Hacker May Get To Keep Insider Trading Windfall -- Because He Obtained Info Illegally

from the say-that-again dept

The NY Times is covering a bizarre anomaly associated with "insider trading laws" in the US that may allowed a guy to keep the nearly $300k he scammed by hacking into computers to learn of earnings info before it was actually released. Apparently, the way US securities laws work, if you legally obtain the insider info, you can't trade on it. However, if you illegally obtain the info, you can trade on it, though you're certainly potentially liable for the illegal actions that allowed you to get the info. In this case, the illegal actions were breaking into this computer. However, rather than being charged with computer fraud, he was charged with insider trading. In other words, he was basically charged with the wrong crime, and that may mean that he gets to keep the $300k and go on his merry way.

Filed Under: hacking, insider trading


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  1. identicon
    Ghost Genius, 19 Feb 2008 @ 9:15am

    Cracker vs Hacker - You are all on Crack.

    So, What year did "Criminal Hacker" become "Cracker"?
    Why do you think Hacker is good or bad?
    Can't you focus on the subject...

    I doubt any of you commenting on Cracker vs Hacker actually are able to do either of the two.

    From someone who was a Cracker, Hacker & a Pirate:

    Pirate - Someone who steels by any means. Usually relies on a Cracker to obtain his goods, though can be one in the same.

    Cracker - Circa 1978 - Someone who "Cracks" the protection on something. NOT ANY RELATIONSHIP to "Criminal Hacker" though you thought you were so smart. To Crack is to Break (like an egg shell dummy) the software protection so that you can Pirate it.

    Hacker - Circa 1980 - Someone who "Hacks" into a system. A Hacker is someone who breaks into an online system or into a computer system. It means trying over and over again until you acheive the goal.

    Hacking - Recent - Has been mis-used to mean anything from good to bad, "A Hack" can be an engineer who wasn't formally trained and "Hacks Away" at code until it works or until he figured out how a system/api/etc works. Usually bad code. Linux wasn't "Hacked together", it was engineered or programmed. This form of "Hacking" comes clearly from above, but it applied to programming.

    Programmer - Someone who programs a computer, duh.

    Now, for the guy who Hacked into the computer system and made money -- you are a thief -- just because some idiot charged you with the wrong crime doesn't make you innocent, try enjoying your $300,000 from jail. Idiot.

    Next time, to be a good hacker, go to some public place with no tracability to yourself and hack into the system on a public, or otherwise not yours, computer...the trick to Hacking is to be anonymous...

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