Hong Kong SFC Orders 10 Brokers to Freeze 31 Accounts Related to Ramp-and-Dump Scam

The Securities and Futures Commission (SFC) of Hong Kong has issued restriction notices to ten securities brokers prohibiting the handling of certain assets in 31 trading accounts because they are suspected of being linked to a ramp-and-dump scam on social media.

SFC said that between November 2021 and June 2022, a company listed on The Stock Exchange of Hong Kong Limited allegedly manipulated the stock market by using different methods to push the company's share price artificially high and lured investors through social media to buy shares dumped by the scammers at high prices.

The ten brokers are: China Industrial Securities International Brokerage Limited, Quam Securities Limited, Futu Securities International (Hong Kong) Limited, Imperium International Securities Limited, Lego Securities Limited, Phillip Securities (Hong Kong) Limited, Silverbricks Securities Company Limited, uSmart Securities Limited, Valuable Capital Limited and Webull Securities Limited.

In the interest of the investing public and the general public, without the written consent of SFC, it prohibits these securities brokers from disposing of or dealing with, or assisting, counseling, or procuring another person to dispose of or deal with, any assets in any way in the trading accounts up to a certain amount.

The SEC is conducting the investigation.