Putin's Traders: FBI Busts Russian Hackers Invading U.S. Companies, Playing Wall Street Insider Trading

A recent documentary called Putin's Trader: How Russian Hackers Stole Millions from U.S. Investors has surpassed a million views on YouTube. The documentary is based on CNBC's original true-crime podcast "The Crimes of Putin’s Trader".

The documentary features exclusive interviews by CNBC's White House political and financial crime reporter Eamon Javers with former FBI investigator BJ Kang and former Chief Prosecutor of the Financial Securities and Cyber Fraud Department of the U.S. Department of Justice, Stephen Frank. The documentary reports on a Russian entrepreneur's attempt to manipulate Wall Street financial transactions to undermine the U.S. economy through a stock insider trading fraud scheme.

The investigation began when the SEC discovered several unusual trading records, where some trades indicated that investors knew before many retail investors that certain stocks would rise and made large purchases. The SEC then enlisted the FBI to investigate and found that the case was more complex than just insider trading, revealing a hidden conspiracy involving the Russian government.

Putin's Traders Infiltrating Western Financial Markets

The protagonist in the documentary is named Vladislav Klyushin, known as Putin's trader. On the surface, he is a new entrepreneur, but behind the scenes, he cooperates with Putin and Russian intelligence units to disrupt the Western world and Wall Street as part of Putin's covert operations.

Javers also interviewed a former Russian Federal Security Service (FSB) agent in the documentary, who anonymously revealed why international financial fraud is crucial to Putin. The anonymous source stated that Klyushin is just one pawn in Putin's elaborate schemes, with many more conspiracies aimed at destabilizing the Western financial system.

While working for the FSB, Klyushin helped recruit Russian entrepreneurs to engage in cyberattacks on American companies. Russian spies have infiltrated many U.S. companies through hackers.

Javers asked Google's cybersecurity expert Sandra Joyce about Russia's conspiracy to disrupt the U.S. system using hackers. She pointed out that Russia's GRU (Main Intelligence Directorate of the General Staff of the Armed Forces of the Russian Federation) excels in cyber warfare and technology, as seen during the conflict in Ukraine where they caused power outages and disrupted internet connectivity.

Although evidence collected by the FBI from Vladislav Klyushin's startup company M13 website showed that his friend and partner Yermakov is a hacker working for Russian intelligence, even receiving a badge from Putin, BJ Kang and Stephen Frank did not directly confirm Klyushin's ties to Putin, remaining cautious in their responses, leaving room for further speculation.

Star Prosecutor Tracking Russian Spies

Former FBI agent BJ Kang was involved in investigating the financial fraud scheme orchestrated by Bernie Madoff, former chairman of the Nasdaq Stock Market, known as the "Madoff Scandal," one of the worst Ponzi schemes in U.S. financial history.

BJ Kang and U.S. Department of Justice prosecutor Stephen Frank are investigating and tracking Vladislav Klyushin worldwide in connection with this financial fraud case. Stephen Frank, a former Wall Street and CNBC news reporter turned prosecutor, currently serves as the chief prosecutor for internet fraud.

Stephen Frank is most known for exposing corruption cases where wealthy individuals bribed to manipulate academic records to secure admissions for their children into Ivy League schools. Netflix produced a documentary based on this case called "The College Admissions Scandal."

Spy Cybersecurity Startup Masking Illegal Insider Trading

Young Russian tycoon Vladislav Klyushin owns the cybersecurity startup M13, which outwardly claims to provide white-hat hacker services to test a company's cybersecurity but actually uses legal means to cover illegal activities. They intrude into companies to steal revenue reports, allowing them to manipulate the Wall Street stock market by buying low, selling high, and knowing when to enter the market before retail investors are aware of future stock performance.

Klyushin and his fraudulent group, including accomplice Yermakov, illegally profited up to $93 million. The documentary revealed victimized companies such as Tesla, Skechers, and Roku, among others.

Klyushin defended himself when unusual trading activities were discovered in Tesla before a major surge at Saxo Bank, attributing the analysis to the Preston App developed by M13, which leverages social media and data analytics for stock market insights. He denied leaking information to specific investors to buy Tesla stocks.

During extreme market volatility, various conspiracy theories emerge. The alarming conspiracy in "Putin's Traders" highlights two key points: first, the vulnerability of U.S. corporate cybersecurity to hacker intrusions. As companies use third-party software for financial reporting, these software companies become major cybersecurity loopholes. When financial reports become indicators for insider trading, retail investors can never profit, and the stock market is manipulated by unseen forces, rendering any investment predictions useless.

Secondly, the political maneuvering in the new U.S.-Russia Cold War is potent enough to shake the entire international financial market. Retail investors must pay close attention to political situations and geopolitical economics when investing in stocks. With tensions high in the U.S. election, Trump's new book "Save America" appears to signal a friendly stance towards Russia. Taiwan has chosen to stand with Ukraine, mirroring their situation, contrasting with Trump's position. Until Trump's policy towards Taiwan clarifies, Taiwan may not need to rush to choose sides. We'll See.