Posted November 17, 2018 09:04:07The US Department of Justice filed a lawsuit on Monday against SubiTrade, the online trading platform owned by the now-defunct Knight Capital Management.
According to the lawsuit, Knight Capital was in the process of buying a company called Subi Trading, which was then known as Subi Capital.
SubiTrading was to be a new online brokerage service.
Knight Capital’s acquisition was announced in December 2017.
The lawsuit alleges Knight Capital had “engaged in a scheme to obtain unauthorized access to Subi’s system of computers and data storage facilities, including the data center and data network for the trading system, and to obtain the information contained in SubiTRading’s electronic trading systems and data stored in the Subi system, without Knight’s prior authorization.”
In a statement, Knight’s attorneys said Knight had not yet acquired Knight Capital and did not intend to acquire Knight Capital.
“Knight’s lawsuit is part of Knight Capital, not Knight Capital itself, and does not target Knight Capital or its affiliates,” the attorneys wrote.
“Knight Capital is confident in the integrity and reliability of its proprietary information and is confident that Subitrade’s proprietary data is secure and accurate.”
The lawsuit claims that Knight used Knight’s own “expertise” in acquiring Subi and Subitrading.
The suit is seeking unspecified damages.