Xunlei Sues Former CEO Chen Lei, Alleging Misappropriation of Company Funds for Illegal Cryptocurrency Trading

Odaily reported that Xunlei (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 a relevant court in Shenzhen.

Informed sources stated that Chen Lei joined Xunlei as CTO in 2014, was promoted to CEO in 2017, and was dismissed by Xunlei in 2020 on suspicion of duty encroachment. Subsequently, the Shenzhen Public Security Bureau filed a case to investigate Chen Lei and others suspected of duty encroachment. To evade investigation, Chen Lei and former Xunlei Senior Vice President Dong Xue have left the country.

It is reported that Chen Lei, through former Xunlei Senior Vice President Dong Xue, recruited a group of Dong Xue's fellow townspeople from Hegang, Heilongjiang, and close friends, placing them in key company positions. Through illegal means such as fabricating transaction links and creating false contracts, they embezzled company funds involving a huge amount. The new management has already cleaned up and adjusted Xunlei'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 the state. To evade investigation, Chen Lei left the country in early April 2020. (The Paper)