Didn’t the Intel CEO just sell half of his shares/options? If he knew about these issues isn’t that illegal?
Yes, it would be, but in practice it's hard to nail people on this. He can argue that he'd already scheduled the sell when he learned about this and it will be difficult to prove otherwise.
The SEC could look at internal emails he got about this flaw, and if he got them (and especially if he replied to them) then it's pretty clear he knew about it.
They doubtlessly have other investigative tools they can use for this as well.