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Sep 15, 2026

DOJ charges two Robinhood engineers with front-running crypto listings on Hyperliquid

Federal prosecutors charged Hefu Chai and Huaisong Xiang with commodities fraud and wire fraud for allegedly using confidential information about upcoming Robinhood crypto listings to trade perpetual futures on Hyperliquid ahead of public announcements.

Sep 15, 2026·4 sources
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Apr 26, 2026

U.S. DOJ Sentences Individual to 70 Months in Prison for Role in $263 Million Crypto Scam

The Department of Justice sentenced a member of a scam group to nearly six years in prison for participating in a $263 million fraud operation that used social engineering to steal from crypto users, with proceeds spent on luxury items and real estate.

Apr 26, 2026·1 source
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Top claims

  • ▪Unlike the 2022 Coinbase insider trading case, the charges against Hefu Chai and Huaisong Xiang involve trading perpetual futures derivatives rather than the underlying cryptocurrency tokens
  • ▪Hefu Chai and Huaisong Xiang allegedly conducted their front-running trading scheme between 2025 and 2026, with each defendant earning more than $50,000 in profits
  • ▪In 2022, the U.S. Justice Department charged former Coinbase product manager Ishan Wahi and two others in the first cryptocurrency insider-trading tipping scheme involving advance knowledge of token listings

Topics

Crypto enforcement actionsCrypto exchangesCrypto regulationInsider tradingCrypto market integrity & manipulationDeFiRobinhoodDepartment of JusticeSocial engineering attacks

Related entities

Hyperliquid