Robinhood engineers face up to 30 years in prison for alleged Hyperliquid insider trading

Two Robinhood engineers, Hefu Chai and Huaisong “Jerry” Xiang, have been charged with commodities and wire fraud for allegedly using confidential token-listing information to trade perpetual futures on Hyperliquid. Prosecutors state the pair accessed private Slack channels regarding upcoming listings at Robinhood Crypto to earn over $50,000 each. The charges highlight the application of insider-trading enforcement to decentralized derivatives platforms. Both individuals face potential sentences of up to 30 years, with prosecutors emphasizing that corporate insiders cannot bypass laws by trading on misappropriated information.