A Russian national is facing serious charges in the U.S. for allegedly running a multi-year hacking and market manipulation scheme.
The U.S. Securities and Exchange Commission (SEC) announced on September 24 that Dmitrii Yevgenyevich Kushnarev hacked hundreds of U.S. retail brokerage accounts. He then used these accounts to manipulate stock and options prices. As a result, authorities say he made more than $31 million in gross proceeds and about $1.5 million in net profits.
According to the SEC filing, Kushnarev operated between 2014 and 2021, using more than 20 fake identities to open over 100 U.S. and foreign bank and brokerage accounts. He and his group bought thinly traded stocks by manipulating compromised accounts. Kushnarev cashed out his shares for huge profits by using a strategy that pumped up trading volumes and prices.
Manipulation of stocks and options
From 2014 to 2019, Kushnarev first targeted equity securities with low trading volume. He allegedly worked with hackers during this period to manipulate trading at significant U.S. brokerages, leading to inflated prices.
However, starting in 2019, he shifted to manipulating options. He allegedly sold out-of-the-money call and put options to hacked accounts, which were forced to place inflated bids. The SEC claims Kushnarev executed trades in at least 380 securities on the same day hackers targeted them.
The complaint was filed in the U.S. District Court for the Northern District of Georgia. The SEC charged Kushnarev with multiple violations, including antifraud provisions of the Securities Act of 1933 and Section 9(a)(2) of the Exchange Act.
Broader fraud concerns
Besides, U.S. lawmakers are raising concerns about growing fraud cases. On X, Senator Cynthia Lummis highlighted a rise in Bitcoin ATM scams, with Cheyenne police reporting 50 cases totaling $645,000.
The FBI confirmed that crypto kiosk scams are becoming a big problem. In 2024 alone, people filed over 11,000 reports. These scams cost victims nearly $246 million, showing how risky things have become for investors.
These cases show how online scams are becoming more dangerous while regulators are now facing growing pressure to keep everyday investors safe.
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