An anonymous reader shared this report from CNET: Meta says it's taken down more than 2 million accounts this year linked to overseas criminal gangs behind scam operations that human rights activists say forced hundreds of thousands of people to work as scammers and cost victims worldwide billions of dollars.

In a Thursday blog post, the parent of Facebook, Instagram and WhatsApp says the pig butchering scam operations — based in Myanmar, Laos, Cambodia, the United Arab Emirates and the Philippines — use platforms like Facebook and Instagram; dating, messaging, crypto and other kinds of apps; and texts and emails, to globally target people... [T]he scammers strike up an online relationship with their victims and gain their trust. Then they move their conversations to crypto apps or scam websites and dupe victims into making bogus investments or otherwise handing over their money, Meta said. They'll ask the victims to deposit money, often in the form of cryptocurrency, into accounts, sometimes even letting the victims make small withdrawals, in order to add a veneer of legitimacy. But once the victim starts asking for their investment back, or it becomes clear they don't have any more money to deposit, the scammer disappears and takes the money with them.

And the people doing the scamming are often victims themselves. During the COVID-19 pandemic, criminal gangs began building scam centers in Southeast Asia, luring in often unsuspecting job seekers with what looked like amazing postings on local job boards and other platforms, then forcing them to work as scammers, often under the threat of physical harm. The scope of what's become a global problem is staggering. In a report issued in May, the US Institute of Peace estimates that at least 300,000 people are being forced to work, or are otherwise suffering human rights violations, inside these scam centers. The report also estimates global financial losses stemming from the scams at $64 billion in 2023, with the number of financial victims in the millions.

Meta says it has focused on investigating and disrupting the scam operations for more than two years, working with nongovernmental organizations and other tech companies, like OpenAI, Coinbase and dating-app operator Match Group, along with law enforcement in both the US and the countries where the centers are located.
Meta titled its blog post "Cracking Down On Organized Crime Behind Scam Centers," writing "We hope that sharing our insights will help inform our industry's defenses so we can collectively help protect people from criminal scammers."

Baidu's new Apollo Go robotaxi brings significant advances in affordability and scalability that should make U.S. competitors like Waymo a bit nervous, according to The Verge's Andrew J. Hawkins. From the report: The RT6 is the sixth generation of Apollo Go's driverless vehicle, which made its official debut in May 2024. It's a purpose-built, Level 4 autonomous vehicle, meaning it's built without the need for a human driver. And here's the thing that should make US competitors nervous: adopting a battery-swapping solution, the price for one individual RT6 is "under $30,000," Baidu CEO Robin Li said in an earnings call. "All the strengths just mentioned above are driving us forward, paving the way to validate our business model," Li added. [...]

We still don't know the net effect of Baidu's cost improvements. But bringing down the upfront cost of each individual vehicle to below $30,000 will go a long way toward improving the company's unit economics, in which each vehicle brings in more money than it costs. There are still a lot of outstanding costs to consider, such as hardware depreciation and fleet maintenance, but from what Baidu is signaling, things are on the right track. From the looks of it, the company is passing those savings along to its customers. Base fares start as low as 4 yuan (around 55 cents), compared with 18 yuan (around $2.48) for a taxi driven by a human, according to state media outlet Global Times. Apollo Go said it has provided 988,000 rides across all of China in Q3 2024 -- a year-over-year growth of 20 percent. And cumulative public rides reached 8 million in October.

The Trade Desk, one of the largest publicly traded advertising technology companies in the world, is building a connected television operating system. Axios reports: Existing OS providers, like Roku, Amazon's Fire TV and Google's Android TV, have a conflict of interest because they own content, [CEO and founder Jeff Green] said. Green believes that conflict of interest has muddled the advertising ecosystem for everyone. "We're looking at a concentration around a handful of players that lack objectivity," Green said. "We think we're in a unique position to make the ecosystem better." [...]

Ventura, a nod to the company's headquarters in Ventura, California, will be rolled out to the market in the second half of 2025, Green said. The company has been working to build the system quietly for three years. While some OS developers, such as Google, Amazon and Roku, have also developed their own hardware devices to service their operating systems, Green said The Trade Desk has "no intention of getting into the hardware business." Rather, it will partner with other hardware companies, such as smart TV manufacturers, as well as various television distributors, such as airlines, hotel chains, and gaming companies, to bring its OS to their devices.

Green believes hardware companies will be excited about the opportunity to partner because, in a competitive streaming environment, more hardware companies will need to build advertising businesses to scale. [...] Because The Trade Desk's goal is ultimately to improve a murky marketplace, Green said he isn't looking to make money from the OS directly. Ventura will be successful if it drives more pricing transparency and stronger measurement for the CTV advertising ecosystem writ large, he said. "Ultimately, the measure of success will be, do we have an ad auction that is so transparent that we can predict outcomes?" The Trade Desk will benefit financially from a more transparent ecosystem because it lacks a conflict of interest, Green said.

An anonymous reader quotes a report from 404 Media: Instagram is flooded with hundreds of AI-generated influencers who are stealing videos from real models and adult content creators, giving them AI-generated faces, and monetizing their bodies with links to dating sites, Patreon, OnlyFans competitors, and various AI apps. The practice, first reported by 404 Media in April, has since exploded in popularity, showing that Instagram is unable or unwilling to stop the flood of AI-generated content on its platform and protect the human creators on Instagram who say they are now competing with AI content in a way that is impacting their ability to make a living.

According to our review of more than 1,000 AI-generated Instagram accounts, Discord channels where the people who make this content share tips and discuss strategy, and several guides that explain how to make money by "AI pimping," it is now trivially easy to make these accounts and monetize them using an assortment of off-the-shelf AI tools and apps. Some of these apps are hosted on the Apple App and Google Play Stores. Our investigation shows that what was once a niche problem on the platform has industrialized in scale, and it shows what social media may become in the near future: a space where AI-generated content eclipses that of humans. [...]

