Russian Denied Bail in Insider Trading Hacking Case

Cyberwarfare / Nation-State Attacks
Fraud Management & Cybercrime

$83 Million Allegedly Reaped by Trading on Stolen, Pre-Public Earnings Information

Russian Denied Bail in Insider Trading Hacking Case

A Russian cybersecurity business executive who allegedly profited from an insider trading hacking scheme has been denied bail by a U.S. judge.

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Vladislav Klyushin, 41, was extradited from Switzerland on Dec. 18, 2021. He has pleaded not guilty to the charges. On Wednesday, The Associated Press reported, U.S. Magistrate Judge Marianne Bowler denied the defendant’s request for bail, saying he presents “a substantial risk of flight.”

Klyushin has been charged with participating in a criminal hacking scheme that earned at least $82.5 million by trading on stolen, pre-public information pertaining to hundreds of companies listed on the New York Stock Exchange and NASDAQ, including Horizon Therapeutics, IBM, Microsoft, Snap and Tesla.

“As alleged, Klyushin and his co-defendants used various illegal and malicious means to gain access to computer networks to perpetrate their illegal trading scheme,” says Albert Murray III, the assistant special agent in charge of the criminal and cyber division at the FBI’s Washington field office.

Klyushin, aka Kliushin, founded and serves as a director of Moscow-based IT service and media monitoring firm M-13. The company advertises numerous cybersecurity…