SFC seeks court order to freeze assets up to $219 million for investors compensation in suspected manipulation of KNT shares

The Securities and Futures Commission (SFC) has applied for an interim order from the Court of First Instance to freeze assets intended for compensation to affected investors in an alleged sophisticated ramp-and-dump scheme involving the shares of KNT Holdings Limited (KNT) (Application).

This Application is part of the SFC’s legal proceedings under section 213 of the Securities and Futures Ordinance (SFO) against 17 individuals (Defendants) for allegedly manipulating the shares of KNT between February and May 2019 (Note 1).

In parallel, a criminal trial will commence at the District Court on 6 April 2027 in which 12 of the 17 Defendants involved in the above-mentioned legal proceedings were charged with various criminal offences in relation to the same alleged ramp-and-dump scheme (Notes 2 and 3).

In this Application, the SFC is seeking to restrain five Defendants from disposing of their assets up to $219 million, representing the estimated loss suffered by the affected investors.

The first hearing of the Application took place today. The Court provided further directions and adjourned the Application to 22 December 2025 for a substantive hearing.

The SFC will not make any further comments as the legal proceedings are ongoing.

End

Notes:

1. KNT was listed on the Main Board of the Stock Exchange of Hong Kong Limited on 28 February 2019.

2. Please see the press releases of the SFC dated 30 September 2022, 24 November 2022, 19 June 2024, 9 July 2024, 6 August 2024, 12 November 2024 and 25 March 2025.

3. The 12 Defendants were charged with the offences of conspiracy to defraud and conspiracy to employ a scheme with intent to defraud or deceive in securities transactions under common law, section 300 of the SFO and sections 159A and 159C of the Crimes Ordinance.