14 DAY TRIAL // 49-year-old Chunlai Yang, who previously worked as a senior software engineer for CME Group Inc., admitted to stealing over 10,000 files containing the source code of the Globex electronic trading platform. The FBI revealed that the man was trying to improve an electronic trading exchange in China.
Authorities claim that the potential loss caused by the theft is somewhere in the range of $50 million (40 million EUR) - $100 million (80 million EUR). On the other hand, the suspect states that the losses are actually less than $55 million (44 million EUR).
Yang began working for the company back in 2000. He was responsible for writing computer code, a position which allowed him to freely access the software behind the Globex trading platform – used by market participants to commercialize CME products.
Starting with 2010, and up until 2011, the suspect downloaded the 10,000 files to his work computer. Then, by using a USB flash drive, he was able to transfer the files to his home device.
The man admitted to be working – in association with two unnamed partners – on starting a business that would focus its efforts on increase the trading volume at the Zhangjiagang Exchange in China. On behalf of his company, called Gateway, he contacted Zhangjiagang, offering to improve their trading platform.
“This case and similar prosecutions demonstrate that law enforcement and corporations can work together to protect trade secrets. CME Group reported this matter to federal authorities and fully cooperated with the investigation,” Gary Shapiro, Acting United States Attorney for the Northern District of Illinois, said.
“Trade secret theft is a serious economic crime that affects the interests of corporations, as well as our national interest, in protecting intellectual property. We encourage the private sector to work with federal agencies in the investigation and prosecution of trade secret theft.”
Yang has pleaded guilty to two counts of theft of trade secrets and if he is found guilty, he could be sentenced to a maximum of 10 years in prison and fined with $250,000 (200,000 EUR) on each count.