ThunderChain Restarts Lawsuit Against Former CEO Chen Lei, Who Was Involved in Embezzling Millions of Yuan from the Company for Cryptocurrency Speculation

BlockBeats News, January 15th, today Xunlei (Nasdaq: XNET) restarted the lawsuit against former CEO Chen Lei and his core team, accusing them of infringing the company's interests and seeking a maximum amount of 200 million yuan. The case has now been accepted by a relevant court in Shenzhen, Guangdong, China. Xunlei had previously issued an announcement in September 2020, accusing former CEO Chen Lei of embezzling millions of yuan of company funds for cryptocurrency speculation, arranging for relatives to fabricate contracts within the company to embezzle company funds, and Chen Lei had already left the country with his lover in April 2020.

In June 2017, Chen Lei was appointed CEO of Xunlei Group. One month later, Xunlei renamed its product Money Bank to Wanke Cloud and issued the Wanke Coin cryptocurrency. Xunlei changed its cash subsidy model to a model where users would receive cryptocurrency based on the amount of resources they shared. 4 million Money Bank users became Wanke Cloud miners, and the price of Wanke Coin on the trading platform surged from 1 cent to over ten yuan. That year, Xunlei relied on Wanke Cloud's daily turnover of billions to achieve one of the few highlights in Xunlei's history. For more details, see BlockBeats' previous report, "Former CEO Runs Away with Lover, What's Wrong with Xunlei?"