An alleged insider trading case involving two former Robinhood engineers has put a spotlight on a problem many compliance teams have yet to solve: employees are increasingly trading in places that traditional brokerage feeds cannot see.

According to StarCompliance, on 15 September 2026, federal prosecutors charged Hefu Chai and Huaisong “Jerry” Xiang with commodities fraud and wire fraud, according to an announcement from the US Attorney’s Office for the Southern District of New York.

The pair are accused of using confidential knowledge of upcoming Robinhood Crypto token listings to trade before those listings were made public, with each allegedly making more than $50,000.

For compliance professionals, the most telling detail is not the alleged misconduct itself but the venue where it took place.

Prosecutors say both engineers had access to non-public listing information and were barred from trading the relevant tokens around announcement windows. Rather than buying the tokens outright, however, they allegedly traded perpetual futures on Hyperliquid, a decentralised derivatives exchange.

Perpetual futures let traders bet on an asset’s price movements without holding the asset itself, a distinction that can place activity outside the scope of conventional monitoring.

Most personal account dealing programmes are built on employee disclosures, brokerage feeds, pre-clearance and restricted lists. Yet staff activity can now span decentralised exchanges, crypto derivatives, prediction markets and numerous wallets. A policy may well forbid such trading, but the more pressing issue is whether a firm has any real ability to detect it.

Regulators are clearly widening their focus.

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