First Defendants Emerge in Over $100 Million U.S. Suit Tied to China Regulatory Leak

Two defendants have surfaced in a U.S. federal lawsuit accusing unidentified traders of using leaked Chinese regulatory information to reap more than $100 million in illicit options profits, Caixin has learned.

Wenlei Song, an Australia-based investor, reached a court-approved agreement to place $1.5 million in an escrow account to unfreeze his Tiger Brokers account. Sources familiar with the matter identified Song as a former Citic Securities Co. Ltd. employee who remains an active retail investor in China. He has not admitted to any wrongdoing.