Intel CEO sold shares before chip security flaw disclosed

Intel CEO sold shares before chip security flaw disclosed

These vulnerabilities, when exploited, could wreak havoc on the security front as they can allow a malicious client to access sensitive user data even the information stored in protected memory.

Intel's chief executive officer sold shares in his company several months after Google informed the chipmaker of a serious security problem affecting its products. It says it planned to publicly disclose the problem next week.

In the statement, the Intel representative said Krzanich's sale had nothing to do with the newly-disclosed chip vulnerability, saying that it was done as part of a standard stock sale plan.

To avoid charges of trading on insider knowledge, the executives put in place such plans that automatically sell a portion of their shares or exercise some of their options on a predetermined schedule.According to an SEC filing, the holdings that Krzanich sold in November - 245,743 shares of stock he owned outright and 644,135 shares he got from exercising his options - were a part of a trading plan. The representative continued: "He continues to hold shares in-line with corporate guidelines". It closed down $1.59, or 3.4%, to $45.26.Some on Wall Street think that Intel's loss could mean gains for rivals: AMD and Nvidia could use it as a marketing edge.

According to Business Insider, Google informed Intel of the security flaws in June of a year ago.

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Intel's CEO Brian Krzanich sold off $24 million worth of company stock after Google had informed Intel of a significant security vulnerability in its Flagship PC processors.

While Intel shares took a hit from yesterday's revelation, they continue to trade higher than where Krzanich sold last November.

We are calling it fishy because this week we learned about massive security flaw on Intel chips. ArsTechnica added that Intel's current stock is around the same price as when Krzanick sold the company's stock.

On Thursday, Axios reported that Krzanich had revised his company's trading plan in October. The shares of Intel witnessed a slight drop ever since the news of security flaw came out in public, it is now being traded at around $44.23. But the sale may still bring scrutiny from the Securities and Exchange Commission for a number of reasons. It's common for a company dealing with security flaws to sit on the information in hopes of fixing the problem before hackers discover the vulnerabilities.

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