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Feb 19, 2014

Hedge fund analyst charged with stealing secret trading algorithms

NEW YORK, Feb 19 (Reuters) – Authorities in New York have
accused a 28-year-old former quantitative analyst of stealing
information about the algorithmic trading models used by the $14
billion hedge fund where he worked, according to court
documents.

Manhattan District Attorney Cyrus Vance charged the former
analyst, Kang Gao, on Feb. 12 with two counts each of computer
trespassing and unlawful duplication of computer related
material and one count of unauthorized use of secret scientific
material, according to the court filing.

Feb 12, 2014

Cyber attack on bitcoin a big warning to currency’s users

NEW YORK (Reuters) – A massive cyber attack from unknown sources that has been spamming bitcoin exchanges is highlighting some of the dangers people can encounter when they exchange cash for digital currencies like the bitcoin, experts said on Wednesday.

The attack, which is technically known as a distributed denial of service attack, involved thousands of phantom transactions, forcing at least three of the online platforms that store bitcoins and trade them for traditional currencies to halt withdrawals of bitcoins until they can determine which transactions were real.

Feb 12, 2014

Bitcoin hit by denial of service attacks as regulators prepare clampdown

WASHINGTON/NEW YORK (Reuters) – Bitcoin is being hit by attacks from unknown computer hackers who are sending “mutated” lines of code into the program that runs the virtual currency, a spokeswoman from its main trade organization said in a statement on Tuesday.

The attacks are responsible for problems experienced by two bitcoin exchanges that caused them to temporarily halt withdrawals by customers who stored bitcoins in digital wallets provided by the exchanges, the Bitcoin Foundation said in a statement.

Feb 6, 2014

‘Loeb effect’ buoys social media site for investors

BOSTON/NEW YORK, Feb 6 (Reuters) – In the past, billionaire
investor Daniel Loeb would often wait for an industry conference
before revealing his investment ideas. Not anymore.

The hedge fund manager and some other prominent investors
have now turned to Harvest Exchange, a new website designed for
investors, to release news of their big bets. Such announcements
– including Loeb’s bet on Dow Chemicals and Kyle Bass’ bet on
General Motors — often lead to big swings in share prices as
other investors pile on.

Feb 5, 2014

Forex probe widens as New York banking regulator steps in

NEW YORK/LONDON (Reuters) – New York banking regulator Benjamin Lawsky is seeking documents from some of the biggest banks in foreign exchange trading, including Deutsche Bank, Goldman Sachs and Barclays, a source familiar with the matter said Wednesday, as a global probe into possible market manipulation widens.

At least seven other law enforcement offices and regulators internationally are investigating whether banks rigged the $5.3 trillion-a-day currency markets. Martin Wheatley, chief executive officer of Britain’s Financial Conduct Authority, said on Tuesday that his watchdog group’s probe could extend into 2015, and that the allegations it is looking into are “every bit as bad” as the Libor manipulation scandal.

Feb 4, 2014

Exclusive: Deutsche fires three New York forex traders – source

NEW YORK (Reuters) – Deutsche Bank AG DBKGN.DE has fired three New York-based currency traders, in the latest sign that a probe over alleged manipulation of foreign exchange markets is gathering steam, according to a source familiar with the situation.

Diego Moraiz, Robert Wallden and Christopher Fahy were terminated by the bank, which told trading floor staff of the development on Tuesday, according to the source.

Feb 4, 2014

New U.S. charge for man accused in underground online drugs market

NEW YORK (Reuters) – U.S. prosecutors unveiled a new charge on Tuesday against the man they accuse of creating the underground online drugs marketplace known as Silk Road, potentially adding years of prison time if he were convicted.

In an indictment filed in federal court in Manhattan, 29-year-old Ross Ulbricht is charged with engaging in a continuing criminal enterprise by acting as organizer and supervisor of at least five others who were violating a law against drug trafficking. The new charge carries a mandatory minimum sentence of 20 years in prison if he is convicted.

Jan 30, 2014

Bankers anxious over anti-money-laundering push to go after individuals

NEW YORK, Jan 30 (Reuters) – A new push by regulators and
lawmakers to hold individuals, rather than just institutions,
accountable for regulatory violations involving money laundering
is spooking members of the U.S. financial industry, an executive
of retail broker E*Trade Financial said on Thursday.

Speaking on a panel at an annual anti-money laundering
conference, John Davidson, E*Trade’s global head of
anti-money laundering, called a new bill in Congress, as well as
vows by regulators to take more action against individuals, “a
little scary.”

Jan 30, 2014

Analysis: To grow, Bitcoin may need to shed its world of intrigue

NEW YORK (Reuters) – Bitcoin enthusiasts were buzzing about the arrest of a high-profile promoter of the digital currency at Monday night’s weekly Bitcoin trading session in Manhattan’s financial district.

Charlie Shrem’s detention on money laundering charges the day before shocked New York’s Bitcoin community, which meets in a small conference room to trade the currency. It is contemplating the end of a world of intrigue away from the watchful eyes of police and regulators.

Jan 30, 2014

To grow, Bitcoin may need to shed its world of intrigue

NEW YORK, Jan 30 (Reuters) – Bitcoin enthusiasts were
buzzing about the arrest of a high-profile promoter of the
digital currency at Monday night’s weekly Bitcoin trading
session in Manhattan’s financial district.

Charlie Shrem’s detention on money laundering charges the
day before shocked New York’s Bitcoin community, which meets in
a small conference room to trade the currency. It is
contemplating the end of a world of intrigue away from the
watchful eyes of police and regulators.

    • About Emily

      "Based in New York covering financial crimes, including insider trading, investment scams, accounting fraud and financial firm misconduct."
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