Regencell Horrors in Flight: Ministry of Justice Initiated an Investigation

The Justice Department’s Favorite: Regencell Bioscience Holdings Ltd.

The U.S. Department of Justice has initiated a formal investigation into Regencell Bioscience Holdings Ltd., a Hong Kong-based traditional Chinese medicine firm, due to extraordinary fluctuations in its stock market. The Department requested all documents and related correspondence regarding the company's stock trading activities.

Scope of the Investigation

In its reports to the U.S. Securities and Exchange Commission (SEC), Regencell announced that the investigation encompasses the company's financial records, operations, and accounting processes. While the company's management stated that they are cooperating with the Department of Justice, they expressed uncertainty about the outcome of the process.

Surprising Spike in Stocks

Regencell's shares saw an increase of 46,000% in June without any new developments. This extraordinary rise temporarily positioned the company’s CEO among the world's wealthiest individuals. It is noteworthy that Regencell, which began trading on Nasdaq last year, has no products offered for sale or revenue-generating activities since its inception.

Market Volatilities and Analyses

The company stated regarding the sudden surge in the markets, "We believe this volatility is largely due to short position coverages and unusual trading activities." Such sudden fluctuations in the industry create concern among investors, while Regencell's future steps are being closely monitored.