What do you get when you bring a Ukrainian cyber-criminal gang and crooked Wall Street stock traders, together? A $100 million racket of illegal profits due to an insider trading ring.
It was a milestone event for malicious hackers. A unique insider trading ring had American stock market traders and Ukrainian hackers team up to steal (hack) thousands of unpublished corporate press releases, Reuters reports. The result of said trading ring? A staggering $100 million in illegal profits, over five years.
Nine people linked to the insider-trading scheme have been charged by prosecutors. Scalping yet another landmark, the criminal charges are the first of their kind for a securities fraud scheme that is directly related to hacked insider information. Altogether, a lawsuit filed by the U.S. Securities and Exchange Commission bringing civil charges named:
- 9 individuals from New Jersey and New York City
- 17 individuals in Russia, Ukraine, and the US.
- 15 companies in the U.S., Malta, Russia, France and Cyprus.
All of the above are said to have profited from the elaborate insider scheme, according to a report from the Associated Press.