Feeds

Kimble/ Schmitz charged with embezzlement

The Return of The Hoaxter Hacker

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Kim Schmitz, the German hacker-turned-gazillionaire, will have to defend himself in court against charges of embezzlement. Schmitz, who stills calls himself Kimble, allegedly rewarded himself with a "loan" of €280,000, paid by his company Monkey AG to his venture fund Kimvestor AG. Both companies are now bankrupt.

In May last year, after being extradited from Thailand to Germany, Schmitz was found guilty by a Munich court of insider trading in the rescue of online retailer LetsBuyIt.com and was given a 20-month suspended prison sentence. He also got fined for €100.000. Schmitz then moved to Hong Kong, where he founded a hedge fund cum ‘Money Making Machine’ called Trendax Ltd.

Trendax is an automated trading system operating simultaneously on multiple markets. Its AI-based decision system selects the ‘optimal combination of trading strategies for current market conditions’, as Schmitz puts it.

Schmitz, who the Germans like to refer to as a Net-Nepper (Net conman), was already convicted for hacking back in 1998, but then turned to a lifestyle of decadence and indulgence as a security advisor and venture capitalist. He once claimed his net worth was over $100 million.

The 23-stone, six-and-a-half foot German entrepreneur (born 1974) never made a secret of his flamboyant, jet-setting lifestyle. On his website you can still see him with his yacht, private jet, amazing cars and stunning women. In the wake of 9/11, Schmitz even offered a $10 million reward for information leading to the capture of Osama bin Laden.

'My way is anything but conservative,' Schmitz writes. 'The rules in my world are not the rules of the old economy. This is the cyber age, which allows the Kimpire to grow fast, cost efficiently and without any limits. No bureaucracy, paragraphs or borders can slowdown the Kimpire. Our brains and the Internet, that's all we need to be successful.'

Apparently not.

Related story

Hoaxster hacker discovers infinite-wealth algorithm

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.