Snapshot from Aug 24, 2026 at 07:00 UTC. For live data and tracking: View Live
Events / Regulatory / Futu and UP Fintech Securities Fraud Lawsuits
Regulatory securities class action

Futu and UP Fintech Securities Fraud Lawsuits

Analysis based on 94 articles · First reported Jul 20, 2026 · Last updated Aug 21, 2026

Sentiment
-60
Attention
4
Articles
94
Market Impact
General
Live prominence charts, article sentiment distribution, and event development timeline available on the Ergen Dashboard
Market Impact

The regulatory crackdown and subsequent securities fraud lawsuits have significantly depressed the stock prices of Futu and UP Fintech, eroding investor confidence in Chinese online brokers. The proposed penalties and litigation costs could materially impact their financial results and future operations, potentially affecting the broader cross-border brokerage sector.

Online brokerage Financial services Securities litigation
Event Summary

In May 2026, China's securities regulator, the China — China Securities Regulatory Commission (CSRC), along with seven other government agencies including the Bank of China, launched a crackdown on cross-border securities activities, targeting online brokers Futu, Raytech Holding Limited (parent of Tiger Brokers), and United Kingdom — Longbridge for allegedly soliciting business in mainland China without the requisite licenses. On May 22, 2026, Thomson Reuters — Reuters reported the crackdown, causing Futu shares to fall 27.5% and UP Fintech ADS to fall 25.3%. Futu disclosed receipt of a CSRC Notification Letter proposing penalties of approximately RMB1.85 billion (about USD271 million) for conducting securities, public fund sales, and futures business in mainland China without approval. Subsequently, multiple U.S. law firms, including Rosen Law Firm, Kaplan Fox & Kilsheimer, Kahn Swick & Foti LLC, DJS Law Group, Bronstein, Gewirtz & Grossman LLC, and Berger Montague, filed or announced securities class action lawsuits against Futu and UP Fintech, alleging they made materially false and misleading statements regarding regulatory compliance. The class period is May 24, 2023 to May 27, 2026, with a lead plaintiff deadline of August 25, 2026. The lawsuits are pending in the U.S. District Court for the Southern District of New York.

Key Actions
97 China — China Securities Regulatory Commission launched crackdown Futu
97 China — China Securities Regulatory Commission proposed penalties against Futu
94 Rosen Law Firm filed class action Futu
94 China penalized Raytech Holding Limited
92 Bronstein, Gewirtz & Grossman, LLC filed class action Futu
91 Futu disclosed receipt of notification letter
87 Glancy Prongay & Murray filed class action lawsuit Futu
86 China announced crackdown
85 Kahn Swick & Foti filed securities class action Futu
85 DJS Law Group filed class action Futu
81 The Law Offices of Frank R. Cruz announced opportunity to lead lawsuit Futu
79 Berger Montague filed class action lawsuit Futu
77 Kaplan Fox & Kilsheimer filed class action lawsuit Futu
76 Futu reported Q1 2026 financial results
75 Rosen Law Firm announced investigation Raytech Holding Limited
+ 4 more actions View on Dashboard
Entities Involved
stock
Futu
Futu is the primary defendant in multiple securities class actions and faces proposed CSRC penalties of approximately RMB1.85 billion. Its stock fell sharply following the crackdown, and it is exposed to significant legal and regulatory costs.
Importance 100.0 Sentiment -80.0
govactor
China — China Securities Regulatory Commission
The CSRC initiated the crackdown and issued the Notification Letter to Futu, proposing penalties. It is the key regulator enforcing compliance in cross-border securities activities.
Importance 95.0 Sentiment 20.0
priv
Raytech Holding Limited
UP Fintech, parent of Tiger Brokers, is under investigation and subject to a prospective class action. Its ADS fell 25.3% on the crackdown news, and it faces similar regulatory and litigation risks.
Importance 90.0 Sentiment -75.0
per
Li Hua
Li Hua is the founder and CEO of Futu, who faces a proposed personal fine from the CSRC. He is named as a defendant in the class action, and his reputation and finances are negatively affected.
Importance 70.0 Sentiment -60.0
priv
Rosen Law Firm
Rosen Law Firm is investigating claims and preparing class actions against both Futu and UP Fintech, seeking recovery for investors. It is a prominent plaintiffs' firm in these cases.
Importance 70.0 Sentiment 10.0
cnt
China
China's regulatory actions are central to the event, affecting its cross-border brokerage industry and international investor confidence.
Importance 60.0 Sentiment -10.0
priv
Kaplan Fox & Kilsheimer
Kaplan Fox filed a class action against Futu and is actively soliciting lead plaintiffs. It is one of several firms pursuing claims.
Importance 60.0 Sentiment 10.0
priv
Kahn Swick & Foti
KSF is reminding investors of the lead plaintiff deadline and is involved in the Futu class action, representing investor interests.
Importance 55.0 Sentiment 10.0
subs
Thomson Reuters — Reuters
Thomson Reuters — Reuters published the initial report on the CSRC crackdown, which triggered the market reaction and subsequent litigation.
Importance 50.0 Sentiment 0.0
priv
Tiger Brokers
Tiger Brokers, a subsidiary of UP Fintech, was named in the crackdown and faces regulatory penalties, impacting its parent's stock.
Importance 50.0 Sentiment -60.0
stock
Bank of China
The Bank of China was one of the agencies involved in the crackdown, supporting the regulatory action.
Importance 45.0 Sentiment 0.0
govactor
United States — United States District Court for the Southern District of New York
The court is where the class action is pending. It will oversee the litigation and determine the outcome.
Importance 40.0 Sentiment 0.0
cnt
United States
The United States is the jurisdiction where the securities class actions are filed, providing legal recourse for investors.
Importance 40.0 Sentiment 0.0
priv
Bronstein, Gewirtz & Grossman, LLC
Bronstein, Gewirtz & Grossman is urging Futu investors to act, adding to the array of law firms involved.
Importance 40.0 Sentiment 5.0
priv
DJS Law Group
DJS Law Group is also reminding investors of the class action against Futu, contributing to the legal pressure.
Importance 40.0 Sentiment 5.0
+ 14 more entities View on Dashboard
Relationships
Futu banned ↔ China — China Securities Regulatory Commission Futu Holdings is a target of the China Securities Regulatory Commission's enforcement, facing a ban on new mainland Chin
Futu related ↔ Li Hua
Futu related ↔ Rosen Law Firm
Futu related ↔ China
Futu related ↔ Kaplan Fox & Kilsheimer
Futu related ↔ Kahn Swick & Foti
Futu related ↔ Thomson Reuters — Reuters
Futu related ↔ Tiger Brokers
China — China Securities Regulatory Commission related ↔ Li Hua
China — China Securities Regulatory Commission related ↔ Rosen Law Firm
China — China Securities Regulatory Commission related ↔ China
China — China Securities Regulatory Commission related ↔ Kaplan Fox & Kilsheimer
China — China Securities Regulatory Commission related ↔ Kahn Swick & Foti
China — China Securities Regulatory Commission related ↔ Thomson Reuters — Reuters
China — China Securities Regulatory Commission related ↔ Tiger Brokers
+ 15 more relationships View on Dashboard
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