Judge Arun Subramanian of the U.S. District Court for the Southern District of New York concluded that Susquehanna Securities and Susquehanna Investment Group did not demonstrate the irreparable harm necessary to justify a preliminary injunction. The lawsuit, which originally targeted 100 unnamed defendants, centers on trading activity that occurred shortly before China’s May 22 crackdown on cross-border trading platforms. Susquehanna alleged that the defendants profited from material nonpublic information, leading to a sharp decline in specific securities.
In section Cryptocurrency
Judge denies Susquehanna bid to freeze $100M in insider trading suit
A New York federal judge has rejected an attempt by Susquehanna to freeze nearly $100 million in assets held by dozens of traders. The court ruled that the market maker failed to prove that the defendants were likely to hide funds or that the underlying insider trading claims would succeed.
The court found that Susquehanna failed to establish a clear likelihood of success on its claims under Section 20A of the Securities Exchange Act. While the firm pointed to a pattern of risky put option purchases as evidence of illicit activity, Judge Subramanian noted that these trades could be explained by public market signals and increased volatility. Furthermore, the court determined that the firm did not provide sufficient evidence that the traders intended to dissipate assets or evade a future judgment. With the requested injunction and an alternative motion for asset attachment denied, the court’s previous temporary restrictions on the funds were set to expire on September 16.
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