Future FinTech Responds to Inquiry of CEO

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Jan 16, 2024, 09:00 ET

NEW YORK, Jan. 16, 2024 /PRNewswire/ -- Future Fintech Group Inc. (NASDAQ: FTFT), (hereinafter referred to as "Future FinTech", "FTFT" or the "Company"), a comprehensive financial and digital technology service provider, announced today its Board of Directors (the "Board") held a meeting on January 15, 2024 to respond to allegations made to its Chief Executive Officer ("CEO") by the Securities and Exchange Commission (the "SEC"). The Board agreed to establish an independent committee to review and investigate the allegations made by SEC. The Board also imposed restrictions on the CEO to trade in the Company's stock during the pendency of the litigation. In addition, the Board decided to provide training to Company officers, directors and employees as to appropriate trading practices under the insider trading policy of the Company.

As background, on January 11, 2024, the SEC filed a civil lawsuit alleging civil violations of the federal securities laws against Mr. Shanchun Huang, the Company's CEO throughout the period at issue in the Complaint, for manipulative trading in the Company's stock shortly before he became its CEO in 2020. The SEC also charged Mr. Hung with failing to disclose his beneficial ownership of the Company stock as well as transactions in such stock. Mr. Huang, through his attorney, Jacob Frenkel, Chair of the Securities Enforcement and Government Investigations Practice at the law firm, Dickinson Wright, PLLC, has responded to these allegations and has asserted Mr. Huang's innocence.

The Board asserted that the civil litigation against the CEO has had no impact upon the Company's operations and it does not anticipate that it will in the future. The Board indicated that it values its shareholders and will continue to communicate with the investment community as relevant information related to this event becomes available.

About Future Fintech Group Inc.

Future FinTech Group Inc. (NASDAQ: FTFT) is a comprehensive financial and digital technology service provider. The Company, through its subsidiaries, conducts asset management, brokerage and investment banking services in Hong Kong, operates a cross-border payment business in the United Kingdom, provides cryptocurrency trading data information services in the United Arab Emirates, and engages in supply chain trading and finance businesses in China. In addition, the Company provides digital asset computing power custody services in Paraguay and has initiated digital asset mining farm operations in the United States. FTFT adheres to the concept of improving financial services with digital and internet technology, and provides its business and individual customers with stable, safe and efficient digital financial services. For more information, please visit www.ftft.com.

Safe Harbor Statement

Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2022 and our other reports and filings with SEC. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.

SOURCE Future FinTech Group Inc.