According to the SEC, the piracy scheme began in 2016 when the Ukrainian hacker Oleksandr Ieremenko, 27 years old, broke into the EDGAR (Electronic Data Collection, Analysis and Recovery) system of the agency, which houses the corporate reports, including the next earnings reports of the trade companies. Ieremenko and a number of domestic and foreign merchants are accused of accessing 157 profit announcements before the information was made public and of using those presentations to make transactions. The hacker had access to EDGAR since May 2016 and October 2016 and, reportedly, obtained thousands of documents during that time.
The SEC publicly acknowledged the violation in 2017. While the agency repaired the security hole that allowed the hacker to gain access to the database, internal security badessments by the SEC showed that the agency was aware of possible security weaknesses for years before the attack occurred.