An engineer working for Elon Musk’s SpaceX pleaded responsible on Thursday to conspiracy to commit securities fraud by promoting insider recommendations on the “dark web”, the US Division of Justice and Securities and Trade Fee (SEC) stated on Thursday.
The case was the primary by which the SEC has introduced an enforcement motion alleging securities violations on the darkish net, it stated.
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James Roland Jones of Redondo Seashore, California, faces a most penalty of 5 years in federal jail, the Division of Justice stated. A sentencing date has not but been set.
In keeping with the companies, from 2016 till not less than 2017, Jones conspired with one other unnamed individual to entry varied darkish net marketplaces, together with a web site claiming to be an insider buying and selling discussion board, searching for materials, private data to make use of for his personal securities buying and selling.
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The darkish net permits customers to entry the web anonymously and is usually used to host web sites that assist criminal activity. Jones couldn’t be reached for remark.
Jones additionally devised a scheme to promote what he falsely claimed have been insider recommendations on the darkish net, the companies stated. A number of customers paying in bitcoin bought the following tips and in the end traded based mostly on the data Jones offered, they stated.