Federal Reserve (FED) · DOJ · Decrypt
Robinhood Engineers Charged With Fraud Over Alleged Crypto Listing Trades
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Two former Robinhood engineers allegedly used confidential information about upcoming cryptocurrency listings to make profitable trades on decentralized exchange Hyperliquid, federal prosecutors said Tuesday.
Key facts
- Hefu Chai, 36, and Huaisong “Jerry” Xiang, 30, each face one count of commodities fraud and one count of wire fraud
- According to the DOJ, the engineers allegedly used nonpublic information about upcoming Robinhood Crypto token listings to buy related perpetual futures before the announcements, earning profits “for
- If convicted, the commodities fraud charge carries a maximum prison sentence of 10 years, while wire fraud carries a maximum of 20 years
- Federal authorities previously charged former Coinbase product manager Ishan Wahi over confidential token-listing information he allegedly shared with his brother and a friend
Summary
Federal prosecutors charged two Robinhood engineers with commodities fraud and wire fraud. The employees allegedly traded perpetual futures using confidential information about upcoming crypto listings. Each defendant allegedly earned more than $50,000 from the scheme. Hefu Chai, 36, and Huaisong “Jerry” Xiang, 30, each face one count of commodities fraud and one count of wire fraud.