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People walk through the financial district by the New York Stock Exchange (NYSE) on August 14, 2024, in New York City. But one of the most damaging insider trading schemes in recent years can't be linked back to a U.S.-based trading floor or brokerage firm. As detailed in CNBC's new original podcast series "The Crimes of Putin's Trader," Russian entrepreneur Vladislav Klyushin's scam amassed more than $93 million as his cybersecurity firm M-13 was a front for Russian hackers to steal U.S. corporate earnings reports before they became public. Then, hackers traded based on those insights, buying and selling stock of well-known American companies like Tesla, Skechers, Snapchat and Roku. "Finances and banks and [the] financial sector itself is just one of the battlefields where the whole thing is happening."
Persons: Ivan Boesky, Martha Stewart, Mathew Martoma, Vladislav Klyushin's, Klyushin, Sandra Joyce, Eamon Javers, Javers, unconventionally, Vladimir Putin Organizations: New York Stock Exchange, SAC Capital Advisors, FBI, U.S, Department of Justice, Google, Intelligence, CNBC Senior Washington Locations: New York City, U.S, Russia, Russian, Switzerland, Eastern Europe
At the CIA's covert training facility near Williamsburg, Virginia, commonly called "The Farm," recruits are trained in the world of espionage and the many ways to get people to provide secret information. "We are in the head-hunting business, as we call it," Olson said. "We have to find individuals that we can induce to cooperate equally with us to give us their secrets." After Klyushin was arrested in Switzerland by U.S. authorities, one of the claims his lawyer made was that American intelligence officers had attempted to recruit Klyushin as a spy for the U.S. upon meeting him for the first time. However, as Olson explained to Javers, the way that intelligence officials approach that process is far different, something that he called "the recruitment cycle."
Persons: Jim Olson, , Eamon Javers, Olson, Javers, Vladislav Klyushin, Klyushin Organizations: Counterintelligence, Central Intelligence Agency, CIA, CNBC Senior Washington Locations: Williamsburg , Virginia, Moscow, Russian, U.S, Switzerland, American
The cybersecurity scam targeted well-known American companies like Skechers, Snapchat and Roku. As Vladislav Klyushin's cybersecurity scam grew, collecting more than $93 million in less than three years, the FBI's investigation was closing in on unraveling his scheme. CNBC's new original podcast series "The Crimes of Putin's Trader" takes you inside the mission to put Klyushin behind bars. The third episode of the podcast details how Klyushin made a critical mistake, finally opening the door for U.S. law enforcement to step in. The latest episode of the original podcast series takes listeners through the action – right up to when Klyushin steps off the plane in Switzerland, completely unaware of his catastrophic mistake.
Persons: Klyushin, Vladislav Klyushin's cybersecurity, Vladislav Klyushin, Eamon Javers, , you've, Steven Frank, Javers, Frank, we're Organizations: FBI, U.S, U.S . Department of Justice, CNBC, Washington, Swiss Federal Police Locations: Russian, Russia, Moscow, U.S, Switzerland
Then, they traded based on that insight, buying and selling stock from well-known American companies like Skechers, Snapchat and Roku. Vladislav Klyushin, who was sentenced to nine years in an American prison for his $93 million hack-to-trade conspiracy. "[They're] breaking into these American companies," said Steven Frank, a federal prosecutor familiar with the case. "Stealing information day after day…and just trading on it." Zoom In Icon Arrows pointing outwards The homepage for the Russian cybersecurity firm M-13, which was stealing financial information from American companies.
Persons: Vladislav Klyushin, Klyushin's, Roku, Tesla, Steven Frank, Klyushin, Massachusetts CNBC's Eamon Javers, Javers, , Evan Gershkovich, Ella Milman, Roberto Schmidt Organizations: Attorney's, Massachusetts, of Massachusetts, Tesla, FBI, U.S, Wall Street, Russia, Joint Base Andrews, Afp, Getty, CNBC Locations: Russian, U.S, Russia, Maryland
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailPutin’s Trader: How Russian hackers stole millions from U.S. investorsRussian oligarch Vladislav Klyushin was the owner of a cybersecurity company in Moscow called M-13, but the firm was secretly a front for a hacking and insider trading operation that plagued Wall Street for years, generating more than $90 million in illicit profits. With exclusive access to the investigators who chased Klyushin around the globe, and an interview with a former Russian spy, CNBC’s Eamon Javers reveals the shocking details of this audacious criminal enterprise.
