ASIC probes DroneShield over $67M executive selloff

The Australian Securities and Investments Commission has launched a formal investigation into counter-drone manufacturer DroneShield (ASX:DRO), focusing on potential disclosure breaches and share trading activities involving senior leadership.

The regulator has requested "reasonable assistance" regarding a series of announcements and market movements that occurred in late 2025.

The probe specifically scrutinises the period between Nov. 1 and Nov. 25, 2025, a window of intense volatility for the defence tech firm.

Of particular interest to investigators is a heavy sell-off by the company’s inner circle between Nov. 6 and 12.

During this time, then-CEO Oleg Vornik, Chairman Peter James, and Director Jethro Marks offloaded their entire collective holdings, totalling $66.8 million.

This divestment coincided with an administrative error that saw DroneShield issue an incorrect order announcement on Nov. 10, only to withdraw it hours later.

ASIC is reportedly examining whether the timing of these trades and the subsequent retracted disclosures complied with continuous disclosure obligations and insider trading laws.

DroneShield has confirmed it is cooperating fully with the enquiry.

While the company maintains that the internal trade approvals were handled via standard protocols, the total exit by the board has drawn sharp criticism from institutional investors.

At the time of reporting, DroneShield’s share price was $3.01.