Three Chinese Citizens Hacked U.S. Law Firms for Insider Trading

Three Chinese citizens have been charged with hacking into two U.S. law firms targeting email accounts of partners at the firms who operate for high-profile mergers. This all started since the beginning of April 2014, and the three of them were able to profit over $4 million since then. They had used the information and purchased shares of up to five publicly traded companies before the company merged.

According to CNBC, Iat Hong, a 26-year-old Macau resident, was arrested on Sunday in Hong Kong and charged along with Bo Zheng, of Changsha, China, and Chin Hung of Macau, with engaging in conspiracies to commit insider trading, wire fraud and computer intrusion in an indictment filed in federal court in Manhattan.

U.S. Attorney Preet Bharara in Manhattan claimed in a statement of the case “should serve as a wake-up call for law firms around the world: you are and will be targets of cyber hacking, because you have information valuable to would-be criminals.” The U.S. government is seeking the extradition of Hong, prosecutors said. Hung, 50, and Zheng, 30, are not in custody, authorities said.

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