First court hearing on alleged share options fraud case

Mr Tsang Chung Yu, a former independent non-executive director of Metaverse Yunji Technology Group Company Limited (Metaverse Yunji) and 11 other individuals were charged today in a fraud case involving the granting of share options following the joint operation of the Securities and Futures Commission (SFC) and the Independent Commission Against Corruption (ICAC) in January 2024 (Notes 1 and 2).

Tsang and the others, appearing in the Eastern Magistracy for mention today, were charged for conspiracy to defraud by the ICAC, with an alternative charge of conspiracy to deal with property known or believed to represent proceeds of an indictable offence (Note 3). The total amount of suspected crime proceeds handled by them was approximately $4.35 million.

Tsang allegedly conspired with others to defraud Metaverse Yunji between April and September 2022 by falsely representing that 10 of the 11 individuals were employees of the company, thereby inducing the company to grant 66 million share options to them (Note 3).

The SFC will continue to collaborate with the ICAC on this matter.