Persons: Russian oligarch Vladislav Klyushin, Klyushin, CNBC’s Eamon Javers Locations: Russian, Moscow
It’s rare for Russian criminal hackers to land in U.S. prisons and even rarer for them to get out early. But two of the eight Russians released in Thursday’s prisoner swap with the U.S. are seasoned cybercriminals. It is believed to be the first time the U.S. has released international hackers in a prisoner exchange, according to cybercrime experts and a review conducted by NBC News. The two convicted Russian hackers, Vladislav Klyushin and Roman Seleznev, are in their early 40s. Natalia Kolesnikova / AFP - Getty ImagesThat was true for the men released Thursday.
Persons: Evan Gershkovich, Vladislav Klyushin, Klyushin, Seleznev, Todd Carroll, “ It’s, ” Carroll, , , “ I’m, Natalia Kolesnikova, Philip Reiner, they’ve, Vladimir Putin’s Organizations: U.S, Kremlin, Wall, ., NBC News, FBI, Getty, Institute for Security, Technology Locations: U.S, United States, Russia, Russian, Sverdlovsk Regional, Yekaterinburg, AFP, Sion , Switzerland, Seleznev, Maldives
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailVladislav Klyushin produces an extensive highlight video of his weddingKlyushin produces an extensive highlight video of his wedding.
Persons: Vladislav Klyushin
The German court that convicted Krasikov in 2021 said he acted on behalf of the Russian state, shooting Khangoshvili “execution style” in broad daylight. Vadim Konoshchenok, 48An undated photo of Vadim Konoshchenok included in a 2022 court document. He was arrested in February 2022, according to the Polish state news agency PAP. Lilia Chanysheva, 42Lilia Chanysheva stands is seen during a hearing at the Kirovskiy District Court in Ufa, Russia, on June 14, 2023. He was sentenced to four years in a penal colony in July 2022, according to Amnesty International.
Persons: Evan Gershkovich, Paul Whelan, Vadim Krasikov, Vadim Krasikov Berlin Police Krasikov, Krasikov, Zelimkhan, Khangoshvili, Ramzan Kadyrov, Putin, Viktor Bout, Whelan, Brittney, Biden, Alexey Navalny, Vadim Konoshchenok, Konoshchenok, Vladislav Klyushin, Klyushin, Roman Seleznev, US Department of Justice Roman Seleznev, Seleznev, Artem Dultsev, Ludvig Gish, Anna Dultseva, Dultsev, Maria Rosa Mayer Munos, Mikhail Mikushin, Pavel Rubtsov, Pablo Gonzalez, Oihana Goiriena, Vincent West, Pablo Gonzales, Natalia Kolesnikova, Kirill Kudryavtsev, US Marine Whelan, Gershkovich, Alsu Kurmasheva, Liberty Alsu Kurmasheva, Alexey Nasyrov, Kurmasheva, Vladimir Kara, Murza, Kara, Vladimir Putin’s “, , Rico Krieger, Krieger, Alexander Lukashenko, Kevin Lik, Lick, Dieter, Voronin, Ivan Safronov, Roscosmos, Demuri Voronin, Safronov, Herman Moyzhes, Moyzhes, Patrick Schoebel, Schoebel, Ilya Yashin, Yuri Kochetkov, ” Alexandra Skochilenko, Alexandra Skochilenko, Anton Vaganov, Skochilenko, , ” Oleg Orlov, Oleg Orlov, Lilia Chanysheva, Chanysheva, Ksenia Fadeeva, Maxim Shemetov, Fadeeva, Vadim Ostanin, Alexei Navalny’s, Ostanin, Andrei Pivovarov, Pivovarov Organizations: CNN, Vadim Krasikov Berlin Police, Chechen, Russian, Krasikov, US Department of Justice, US, Office, Eastern, of, Attorney's, University of Tromsø, Reuters, Court, Getty, Street, US Marine, US State Department, Radio Free, Liberty, AP, Belarusian TV, Belteleradio, Human Rights, German Red Cross, TASS, German Federal Intelligence Service, Pulkovo, Ukraine, Amnesty International Locations: American, Russia, Moscow, Berlin’s Kleiner, Russian, Georgia, Estonia, of New York, Boston, Sion , Switzerland, United States, Maldives, Slovenia, Ljubljana, Norway, Brazilian, Nabarniz, Spain, Poland, Spanish, Sverdlovsk, AFP, Irish, Radio Free Europe, Kazan, Yekaterinburg, Ukraine, United Kingdom, Belarusian, German, Belarus, Berlin, Germany, Europe, St . Petersburg, St, Petersburg, Meshansky, Bucha, Kyiv, Saint Petersburg, Kirovskiy, Ufa, Bashkortostan, Tomsk, Krasnodar
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch 'Putin's Trader' — the biggest insider trading ring on Wall Street is in the KremlinRussian oligarch Vladislav Klyushin was the owner of a cybersecurity company in Moscow called M-13, but the firm was secretly a front for a hacking and insider trading operation that plagued Wall Street for years, generating more than $90 million in illicit profits. With exclusive access to the investigators who chased Klyushin around the globe, and an interview with a former Russian spy, CNBC's Eamon Javers reveals the shocking details of this audacious criminal enterprise.
