Ukrainian Hacker Pleads Guilty to US Insider Trading Charges

Uploaded on 2016-07-13 in TECHNOLOGY--Hackers, GOVERNMENT-Law Enforcement, FREE TO VIEW, BUSINESS-Services-Financial

A Ukrainian man has pleaded guilty to his role in an insider trading scheme that netted more than $30 million (£20.8 million) in illicit profits.

Vadym Iermolovych, 28, admitted to hacking into newswire agencies and using the unpublished information to gain advantage on the stock market.

Thirty-two people have been charged in connection with the global scheme. Prosecutors said the defendants used 800 stolen news releases to make trades using the insider information.

From 2010 to 2014 the group is accused of hacking the computer networks of Marketwired LP, PR Newswire Association LLC, and Business Wire. They are thought to have gained access to 150,000 press releases that were about to be released. Iermolovych, and other Ukrainian citizens thought to have participated in the hacking, would rapidly pass the stolen information to stock market traders in the US. They would then trade on the unpublished information before that day's market closing.

According to the Department of Justice, the trades would occur in "extremely short windows of time between when the hackers illegally accessed and shared the releases and when the press releases were disseminated to the public by the newswires, usually shortly after the close of the markets".

Iermolovych will be sentenced in August and could face up to 20 years in jail.

« Threat Intelligence Sharing Deals With Cybersecurity

Experts Warn of Malicious Brexit Spam »

CyberSecurity Jobsite

Perimeter 81

Real Attacks. Real Tools. Real Scenarios.
Schedule a demo

Training that transforms behaviours

Sign Up: Cyber Security Intelligence Newsletter

Directory of Suppliers

XYPRO Technology

XYPRO is the market leader in HPE Non-Stop Security, Risk Management and Compliance.

LockLizard

Locklizard provides PDF DRM software that protects PDF documents from unauthorized access and misuse. Share and sell documents securely - prevent document leakage, sharing and piracy.

Resecurity

Resecurity is a cybersecurity company that delivers a unified platform for endpoint protection, risk management, and cyber threat intelligence.

BackupVault

BackupVault is a leading provider of automatic cloud backup and critical data protection against ransomware, insider attacks and hackers for businesses and organisations worldwide.

The PC Support Group

A partnership with The PC Support Group delivers improved productivity, reduced costs and protects your business through exceptional IT, telecoms and cybersecurity services.

Secure Thingz

Secure Thingz focus on developing and delivering advanced security solutions into the emerging Industrial Internet of Things (IIoT) and Critical Infrastructure markets.

OpenSphere

OpenSphere is an IT company providing security consultancy, information system risk management and security management services.

EverC

EverC (formerly EverCompliant) is a leading provider of cyber intelligence that allows acquiring banks and payment service providers (PSP) to manage cyber risk.

Lumen Technologies

Lumen is an enterprise technology platform that enables companies to capitalize on emerging applications and power the 4th Industrial Revolution (4IR).

IUCC Cyber Unit - Israel

IUCC Cyber Unit safeguards Israel’s National Research & Education Network (NREN).

Syskode Technologies

Sykode Technologies is a next-generation global technology company offering an integrated portfolio of advisory services, products and solutions in areas including AI, IoT and Cyber Security.

Ziroh Labs

Ziroh Labs leverages advanced cryptography to keep your highly sensitive, private data safe throughout the lifecycle of data.

Polyrize

The Polyrize continuous authorization platform for SaaS and IaaS stops tomorrow's public cloud cyber threats, today.

DFI

DFI is a global leading provider of high-performance computing technology across multiple embedded industries.

Technology Law Alliance (TLA)

Technology Law Alliance is a specialist IT law firm focussed on the fields of technology, outsourcing and e-commerce.

Hut Six Security

Train, test and track your Information Security culture through information security awareness training and customised phishing simulation campaigns.

Privacyware

Privacyware's ThreatSentry combines a state-of-the-art Web Application Firewall and port-level firewall with advanced behavioral filtering to block unwanted IIS traffic and web application threats.

Quantum eMotion (QeM)

Quantum eMotion is a Montreal-based advanced developer leading the way towards a new generation of quantum-safe encryption for the quantum computing age.

Endure Secure

Endure Secure is a managed cyber security & information security consultancy. Our passion for IS and our understanding of the threat landscape is reflected in the services that we provide.

Agile Defense

Agile Defense is an Information Technology services provider, delivering leading-edge Digital Transformation solutions to the Federal Government.

SydeLabs

At SydeLabs, our mission is to ensure the comprehensive security of your AI systems.