Tiger and Futu jointly fined and forfeited 2.3 billion yuan; US stock put options show “front-running” trades

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【Caixin】 After the China Securities Regulatory Commission announced a comprehensive crackdown on illegal cross-border stock trading platforms, Tiger Securities (NASDAQ: TIGR) and Futu Holdings (NASDAQ: FUTU) have successively disclosed the proposed penalty amounts. Both companies are “one fine and three confiscations,” with a combined penalty and confiscation totaling RMB 2.3 billion.

In a U.S. stock filing, Tiger Securities said it has received a prior notice of administrative penalties from the Beijing Securities Regulatory Bureau, with confiscation of illegal gains of approximately RMB 103.1 million, a fine of approximately RMB 308.1 million, and total penalty and confiscation of approximately RMB 411.2 million. Tiger Securities’ founder, CEO, and company’s actual controller, Wu Tianhua, received a warning and was fined RMB 1.25 million.

Futu Holdings said in an announcement that the company received a prior notice of administrative penalties from the Shenzhen Securities Regulatory Bureau, and is expected to face a combined penalty and confiscation of approximately RMB 1.85 billion. Futu’s founder and CEO, Li Hua, is also expected to be fined RMB 1.25 million personally.

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