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.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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Filed Under: hacking, insider trading
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Haha
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Re: Haha
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Re: Haha
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ummm
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Re: ummm
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Re: ummm
I'm quite aware of the difference between "hacking" and "cracking" but that's an old and very dead argument. I used to make the same sort of statements here, but we've gone long past the era when the word "hacking" is now used for both good and bad activities. It, by itself, is a neutral word. To say someone "hacked into" a system is an accurate description and I won't apologize for using the word that way.
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Re: ummm
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Re: ummm
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once again
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wow
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mischaracterized, as usual
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Re: mischaracterized, as usual
again, mike doesn't tell the facts in the story
Yes, I left out some facts. If I included everything it would be the article, not a short post on the important points. I don't think the facts I left out make anything I stated incorrect.
a ukranian resident committed the crime and authorities may have thought it would be difficult if unlikely to actually apprehend him or recover the loss
Indeed, but that doesn't change the facts I stated in the post, or the fact that he might get away with it. The fact that he's in the Ukraine or that it would be difficult to apprehend him don't matter to the fact that he may get away with it because they charged him with the wrong law.
Or am I missing something?
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Hilarity In Shoes
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Hack vs. Crack
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Odd
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And the government still gets its cut...
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Re: And the government still gets its cut...
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Re: Re: And the government still gets its cut...
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Re: Re: Re: And the government still gets its cut.
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What if?
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Loophole closed?
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Re: Loophole closed?
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Re: Loophole closed?
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hacker or cracker?
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Hacker: Good or Bad?
Hacker (Good): a security expert.
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Re:
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That must be the 'Politician Protection Clause' - to keep politicians from getting into troubles with insider trading.
This guy just got lucky and stumbled upon it.
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Understanding Securities Law
This doesn't match SEC's policy preferences, but it happens to be the actual law.
This guy broke the '84 Computer act but not Securities law.
-Gene
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Cracker vs Hacker - You are all on Crack.
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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Hacker = thief
Cracker = white person
Negro = black person
so, from what we have learned...
Cracker Hacker = white thief
Negro Hacker = black thief (redundant)
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Ummm, this is Techdirt. When you crack the software protection, you are just freeing information and creating a new business model. You shouldn't call it pirating or stealing it.
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Race Thing
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Re:
Let's see. By my count, at this moment, 15 out of the 20 stories on the front page are about neither patents nor copyright. Honestly, it would be a GREAT day if I could not write about either topic for an entire day, but since those are the stories that come up, that's what gets written about.
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Error in the article
There is an actual error in the way you present the article. You state that obtaining insider information from legal means is illegal. It's not. What is illegal is breaching a duty of due care to the corporation or a fiduciary duty - if you have one.
Clearly a guy breaking into a computer has about the opposite of a duty of due care or fiduciary duty.
-Gene
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