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Huobi accuses the former senior manager of making $5 million through illegal trades
Chen Boliang reportedly set up a Huobi retail account in his father's name and provided him with a $20 million loan. Huobi terminated Chen's employment in May 2020, a spokesperson told Blockworks A former senior executive at popular cryptocurrency exchange Huobi has been accused of raising $5 million in Tether (USDT) by secretly trading against a company account under his control. Chen Boliang, the former employee, is being prosecuted in Hong Kong over alleged trades in February and March 2020, the Financial Times reported on Wednesday. Huobi was founded in China in 2014 but has since expanded to...
Huobi accuses the former senior manager of making $5 million through illegal trades
- Berichten zufolge richtete Chen Boliang im Namen seines Vaters ein Huobi-Einzelhandelskonto ein und stellte ihm einen Kredit in Höhe von 20 Millionen US-Dollar zur Verfügung
- Huobi beendete Chens Anstellung im Mai 2020, sagte ein Sprecher gegenüber Blockworks
A former senior executive at popular cryptocurrency exchange Huobi has been accused of raising $5 million in Tether (USDT) by secretly trading against a company account under his control.
Chen Boliang, the former employee, is being prosecuted in Hong Kong over alleged dealings in February and March 2020 Financial Times reported on Wednesday. Huobi was founded in China in 2014 but has since registered in the Seychelles following crypto crackdowns on the mainland.
Chen's employment with Huobi Global ended in May 2020, a company spokesperson told Blockworks. He was part of Huobi's institutional client division.
“We have no further comment on the charges against Mr. Boliang Chen and believe in the administration of justice by the Hong Kong Special Administrative Region,” they added.
Shortly after his dismissal, Chen was arrested on charges of using Huobi's computer with criminal and dishonest intent and using the illegal proceeds of $5 million in the stablecoin USDT, the FT said, citing Hong Kong court documents. He faces a total of seven charges.
A civil lawsuit reportedly filed by the crypto exchange shows that Chen used his father's name to create a Huobi retail account and provide him with a $20 million line of credit directly from the company.
The lawsuit argues the former employee traded against a Huobi company account that was under his supervision, moves that helped him pocket $5 million.
According to the FT, Chen will face a judge at a preliminary hearing next week. This would determine whether the case contains enough evidence to go to trial. He is currently free on $25,000 bail, the report said, citing an indictment.
It is not clear how Huobi discovered Chen's suspected illegal trades, but the exchange reported him to the police in April 2020. Huobi is currently the world's fourth-largest crypto exchange by trading volume, behind Coinbase, FTX and Binance, having processed more, according to CoinGecko Data.
Authorities have been keeping a close eye on the cryptocurrency sector following its meteoric growth over the past year. Earlier this month, the Justice Department charged OpenSea's former head of product Nathaniel Chastain with wire fraud and money laundering related to NFT insider trading.
A lawyer for Chen did not immediately respond to Blockworks' request for comment.
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The post Huobi accuses former senior manager of making $5 million through illegal trades is not financial advice.