (CSRC) announced a crackdown on illicit cross-border stock trading and revealed penalties against offshore brokerages Futu Holdings Ltd. and UP Fintech Holding Ltd. for unauthorized Chinese mainland operations.

June 29, 2026：: Susquehanna International unit filed a federal lawsuit claiming it lost $71.4 million to trades based on leaked information about the crackdown.

By July 7, 2026：: Citadel Securities joined a federal lawsuit in New York, alleging it lost about $28 million to unidentified traders who used leaked information.

AI generated, for reference only