United States Charges Five in Insider Trading Operation

The United States Department of Justice charged five Russian nationals with hacking SEC Filling Agencies, stealing data, and sharing said data with partners for insider information on stock trades. One (1) of the five (5) individuals is a former officer of Russia’s GRU military intelligence agency and is believed to have significant ties to APT28 (also known as Fancy Bear). Additionally, this same individual was charged with interfering with the 2016 United States Presidential Election in addition to hacking and leaking sensitive data from the World Anti-Doping Agency. These suspects utilized a front company, M13, to mask their movements while supposedly providing generic IT services, penetration testing, and Advanced Persistent Threat (APT) emulation services. During the attacks carried out by the accused, documentation was stolen from several hundreds of companies listed in the United States NASDAQ and NYSE including Tesla, Nevro Corp, Nanometrics, The Nielsen Company, SS&C Technologies, Capstead Mortage, Kohl’s, and many more. Upon the delivery of any insider information to investors of M13, the suspects would request 60% of all profits that an insider would obtain. Furthermore, in total it is believed that this operation profited tens of millions of dollars. CTIX is continuing to monitor for any additional developments in the case against these five (5) individuals and will provide updates when more information is released.