Two Robinhood engineers charged with crypto-linked trading fraud

September 15, 2026 at 10:43 PM1 min

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Two Robinhood Markets Inc. employees were charged by US prosecutors with fraud for allegedly using nonpublic information to trade crypto-linked perpetual futures on Hyperliquid. The engineers, Hefu Chai, 36, and Huaisong Xiang, 30, allegedly made more than $50,000 each from trades executed between 2025 and 2026. They are scheduled to appear in court in California and New York on Tuesday.

Key Facts

Hefu Chai, 36, of Menlo Park, California, and Huaisong Xiang, 30, of Jersey City, New Jersey, were charged by Manhattan US Attorney Jamie McDonald.
The two engineers allegedly used confidential information about Robinhood's cryptocurrency listing plans to trade perpetual futures on Hyperliquid.
Each allegedly made more than $50,000 from the trades, which occurred between 2025 and 2026.
Robinhood reported the matter to law enforcement and regulators after an internal investigation.
Xiang's lawyer, Robert Stahl, said his client denies the charges and will vigorously defend himself in court.

The Charges

Manhattan US Attorney Jamie McDonald announced the charges on Tuesday. Chai and Xiang are accused of using nonpublic information about whether and when Robinhood would support additional cryptocurrencies. The alleged trades were executed on Hyperliquid, a decentralized derivatives exchange. The two engineers allegedly made more than $50,000 each from the scheme.

Company Response

Robinhood said it has zero tolerance for insider trading and maintains robust insider-trading policies, including for new crypto listings. The company immediately investigated and reported the matter to law enforcement and regulators. Robinhood said it will continue to cooperate with the investigations.

Court Appearances

Chai and Xiang are scheduled to appear in court in California and New York on Tuesday. Chai did not immediately respond to a request for comment on LinkedIn. Robert Stahl, a lawyer representing Xiang, said his client denies the charges and will vigorously defend himself in court.