Ex-Robinhood Engineers Charged in Crypto Insider Case

What prosecutors say happened

If you ever wondered whether a coming crypto listing can move markets, prosecutors think two ex-Robinhood engineers tried to front-run exactly that. A Tuesday statement from Manhattan U.S. Attorney Jamie McDonald alleges Hefu Chai and Huaisong Xiang used nonpublic details about whether and when Robinhood would support additional cryptocurrencies to buy crypto-linked perpetual futures on Hyperliquid, a decentralized derivatives exchange. The government says each man cleared more than $50,000 from trades made between 2025 and 2026.

Legal proceedings and status

Chai, of Menlo Park, California, and Xiang, of Jersey City, New Jersey, were slated to appear in court on Tuesday in California and New York. The court allowed Xiang, a citizen of China, to be released on a $50,000 bond after rejecting a prosecutor's push to hold him without bail as a flight risk. Robert Stahl, Xiang's attorney, said his client disputes the allegations and intends to mount a vigorous defense in court.

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