SEC Accuses Future FinTech Group CEO of Market Manipulation

The United States Securities and Exchange Commission (SEC) has formally accused Shanchun Huang, the CEO of Future FinTech Group, of engaging in market manipulation tactics. These actions were allegedly carried out to artificially increase the company's stock price prior to Huang assuming his role as CEO.

Allegations of Manipulative Trading

The SEC's complaint, which was filed in a New York federal court, claims that Huang executed manipulative trades to boost Future FinTech's stock price in early 2020. At that time, the company was facing potential delisting from the Nasdaq exchange for not maintaining the minimum required bid price of $1 per share.

Huang is said to have utilized a Hong Kong-based account to trade substantial volumes of Future FinTech shares. The complaint details that he purchased over 530,000 shares within a two-month frame, representing a significant portion of the daily trading volume.

Moreover, the SEC pointed out Huang's trading pattern, which included placing a series of rapid buy orders, as an indicator that his actions were more aligned with inflating stock prices than securing shares at their lowest value.

Late Disclosure

Following his appointment as the CEO in March 2020, Huang supposedly failed to disclose his ownership stake in Future FinTech timely. It was not until a year later, after disposing of his stock, that he made the necessary regulatory filings.

The SEC seeks to impose financial penalties on Huang and to disqualify him from holding an executive position in any publicly traded company. The case against Huang marks a significant regulatory action in the financial technology sector, highlighting the SEC's vigilance over market integrity.

At this stage, Future FinTech Group has not offered a response to the charges, and efforts to reach the company were unavailing as its website was reported inactive.

SEC, Manipulation, Charges