Ex-Headlands trader faces criminal charge for $1B source code theft

A former quantitative trader at Headlands Technologies has been indicted for allegedly walking out the door with source code worth over $1 billion, then using it to build his own trading startup. If convicted, he faces up to 10 years in prison.

Cheuk Fung Richard Ho, 36, was arrested on January 8, 2025, in Los Angeles. He faces one count of theft and attempted theft of trade secrets, brought by the US Attorney’s Office for the Southern District of New York. The case was built by the Complex Frauds and Cybercrime Unit with FBI involvement.

What he allegedly stole, and what he did with it

Headlands Technologies spent years developing proprietary components known internally as “Atoms” and “Alphas.” Atoms are the building blocks of their trading infrastructure, and Alphas are the predictive algorithms that actually make money.

Ho worked at Headlands as a quant developer and trader from 2019 to 2021. In spring 2021, while still employed at Headlands, Ho allegedly began developing his own trading firm called One R Squared, or ORS. The indictment claims he misappropriated critical components of Headlands’ proprietary code to build it.

According to the charges, Ho reprogrammed portions of the stolen code while maintaining its original structure and functionality. ORS subsequently collaborated with Tower Research Capital, a well-known competitor in the quantitative trading space.

The cover-up allegations

Ho allegedly misrepresented his post-employment intentions to Headlands. Prosecutors also claim he directed employees to delete evidence related to his actions.

Headlands had already filed a civil lawsuit against Ho in June 2023, alleging breach of contract and misappropriation of trade secrets. That civil case is still ongoing, meaning Ho is now fighting on two legal fronts simultaneously.

As of late 2025, Ho’s legal team is seeking dismissal of the criminal charges. Prosecutors are contesting that motion.