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Thursday, January 20, 2022

Russian man charged with $82 million hacking, insider trading scheme

BOSTON — one of five Russian nationals who have been accused by authorities of making tens of millions of dollars in illegal profits by trading shares of companies using information stolen during a hack of US computer networks, to respond to the allegations. has been extradited to the US, federal prosecutors in Boston announced Monday.

Vladislav Klyushin, 41, whose surname is sometimes spelled Klyushin, was arrested in Sion, Switzerland, on March 21 and extradited to the US on December 18, said Nathaniel Mendel, the US Attorney for Massachusetts.

“In simple terms, they hacked American networks, stole insider information, and defrauded honest investors out of millions of dollars,” Mendel told a news conference.

There was no defense attorney listed for Clyshine in online court records.

According to the US Securities and Exchange Commission, which filed parallel fraud charges against the defendants on Monday, they earned a total of $82 million through the scheme from 2018 to 2020.

US officials said the other four suspects are still on the run.

Prosecutors said one of them is a former official in the Russian Main Intelligence Directorate, known as the GRU, who was previously indicted in July 2018 for an alleged role in a Russian attempt to interfere in the 2016 US elections. .

Prosecutors said he was also charged in connection with an alleged role in a hacking campaign targeting international anti-doping agencies, sports federations and anti-doping officials.

Prosecutors said the information in the new case was acquired through unauthorized intrusions into the computer networks of two US-based vendors that publicly traded companies use to file filings through the Securities and Exchange Commission.

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According to an FBI affidavit in the case, the defendants accessed earnings-related files from several notable US companies, including Tesla, Snap Inc., Roku, Nielsen and Kohl’s, before the earnings reports were made public.

According to the FBI affidavit, on several occasions hackers accessed computer servers located in Massachusetts.

Prosecutors said that by obtaining the company’s financial information ahead of time, the defendants were able to conduct business using brokerage accounts, sometimes in their own names, on the grounds that the company’s shares would increase after the public disclosure of the information. Or whether there is a possibility of falling or not.

If a company were to report positive financial results, they would buy shares of that company, and if a company were to report poor results, they would sell, according to executives.

Prosecutors said Klyushin and two other defendants worked at M-13, a Moscow-based information technology company that provided services to detect vulnerabilities in computer systems, and counted among its clients, prosecutors said.

Prosecutors said that to access vendor systems, they deployed malicious infrastructure to collect employee usernames and passwords, which they misrepresented as employees to gain access to computer networks. and also used various methods to conceal their activities, prosecutors said.

Prosecutors said Klyushin has been charged with conspiracy to obtain unauthorized access to computers, and wire fraud and securities fraud, and of obtaining unauthorized access to computers, wire fraud and securities fraud.

by Mark Prato

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World Nation News Deskhttps://www.worldnationnews.com
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