Two traders accused of profiting from SEC hack settle charges

Two financial traders accused of using nonpublic information to enrich themselves have settled with the U.S. Securities and Exchange Commission more than a year after the allegations were made public. The SEC announced Thursday its settled charges against David Kwon and Igor Sabodakha in connection with a wider scheme to hack an SEC database, then use stolen data to inform financial trades. The breach at the SEC, and the insider trades that followed, illuminated to much of the public how cybercrime had emerged a new way to boost traditional forms of global financial crime. Kwon and Sabodakha were charged last year alongside seven others for allegedly infiltrating the EDGAR database, where public companies upload financial disclosure forms and future announcements for shareholders. The SEC alleges the hack was carried out by two Ukrainians, Oleksandr Ieremenko and Artem Radchenko, who then passed tips to different groups of traders. With early access […]

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