US court to freeze Thai trader's assets

In a release, the watchdog alleges that Badin Rungruangnavarat purchased thousands of out-of-the-money Smithfield call options and single-stock futures contracts from May 21-28 in an account at Interactive Brokers LLC. 

Bodin allegedly made these purchases based on material, non-public information about the potential acquisition, and among his possible sources is a Facebook friend who is an associate director at an investment bank to a different company that was exploring an acquisition of Smithfield. After profiting from his timely and aggressive trading, Bodin sought to withdraw more than $3 million from his account on June 3.

Smithfield just announced last week that it accepted Shanghui's deal. 

"The speed in which we were able to bring this emergency action exemplifies the talent, tenacity, and commitment that the SEC staff brings to bear every day to keep our markets fair and investors safe," said Andrew Ceresney, Co-Director of the SEC's Division of Enforcement.

Merri Jo Gillette, Director of the SEC's Chicago Regional Office, added, "As alleged in our complaint, not only did the defendant trade out of the money Smithfield call options, he further pumped up his profits by purchasing single-stock futures, thereby reaping a total unrealised return on his investment of 3,400 per cent in the span of eight days. We will act quickly and decisively to uncover and take action against insider trading no matter where the trader resides or what types of securities are used to profit from nonpublic information."