SFC issues restriction notices to four brokers to freeze client accounts linked to suspected account hacking and market manipulation

SFC issues restriction notices to four brokers to freeze client accounts linked to suspected account hacking and market manipulation

21 Nov 2024

The Securities and Futures Commission (SFC) has issued restriction notices to four brokers, prohibiting them from dealing with or processing certain assets held in their client accounts for suspected market manipulation or fraud involving unauthorised online trades placed through hacked accounts between 24 October and 6 November 2024 (Note 1).

The four brokers are: Interactive Brokers Hong Kong Limited (IBHK); SBI China Capital Financial Services Limited (SBI); Monmonkey Group Securities Limited (Monmonkey); and Soochow Securities International Brokerage Limited (Soochow) (Note 2).

The restriction notices prohibit the four brokers, without the SFC's prior written consent, from disposing of or dealing with, assisting, counselling or procuring another person to dispose of or deal with certain assets in any way in the accounts up to a total of $91 million. They are also required to notify the SFC if they receive any instructions regarding the aforesaid prohibitions.

The SFC considers that the issue of the restriction notices is desirable in the interest of the investing public or in the public interest whilst its investigation is underway.

The SFC acknowledges the assistance provided by the Cyber Security and Technology Crime Bureau and Commercial Crime Bureau of the Hong Kong Police Force.

End

Notes:

1. The SFC issued the restriction notices under sections 204 and 205 of the Securities and Futures Ordinance (SFO).
2. IBHK and SBI are corporations licensed under the SFO to carry on Types 1 to 3 regulated activities and Types 1, 4 and 9 regulated activities respectively. Both Monmonkey and Soochow are corporations licensed under the SFO to carry on Types 1 and 4 regulated activities.

Page last updated 21 Nov 2024