Securities and Futures Commission seeks court order for Guangjun situation

The Securities and Futures Commission (SFC) has taken legal action by applying for an interim asset freezing order from the Court of First Instance. This action is aimed at compensating investors who were impacted by an alleged pump-and-dump scheme involving Grandpine Group Holdings (08516.HK) that was orchestrated through social media manipulation. The SFC has filed legal proceedings under Section 213 of the Securities and Futures Ordinance against 16 defendants, including the suspected mastermind, for their involvement in manipulating Grandpine shares between June 2021 and June 2022. The current application for an asset freezing order is a crucial part of these legal proceedings.

In its application, the SFC is seeking to prevent the 16 defendants from disposing of their assets in Hong Kong, up to a total of HKD 3.94 billion, which reflects the estimated losses suffered by affected investors as a result of the alleged market misconduct. The court has already issued interim injunctions against four out of the 16 defendants, which will remain in effect until further orders are issued by the court. The remaining 12 defendants have received additional directions from the court, and the application has been adjourned to a later date that is yet to be determined.

As the legal process is ongoing, the SFC has refrained from providing any further comments on the matter at this time. It is important to note that the information provided has been translated by third-party software, and while efforts have been made to ensure accuracy, the possibility of inaccuracies cannot be ruled out.

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