Pretty sure this is trivial. Buy someone’s identity on the dark web to pass an online brokerages KYC then wire money in from an international bank. I say this as person who worked at a fintech. KYC checks aren’t the most robust and you can brute force the knowledge based authentication if you have enough people’s information. Some of the KBA questions you can google because all the data brokers put people’s past cities online.
It will take at least a week for the SEC to make an official request. Funds would have settled and you can call up and wire the money away. Never seen it with stocks but have seen in on deposit accounts. One of the biggest issues with online banks is fake accounts that are used as mule accounts to move stolen money. Authentication in the us is weak and based around SSN and credit history which isn’t hard to buy. Want a billion dollar idea, solve that with out using things like sending a verification code in the mail to an address on active account in the person credit history.
Assuming this is what you went to prison for, is there anything you can tell us about what happened or what the experience was like? Or have you written about it already on HN or anywhere else?
Of course I can understand if you somehow unable or unwilling to talk about it, but I'm really curious and it can't hurt to ask :).
I mean, if you spent $$$$ shorting Tesla stock, then a week later the stock nosedived in response to a tweet and you made a big profit, that doesn't prove you were behind the tweet.
It wouldn't even be illegal, unless there was independent proof you were behind the hack. Without that, you just placed a bet which happened to be a lucky one - just like anyone else who was short Tesla.
What are they going to ask? Why did you short the most shorted stock in America? Why did you later close your short position, locking in a large profit?
I'd be surprised if that even got you interviewed, let alone searched for hacking tools.
Unless they've fingered you by some other means, in which case it's irrelevant how you were planning to get the money out.
At that point, it's a criminal investigation and everyone on the right side of the trade is a suspect. If you'd made enough to make the risk worthwhile, they'd subpoena everything - phone records, emails, electronics, financial history, contacts, ...