Former Huobi Manager Acquitted of All Charges in Hong Kong Court

A High Court jury in Hong Kong has delivered a unanimous verdict of not guilty for Chen Boliang, a former senior manager at Huobi Group, regarding allegations of illicit trading activities. The defendant faced a total of seven charges, including dishonest use of a computer and money laundering, stemming from claims that he operated a private "dark pool" using company resources. Following the ruling on April 24, 2026, the judge acquitted the defendant of all counts and approved an application for the recovery of legal costs.

Details of the Alleged Dark Pool Trading

The prosecution's case centered on allegations that Chen Boliang had bypassed corporate protocols to establish personal trading accounts under the alias "Chen Feng". It was alleged that these accounts were used to conduct unauthorized cryptocurrency transactions, commonly referred to as dark pool trading, which allows for large-scale orders to be executed away from public exchange order books. Specifically, the authorities investigated the transfer of 4.999 million Tether (USDT), valued at approximately HK$39.18 million, from these shadow accounts to Chen’s verified personal platform accounts.

• The defendant faced six counts of accessing a computer with criminal or dishonest intent.
• One count of dealing with property known or believed to represent proceeds of an indictable offense (money laundering).
• The period under investigation involved high-frequency movements of stablecoins across internal Huobi systems.

Jury Deliberation and Final Verdict

The case was heard before a jury composed of four men and three women in the High Court. After evaluating the evidence presented regarding the technical operation of blockchain transfers and the internal permissions of Huobi’s trading infrastructure, the jury found the prosecution's arguments insufficient to prove criminal intent. Dark pool trading, while regulated in traditional finance, often presents complex legal challenges in the digital asset sector due to the pseudonymous nature of wallet addresses and differing interpretations of platform Terms of Service.

The acquittal marks a significant legal conclusion to a case that has been closely watched by the Web3 and fintech community in Hong Kong. As the city continues to refine its regulatory framework for Virtual Asset Service Providers (VASPs), the outcome highlights the high evidentiary standards required for criminal convictions involving digital asset mismanagement and internal corporate disputes. Following the verdict, the defense successfully petitioned for the reimbursement of legal expenses, further solidifying the court's stance on the lack of criminal liability in this instance.