1 00:00:00,120 --> 00:00:02,759 Speaker 1: Now it's time for our daily Bloomberg Law Brief, exploring 2 00:00:02,840 --> 00:00:04,720 Speaker 1: legal issues in the news. It's brought to you by 3 00:00:04,760 --> 00:00:09,760 Speaker 1: American Arbitration Association, International Trade or Business Dispute Resolve Faster 4 00:00:09,880 --> 00:00:13,160 Speaker 1: with the International Center for a Dispute Resolution, the leader 5 00:00:13,200 --> 00:00:16,480 Speaker 1: in alternative dispute resolution around the world, i c d 6 00:00:16,760 --> 00:00:20,000 Speaker 1: R dot org. Today Bloomberg, lahst Jun Grosso and Greg 7 00:00:20,079 --> 00:00:23,599 Speaker 1: Store discussed charges against four people for hacking Yahoo and 8 00:00:23,640 --> 00:00:27,000 Speaker 1: stealing the personal information of hundreds of millions of users 9 00:00:27,240 --> 00:00:29,720 Speaker 1: a S week with Anne McKenna, professor at Penn State 10 00:00:29,760 --> 00:00:32,680 Speaker 1: Law School, and John reads Stark, founder of John Reid 11 00:00:32,760 --> 00:00:35,960 Speaker 1: Stark Consulting and founder of the sec S Office of 12 00:00:36,080 --> 00:00:40,639 Speaker 1: Internet Enforcement. John in the announcement, the government made its 13 00:00:40,720 --> 00:00:44,760 Speaker 1: case to the public that Moscow is orchestrating criminal hacks 14 00:00:44,800 --> 00:00:49,280 Speaker 1: with cyber criminals. Tell us more about the Russian cyber 15 00:00:49,440 --> 00:00:52,400 Speaker 1: spying regime. You know what I read this, I thought, 16 00:00:52,720 --> 00:00:56,120 Speaker 1: like Captain Renaux and Calsablanca. Remember, I'm shocked, shocked to 17 00:00:56,200 --> 00:00:58,960 Speaker 1: find the gambling is going on. This kind of hacking, 18 00:00:59,000 --> 00:01:00,600 Speaker 1: in this kind of scheme is been going on for 19 00:01:00,680 --> 00:01:02,480 Speaker 1: quite some time, dating back to when I was at 20 00:01:02,480 --> 00:01:05,760 Speaker 1: the SEC remember, there have been cyber attacks on the 21 00:01:05,800 --> 00:01:08,880 Speaker 1: federal government dating back that are documented, dating back to 22 00:01:08,959 --> 00:01:12,759 Speaker 1: two thousand nine, two twelves, all over the place, and 23 00:01:12,959 --> 00:01:18,040 Speaker 1: by various different state sponsored terrorist regimes. So I don't 24 00:01:18,080 --> 00:01:21,480 Speaker 1: know that this is anything new, But what's amazing is 25 00:01:21,520 --> 00:01:24,520 Speaker 1: that these people were finally caught, and I think the 26 00:01:24,600 --> 00:01:26,720 Speaker 1: FBI has really got to be commended here. I'm sure 27 00:01:26,760 --> 00:01:29,800 Speaker 1: this investigation took quite some time, and it's the first 28 00:01:29,840 --> 00:01:32,800 Speaker 1: time as far as I can tell, that actual Russian 29 00:01:32,880 --> 00:01:37,080 Speaker 1: intelligence officials were indicted right along with the hackers that 30 00:01:37,120 --> 00:01:39,640 Speaker 1: they had engaged to carry on these acts. And on 31 00:01:39,720 --> 00:01:43,040 Speaker 1: that last point, what is the significance of that, the 32 00:01:43,080 --> 00:01:47,840 Speaker 1: fact that for the first time Russian FSB agents were 33 00:01:47,880 --> 00:01:51,920 Speaker 1: included in an indictment. It's significant just because we've heard 34 00:01:52,000 --> 00:01:54,960 Speaker 1: so much in the news. Our election cycle was filled 35 00:01:55,000 --> 00:01:58,120 Speaker 1: with these, you know, allegations of Russian hacking um and 36 00:01:58,320 --> 00:02:01,760 Speaker 1: interference with the election, and so to see the FBI 37 00:02:01,800 --> 00:02:04,200 Speaker 1: and the Department of Justice come out so clearly with 38 00:02:04,440 --> 00:02:09,840 Speaker 1: you know, very strong charges both based on economic espionage 39 00:02:10,240 --> 00:02:13,160 Speaker 1: for foreign as well as our federal laws for computer 40 00:02:13,240 --> 00:02:18,480 Speaker 1: fraud and abuse, UM, it's really it's significant and it 41 00:02:18,919 --> 00:02:22,160 Speaker 1: shows that you know, they were very careful I'm sure 42 00:02:22,200 --> 00:02:26,840 Speaker 1: before making these charging documents public. It shows that they 43 00:02:27,000 --> 00:02:30,400 Speaker 1: are really ready to back up and and to to 44 00:02:30,520 --> 00:02:32,840 Speaker 1: prosecute this. You know. What's going to be the trick 45 00:02:32,880 --> 00:02:35,840 Speaker 1: here though, is one of the one of the hackers involved, 46 00:02:35,919 --> 00:02:38,200 Speaker 1: has already you know, been on the list to be 47 00:02:38,240 --> 00:02:41,320 Speaker 1: extradited from Russia, and Russia of course has not extra 48 00:02:41,440 --> 00:02:44,359 Speaker 1: extradited that hacker. So what remains to be seen now 49 00:02:44,440 --> 00:02:47,200 Speaker 1: is what's the fallout going to be for US Russian 50 00:02:47,200 --> 00:02:51,880 Speaker 1: relations when US demands extradition of these two FSB officers 51 00:02:52,600 --> 00:02:55,440 Speaker 1: as in McKenna, professor at Penn State Law School and 52 00:02:55,520 --> 00:02:58,280 Speaker 1: John reid Stark, founder of John Reid Stark Consulting and 53 00:02:58,440 --> 00:03:02,359 Speaker 1: founder of the SEC Office of Internet Enforcement, speaking with 54 00:03:02,360 --> 00:03:04,840 Speaker 1: the Bloomberg Law hosting Glossom on Greg's store. You can 55 00:03:04,880 --> 00:03:07,760 Speaker 1: listen to Bloomberg Law weekdays at one pm Wall Street 56 00:03:07,800 --> 00:03:11,280 Speaker 1: Time here on Bloomberg Radio. And that's this morning's Bloomberg 57 00:03:11,360 --> 00:03:13,520 Speaker 1: Law Brief. 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