Bitcoin exchange Huobi has filed a civil lawsuit against former top executive Chen Boliang, according to the Financial Times (FT).

According to the publication, his responsibilities included the company’s corporate clients in Hong Kong. Boliang allegedly opened a retail trading account in his father’s name and secured a $20 million loan from the exchange. After that, the former employee used an institutional account to trade against him and earned around $5 million in 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 a crime.”

A spokesperson for the exchange told the FT that Boliang has not been with 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, leading NFT marketplace OpenSea terminated its employment relationship with an unnamed employee involved in the fraud. This moment coincided with the departure of the platform’s product manager, Nate Chastain, from his company. Previously, he was suspected of using data on the placement of tokens on the homepage for his own benefit.

In June 2022, authorities charged Chastain with fraud and money laundering in a marketplace insider trading scheme. He could face up to 40 years in prison.

Recall that The Wall Street Journal wrote in the spring about a group of investors making substantial profits thanks to insider information about upcoming listings on Binance, Coinbase, and FTX.

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