Two Robinhood Engineers Accused of Insider Trading

• Robinhood engineers Hefu Chai and Huaisun Xiang traded Hyperliquid perpetual futures ahead of announcements about listing the relevant tokens on Robinhood Crypto.
• According to prosecutors, each of them made more than $50,000 in profit.

Two Robinhood engineers — Hefu Chai and Huaisun Xiang — have been formally charged with commodities fraud and wire fraud for using confidential insider information for personal gain.

According to prosecutors, during 2025–2026, Chai and Xiang repeatedly bought perpetual futures on the decentralized exchange Hyperliquid, tied to crypto tokens, ahead of Robinhood’s public announcements about listing them.

Because of their roles, the engineers had access to non-public information about which cryptocurrencies Robinhood planned to add to Robinhood Crypto and exactly when it would happen. Investigators say they used that information to place trades on Hyperliquid.

After Robinhood’s public announcements, they closed the relevant positions. As a result, each of them made more than $50,000 in profit.

US Attorney Jamie MacDonald said that the illegal use of confidential information to trade derivatives is unlawful. He also noted that the rules apply not only to traditional financial instruments, but also to products such as perpetual futures and tokenized securities.

The FBI said it will investigate cases where individuals gain access to sensitive commercial information and use it for personal benefit.

What penalties do the engineers face?

Chai and Xiang have each been charged with one count of violating the Commodity Exchange Act and one count of wire fraud. The first charge carries a maximum sentence of up to 10 years in prison, and the second up to 20 years.

At the same time, these terms are the maximum potential penalties set by the US Congress. If they are found guilty, the final sentence will be determined by the court.

As a reminder, in April 2026, the White House spoke about the inadmissibility of abusing public office after insider trades worth $580 million.

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