Archive for the ‘SEC’ Category

Nine defendants charged in SEC hacking scheme that netted $4.1 million

January 15th, 2019
Nine defendants charged in SEC hacking scheme that netted $4.1 million

Enlarge (credit: Brendan Smialowski / Getty Images)

Federal authorities have charged nine defendants with participating in a scheme to hack a Securities and Exchange Commission database to steal confidential information that netted $4.1 million in illegal stock trade profits.

Two of the defendants, federal prosecutors in New Jersey said, breached SEC networks starting in May 2016 by subjecting them to hacks that included directory traversal, phishing attacks, and infecting computers with malware. From there, the defendants allegedly accessed EDGAR (the SEC’s Electronic Data Gathering, Analysis, and Retrieval system) and stole nonpublic earnings reports that publicly traded companies had filed with the commission. The hackers then passed the confidential information to individuals who used it to trade in the narrow window between when the files were stolen and when the companies released the information to the public.

“Defendants’ scheme reaped over $4.1 million in gross ill-gotten gains from trading based on nonpublic EDGAR filings,” SEC officials charged in a civil complaint. It named Ukrainian nationalist Oleksandr Ieremenko as a hacker, along with six individual traders in California, Ukraine, and Russia, and it also named two entities. A criminal complaint filed by federal prosecutors in New Jersey charged Ieremenko and a separate Ukrainian named Artem Radchenko with carrying out the hack.

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Posted in Biz & IT, edgar, hacking, SEC, Securities and Exchange Commission | Comments (0)

SEC fines two celebrities for undisclosed cryptocurrency shilling

November 29th, 2018
Floyd Mayweather Jr. in 2014.

Enlarge / Floyd Mayweather Jr. in 2014. (credit: Ethan Miller/Getty Images)

One of the strangest episodes in last year's insane cryptocurrency boom was when boxer Floyd Mayweather posted an Instagram endorsement for a little-known cryptocurrency called Centra. In April, Centra's founders were indicted for fraud, with the SEC saying many of their claims were "simply false."

In the summer of 2017, Mayweather wrote in an Instagram post that he was "spending bitcoins and ethereum and other types of cryptocurrency in Beverly Hills with my Titanium Centra Card." He urged his millions of followers to "join Centra's ICO on Sept. 19th."

Another Mayweather post promoting a different cryptocurrency said "You can call me Floyd Crypto Mayweather from now on."

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Posted in Centra, cryptocurrency, Floyd Mayweather, Policy, SEC | Comments (0)