Justice Department Probes Alleged $100 Million Insider Trading Scheme Hitting Susquehanna
Updated
Updated · Bloomberg · Jul 2
Justice Department Probes Alleged $100 Million Insider Trading Scheme Hitting Susquehanna
1 articles · Updated · Bloomberg · Jul 2
Summary
The Justice Department has opened an early-stage criminal probe into Susquehanna International Group’s claim that unknown traders made about $100 million on options bets before a Chinese regulatory crackdown.
Washington’s criminal division is leading the investigation, according to people familiar with the matter, signaling the allegations have moved beyond a private trading dispute.
Susquehanna publicly laid out the claims in a lawsuit filed Monday in Manhattan federal court, saying the bets were placed ahead of Beijing’s move against cross-border brokerages.
The case centers on whether traders used nonpublic information about the impending Chinese crackdown, a question that could widen scrutiny of cross-border market leaks.