The United States government has pressed criminal charges against three Chinese men, accusing them of hacking and insider trading.
Bo Zheng of Changsha and Iat Hong and Chin Hung of Macau were suspected of trading on confidential corporate information obtained by breaching networks and servers belonging to US law firms that oversaw mergers, prosecutors said Tuesday.
According to prosecutors, the men made $4 million by trading with at least five companies they had previously hacked.
A related civil lawsuit by the US Securities and Exchange Commission alleged that Hong, 26, Hung, 50, and Zheng, 30, listed themselves in brokerage records as employees of information technology firms.
Hong was arrested this Sunday but the other two were not in custody, prosecutors said, repeating warnings by American officials that law firms are increasingly being targeted by hackers.
“This case of cyber meets securities fraud should serve as a wake-up call for law firms…