The SEC on Tuesday announced fraud charges against 32 defendants who allegedly reaped profits from stolen corporate earnings data ahead of the scheduled release times.
The government agency said in a press release that two Ukrainian man were suspected of hacking into two or more newswire services to attain the nonpublic information. The other 30 people being charged are individuals -- both American and foreign -- who traded off of the figures. In total, the raked in over $100 million, according to the SEC. The criminal activity began five years ago.
"This international scheme is unprecedented in terms of the scope of the hacking, the number of traders, the number of securities traded and profits generated," said Securities and Exchange Commission Chair Mary Jo White.
The U.S. Attorney's Office for the District of New Jersey and the U.S. Attorney's Office for the Eastern District of New York also announced criminal charges against several of the defendant's in the SEC prosecution.
Related Link: New Opportunities In Cybersecurity
The news only underlined the importance of cybersecurity in modern governance and corporate activity. The hack was perhaps the biggest warning flag to date that cyberattacks could pose a direct threat to the American financial sector.
The U.S. government has already partnered extensively with private cybersecurity providers and other businesses to promote high security standards across the board. That initiative will only be reinforced and further incentivized by the recently discovered information theft.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
