Thunder sues former CEO Chen Lei, alleging misappropriation of company funds for illegal cryptocurrency trading

Odaily News Thunder Group (Nasdaq: XNET) has filed a lawsuit against its former CEO Chen Lei and his core team, accusing them of harming the company's interests and seeking damages of up to 200 million yuan. The case has been accepted and filed by relevant courts in Shenzhen.

Informed sources indicate that Chen Lei joined Thunder as CTO in 2014, was promoted to CEO in 2017, and was dismissed by Thunder in 2020 on suspicion of duty encroachment. Subsequently, the Shenzhen Public Security Bureau initiated an investigation into Chen Lei and others suspected of duty encroachment. To evade the investigation, Chen Lei and former Thunder Senior Vice President Dong Xue have already left the country.

It is reported that Chen Lei, through former Thunder Senior Vice President Dong Xue, recruited a group of Dong Xue's fellow townspeople and close friends from Hegang, Heilongjiang, placing them in key company positions. Through illegal means such as fabricating transaction links and creating false contracts, they siphoned off substantial company funds. The new management has already cleaned up and adjusted Thunder's related business and personnel. Chen Lei is also suspected of misappropriating tens of millions of company funds for illegal cryptocurrency trading, which is explicitly prohibited by national regulations. To evade investigation, Chen Lei left the country in early April 2020. (The Paper)