Three former software engineers of streaming company, Netflix have been charged by the Wall Street watchdog over an alleged insider trading ring that made $3m (£2.2m).

The ex-staff members and two close associates were named in court papers, BBC reports.

According to the US Securities and Exchange Commission (SEC) a confidential Netflix subscriber growth data was used in the scheme.

On their exploits, the information was allegedly used to trade the company’s shares ahead of its earnings reports.

A former software engineer at Netflix, Sung Mo Jun was alleged by the SEC to be at the centre of a long-running scheme to illegally trade shares using insider information about the company’s subscriber growth.

Meanwhile, he has also repeatedly passed non-public information to his brother and a close friend who both used it to trade ahead of multiple Netflix earnings announcements. This development which was found in the complaint occurred while he worked for Netflix in 2016 and 2017.

The SEC also alleged that after Sung Mo Jun left Netflix, he obtained confidential subscriber growth information from two other company insiders.

Director of the SEC’s San Francisco regional office Erin Schneider said, “We allege that a Netflix employee and his close associates engaged in a long-running, multimillion dollar scheme to profit from valuable, misappropriated company information.”