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      Two Robinhood Engineers Charged with Insider Trading in Hyperliquid Case

      On September 15, 2026, the U.S. Attorney's Office for the Southern District of New York announced charges against two engineers from Robinhood, Hefu Chai and Huaisong Xiang, for commodity fraud and wire fraud. The charges stem from allegations that the pair used non-public information to trade Hyperliquid perpetual contracts prior to the public announcement of new token launches by Robinhood Crypto.

      The indictment claims that between 2025 and 2026, Chai and Xiang repeatedly purchased these contracts for tokens before their official launch, resulting in profits exceeding $50,000 for each individual. U.S. Attorney Jamie McDonald highlighted that trading in perpetual contracts, despite being conducted on blockchain derivative platforms, is still subject to securities and commodities market regulations.

      Chai, 36, is scheduled to appear in court in the Northern District of California, while Xiang, 30, will face proceedings in federal court in the Southern District of New York. If convicted, they could face a maximum of 10 years in prison for violations of the Commodity Exchange Act and up to 20 years for wire fraud. The U.S. Attorney's Office emphasized that the allegations are not yet proven, and both defendants are presumed innocent until a court ruling is made.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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