TLDR: Shares in Future FinTech Group fell by 20% in premarket trading after the US Securities and Exchange Commission (SEC) charged CEO Shanchun Huang with manipulative trading and failing to disclose beneficial ownership. The charges are related to Huang’s activities in the stock market just before becoming CEO in 2020. The SEC claims that Huang engaged in manipulative trading with an offshore account in Hong Kong, purchasing over 530,000 shares in Future FinTech within two months to inflate the stock price. Huang allegedly failed to disclose his holdings of Future FinTech stock and submitted a misleading form even after divesting all the stock, falsely representing that he owned none.
Key points:
- Shares in Future FinTech fall by 20% after CEO is charged with fraud and disclosure failures by the SEC
- Charges relate to CEO’s manipulative trading and failure to disclose beneficial ownership
- SEC claims CEO purchased over 530,000 shares in the company to inflate its stock price
- CEO allegedly failed to disclose his holdings of the company’s stock and submitted a misleading form
