Robinhood Engineers Charged in Alleged Crypto Listing Trading Scheme

Two former Robinhood engineers have been charged with commodities fraud and wire fraud for allegedly using confidential information about upcoming cryptocurrency listings to make profitable trades.

Hefu Chai, 36, and Huaisong 'Jerry' Xiang, 30, each earned more than $50,000 from the scheme between 2025 and 2026 by buying perpetual futures on Hyperliquid before announcements of new token listings.

The traders used nonpublic information about upcoming listings to buy related perpetual futures, allowing them to profit from their insider knowledge without directly owning the assets.

Prosecutors are using the Commodity Exchange Act to pursue alleged insider trading involving derivatives rather than bringing securities fraud charges.