The Securities and Exchange Commission (SEC) today announced settled charges against New York-based registered transfer agent Equiniti Trust Company LLC, formerly known as American Stock Transfer & Trust Company LLC, for failing to assure that client securities and funds were protected against theft or misuse.
Those failures led to the loss of more than $6.6 million of client funds as a result of two separate cyber intrusions in 2022 and 2023. American Stock Transfer was able to recover approximately $2.6 million of the losses and fully reimbursed the clients for their losses.
To settle the SEC’s charges, Equiniti agreed to pay a civil penalty of $850,000.
According to the SEC’s order, in September 2022, an unknown threat actor hijacked a pre-existing email chain between what was then American Stock…
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