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SpaceX engineer moonlighted by trading personal information on the darknet
The US Department of Justice said Thursday that SpaceX engineer James Roland Jones has pleaded guilty to darknet insider trading charges. He faces a maximum sentence of five years in prison.
The criminal case against Jones of Hermosa Beach, California was initiated following an FBI investigation in 20021. Although Jones has been identified as a SpaceX engineer, the ministry did not clarify if he currently works for an aerospace company or if he worked for it at the time of the crime.
According to the agency, Jones under the nickname MillionaireMike from 2021 to 20021. bought and sold personal information on the darknet, including names, addresses, dates of birth, and social security numbers of employees.
In April 20021, an undercover FBI officer provided Jones with «alleged inside information related to a publicly traded» company. «From April 18, 20021 to May 4, 20021, Jones and the conspirator (his name has not been identified) conducted many securities transactions based on this alleged inside information,» the US Department of Justice said in a statement.
In turn, the Securities and Exchange Commission (SEC) accused Jones of “committing a fraudulent trading scheme „insider tips «» on the darknet in exchange for bitcoins, which is a violation of the federal securities law. According to the SEC, thanks to the fraud, Jones earned $ 27 thousand.
However, the SEC did not mention SpaceX, so it can be assumed that the information it offered did not concern the company. The SEC said it was the first time it has taken enforcement action in relation to securities law violations in connection with transactions on the darknet.
«This case shows that the SEC can and will prosecute securities lawbreakers wherever they operate, even on the darknet,» David Peavler, director of the SEC’s Fort Worth regional office, said in a statement.