{"id":34342,"date":"2020-04-10T16:09:59","date_gmt":"2020-04-10T16:09:59","guid":{"rendered":"https:\/\/packetstormsecurity.com\/news\/view\/31111\/SEC-Settles-With-Two-Suspects-In-EDGAR-Hacking-Case.html"},"modified":"2020-04-10T16:09:59","modified_gmt":"2020-04-10T16:09:59","slug":"sec-settles-with-two-suspects-in-edgar-hacking-case","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/sec-settles-with-two-suspects-in-edgar-hacking-case\/","title":{"rendered":"SEC Settles With Two Suspects In EDGAR Hacking Case"},"content":{"rendered":"

\"bn-fd6851022sej20141022173346.jpg\"<\/span><\/p>\n

Securities and Exchange Commission.<\/span><\/p>\n

(Image: WSJ\/Twitter)<\/span> <\/p>\n

The US Securities Exchange Commission has settled charges today with two of the nine people it suspects have been involved in hacking its EDGAR database in 2016.<\/p>\n

David Kwon and Igor Sabodakha agreed to pay fines and restitution, the SEC said in a press release<\/a>. The two were two traders that benefited from insider trading after receiving data hacked from the SEC’s EDGAR server.<\/p>\n

EDGAR, or the Electronic Data Gathering, Analysis, and Retrieval, is an SEC system where companies submit official company filings, future announcements, and past financial records.<\/p>\n

The SEC claims that in February 2016, a Ukrainian hacker named Oleksandr Ieremenko breached a test EDGAR server operated by the SEC.<\/p>\n

The SEC said it used the test server to let companies verify file uploads before submitting the data to the actual EDGAR database. While some companies used non-sensitive files to test the SEC filing system, some uploaded final versions of their files, or documents containing sensitive information.<\/p>\n

In a criminal complaint [PDF<\/a>] filed last year, the SEC said that Ieremenko took files from this test server and shared the data with eight co-conspirators, who then made market transactions in the short interval before the stolen files became broadly available.<\/p>\n

The US securities regulator said it believes that Ieremenko’s eight trading partners acted on 157 files stolen from hacked EDGAR server and made over $4.1 million in illegal profits.<\/p>\n

\"SEC<\/span>

\"SEC<\/span><\/p>\n

<\/noscript> Image: SEC<\/span><\/p>\n

\n<\/section>\n

The SEC discovered the hack in May 2017, secured the server in March 2017, disclosed the incident in September 2017, and filed a complaint in January 2019<\/a>.<\/p>\n

Yesterday, Kwon, of California, and Sabodakha, of Ukraine, agreed to a settlement for their role in the scheme.<\/p>\n

Kwon agreed to pay $165,474 in disgorgement, representing the profits from his illegal trades, and $16,254 in prejudgment interest.<\/p>\n

On the other hand, Sabodakha agreed to disgorge $148,804 in profits from his illegal trades, including trades he conducted in the account of his wife, Victoria Vorochek, with prejudgment interest of $20,945. Sabodakha also agreed to pay a civil penalty of $148,804.<\/p>\n

The SEC also moved to dismiss the charges it filed against Sabodakha’s wife, Vorochek, as part of the plea agreement.<\/p>\n

Ieremenko was also previously involved in hacking three press release newswire services<\/a> between February 2010 and November 2014, from where he similarly stole unreleased announcements, and shared it with co-conspirators who then engaged in insider trading, making more than $100 million in profits.<\/p>\n

The hacker, Ieremnko, and Artem Radchenko, believed to be the mastermind behind both schemes (the EDGAR hack and the newswire hacks), are still at large.<\/p>\n

Both are believed to be located in Russia, according to a post-mortem of the newswire hacks published by Ukrainian journalist Isobel Koshiw in The Verge<\/a>.<\/p>\n

READ MORE HERE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

READ MORE HERE…<\/p>\n","protected":false},"author":2,"featured_media":34343,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[60],"tags":[8575],"class_list":["post-34342","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-packet-storm","tag-headlinehackergovernmentusadata-loss"],"yoast_head":"\nSEC Settles With Two Suspects In EDGAR Hacking Case 2026 | ThreatsHub Cybersecurity News<\/title>\n<meta name=\"description\" content=\"ThreatsHub Cybersecurity News | ThreatsHub.org | Cloud Security & Cyber Threats Analysis Hub. 100% Free OSINT Threat Intelligent and Cybersecurity News.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.threatshub.org\/blog\/sec-settles-with-two-suspects-in-edgar-hacking-case\/\" 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