Robinhood Engineers Charged Over Alleged Insider Trading Schemes

Robinhood is facing scrutiny over allegations of insider trading after two former engineers were charged by the US Department of Justice. Hefu Chai, 36, and Huaisong Xiang, 30, allegedly used confidential listing information to trade Hyperliquid perpetual futures while working at Robinhood in 2025-2026.

The prosecutors claim that both men had access to non-public information through their engineering roles and used it to buy contracts before Robinhood Crypto announced support for specific tokens. Each allegedly made more than $50,000 from the trades.

Robinhood has cooperated with the investigation and maintains a zero-tolerance policy for insider trading. The company's shares fell on Tuesday alongside several digital asset companies as Bitcoin weakened.