According to Caixin, Wu Jian, an executive at Two Sigma who once showed an annual income of $23.5 million on Xiaohongshu, is facing dual prosecution by the SEC and the Department of Justice in the United States for alleged telecommunications fraud, securities fraud, and money laundering, with a maximum sentence of 20 years for each charge. Prosecutors claim that there may be vulnerabilities in Two Sigma's internal controls. Two Sigma is active in the encryption field and has previously invested in platforms such as Crossover Markets and C3. Its venture capital department also raised $400 million for two new funds this week, focusing on early-stage projects in encryption, Decentralized Finance, and fintech.