Court Rules Software Not Protected By Fed Crime Laws, Overturns Conviction of Goldman Engineer

Before leaving Goldman Sachs to earn a millionaire?s salary with Chicago High Frequency Trading (HFT) startup Teza Technologies, Sergey Aleynikov made one last transaction. At 5:20pm on his last day, just before his going-away party, Aleynikov uploaded 500,000 lines of encrypted source code from the Wall Street firm's proprietary HFT system to a server located in Germany. Following the clandestine upload, Aleynikov deleted the encryption program, wiped his command history, and headed to the party. Although Aleynikov later managed to download the source code to his home computer in New Jersey before flying to Chicago, he was apprehended by the FBI while returning through Newark Liberty International Airport. But after his conviction at trial and imprisonment during the appeals process (his dual US-Russian citizenship presented a flight risk), Aleynikov is now a free man. The reasons why touch the entire software industry.

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