Statement Summary
The U.S. Securities and Exchange Commission (SEC) has secured a final judgment against Vladislav Kliushin, a Russian defendant, for his involvement in an $80 million hacking and trading scheme. The scheme, executed over several years, involved illegally obtaining nonpublic earnings announcements from U.S.-based filing agents, which Kliushin and his co-defendants then used to profit illegally through trades. Kliushin was previously convicted of securities fraud in a parallel criminal case. Although he received clemency from the President of the United States, this did not affect the conviction or the financial penalties imposed.
The SEC’s final judgment mandates permanent injunctive relief and orders Kliushin to return his illicit gains, with compliance deemed satisfied by his criminal case outcomes. The investigation involved multiple regulatory bodies and illustrates the SEC’s ongoing efforts to combat market abuse and securities fraud.
Original Statement
Vladislav Kliushin
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 26318 / May 30, 2025
Securities and Exchange Commission v. Vladislav Kliushin, et al., No. 21-cv-12088 (D. Mass. filed Dec. 20, 2021)
SEC Obtains Final Judgment Against Russian Defendant in $80 Million Hacking and Trading Scheme
On May 22, 2025, the U.S. District Court for the District of Massachusetts entered a final judgment against defendant Vladislav Kliushin (a/k/a Vladislav Klyushin) for his participation in a fraudulent hack-to-trade scheme.
According to the SEC’s complaint filed on December 20, 2021, Kliushin and four other defendants engaged in a multi-year fraudulent scheme to profit by trading on material nonpublic pre-release earnings announcements of public companies that defendants deceptively obtained by hacking into the systems of two U.S.-based filing agent companies that assist publicly-traded companies with preparing and filing reports with the SEC. The complaint further alleges that, through the scheme, Kliushin and other defendants collectively realized at least $82.5 million in illicit profits.
In a parallel criminal case brought by the U.S. Attorney’s Office for the District of Massachusetts, Kliushin was charged and convicted by a jury of securities fraud and other charges for the same unlawful conduct alleged in the SEC’s complaint.
Following his conviction, on July 26, 2024, the President of the United States issued Kliushin an Executive Grant of Clemency, commuting Kliushin’s nine-year term of imprisonment to time served, and Kliushin was released from custody as part of a prisoner exchange among several countries. The Executive Grant of Clemency did not otherwise impact the conviction or orders of forfeiture and restitution in the criminal case.
On May 22, 2025, the Court granted the SEC’s unopposed motion for summary judgment and entered final judgment against Kliushin. As set forth in the final judgment, the Court found that, by perpetrating the fraudulent scheme, Kliushin violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, both directly and through or by the means of his co-defendant in violation of Exchange Act Section 20(b), as well as by aiding and abetting his co-defendant’s violations. The final judgment provides for permanent injunctive relief against future violations of these securities laws. Kliushin was also found liable for disgorgement of his ill-gotten gains resulting from the conduct alleged in the complaint, plus prejudgment interest, which shall be deemed satisfied by payment on the orders of forfeiture and restitution in the parallel criminal case.
The SEC’s investigation was conducted by David Bennett and Diana Tani of the SEC’s Market Abuse Unit with assistance from Darren Boerner of the Market Abuse Unit and IT Forensics staff Ken Zavos. Joseph Sansone, Chief of the Market Abuse Unit, supervised the investigation. The Division of Economic and Risk Analysis provided substantial assistance during the investigation and litigation. The SEC’s litigation was handled by Jennifer Farer and David Mendel, with supervision by James Connor. The SEC appreciates the assistance of the U.S. Attorney’s Office for the District of Massachusetts, the Federal Bureau of Investigation, the Danish Financial Supervisory Authority, and the Cyprus Securities and Exchange Commission.
