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SEC says hacked news releases were used to make illegal trades

An international network of hackers gained access to computer systems of business-newswire services to pull inside information from pending merger announcements, netting more than $100 million in illicit profits, according to federal indictments and a civil complaint unveiled Tuesday morning.

The indictments, filed in U.S. District Court in Newark, N.J., and U.S. District Court in Brooklyn, N.Y., said the hacking network downloaded more than 150,000 press releases. A network of traders in the U.S. made the illegal trades, paying the hackers for the information with either a flat rate or a percentage of the profits, the indictments said.