‘U.S. v. Trovias’: Lessons From the First Dark Web Insider Trading Case

“‘U.S. v. Trovias’: Lessons From the First Dark Web Insider Trading Case,” an article by Akin Gump white collar defense and government investigations partner Ian McGinley, has been published by New York Law Journal.

The article discusses United States v. Trovias, a “first of its kind prosecution [in which] the Southern District of New York (SDNY) brought an insider trading case against Apostolos Trovias for selling inside information on the Dark Web.”

McGinley notes that, in a rare move, “SDNY and SEC charged this same conduct under different insider trading statutes.” He adds that the difference underscores both the legal complexities involving unknown sources of inside information in the digital realm as well as the SDNY’s and SEC’s desire to be aggressive in application of insider trading laws to crimes that involve modern technologies.

The article discusses the allegations against Trovias, the theories used by the SEC and SDNY in charging him, and future insider trading cases.

He concludes by noting, “The Trovias case shows that the government is willing to use creative legal theories to pursue the inappropriate trafficking of inside information through these mediums. This is especially the case with respect to mediums such as the Dark Web, which appear to be designed to hide the identities the parties involved or otherwise cover their tracks.”