Persons: Vladislav Klyushin, Klyushin, CNBC's Eamon Javers Organizations: Kremlin Locations: Moscow, Russian
watch nowWall Street Journal reporter Evan Gershkovich and former U.S. Marine Paul Whelan were released Thursday by Russia as part of a major, multi-nation swap of two dozen prisoners. "All four have been imprisoned unjustly in Russia," President Joe Biden said in a televised address from the White House, where he was flanked by their family members. Eight Russians, including the spy and convicted hitman Vadim Krasikov, are being returned to Russia from the United States, Slovenia, Norway, Poland and Germany. "The deal that secured their freedom was a feat of diplomacy," Biden said in a statement released by the White House, where Biden planned to meet family members of the released Americans. U.S. President Joe Biden speaks about the release of Americans detained in Russia during brief remarks from the White House in Washington, U.S., August 1, 2024.
Persons: Evan Gershkovich, U.S . Marine Paul Whelan, Alsu Kurmasheva, Vladimir Kara, Murza, Joe Biden, Vadim Krasikov, Paul Whelan, Krasikov, Gershkovich, Whelan, Kurmasheva, Kara, Biden, we've, Jake Sullivan, " Sullivan, Nathan Howard, Reuters Gershkovich, Dieter Voronin, Kevin Lick, Rico Krieger, Patrick Schoebel, Herman Moyzhes, Ilya Yashin, Liliya, Kseniya Fadeyeva, Vadim Ostanin, Andrey Pivovarov, Oleg Orlov, Sasha Skochilenko, Artem Viktorovich Dultsev, Anna Valerevna Dultseva, Mikhail Valeryevich Mikushin, Pavel Alekseyevich Rubtsov, Roman Seleznev, Vladislav Klyushin, Vadim Konoshchenock Organizations: Wall Street, U.S . Marine, White, Biden, National, Reuters Locations: Russia, American, Russian, Turkey, United States, Slovenia, Norway, Poland, Germany, Chechen, Berlin, Washington , U.S, Moscow
BOSTON (AP) — A wealthy Russian businessman with ties to the Kremlin was sentenced Thursday to nine years in prison for his role in a nearly $100 million stock market cheating scheme that relied on secret earnings information stolen through the hacking of U.S. computer networks. Prosecutors had sought 14 years in prison, saying a stiff punishment was crucial to send a message to overseas cybercriminals. They then broke into the vendors’ computer systems to get filings before they became public, prosecutors said. Klyushin owned a Moscow-based information technology company that purported to provide services to detect vulnerabilities in computer systems. It counted among its clients the administration of Russian President Vladimir Putin and the Ministry of Defense, according to prosecutors.
Persons: , Vladislav Klyushin, Tesla, he's, Klyushin, who’s, , Prosecutors, Seth Kosto, ” Kosto, Maksim Nemtsev, Vladimir Putin, Klyushin's, Ivan Ermakov, Hilary Clinton’s, John Podesta, Ermakov Organizations: BOSTON, Kremlin, Authorities, Microsoft, U.S, Prosecutors, Securities and Exchange Commission, Ministry of Defense, Democratic Party, Democratic National Committee, Democratic Congressional Locations: Russian, Moscow, Boston, U.S, Switzerland, Russia
[1/3] Vladislav Klyushin, an owner of an information technology company with ties to the Russian government, is seen in an undated photograph attached to a U.S. Department of Justice filing. of Justice/Handout via REUTERSBOSTON, Jan 30 (Reuters) - A wealthy Russian businessman with ties to the Kremlin faces trial on Monday on U.S. charges that he participated in a vast scheme that generated tens of millions of dollars in illegal trading profits using corporate information stolen through hacking. The three-week trial comes at a low point in U.S.-Russia relations following Russian President Vladimir Putin's invasion of Ukraine last year. And while the case against Klyushin, who has pleaded not guilty, predates the war, his connections to the Kremlin have long intrigued U.S. authorities. Reporting by Nate Raymond in Boston; Editing by Alexia Garamfalvi and Daniel WallisOur Standards: The Thomson Reuters Trust Principles.
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