According to CoinMeta, two engineers (identified as Robinhood and HOOD) are facing criminal charges for allegedly stealing company confidential information and using that information to trade perpetual contracts on Hyperliquid. The U.S. Attorney for the Southern District of New York, Jamie McDonald, stated, "It is illegal to use confidential information for personal trading in the derivatives market." It is alleged that the 36-year-old HeFu Chai and the 30-year-old Huaisong Xiang purchased perpetual contracts related to crypto tokens multiple times before the public announcements on Robinhood between 2025 and 2026, profiting over $50,000 each from these transactions. If convicted, they could face up to 10 years in prison. A spokesperson for Robinhood said that the company places great importance on market integrity and has a zero-tolerance policy for insider trading. They have immediately launched an investigation and reported the matter to law enforcement authorities and regulatory agencies.