Huobi accuses former employee of illegal trading, according to FT

The cryptocurrency exchange Huobi has filed a civil suit against former senior manager Chen Boliang, according to Financial Times (FT).

According to the publication, his responsibilities included the company’s institutional clients in Hong Kong. Boliang allegedly opened a retail trading account in his father’s name and provided a $20 million credit line from the exchange. After that, the former employee used a corporate account to trade against him and earned about $5 million in the stablecoin USDC.

The trades allegedly took place in February and March 2020. According to the media, Boliang was arrested in May on charges of ‘accessing Huobi’s computer systems with criminal or dishonest intent and use of proceeds from wrongdoing’.

A spokesperson for the exchange told FT that Boliang has not been employed by the company since May 2020.

We have no comment regarding the accusations against Mr. Chen Boliang, and we believe in the administration of justice by the Hong Kong Special Administrative Region, the interlocutor stressed.

In September 2021, the leading NFT marketplace OpenSea разорвал трудовые отношения with an unnamed employee involved in malfeasance. This coincided with the departure of the platform’s Chief Product Officer Nate Chastain. Earlier, he was suspected of using data about token placements on the homepage for his own gain.

In June 2022, authorities accused Chastain of fraud and money laundering in an insider trading scheme on the marketplace. He could face up to 40 years in prison.

Earlier this spring, The Wall Street Journal reported on a group of investors, получивших значительную прибыль thanks to insider information about upcoming listings on Binance, Coinbase and FTX.

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