U.S. SEC settles with two traders over hack of its EDGAR filing system

WASHINGTON, April 9 (Reuters) – The U.S. Securities and Exchange Commission said on Thursday it had settled with two traders who allegedly profited from hacking into its EDGAR electronic filing system by stealing files containing non-public earnings results and then trading on the information before it was made public.

The traders, David Kwon and Igor Sabodakh, have consented to final judgments and to disgorge their profits as well as pay prejudgment interest in a settlement yet to be approved by a court. Sabodakh has also agreed to pay a fine, the SEC said.

Last year the commission charged nine defendants altogether for the 2016 hack that it said reaped $4.1 million from illegal trades, and which exposed a security weakness in test filings sent to the system’s servers. (Reporting by Lisa Lambert Editing by Chris Reese)

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