A former manager at a major crypto exchange is accused of making illegal trades to bank $5 million in tether, report says

Chen Boliang is being prosecuted in Hong Kong for the alleged trades that were made between February and March of 2020. Boliang reportedly made a retail account in his father’s name and then deposited $20 million of credit into the account. Boliang is accused of making trades with that account, and ultimately pocketing $5 million in gains in the form of the Tether stablecoin.

A civil lawsuit filed by Huobi reveals that Boliang provided the retail account with a $20 million credit line directly from the firm, essentially allowing the trades to be placed on margin with all the risk falling on Huobi.

Boliang was arrested shortly after his firing on the accusation that he used Huobi’s computers with criminal and dishonest intent, according to the report, which cited Hong Kong court records. Boliang ultimately faces seven counts in total.

This isn’t the first time a crypto exchange insider has been charged with illegal trading, as OpenSea’s former head of product Nathan Chastain became the first person to be charged with money laundering and wire fraud tied to NFT insider trading earlier this month.