ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Links of Insider Trading Scam Mastermind to Russian President Vladimir Putin Raises Eyebrows

The prosecution argued that Klyushin, along with four co-conspirators, systematically pilfered earnings information from hundreds of publicly traded companies listed on Nasdaq and the New York Stock Exchange
PUBLISHED NOV 14, 2023
Cover Image Source: GettyImages/Photo by Mikhail Svetlov
Cover Image Source: GettyImages/Photo by Mikhail Svetlov

In a cybercrime case that has sent shockwaves across the global political as well as financial landscape, Vladislav Klyushin, a Russian businessman with close ties to President Vladimir Putin, has been found guilty of participating in a $90 million insider trading scam. The conviction, delivered on Tuesday after a 10-day trial in Boston, exposed Klyushin's involvement in a sophisticated operation that involved stealing confidential information from U.S. companies by hacking their systems.

The charges against Klyushin, 43, included conspiracy, wire fraud, and other offenses, carrying a maximum prison sentence of more than 50 years. The prosecution alleged that Klyushin, along with four co-conspirators, systematically pilfered earnings information from hundreds of publicly traded companies including Roku, Snap and Tesla, listed on Nasdaq.

U.S. Attorney for Massachusetts Rachael Rollins emphasized the severity of Klyushin's actions, presenting him as a cybercriminal and a cheat to the jury, and added that he repeatedly gamed the system and finally got caught.

Getty Images | Photo by Dennis Grombkowski
Getty Images | Photo by Dennis Grombkowski

Klyushin was arrested in March 2021 when he, along with his family, was flying in a private jet to Switzerland for a ski vacation. He was detained in Switzerland until his extradition to Boston in January 2022. Despite attempts by his lawyer, Oliver Ciric, to halt the extradition, calling insider trading charges disingenuous, the court proceeded with the case.

Ciric's defense highlighted Klyushin's company, M-13, which reportedly held government contracts in Russia, including with national intelligence agencies. Klyushin's ties to the Russian government were evident on the company's website, and US officials further underscored Klyushin's proximity to President Putin.

The prosecution alleged that M-13, Klyushin's company, provided services that identified vulnerabilities in computer systems, which could be exploited using hacking techniques. The company's website explicitly mentioned providing "IT solutions" to the administration and government of the Russian Federation. This revelation raises concerns about the intersection of cybercrime, state-sponsored cyber attacks, and financial market manipulation.

Pixabay | Pexels
Pixabay | Pexels

Apart from Klyushin, four other Russian nationals involved in the insider trading scheme remain at large, including Ivan Ermakov, previously charged in connection with the 2016 hacking of the Democratic National Committee. Ermakov faces additional charges in Pittsburgh related to hacking and disinformation operations attributed to the Russian government targeting international anti-doping agencies and officials.

The conviction of Klyushin sheds light on the increasing sophistication of cybercriminals and their ability to manipulate financial systems for personal gain, posing significant challenges for law enforcement and regulatory bodies worldwide. As technology continues to evolve, the battle against such cyber threats becomes a crucial aspect of maintaining the integrity of global financial markets.

MORE ON MARKET REALIST
According to the expert, personal letters and a signature from Tolkien himself added to the value of the book.
7 hours ago
Chistina and Katie Currie won over $88,000 in cash and two exotic vacations with their stunning performance.
8 hours ago
After everyone backed out, the billionaire Shark stepped up to help the founder of Diaper Dust.
1 day ago
Sun kept repeating the incorrect phrase but couldn't identify the error in time.
1 day ago
After almost closing a deal with Mr Wonderful, the founder of 'Simply Good Jars' pivoted hard.
1 day ago
The host thought it was the "worst possible answer" to give even as the team felt it was good enough.
2 days ago
Adding to the controversy, the owner of Dr. Mudd's lapdesk asked Harrison for $100,000.
2 days ago
With just milliseconds to spare, Sarah LaPilusa pulled off an incredible Bonus Round win.
2 days ago
Ozark Trail 64 oz Water Bottles were recalled after the lids of faulty bottles forcefully ejected.
3 days ago
The player laughed and giggled her way through the puzzles to win prizes worth over $57,000.
3 days ago
Scott Riccardi placed an unbelievable wager during Final Jeopardy! to win a massive amount in a day!
3 days ago
The guest got a 200% return on investment on her sculpture that she bought from Macy's.
3 days ago
Jennings had a record-setting winning streak as a contestant before he became the host.
4 days ago
The player, Ron Wheeler, tragically got no clues after his letter picks for the final puzzle.
4 days ago
The former kids champion, Skyler Hornback knew what was coming.
4 days ago
The fans took issue with the clue being too tough and unnecessary for the contestants.
5 days ago
Cuban wanted to strike a deal with the founder of Coconut Girl and gave her an ultimatum.
5 days ago
Although the word did make a lot of difference, some fans felt that the decision was ridiculous.
5 days ago
The guest, who found the item online, didn't think it was the real deal until he heard its value.
6 days ago
The player Samantha secured the first big win of Ryan Seacrest's run on the show.
6 days ago