Two former Robinhood engineers, Hefu Chai and Huaisong Xiang, have been charged in the United States for allegedly using confidential information to trade perpetual contracts on Hyperliquid ahead of platform listings. The US Department of Justice claims each generated over $50,000 in profits from these operations between 2025 and 2026. The charges include violations of the Commodity Exchange Act, carrying a maximum sentence of ten years, and wire fraud, punishable by up to twenty years. Robinhood stated it conducted an internal investigation before reporting the matter to authorities. This case follows the precedent of Ishan Wahi, a former Coinbase employee sentenced in 2023 for similar conduct regarding future listings.
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