WASHINGTON (Reuters) – An engineer working for Elon Musk’s SpaceX pleaded guilty Thursday to conspiracy to commit securities fraud by selling inside information on the “dark web,” the Justice and Securities and Exchange Commission said on Thursday. US Exchange (SEC).
The case was the first in which the SEC filed an enforcement action in connection with the violation of securities on the dark web, he said.
James Roland Jones of Redondo Beach, Calif., Faces up to five years in federal prison, the Justice Department said. No date has yet been set for the conviction.
According to the agencies, from 2016 to at least 2017, Jones conspired with another anonymous person to access various dark web markets, including a website that claims to be a insider forum, seeking material, unpublished information that to use them for his own person. securities trading.
The dark web allows users to access the internet anonymously and is often used to host websites that support illegal activities. Jones could not be reached for comment.
Jones also devised a scheme to sell what he falsely claimed to be privileged advice on the dark web, the agencies said. Several bitcoin users bought these tips and eventually traded based on information provided by Jones, they said.
Reporting by Michelle Price; edited by Richard Pullin