Huobi Exchange Accuses Former Manager of Misappropriating $5 Million

Posted 22 June, 2022

Crypto platform Huobi has accused former company manager Chen Bolyang of approving a credit line for his fake account, earning $5 million from it. The exchange has filed a civil lawsuit in Hong Kong court against the dishonest employee, according to a report by the Financial Times.

Chen Bolyang, who worked with the company's institutional clients in Hong Kong, is accused of opening a trading account in his father's name and approving a $20 million line of credit. Illegally using this and another corporate account, an employee who was fired in 2020 earned about $5 million in USDC stable coin.

The fraud allegedly took place in February and March 2020. According to the publication, Bolyang has already been accused earlier of illegal actions regarding the crypto exchange. He was arrested in May 2020 for "accessing Huobi's computer systems with criminal or dishonest intent and using the proceeds of crime." He is currently out on $25,000 bail.

In early June, a former employee of the OpenSea NFT marketplace was charged with insider trading in non-fungible tokens. Nathaniel Chastain used confidential information to secretly acquire dozens of NFTs and resell them for a profit of 2-5 times the original purchase price. The defendant used anonymous crypto wallets and anonymous accounts.

 

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