U.S. Targets The Beneficiaries Of 2016, SEC Data Hack

Federal prosecutors charged two men from Ukraine on the data hack which happened in 2016 with the systems of Securities and Exchange Commission’s (SEC). The SEC disclosed the hacking attempt in September 2017, when they thought that the stolen data might be used to make trades.

Both men from Kiev, Ukraine are charged with different indictments containing “securities fraud conspiracy, computer fraud conspiracy, wire fraud conspiracy, and computer fraud”. They stole data related to earnings reports filed by publicly traded companies before their publication date, then used the data to favour the trades throughout six months.

U.S. Attorney Craig Carpenito Said in a DOJ release “The defendants charged in the indictment… engaged in a sophisticated hacking and insider trading scheme to cheat the securities markets and the investing public,” plus “They targeted the Securities and Exchange Commission with a series of sophisticated and relentless cyber-attacks, stealing thousands of confidential EDGAR filings from the Commission’s servers and then trading on the inside information in those filings before it was known to the market, all at the expense of the average investor.”

SEC also charged a more comprehensive group including companies in Hong Kong, individuals in U.S., Russia and South Korea of earning $4.1 million or more as a result of the data hack of reports. Some people are the same ones who benefitted from the hacking of news releases in 2015 and earned about $30 million in profits.

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