Insider: former CEO of Xunlei transferred assets, misappropriated funds and illegally speculated in currency

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Original title: insider disclosed details of Xunlei’s former CEO’s suspected job encroachment: transfer of assets to Xinghe, misappropriation of funds and illegal speculation of currency
Author: Yi bailing
On the evening of October 8, Xunlei announced that Chen Lei, the former CEO of Xunlei company, and others had filed a complaint with the Shenzhen Public Security Bureau in April 2020 for suspected job encroachment. Recently, they received a notice from the Shenzhen Public Security Bureau that the Shenzhen Public Security Bureau has filed a case against Chen Lei and other people suspected of job encroachment. Xunlei said it had issued an announcement calling on Chen Lei to return home as soon as possible to cooperate with the investigation.
Xunlei’s shares fell 7.87% to $3.16 at the end of Oct. 8 est.
On the morning of October 9, Xunlei insiders disclosed to the first finance and economics that Chen Lei was suspected of fictitious trading links, embezzling the company’s assets, making false contracts and obtaining company funds, with a huge amount of money involved. Specifically, Chen Lei, through Dong Ying, a former senior vice president, recruited a group of Dong Ying’s fellow villagers and best friends from Hegang, Heilongjiang Province, and placed them in key positions of the company. He obtained the company’s funds by fabricating transaction links and preparing false contracts, involving a large amount of money. At present, the new management has cleaned up and adjusted the relevant business and personnel of Xunlei. Chen Lei is also suspected of misappropriating tens of millions of funds of the company for illegal money speculation, which is prohibited by the state. To evade the investigation, Chen Lei left the country in early April.
The above-mentioned people disclosed that the suspected job occupation mentioned in the Xunlei announcement was the result of the audit conducted by the new management of Xunlei: a Xunlei bandwidth supplier named Xinghe is actually a company controlled by Chen Lei. He has transferred a huge amount of funds to xingronghe through various illegal means, and took deceptive means to try to transfer the core technical personnel of Xunlei company Staff transferred to Xinghe Company.
A former employee of netheart technology, a Xunlei subsidiary, told first finance and economics that netheart had business contacts with Hainan chain Xiangyun and Xinghe before, but it is not known whether it involves the transfer of interests.
Chen Lei has yet to respond, after he said in an interview with the media that the occupation of his position was an unwarranted accusation.
According to public information, Chen Lei officially became the first CTO of Xunlei in November 2014, and began to serve as CEO and co CEO of netheart technology under Xunlei in November 2015. In July 2017, Chen Lei officially served as CEO and director of Xunlei, fully responsible for Xunlei’s download and CDN business.
In early April 2020, Xunlei announced that the company’s board of directors had completed the replacement of old and new directors, and Chen Lei, CEO of Xunlei group, Xunlei, Netease and other affiliated companies, would no longer be the CEO of the company. The new board of directors of Xunlei elected Li Jinbo as the new chairman, replacing Chen Lei as the new CEO of Xunlei group, Xunlei, Netease and other affiliated companies. Chen Lei was ousted as CEO by Xunlei’s board on April 2, the person familiar with the matter said. He refused to hand over the work to the new CEO of Xunlei, and left the country together with Dong Hao, the former senior vice president of Xunlei, in early April.
According to the financial report released by Xunlei company, this year, the net loss of Xunlei in Q2 narrowed to 5.5 million US dollars, half of the net loss of 11.53 million US dollars in Q1.