Futu front-running case: the number of accounts involved in the case has risen to 310, with 8 traders reaping profits exceeding $80 million.
1 hours ago
Futu Clearing, the U.S. clearing arm of Futu Securities, and TradeUP, the U.S. brokerage entity under Interactive Brokers, have provided information on over 310 accounts suspected of option insider trading to the lawsuit’s plaintiffs. The number of involved accounts was previously around 100, and has now risen to 310. While the account count is high, illegal gains are highly concentrated: preliminary analysis shows just 8 traders made more than $80 million from the trades, accounting for nearly 60% of the plaintiffs’ estimated total illegal gains of $137 million. These traders are accused of purchasing large volumes of short-term options linked to Futu and Tiger Securities before regulators issued rectification notices for the brokerages, after which the relevant accounts were frozen. Not all account holders have been formally named as defendants, and involvement in the trades does not equal a finding of insider trading. The case remains under ongoing investigation and litigation.
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