A British hacker, Robert Westbrook, has been charged in the US for allegedly orchestrating a $3.75 million insider trading scheme. Westbrook, 39, is accused of gaining unauthorized access to corporate executives’ email accounts to profit from confidential financial information.
US authorities arrested Westbrook in London last week, and he is currently awaiting extradition to face multiple charges, including securities fraud and wire fraud. Between January 2019 and May 2020, Westbrook allegedly hacked into the Microsoft Office 365 accounts of executives at five US companies.
Court documents reveal that Westbrook used this access to collect non-public earnings information, which he then used to make trades before the companies’ announcements, resulting in significant profits. Authorities claim that Westbrook implemented auto-forwarding rules to send emails from the compromised accounts to his own and took steps to conceal his identity, such as using VPN services, anonymous email accounts, and cryptocurrency.
The US Securities and Exchange Commission (SEC) has filed a civil complaint against Westbrook, while the Department of Justice (DoJ) has initiated criminal proceedings. Jorge G. Tenreiro, acting chief of the SEC’s Crypto Assets and Cyber Unit, emphasized the SEC’s commitment to protecting markets and investors from cyber fraud.
If convicted, Westbrook could face severe penalties. Each securities and wire fraud charge carries a maximum prison sentence of 20 years, with an additional five years for each count of computer fraud. Westbrook may also be required to pay millions in fines and could be permanently barred from trading securities.
The case highlights the SEC’s advanced data analytics and technology in uncovering fraud, even in cases involving sophisticated international hacking. Westbrook’s alleged actions serve as a reminder of the ongoing threats posed by cybercriminals in the cryptocurrency space.