SFC seeks court order to freeze assets up to $62.5 million for investor compensation in sophisticated ramp-and-dump case

The Securities and Futures Commission (SFC) has applied for an order from the Court of First Instance to freeze assets intended for compensation to affected investors in a sophisticated ramp and dump case (Application). This Application is part of the SFC’s legal proceedings under section 213 of the Securities and Futures Ordinance (SFO) against six individuals, including the suspected ringleaders, for manipulating the shares of Eggriculture Foods Limited (Eggriculture) between August and November 2018 (Note 1).

In particular, the Application is made by the SFC to restrain the disposal of the assets of one of the suspected ringleaders up to the value of $62,566,773, representing the estimated loss suffered by the affected investors resulting from the alleged market misconduct.

The Court today held the first hearing on the SFC’s Application and provided further directions, including that the substantive hearing of the Application be adjourned to a date to be fixed.

In parallel, a criminal trial will commence at the District Court on 13 July 2026 in which five of the six individuals involved in the above-mentioned legal proceedings were also charged with various criminal offences for the same alleged market misconduct (Notes 2 and 3).

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

End

Notes:

1. Eggriculture was listed on the GEM of the Stock Exchange of Hong Kong Limited on 7 September 2018.

2. Please see the press releases of the SFC dated 4 April 2023, 6 April 2023, 17 April 2023, 19 June 2024, 9 July 2024, 12 November 2024 and 25 March 2025.

3. The defendants were charged with 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.