SEC Settles "Hacked News Release Scheme" with Ukrainian Trader

The SEC entered into a settlement agreement with a Ukrainian-based trader charged with trading on information obtained through hacked news releases. Subject to court approval, the SEC settled charges alleging that the trader made (i) "approximately $3.6 million buying and selling stock on the basis of hacked press releases stolen from two newswire services between 2010 and 2014" and (ii) "additional profits trading on press releases stolen from a third newswire service in 2015."

The trader consented to the entry of a court order enjoining it from violating Securities Exchange Act Section 10(b) and Rule 10b-5, as well as Securities Act Section 17(a). In addition, the court ordered the trader to disgorge $4.2 million. The settlement agreement does not affect SEC continuing litigation against additional defendants charged in the case.