Technology

Former Netflix engineer in charge of insider trading

The Securities and Exchange Commission (SEC) has charged three former Netflix engineers with being part of a “long-term” insider trading scheme. Announced by the agency.. The engineer and two close associates traded sensitive information about Netflix’s growing subscriber base, with a total profit of over $ 3 million.

According to SEC complaints, when employed at Netflix in 2016 and 2017, Sung Mo “Jay” Jun used information about streaming giant subscribers in transactions prior to Netflix’s earnings announcement. I told Joon Mo Jun and my friend Junwoo Chon. .. After Sung Mo Jun left Netflix in 2017, the SEC joined the company from “another Netflix insider” and former Netflix colleague Jae Hyeon Bae (another engineer at the company) Ayden Lee. It claims to have continued to obtain sensitive information about the increase in the number of people.

Engineers used an encrypted messaging app to discuss trading schemes and circumvent detection. The SEC said the group’s “probably successful transactions over time” were ultimately flagged by market abuse units.

Between 2016 and 2019 Netflix has grown rapidly, Because the stock price has more than tripled.Was adding Average 5 million subscribers One year from 2012 to 2018.

Providing employees with access to company information that may be considered confidential is part of the philosophy of Reed Hastings, the founder of Netflix. deadline I got it..In his 2020 book Rule no ruleHastings said sharing such details is a motivational tool for workers. “We’re probably the only public company to share our financial results internally a few weeks before the end of the quarter,” Hastings wrote in the book. “The financial community considers this reckless. But no information has been leaked. If one day a leak (I think), it won’t overreact. One of them. Deal with the case and maintain transparency. “

Netflix didn’t immediately respond to a request for comment on Thursday.

https://www.theverge.com/2021/8/19/22632237/former-netflix-engineers-insider-trading-sec-charged Former Netflix engineer in charge of insider trading

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