Security News > 2023 > February > Russian hacker convicted of $90 million hack-to-trade charges

Russian national Vladislav Klyushin was found guilty of participating in a global scheme that involved hacking into U.S. computer networks to steal confidential earnings reports, which helped the criminals net $90,000,000 in illegal profits.

Klyushin was extradited to the U.S. in December 2021 to face charges of hacking into the systems of two U.S.-based filing agents that American companies used to file earnings reports through the Securities and Exchange Commissions system.

Apart from these services, evidence produced by the FBI shows that Klyushin also ran a hack-to-trade scheme, receiving money from shady investors and using it to trade the securities of companies in the U.S., returning 40% of the profits to the investors.

"Klyushin then traded based on that stolen information in brokerage accounts held in his own name and in the names of others."

According to the indictment, Klyushin and his co-conspirators, Ivan Ermakov and Nikolai Rumiantcev, earned $100 million and subsequently lost close to $10 million, enjoying a return of 900% during a period when the stock market returned roughly 25%. Of that amount, Klyushin is estimated to have netted over $38,000,000, with 60.5% being profits from his personal trading activities and the remaining profit coming from indirect investments made on account of others.

The jury found Klyushin guilty of conspiring to obtain unauthorized access to computers or to commit wire fraud, as well as aiding and abetting wire fraud, unauthorized access to computers, and securities fraud.

News URL

https://www.bleepingcomputer.com/news/security/russian-hacker-convicted-of-90-million-hack-to-trade-charges/