Susquehanna loses bid to freeze $100m in insider trading case

A New York federal judge has denied a request by Susquehanna International Group to freeze nearly $100 million in assets linked to an alleged insider trading scheme. The lawsuit alleges that dozens of traders used non-public information regarding an impending Chinese government crackdown on cross-border trading platforms to profit from short-dated put options.

The crackdown, announced by Chinese authorities on May 22, caused significant declines in the shares of US-listed Chinese fintech companies, including FUTU Holdings and UP Fintech. According to court filings, unknown traders turned approximately $12 million in options purchases into profits exceeding $100 million just before the regulatory news broke.

Judge Arun Subramanian ruled that Susquehanna failed to provide sufficient evidence that the defendants were likely to hide or dissipate the funds before a potential judgment. The decision effectively allows the proceeds from the alleged scheme to move again. Citadel Securities has intervened in the case, claiming approximately $28 million in losses as a counterparty to the same trades.