Bitcoin exchange Huobi has filed a civil lawsuit against former senior manager Chen Boliang, according to the Financial Times (FT).
According to the publication, his responsibilities included the company's institutional clients in Hong Kong. Boliang allegedly set up a retail trading account in his father's name and provided a $20 million line of credit from the exchange. After that, the ex-employee used a corporate account to trade against him and earned about $5 million in the USDC stablecoin.
Presumably, the transactions took place in February and March 2020. According to media reports, Boliang was arrested in May on charges of “accessing Huobi's computer systems with criminal or dishonest intent and using the proceeds of wrongdoing.”
An exchange spokesperson told FT that Boliang has not worked for the company since May 2020.
“We have no comment on the allegations against Mr. Chen Boliang, and we believe in the administration of justice by the Hong Kong Special Administrative Region,” the source said.
In September 2021, the leading NFT marketplace OpenSea broke labor relationship with an unnamed employee involved in fraud. This moment coincided with the departure from the company of the director of products of the platform, Nate Chastain. Previously, he was suspected of using data on the placement of tokens on the main page for his own benefit.
In June 2022, the 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.
Recall that in the spring, The Wall Street Journal wrote about a group of investors who received significant profits thanks to insider information about upcoming listings on Binance, Coinbase and FTX.
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