Xunlei(US:XNET) Zhong Jin Zai Xian·2026-01-15 04:03Core Viewpoint - The lawsuit filed by Xunlei against former CEO Chen Lei highlights issues of asset misappropriation and corporate governance within the company, stemming from a power struggle that began six years ago [1][2]. Group 1: Background of the Case - Chen Lei joined Xunlei in 2014 as CTO and was promoted to CEO in 2017, but by 2020, he was accused of asset misappropriation and fled overseas to evade legal consequences [1][2]. - Under Chen's leadership, Xunlei's subsidiary, Wangxin Technology, launched several products but faced continuous financial losses, with a reported revenue decline of 21.9% in 2019, totaling $181 million, and a net loss of $53.4 million [2]. Group 2: Mechanisms of Misappropriation - Chen Lei established a company named "Xingronghe" in 2018, which became a vehicle for asset misappropriation by facilitating transactions that transferred funds from Wangxin to Xingronghe [3][5]. - Chen allegedly arranged for Wangxin to pay approximately $200 million to Xingronghe through inflated transactions, with significant funds being transferred just days before his dismissal [3][5]. Group 3: Corporate Governance and Anti-Corruption Measures - The case underscores the challenges of corporate governance and the need for robust anti-corruption measures, particularly in high-level management, where individuals may exploit their knowledge of internal operations [6][7]. - Xunlei's lawsuit against Chen Lei is seen as a critical step towards restructuring governance and compliance, aiming to deter internal fraud and enhance transparency within the organization [7].