The U.S. Department of Justice has charged two Robinhood engineers, Hefu Chai and Huaisong Xiang, with allegedly using non-public company information to trade crypto perpetual futures on Hyperliquid. According to the indictment, the two men traded between 2025 and 2026 based on information about tokens that were set to be listed on Robinhood Crypto. Prosecutors said each made more than $50,000 in illegal profits. The defendants were charged with commodities fraud and wire fraud, offenses that carry maximum prison terms of 10 years and 20 years, respectively. U.S. Attorney Jamie McDonald said it is illegal to use insider information to trade in derivatives markets for personal gain.
The U.S. Department of Justice has charged two Robinhood engineers, Hefu Chai and Huaisong Xiang, alleging that they used non-public company information to trade crypto perpetual futures on Hyperliquid.
According to the indictment, the two traded from 2025 to 2026 using information about tokens that were about to be listed on Robinhood Crypto. Prosecutors said each generated more than $50,000 in illegal profits.
They were charged with commodities fraud and wire fraud, which carry maximum prison sentences of 10 years and 20 years, respectively.
U.S. Attorney Jamie McDonald said that using insider information to trade in derivatives markets for personal gain is illegal.
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