On October 16, 2019, we published a bearish exposé on China-based UP Fintech Holdings Ltd (NASDAQ: TIGR). We concluded that TIGR was operating an illegal brokerage firm that is at risk of being shut down by the appropriate regulatory authorities in China at any moment. You can also view a slide presentation summarizing our findings here.
In our original report, we concluded that TIGR was violating Anti-Money Laundering (AML) laws by:
- Operating a brokerage business in the People’s Republic of China (PRC) without the required license(s).
- Allowing Chinese citizens to trade in foreign securities and bypass PRC’s State Administration of Foreign Exchange (SAFE) regulations.
- Booking brokerage commission revenue illegally collected from PRC nationals through its New Zealand subsidiary, Tiger Brokers (NZ).
We also showed that TIGR client service reps instructed our Chinese citizen investigator how to evade PRC’s currency conversion laws.