Svmuu News: Xunlei Inc. (Nasdaq: XNET) has filed a lawsuit against its former CEO Chen Lei and his core team, accusing them of harming the company’s interests and seeking damages of up to 200 million yuan. The case has been accepted by a relevant court in Shenzhen. According to sources familiar with the matter, Chen Lei joined Xunlei as CTO in 2014 and was promoted to CEO in 2017. In 2020, Xunlei removed him from his position on suspicion of embezzlement. Subsequently, the Shenzhen Public Security Bureau launched an investigation into Chen Lei and others on suspicion of embezzlement. To evade the investigation, Chen Lei and former Xunlei Senior Vice President Dong Que have left the country. It is reported that Chen Lei, through Xunlei’s former Senior Vice President Dong Que, recruited a group of Dong Que’s fellow villagers and close friends from Hegang, Heilongjiang, and placed them in key positions within the company. Through illegal means such as fabricating transaction processes and forging contracts, they embezzled company funds, involving a massive amount of money. The new management has already carried out a cleanup and restructuring of Xunlei’s relevant operations and personnel. Chen Lei is also suspected of embezzling tens of millions of yuan in company funds to engage in illegal cryptocurrency speculation, which is expressly prohibited by the state. To evade investigation, Chen Lei left the country in early April 2020. (The Paper)