SEC Targets US Trading Firms Over $2M In Hacking Losses

Law360, New York (January 26, 2012, 10:17 PM EST) -- The U.S. Securities and Exchange Commission on Thursday accused four U.S electronic trading firms of allowing an alleged Latvian hacker the access to make unauthorized trades in U.S. securities markets that cost U.S. brokerages more than $2 million in losses to their customers.

In administrative proceedings against the electronic trading firms, the SEC said the firms — San Mateo, Calif.-based Alchemy Ventures Inc.; Philadelphia-based KM Capital Management LLC; Boise, Idaho-based Zanshin Enterprises LLC; and La Jolla, Calif.-based Mercury Capital — had allowed alleged hacker Igors Nagaicevs...
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