The stock of Xunlei Ltd. (Nasdaq: XNET) tumbled 7.87% to $3.16 per American depositary share by Thursday after announcing its former CEO Lei Chen faces an investigation allegeging his involvement in the crime of embezzlement.
The Shenzhen-based cloud computing and blockchain company said in its official Wechat account today that the company filed a complaint with the Shenzhen Public Security Bureau in April 2020. The Bureau filed this case recently, Xunlei added.
(Source: Xunlei’s Offical Wechat Account)
Xunlei asked Chen to return to China as soon as possible face the investigation. Chen served as the first CTO of Xunlei in November 2014, and concurrently as the CEO of Xunlei's subsidiary One Thing Tech Corp. Chen announced as the CEO and director of Xunlei in 2017.