On September 30, 2025, the Securities and Futures Commission ("SFC") sought a court order to freeze assets up to $394 million for investor compensation in an alleged manipulation of Grand Talents shares.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On September 30, 2025, the Securities and Futures Commission ("SFC") submitted an application to the Court of First Instance for an interim order to temporarily freeze assets intended for compensation to victims of a sophisticated social media ramp-and-dump scheme involving shares of Grand Talents Group Holdings Limited (Grand Talents). This application is part of the SFC’s ongoing legal proceedings against 16 defendants under section 213 of the Securities and Futures Ordinance, including the alleged masterminds, for alleged manipulation of Grand Talents shares between June 2021 and June 2022.
The SFC seeks to restrain these 16 defendants from disposing of their assets in Hong Kong, totaling approximately $394,067,589, which represents the estimated losses incurred by affected investors due to the alleged market misconduct. The Court has thus far issued an interim injunction order against four of the 16 defendants, effective until further notice. The application against the remaining 12 defendants has been adjourned to a later date to be set by the Court.
The SFC has requested the Court to maintain these interim measures to prevent the dissipation of assets, ensuring that affected investors have recourse to compensation when the case is ultimately resolved. Given the ongoing nature of the legal proceedings, the SFC will not be making further comments at this time.
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