FINANCE

U.S. Firms Move to Drop Insider Trading Case Over China Brokerages

Published: Oct. 2, 2026 5:11 p.m. GMT+8

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About three months after Susquehanna International filed an insider trading lawsuit and Citadel Securities joined as a plaintiff, the two U.S. options market makers told a New York federal court Monday that they would withdraw their claims, effectively ending the case.

The lawsuit stemmed from the China Securities Regulatory Commission’s May 22 announcement that it was investigating Futu Holdings Ltd. and UP Fintech Holding Ltd. over illegal cross-border securities business. Their Nasdaq-listed stocks fell about 35% and 31%, respectively, that day.

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Susquehanna and Citadel Securities dropped their insider trading lawsuit Monday.
It followed China's May 22 probe into Futu and UP Fintech; evidence was insufficient.
Plaintiffs settled some claims, withdrew the rest without prejudice; traders' identities may stay private.

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Who’s Who

Susquehanna International: Susquehanna International, along with Citadel Securities, filed an insider trading lawsuit over alleged illegal cross-border securities business by Futu and UP Fintech. After about three months, they withdrew their claims in a New York federal court, having reached settlements with multiple defendants, while preserving the right to sue again.

Citadel Securities: Citadel Securities is a major U.S. options market maker. It joined as a plaintiff in an insider trading lawsuit against traders linked to Futu Holdings and UP Fintech after a regulatory probe. However, it later withdrew its claims, having reached settlements with multiple defendants.

Futu Holdings Ltd.: Futu Holdings Ltd., a Nasdaq-listed online brokerage, was investigated by China's securities regulator in May for alleged illegal cross-border securities business, causing its stock to drop about 35%. A related insider trading lawsuit by Susquehanna and Citadel Securities was voluntarily withdrawn after courts found insufficient evidence.

UP Fintech Holding Ltd.: UP Fintech Holding Ltd. (Tiger Brokers) faced a CSRC investigation for illegal cross-border securities business, causing a 31% stock drop in May. Insider trading claims by Susquehanna and Citadel were withdrawn in court due to insufficient evidence, with settlements reached, preserving potential future lawsuits.

AI generated, for reference only