Shares of UP Fintech Holding Ltd (NASDAQ:TIGR), which operates the Tiger Brokers online trading brand, fell by 28% on Friday after the company revealed that it was the subject of an investigation by the China Securities Regulatory Commission (CSRC), China’s securities regulator.
Investigation and fine
An investigation by the CSRC into various online brokers, which also caught in its net similar activities by Futu and Longbridge, found that Tiger Brokers had conducted unlicensed cross-border securities business and illegal activities relating to the fund and futures business in mainland China.
The CSRC issued a fine of RMB 308.1 million (USD $45 million) against UP Fintech / Tiger Brokers, and confiscated what it called “illegal income” of RMB 103.1 million ($15 million), for a total penalty of about $60 million.
Tianhua Wu, Chairman and CEO (and controlling shareholder) of UP Fintech has also received a warning and penalty of RMB 1.25 million ($184K).
As of year-end 2025, retail client assets in mainland China constituted approximately 10% of the Company’s total client assets.
The penalties are fairly large both in absolute terms, as well as relative to the size of UP Fintech / Tiger Brokers. UP Fintech has a current market capitalization of $819 million. In its most currently reported quarter, Q4 2025, UP Fintech reported record Revenues of $156.5 million, and Net Profit of $51.9 million, such that the fine and confiscation wipes out more than an entire quarter’s worth of net profit, aside from the reputational damage it inflicts on Tiger Brokers’ business in China, and beyond.
UP Fintech shares
UP Fintech shares have had a rough go of it so far in 2026, despite the company’s aforementioned record Q4 2025 results. Shares of the company, at $4.36, are now down by more than half (54%, to be precise) in 2026 year-to-date, following Friday’s move. NASDAQ:TIGR shares are down by 69% from their 52 week high of $13.55, set last September.
UP Fintech shares 2026 year-to-date. Source: Google Finance.
UP Fintech statement
A formal statement on the matter was issued by UP Fintech, which reads as follows:
Administrative Penalty by the CSRC
On May 22, 2026, certain subsidiaries of UP Fintech Holding Limited (NASDAQ: TIGR) (the “Company”) received notices from the China Securities Regulatory Commission Beijing Bureau (the “CSRC Beijing Bureau”) indicating that the CSRC Beijing Bureau had initiated an investigation into their suspected illegal operations of securities, fund and futures business, and found that these subsidiaries had conducted unlicensed cross-border securities business and illegal activities relating to the fund and futures business in mainland China. Based on its findings, the CSRC Beijing Bureau has imposed administrative penalties in the aggregate amount of approximately RMB308.1 million and confiscation of illegal income in the aggregate amount of approximately RMB103.1 million. Mr. Tianhua Wu, a director and the CEO and controlling person of the Company, has also received a warning and penalty of RMB1.25 million. As of the end of 2025, retail client assets in mainland China under the Company’s consolidated accounts constituted approximately 10% of the Company’s total client assets.
The Company accepts the penalty with sincerity. The Company is fully cooperating with the regulatory authorities, and will strictly implement the rectification measures required by the authorities. The Company remains committed to fulfilling its obligations as an online brokerage firm and complying with applicable laws and regulations.
About Tiger Brokers
UP Fintech owns the Tiger Brokers online brokerage brand, which operates licensed subsidiaries in the US, Australia, New Zealand, Hong Kong and Singapore. (The company sold its FCA licensed UK operation in 2025 to Ultima Markets). Tiger Brokers targets mainly Chinese traders, and other selected markets in the Far East. The company is controlled by Beijing based founder and majority shareholder Wu Tianhua.
