The Securities and Futures Commission in Hong Kong has issued notices to two brokers, instructing them to freeze a client account suspected of market manipulation and account hacking.
The Securities and Futures Commission (SFC) issued notices last week to Interactive Brokers LLC (IBLLC) and Interactive Brokers Hong Kong (IBHK) prohibiting them from dealing with or processing certain assets held in a client account which the SFC suspects are the proceeds of market manipulation and or fraud conducted in conjunction with unauthorized internet trades in hacked securities accounts at other firms between 7 and 15 October 2015.
The notices do not affect the operations of IBLLC and IBHK or their other clients.
The notices prohibit IBLLC and IBHK, without the SFC’s prior written consent, from dealing with the suspected proceeds or processing any instructions from the client, or any authorized representative, for those proceeds, including:
Cyber Security and Technology Crime Bureau
This means IBLLC and IBHK cannot enter into securities or futures transactions, withdraw securities, futures or cash or transfer sales proceeds of securities or futures. IBLLC and IBHK must notify the SFC if they receive any account instructions.
The securities regulator made it clear it is not investigating either IBLLC or IBHK, which have cooperated with the SFC’s ongoing investigation.
The SFC was assisted by the Cyber Security and Technology Crime Bureau of the Hong Kong Police Force.
The SFC’s investigation is continuing.
