Futu Securities's "Rat Trading" Implicated Accounts Increase to 310, 8 Traders Profited Over $80 Million

BlockBeats News, July 27th, Futu Securities' U.S. clearing entity Futu Clearing and Tiger Brokers' U.S. brokerage entity TradeUP have provided information on over 310 accounts suspected of being involved in options insider trading to the relevant lawsuit plaintiffs.

It is reported that the number of accounts involved was previously around 100 and has now increased to 310. Despite the larger number of accounts involved, the illegal gains are highly concentrated. Preliminary analysis shows that only 8 traders have made over $80 million from the relevant trades, accounting for nearly 60% of the plaintiffs' estimated total illegal gains of $137 million.

It is understood that these traders are alleged to have made large purchases of short-term options related to Futu and Tiger Brokers before regulatory agencies released broker remediation documents. Subsequently, the relevant accounts were frozen. Currently, not all account holders mentioned above have been formally named as defendants, and participation in the relevant trades does not equate to being identified as engaging in insider trading. The case is still under further investigation and litigation.