US Indictment Reveals $137 Million Options Profit Ahead of China Brokerage Crackdown
A U. S. federal court indictment has revealed that traders made at least $137 million in illegal profits by positioning options ahead of a Chinese regulatory crackdown on cross-border brokerages, including Futu Holdings and Tiger Brokers, announced on May 22, 2026. More than 310 accounts have been identified, with eight traders accounting for nearly 60% of the gains. Lawsuits have been filed by Susquehanna International and Citadel Securities.
A complaint unsealed in the U. S. District Court for the Southern District of New York has revealed that traders profited at least $137 million by placing options trades ahead of a Chinese regulatory announcement on cross-border brokerage services. The announcement, made on May 22, 2026, targeted firms such as Futu Holdings and Tiger Brokers. According to the indictment, the illegal gains were generated through advance positioning in U. stock options linked to the affected companies. The investigation has identified over 310 accounts, with profits heavily concentrated among a small group of traders. Eight individuals collectively earned more than $80 million, accounting for nearly 60% of the total illegal proceeds. U. options market makers Susquehanna International Group and Citadel Securities have filed lawsuits against the unknown defendants, currently named as 'John Does 1 Through 100' – a legal placeholder used when the identities of the defendants are not yet known, and which does not confirm the existence of exactly 100 defendants. Their identities may be established through subsequent discovery proceedings.