Nine charged in $100m insider trading case tied to Ukraine hackers
It was a symbiotic relationship that brought together the underbelly of Wall Street and the dark reaches of the online world.
From their suburban homes in the United States, dozens of rogue stock traders would send overseas hackers a shopping list of corporate news releases they wanted to get a sneak peek at before they were made public. The hackers, working from Ukraine, would then deliver how-to videos by email with instructions for gaining access to the pilfered earnings releases.
In all, 32 traders and hackers reaped more than $100 million in illegal proceeds in a sophisticated and brazen scheme that is the biggest to marry the wizardry of computer hacking to old-fashioned insider trading, according to court filings made public on Tuesday. One of the men, Vitaly Korchevsky, a hedge fund manager and former Morgan Stanley employee living in a Philadelphia suburb, made $17 million in illegal profits, the indictment said.