The regulatory scrutiny intensified on May 22, 2026, when Reuters reported that Chinese authorities intended to penalize brokers accused of moving capital into foreign markets illegally. Futu was explicitly cited as a target for these enforcement actions due to its cross-border operations. The subsequent market reaction wiped out more than a quarter of the company's valuation in a single session.
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Kessler Topaz Launches Investigation into Futu Holdings
A 27% plunge in Futu Holdings stock has triggered a formal investigation by the law firm Kessler Topaz Meltzer & Check, LLP. The probe examines potential federal securities law violations following reports that the online brokerage firm may have solicited business in China without holding the necessary onshore licenses.
Kessler Topaz, a firm specializing in securities-fraud class actions, is now seeking to represent investors who suffered financial losses during this period. The firm, which has recovered over $25 billion in past litigation, invites affected shareholders to review their legal rights. Attorney Jonathan Naji is overseeing the inquiry, which remains open to both individual and institutional investors at no upfront cost.
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