Menu
Traders pay $30m to settle newswire hacking case

Traders pay $30m to settle newswire hacking case

Two defendants settle after a multi-million dollar asset freeze

The Securities and Exchange Commission says two of the 32 parties charged with profiting from information hacked from newswire services have agreed to pay $30 million to settle the changes.

Ukrainian-based Jaspen Capital Partners Limited and its CEO, Andriy Supranonok, were among those accused of generating $100 million in profits over five years using information from 150,000 yet-to-be-published press releases from Marketwired, PR Newswire and Business Wire.

Jaspen Capital Partners and Supranonok are alleged to have made $25 million in the scheme. As part of the settlement, the two defendants neither admitted or denied the SEC's charges.

The SEC alleges that two hackers accessed the documents and sent them to 32 traders around the world.

Companies will often send information to the services and set it to be released at a particular time. Until that time, it's still confidential.

The three newswire services in question are used to transmit a large amount of corporate and financial news, some of it market-moving, so getting access in advance could result in big gains for traders.

In one instance, hackers managed to grab a news release announcing a company was lowering its earning and profit forecasts about 36 minutes before it was due to go public.

Ten minutes later, traders who were involved in the scheme began shorting the company's stock, essentially betting that it would fall. With the advance information on what was about to be announced, it's as close to a sure-thing as exists in the stock market.

The result was a $511,000 profit after the stock fell following public release of the information.

The SEC has called this the largest-ever known case of hacking and securities fraud.

Subscribe here for up-to-date channel news

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Featured

Slideshows

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards

Revealed at a glitzy bash in Sydney at the Ivy Penthouse, the first StorageCraft Partner Awards locally saw the vendor honour its top-performing partners with ASI Solutions, SMBiT Pro, Webroot, ACA Pacific and Soft Solutions New Zealand taking home the top awards. Photos by Maria Stefina.

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards
Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip

Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip

​Synnex and Lenovo hosted 18 resellers for an action-packed weekend adventure in RotoVegas, taking in white water rafting on the Kaituna River, as well as quad biking and dinner at Stratosfare​, overlooking Lake Rotorua at the top of Mount Ngongotaha​. Photos by Synnex.

Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip
Show Comments