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Wednesday, August 12, 2015

US SEC Charges 32 Defendants in Hacking Probe

Yesterday the Securities and Exchange Commission announced fraud charges against 32 defendants for taking part in a scheme to profit from stolen nonpublic information about corporate earnings announcements.  Those charged include two Ukrainian men who allegedly hacked into newswire services to obtain the information and 30 other defendants in and outside the U.S. who allegedly traded on it, generating more than $100 million in illegal profits.  
 
The SEC’s complaint unsealed today was filed under seal on August 10 in U.S. District Court in Newark, N.J., and the court entered an asset freeze and other preliminary relief that day. Is this lawsuit valid and what will be the outcome? Send your comments to the Cloud and Cyber Security Center.

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