The Hong Kong Securities Regulatory Commission issued a restraining notice to Futu to freeze the accounts of over HK$125 million of clients involved in IPO fraud

The Zhitong Finance App learned that on July 30, the Hong Kong Securities and Futures Commission (Hong Kong Securities Regulatory Commission) issued a restraining notice to Futu Securities International (Hong Kong) Limited (FTU) prohibiting it from disposing of assets limited to HK$125,247,000 in an entity's customer account.

The entity is suspected of participating in a fraudulent scheme aimed at creating false or untrue representations of initial public offering (IPO) stock requests. The Securities Regulatory Commission issued this notice in accordance with sections 204 and 205 of the Securities and Futures Ordinance. Futu is a corporation licensed under the Securities and Futures Ordinance to carry out regulated activities in categories 1, 2, 3, 4, 5, 7 and 9, but it is not the subject of this investigation, and the notice does not affect Futu and other customers.

The restraining notice requires Futu not to dispose of or assist in the disposal of restricted assets in any way without the prior written consent of the Securities Regulatory Commission, and must immediately notify the SFC if relevant instructions are received. The Securities Regulatory Commission believes that the purpose of this move is to protect the interests of the public and investors, and the investigation is still ongoing.