United States SEC captures Russians involved in trading insider information


TL; DR Breakdown

  • United States SEC arrests suspects about insider information trading
  • The regulator said the suspects hacked two companies to gain private details
  • SEC enforcement boss urges companies to increase their securities

The activities of hackers and scammers in the crypto sector are actions that would continue despite regulatory oversight. However, regulators are doing all they can to eliminate these actors and their daily activities. In another win for the regulators, the United States SEC has announced that it has arrested five Russian individuals associated with hack attacks on two private companies. During the attack, the suspects carted away various trade secrets.

United States SEC said the suspects hacked two companies to gain inside information

In the United States SEC report, the individuals were all involved in the malicious act as they breached the database of two regulatory companies in the United States. With this, they could access various key information that would trigger the movement of trades, thus causing them to make massive profits with them.

During its briefing, the United States SEC mentioned that the hacker in the group, Ivan Yermakov, was in charge of hacking and releasing the secrets to other group members. The members were said to have carried out perfect brokerage trades from their bases across Europe and the United Kingdom using these secrets. The United States SEC report also mentioned that the suspects could float more than 20 accounts to conduct their activities at intervals. This activity fetched them about $82 million in profits.

SEC boss urges companies to increase the security on their platform

Going further in its report, the United States SEC mentioned that the suspects used a company owned by Russians in the country to funnel their profits before they were shared. The regulator has now charged the five Russians with offenses bordering on violating various trading codes and hacking.

With this, the regulator is now petitioning the court to deliver judgment on the suspects. Giving his review on the actions surrounding the apprehension of the suspects, Gurbir Grewal, a high member in the enforcement team of the SEC, mentioned that the body used some special tools at its disposal to oust the members and arrest them.

However, the United States SEC has also mentioned that one of the gang members will be extradited from Switzerland in the coming days. Grewal mentioned that even though the United States SEC is working actively to apprehend individuals like this, companies should ensure that they have a very strong firewall against these perpetrators of evil. By doing this, their information would be safe, and these malicious elements will not compromise trading to make profits.

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Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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