Robinhood Engineers Charged With Fraud Over Crypto Listing Trades
Two Robinhood engineers, Hefu Chai, 36, and Huaisong "Jerry" Xiang, 30, face charges of commodities fraud and wire fraud for allegedly using confidential information about upcoming cryptocurrency listings to trade on decentralized exchange Hyperliquid. U.S. Attorney Jamie McDonald stated that corporate insiders cannot evade securities and commodities laws by trading on misappropriated information. The engineers reportedly used nonpublic information to buy related perpetual futures before announcements, earning over 50000 dollars each between 2025 and 2026. Federal authorities previously charged former Coinbase product manager Ishan Wahi for sharing confidential token-listing information. In this case, prosecutors are applying the Commodity Exchange Act to address alleged insider trading involving derivatives. Robinhood has cooperated with the investigation. If convicted, the commodities fraud charge could result in a maximum of 10 years in prison, while wire fraud could lead to 20 years.
-- Price
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