6 ms·

> if you come by material nonpublic information on your own Provided you got the information legally. Of the examples you cite: Drone surveillance -> Probab

> if you come by material nonpublic information on your own Provided you got the information legally. Of the examples you cite: Drone surveillance -> Probably illegal depending on local laws clever analysis of public ID -> Likely legal, although given how CFAA is extremely loose on its interpretation of unlawful access I wouldn't be shocked if a prosecutor successfully argues that it was illegal .

lazide 4y ago
Have a cite for that? Pretty sure acquiring it illegally doesn’t make you an insider, and you could still trade on it - albeit be liable for the crime you committed to get the info.
- manquer 4y ago
  It does make it Insider trading. A famous recent example was the hack of press releases before they were released and used to make 100+M profit. [1] . Note the SEC pursued this case not DoJ . SEC has only civil mandate and cannot pursue cases for hacking directly under CFAA which would be a criminal offense only the DoJ can and perhaps also did concurrently [1] https://www.sec.gov/news/pressrelease/2015-163.html https://www.sec.gov/news/pressrelease/2015-163.html
  - lazide 4y ago
    I can't find the actual complaint, but the wire there seems to say they are charging them under antifraud rules, not insider trading rules. "The SEC’s complaint charges each of the 32 defendants with violating federal antifraud laws and related SEC antifraud rules and seeks a final judgment ordering the defendants to pay penalties, return their allegedly ill-gotten gains with prejudgment interest, and be subject to permanent injunctions from future violations of the antifraud laws." It's a bit confusing though, because earlier in the same article they seem to imply it's for insider trading. But they don't seem to actually say that's what they are being charged with.

6 ms·

> if you come by material nonpublic information on your own Provided you got the information legally. Of the examples you cite: Drone surveillance -> Probab

by manquer 4y ago

lazide 4y ago
Have a cite for that? Pretty sure acquiring it illegally doesn’t make you an insider, and you could still trade on it - albeit be liable for the crime you committed to get the info.
- manquer 4y ago
  It does make it Insider trading. A famous recent example was the hack of press releases before they were released and used to make 100+M profit. [1] . Note the SEC pursued this case not DoJ . SEC has only civil mandate and cannot pursue cases for hacking directly under CFAA which would be a criminal offense only the DoJ can and perhaps also did concurrently [1] https://www.sec.gov/news/pressrelease/2015-163.html https://www.sec.gov/news/pressrelease/2015-163.html
  - lazide 4y ago
    I can't find the actual complaint, but the wire there seems to say they are charging them under antifraud rules, not insider trading rules. "The SEC’s complaint charges each of the 32 defendants with violating federal antifraud laws and related SEC antifraud rules and seeks a final judgment ordering the defendants to pay penalties, return their allegedly ill-gotten gains with prejudgment interest, and be subject to permanent injunctions from future violations of the antifraud laws." It's a bit confusing though, because earlier in the same article they seem to imply it's for insider trading. But they don't seem to actually say that's what they are being charged with.