In a significant legal development, Chinese technology firm Xunlei has initiated a lawsuit against its former CEO, Chen Lei, and his core team, claiming damages of up to RMB 200 million. This action marks a continuation of the company's efforts to address alleged financial misconduct that dates back to Lei's dismissal in 2020. The analytical report published in the material substantiates the following: the company's financial stability is at risk due to these ongoing legal issues.
Allegations of Embezzlement
The lawsuit alleges that Chen Lei engaged in embezzlement through various schemes, including the establishment of an off-balance-sheet company to facilitate fraudulent asset transfers. Xunlei's claims highlight a complex web of financial irregularities that reportedly involved a network of associates, further complicating the legal proceedings.
Background of the Legal Action
This legal action comes nearly six years after Xunlei first reported Lei to the authorities following his termination. The ongoing investigation has been hampered by Lei's departure from China, raising questions about the potential for prosecution and the recovery of the alleged embezzled funds.
In a notable contrast to Xunlei's ongoing legal battles, Chen Zhi, the leader of a cross-border gambling syndicate, was extradited to China from Cambodia. This significant move underscores the government's commitment to combating organized crime. For more details, see read more.
