a former manager with one of the world’s biggest virtual currency exchanges, huobi, is being accused of illicit trading that allegedly made him $five million in earnings.
a document via the monetary instances revealed that chen boliang is being charged with fraud for trades he made in february and march 2020 when he became a senior manager on the trade’s institutional customers branch.
the 34-12 months-old is alleged to have installation a huobi retail account in his father’s name and gave it a $20 million credit score line from the alternate, the use of his senior repute to approve the procedure. he then went on to alternate in opposition to a huobi company account which he also managed, walking away with $5 million in profits from the venture.
chen changed into arrested two months later, in may 2020, although that is the first time the case has been reported. he become charged with six counts of gaining access to huobi’s computer structures with criminal purpose and one matter of handling the proceeds of crime inside the $five million really worth of usdt he made. his case is set for a preliminary inquiry earlier than a magistrate next week, in which it will be decided if there may be sufficient evidence for the case to go to trial.
as of now, chen is currently out on a $25,000 bail.
“mr boliang chen’s employment with huobi worldwide became terminated in may 2020. we have no similarly comments touching on the charges in opposition to mr boliang chen and accept as true with inside the administration of justice by using the hk special administrative vicinity,” huobi said in a statement to toes.
the change has remained tightlipped on how it found chen’s alleged crimes, although public facts show that it suggested chen to the hong kong authorities in april 2020.
the virtual asset industry isn’t any stranger to this crime. earlier this month, the u.s. department of justice charged a former worker at the nft marketplace opensea with cord fraud and money laundering for insider trading-associated crimes. the sec has also reportedly launched a probe into insider trading at a primary american exchange.
watch: the bsv worldwide blockchain convention panel, law & order: regulatory compliance for blockchain & digital belongings