Hefu Chai and Huaisong (Jerry) Xiang
Last changed 2026-10-10 · Score recalculated — Rescored under Scoring v2, the published formula (avoid.net/scoring): 5 → 26. Problems weighed by who is responsible: the subject's own conduct −103, problems around the subject, caused by others −2.4; legitimacy credit long-running +10; no established finding that it defrauded anyone, so it stays out of the red band. Version history →
Why this score
| Every page starts at | 65 |
| The subject's own conduct | -103 |
| Problems around it, caused by others | -2.4 |
| Long-running | +10 |
| Sum | -30 |
- No established finding that it defrauded anyone, so it stays out of the red band (26 or above).
Score: 26/100 (kept between 0 and 100)
How scoring works →Summary
Hefu Chai, 36, and Huaisong 'Jerry' Xiang, 30, are former Robinhood Crypto engineers charged by the U.S. Attorney's Office for the Southern District of New York on September 15, 2026 with one count of commodities fraud and one count of wire fraud each. Prosecutors allege that between March 2025 and February 2026 they used nonpublic Robinhood token-listing information to open perpetual futures positions on the decentralized exchange Hyperliquid ahead of listing announcements, each allegedly profiting more than $50,000. The case is widely described as the first criminal prosecution applying commodities fraud law to front-running on a decentralized derivatives venue; the charges are allegations and no conviction or plea has been entered.
Connected Entities
6 entities · 60 linked investigations- Hefu Chai & Huaisong Xiang→mentioned with→Synthetix(60%)
- Hefu Chai & Huaisong Xiang→mentioned with→Hyperliquid(80%)
- Hefu Chai & Huaisong Xiang→mentioned with→Coinbase(70%)
- Robinhood Crypto→mentioned with→Coinbase(70%)
- Hefu Chai & Huaisong Xiang→mentioned with→Robinhood Crypto(80%)
Connected Through
4 shared actors · 273 investigationsDistinct actors this investigation shares with others — holders, traders, and named parties. Shared infrastructure (exchanges, pools) is excluded.
- ♦Coinbasetoken
- □Hyperliquidorganization
- □Synthetixorganization
- □Robinhood Cryptoorganizationalso in
1 submission awaiting moderator review.
Timeline(12 events)
2021
Hefu Chai reportedly joins Robinhood as a technical lead for digital asset listings (approximate).
The Almanac2024
Huaisong 'Jerry' Xiang reportedly joins Robinhood as a software engineer on the crypto team (approximate).
The Currency AnalyticsMarch 2025
Alleged scheme begins; Xiang allegedly places the first trade, a long Popcat (POPCAT) perpetual position on Hyperliquid, ahead of a Robinhood listing announcement.
DOJ SDNY Press ReleaseJanuary 2026
A wallet later flagged by Kaiko opens a long Lighter (LIT) position on Hyperliquid about an hour before Robinhood's LIT listing announcement; any link to the defendants is unconfirmed.
CoinTelegraph / KaikoFebruary 2026
Alleged trading scheme ends, per the DOJ's March 2025 to February 2026 window.
DOJ SDNY Press ReleaseApril 2026
A wallet opens a short HOOD perpetual position on Hyperliquid hours before Robinhood's Q1 2026 earnings; HOOD then falls 11.3%. Separate alleged incident; no related charges announced.
ProtosMay 2026
Kaiko publishes analysis flagging possible front-running on Hyperliquid ahead of multiple Robinhood listing announcements.
Invezz / KaikoMay 2026
CME Group and Intercontinental Exchange reportedly urge the CFTC and lawmakers to scrutinise Hyperliquid over manipulation and sanctions-evasion risks.
CoinDeskJune 2026
Hefu Chai reportedly begins employment at OpenAI, according to a LinkedIn profile attributed to him.
The AlmanacSeptember 2026
SDNY announces charges against Chai and Xiang for commodities fraud and wire fraud; the same day the U.S. Senate fails to advance the Digital Asset Market Clarity Act.
DOJ SDNY Press ReleaseSeptember 2026
FBI arrests Chai in Menlo Park; both defendants are scheduled for arraignment (Chai in the Northern District of California, Xiang in SDNY). HOOD stock falls about 5%.
Palo Alto Online; ForbesDecision Log
- slot 455361442 · hash 9tQMT1hVdFdXRwtjK3th7swr72CZkt1ARcSG7pGiyTsR
- slot 449118355 · hash 3EpTYhHET8paGPtiz6KP67agyAEkJKyAwhw7dcuGSw8c
This investigation is cryptographically anchored to the Solana blockchain (2 decisions). 24 of 25 cited source URLs have an Internet Archive snapshot.
model: claude-code-merge-writer
generated: 9/21/2026, 5:09:07 PM
last updated: 10/10/2026, 6:42:05 PM
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