In legal proceedings, the Court of First Instance granted an interim injunction order against Ms Tsang Ching Yi and Mr Barry Kwok Sze Lok. The Securities and Futures Commission (SFC) of Hong Kong is carrying out the necessary processes. This prevents them from withdrawing assets, including properties which are worth up to $8,246,496 from Hong Kong. The cause of the proceedings is in connection with an ongoing investigation into alleged insider trading in I.T Limited (I.T) shares.
SFC reported that Tsang discussed with her friend Kwok inside knowledge about the privatisation of information technology. She obtained it while working in a management position at an investment bank. They subsequently used such inside information to trade in I.T shares, purchasing 2.844 million I.T shares through Kwok’s securities accounts in October and November 2020. I.T. instantly sold the shares once the proposed privatisation was revealed in December 2020, earning a profit of $4,123,248.
The company Tsang was working for was Morgan Stanley. Just recently, JP Morgan in the United States acquired the First Reserve Bank. The entire MNC is moving towards becoming more crypto-friendly and providing a space for the digital currency market to grow.
On March 4, 2005, I.T.’s shares were listed on the Stock Exchange of Hong Kong Limited (SEHK). I.T. announced its intended sale under a scheme of arrangement on December 6, 2020. Prior to this notification, trading in I.T. shares was halted on November 30, 2020, at a closing share price of $1.94. The share price increased by 44.8% to settle at $2.81 when trading resumed on December 7, 2020. The plan of arrangement went into effect on April 28, 2021. And the shares were delisted from the SEHK on April 30, 2021.
The Hong Kong judiciary has recently issued a key judgement recognising cryptocurrency as property. The new rule is likely to give better clarity for Hong Kong insolvency practitioners regarding digital assets. Hong Kong’s regulators also have published the region’s planned criteria for crypto licencing. This legal framework would require all crypto platforms to register with the city’s officials. In recent years, the region has been a growing focus of interest for crypto businesses.
