Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
Market
Author
Ahmed Barakat
Author
Part of the Team Since
Mar 2024
About Author
Ahmed Barakat is a journalist and copywriter based in Georgia with a growing focus on blockchain technology, DeFi, AI, privacy, digital assets, and fintech innovation.
- Ethereum Price Prediction: ETH Shrugs Off CLARITY Act and Fed Decision, Could Break $3,000
- Bitcoin Price Stabilizes Near $75,900 After 4% US-Session Drop
- XRP Price Prediction: 9% Drop in 12 Hours, Can XRP Survive CLARITY Act Setback?
- CLARITY Act Stalls as Crypto Rules Face Delay After Senate Vote
- Mark Zuckerberg Meta AI Predicts an Explosive End to 2026 for Bitcoin
The CryptoNews editorial team is composed of seasoned writers specializing in cryptocurrency and blockchain technology. Their expertise ensures comprehensive, accurate, and insightful content for…
- Bitcoin Price Prediction: Strategy Has a New BTC Approach
- XRP Price Prediction: Going Mainstream as Kansas Athletics Announces Strategic Jersey Patch
- Ethereum Price Prediction: Kiyosaki Still Eyeing ETH, Solana Founder Bullish on EF Staff Cuts
- How to Exchange ZEC to BTC: Best Zcash to Bitcoin Exchanges 2026
- How to Take Part in Wadoozie’s Live 48-State Tour to Win WADZ Rewards
Federal prosecutors charged former Robinhood Crypto engineers Hefu Chai, 36, and Huaisong “Jerry” Xiang, 30, with one count of commodities fraud and one count of wire fraud each, alleging they used confidential information about upcoming Robinhood token listings to trade related perpetual futures on Hyperliquid before those listings went public.
Each defendant allegedly profited more than $50,000 between 2025 and 2026, according to the U.S. Attorney’s Office for the Southern District of New York.
The case matters beyond the dollar figures because it extends crypto insider-trading enforcement to decentralized derivatives markets, not just spot exchanges.
Prosecutors are applying commodities fraud and wire fraud theories to trading on a venue with no central listing desk or traditional KYC gatekeeper, signaling that jurisdiction over misappropriated information does not stop at a platform’s front door.
Supercharge Your Trading in 2026 With BloFin AI Trading Bots
How Did the Robinhood Engineers Use Hyperliquid to Conduct Insider Trading?
On September 15, 2026, the U.S. Attorney’s Office for the Southern District of New York announced charges against Chai from Menlo Park, California, and Xiang from Jersey City, New Jersey.
Both engineers at Robinhood allegedly accessed nonpublic information about upcoming cryptocurrency listings and profited by buying perpetual futures on Hyperliquid before public announcements.
The DOJ claims this violated their confidentiality obligations for personal gain. U.S. Attorney Jamie McDonald emphasized that corporate insiders cannot evade laws by trading derivatives.
The commodities fraud charge carries a maximum of 10 years, while the wire fraud charge could result in up to 20 years in prison if convicted. Robinhood said it is committed to market integrity and reported the matter to authorities, cooperating fully with the investigation.
Earn $50 and Enter $300K Prize Draw on EdgeX
Why Perps and the Legal Theory Matter in the Insider Trading Case
Perpetual futures let traders take leveraged bets on an asset’s price without holding the token, and they never expire as long as funding payments keep them aligned with the spot price.
This makes them ideal for front-running listing announcements, since there’s no need to
The DOJ is pursuing this case under the Commodity Exchange Act and wire fraud statutes instead of securities fraud, allowing it to address derivatives trading on decentralized platforms without debating the status of underlying tokens.
This approach differs from the earlier Coinbase case involving Ishan Wahi, who was charged for sharing confidential token-listing information.
Hyperliquid, a major decentralized platform for perpetual futures, is already under regulatory scrutiny, and this case adds a criminal dimension.
The takeaway for traders is clear: pre-listing perp flow on decentralized venues now falls within the DOJ’s focus, and insiders trading through derivatives may face risks similar to those trading spot tokens directly.
The charges against Chai and Xiang are allegations only, and both defendants are presumed innocent unless proven guilty. No trial date or plea has been reported.
Discover: The Best Token Presales
- XRP Price Prediction: What If the CLARITY Act Passes on Tuesday?
- Mark Zuckerberg Meta AI Predicts an Explosive End to 2026 for Bitcoin
- CLARITY Act Odds Slashed to 60-Vote Senate Test Comes Into View
- Revolut Customer Records Exposed: Attackers Demand 10,000 BTC
- Bitcoin Price Signal Upside as Rally Meets Fed Risk
Crypto Regulation News
White House Agrees to Major Crypto Ethics rules in a last-minute push to save the CLARITY Act
2026-09-14 12:50:53
,
by Ahmed Barakat
Altcoin News
XRP News: Deeper Liquidity Leaves Traders Waiting for Conviction
2026-09-15 18:13:00
,
by Ahmed Barakat
Price Analysis
Bitcoin Price Prediction: BTC Hits $80K, Then Falls as Clarity Act Hopes Fade
2026-09-15 08:51:41
,
by Ahmed Barakat
Best Crypto to Buy Now in September 2026 – Top Crypto to Invest In
2026-09-10 07:43:47
,
by Alan Draper
New Cryptocurrencies to Invest in Today – Top New Crypto Coins
2026-09-02 11:42:29
,
by Ines S. Tavares
8 Best Crypto Presales in September 2026
2026-09-04 10:15:39
,
by Alan Draper
Early Access to 6 New & Upcoming Coinbase Listings in September 2026
2026-09-10 09:28:44
,
by Ilija Rankovic
10 New & Upcoming Binance Listings in 2026
2026-06-01 10:46:56
,
by Ilija Rankovic
Next Crypto to Explode in 2026 – Our Top Picks
2026-09-04 15:03:38
,
by Ilija Rankovic
Bitcoin (BTC) Price Prediction 2026, 2027 – 2030
2026-09-16 07:30:00
,
by Leon Waters
XRP (XRP) Price Prediction 2026, 2027 – 2030
2026-09-16 07:30:00
,
by Ihssan El Medkouri
Ethereum Price Prediction 2026, 2027 – 2030
2026-09-16 07:30:00
,
by Leon Waters
Source: cryptonews.com