The Securities and Futures Commission (SFC) in Hong Kong is actively pursuing legal action to secure an interim order that would freeze assets amounting to approximately $394 million. This measure is part of an investigation into alleged market manipulation concerning shares of Grand Talents Group Holdings Limited, which reportedly involved sophisticated social media tactics in a ramp-and-dump scheme.
The SFC aims to restrain 16 individuals, identified as defendants in the case, from disposing of assets linked to the alleged misconduct. This includes the funds targeted for compensation to investors who suffered losses during the alleged manipulation period, which spanned from June 2021 to June 2022.
In a recent development, the Court of First Instance has granted an interim injunction against four of the defendants based on the SFC’s request. This injunction will remain in effect until the Court issues further orders. Meanwhile, additional directions have been provided regarding the other twelve defendants, and the case has been adjourned for future hearings.
The SFC is leveraging section 213 of the Securities and Futures Ordinance to address these malpractices, reflecting its commitment to maintaining market integrity and protecting investors from potential harm stemming from fraudulent activities. The outcome of this legal action may have significant ramifications for both the individuals involved and the larger regulatory framework in Hong Kong.