Former CEO Xunlei, Tian Lei, sued in court for embezzling large sums of funds

MevTears · 2026-01-28T02:06:08+00:00

Shunlei(XNET) has filed a lawsuit against former CEO Qianlei and the management team, claiming a total of 200 million yuan in damages for asset misappropriation and fraud, and has initiated legal action. Qianlei is accused of misappropriating company funds through cryptocurrency transactions and is currently on the run abroad. This incident highlights the need to strengthen corporate governance.

MevTears

2026-01-28 02:06:08

Abstract generation in progress

In a recent legal dispute, NASDAQ-listed company Xinlei (XNET) has taken strong legal action against its former management. Xinlei is currently suing former CEO Chen Lei and key executives for misappropriation of company assets, seeking damages of up to 200 million yuan. The case has been officially filed with a court in Shenzhen.

Chen Lei’s Cryptocurrency Trading Allegations

Former CEO Chen Lei is accused of misusing tens of millions of yuan of Xinlei funds for cryptocurrency trading in violation of regulatory bans. At the time, Chinese authorities were strictly regulating cryptocurrency trading, and this conduct is considered a violation of domestic laws. According to court documents, his trading activities were organized and conducted over a long period.

Large-Scale Damages Claim and Legal Response

Xinlei is claiming damages of up to 200 million yuan, reflecting the amount of misappropriated funds and the resulting losses to the company. This case has exposed deeper corporate governance issues, and Xinlei is expected to improve internal oversight and increase transparency as a result.

Overseas Escape and Current Situation

Former CEO Chen Lei left the country in early April 2020 to evade investigation, and his whereabouts have since been unknown. International law enforcement cooperation is needed, and Xinlei’s legal representatives are reportedly pursuing tracking efforts through international judicial assistance. This case highlights the importance of strengthening internal controls and monitoring executives in publicly listed companies.

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