Chinese hackers must pay $9M for stock market scam

Three Chinese hackers have been ordered by the U.S. District Judge to pay almost $9 million over a large insider stock market scam.

Three Chinese hackers have been ordered by the U.S. District Judge to pay almost $9 million over a large insider stock market scam.

Chinese hackers after hacking e-mail servers of two biggest New York-based law firms to steal corporate confidential merger strategies in December 2016 and used them to profit on the stock market.

The U.S. Securities Exchange Commission stated the three Chinese hackers Iat Hong, 26, Bo Zheng, 30, and Hung Chin, 50 targeted seven different law firms but installed malware on networks only to two law firms than compromised admin accounts to get access and download gigabytes of confidential emails.

When they get access to emails and information on planned business mergers, the trio bought stocks on stock market in listed companies before the deal and sell it after public announcements. The hackers stole more than $4 Million and if found guilty, could face decades-long prison terms.

The counts against them: conspiracy to commit wire fraud, securities fraud, computer intrusion, unlawful access, and intentional damage. BBC News reported.

All of them charged in December 2016 by the Securities and Exchange Commission (SEC), and the U.S. Department of Justice Southern District of New York.

Mr. Hong ordered to pay $1.8 Million, Mr. Zheng $1.9 Million, and Mr. Chin $4 Million. Any U.S. assets they own will be frozen.

Mr. Hong’s mother, Sou-Cheng Lai, has been ordered to pay back about $900,000 of illicit profits held on behalf of her son. At this moment, Mr. Hong arrested in Hong Kong, and he is in custody and yet to be extradited to the USA, while other two hackers are on the run.