Out of more than 1,000 AI-generated Instagram influencer accounts we reviewed, 100 included at least some deepfake content which took existing videos, usually from models and adult entertainment performers, and replaced their face with an AI-generated face to make those videos seem like new, original content consistent with the other AI-generated images and videos shared by the AI-generated influencer. The other 900 accounts shared images that in some cases were trained on real photographs and in some cases made to look like celebrities, but were entirely AI-generated, not edited photographs or videos. Out of those 100 accounts that shared deepfake or face-swapped videos, 60 self-identify as being AI-generated, writing in their bios that they are a "virtual model & influencer" or stating "all photos crafted with AI and apps." The other 40 do not include any disclaimer stating that they are AI-generated. Adult content creators like Elaina St James say they're now directly competing with these AI rip-off accounts that often use stolen content. Since the explosion of AI-generated influencer accounts on Instagram, St James said her "reach went down tremendously," from a typical 1 million to 5 million views a month to not surpassing a million in the last 10 months, and sometimes coming in under 500,000 views. While she said changes to Instagram's algorithm could also be at play, these AI-generated influencer accounts are "probably one of the reasons my views are going down," St James told 404 Media. "It's because I'm competing with something that's unnatural."

Alexios Mantzarlis, the director of the security, trust, and safety initiative at Cornell Tech and formerly principal of trust and safety intelligence at Google, started researching the problem to see where AI-generated content is taking social media and the internet. "It felt like a possible sign of what social media is going to look like in five years," said Mantzarlis. "Because this may be coming to other parts of the internet, not just the attractive-people niche on Instagram. This is probably a sign that it's going to be pretty bad."

A new study reveals that many users, particularly students and Redditors, view Z-Library as a vital resource for overcoming economic barriers to education, reflecting a "Robin Hood" mentality that prioritizes access to knowledge over copyright concerns. TorrentFreak reports: The research looks at the motivations of two groups; Reddit users and Chinese postgraduate students. Despite the vast differences between these groups, their views on Z-Library are quite similar. The 134 Reddit responses were sampled from the Zlibrary subreddit, which is obviously biased in favor of the site. However, the reasoning goes well beyond a simple "I want free stuff" arguments. Many commenters highlighted that they were drawn to the site out of poverty, for example, or they highlighted that Z-Library was an essential tool to fulfill their academic goals.

"Living in a 3rd world country, 1 book would cost like 50%- 80% already of my daily wage," one Redditor wrote. The idea that Z-Library is a 'necessary evil' was also highlighted by other commenters. This includes a student who can barely make ends meet, and a homeless person, who has neither the money nor the space for physical books. The lack of free access to all study materials, including academic journal subscriptions at university libraries, was also a key motivator. Paired with the notion that journal publishers make billions of dollars, without compensating authors, justification is found for 'pirate' alternatives. "They make massive profits. So stealing from them doesn't hurt the authors nor reviewers, just the rich greedy publishers who make millions just to design a cover and click 'publish'," one Redditor wrote.

The second part of the study is conducted in a more structured format among 103 postgraduate students in China. This group joined a seminar where Z-Library and the crackdown were discussed. In addition, the students participated in follow-up focus group discussions, while also completing a survey. Despite not all being users of the shadow library, 41% of the students agreed that the site's (temporary) shutdown affected their ability to study and find resources for degree learning. In general, the students have a favorable view toward Z-Library and similar sites, and 71% admit that they have used a shadow library in the past. In line with China's socialist values, the overwhelming majority of the students agreed that access to knowledge should be free for everyone. While the students are aware of copyright law, they believe that the need to access knowledge outweighs rightsholders' concerns. This is also reflected in the following responses, among others. All in all, Z-Library and other shadow libraries are seen as a viable option for expensive or inaccessible books, despite potential copyright concerns. The paper has been published in the Journal of University Teaching & Learning Practice.

Comcast plans to spin off several of its cable TV networks into a standalone company as it shifts focus to streaming and other profitable ventures like Peacock, theme parks, and broadband services. The Associated Press reports: Those one-time stars for Comcast's NBCUniversal cable television networks include USA, Oxygen, E!, SYFY and Golf Channel, as well as CNBC and MSNBC. Movie ticketing platform Fandango and the Rotten Tomatoes movie rating site would also become part of the new company. Peacock will remain with Comcast, as will Bravo, which provides significant content for the Peacock streaming service.

Comcast telegraphed the potential shift last month as it released quarterly earnings before confirming Wednesday that it will spin off assets that generated about $7 billion in revenue over he past 12 months ending September 30. That's about 5.5% of Comcast's total revenue during that period, according to the company. But there is a shrinking pool of cable subscribers as millions cut the cord and rely increasingly on streaming platforms for entertainment.

Mark Lazarus, current chairman of NBCUniversal Media Group, will serve as the new entity's chief executive officer. Anand Kini, the current chief financial officer of NBCUniversal, will take on the same title with the new company as well as the chief operating officer role. [...] Comcast expects the new company to have the financial flexibility to be "a potential partner and acquirer of other complementary media businesses." The spin-off is targeted for completion in about a year, the entertainment giant said, pending financing and approval from its board and government regulators. "Like millions of US consumers, Comcast finally cut the cord by divesting itself of most of its cable TV channels," said Paul Verna, principal analyst at market research company eMarketer. "The benefits are clear to Comcast. It's dropping money-losing assets from a technology and media empire that will retain its lucrative (internet service provider) business, theme parks, broadcast networks, and Peacock streaming service."

Half of young Norwegians find online piracy acceptable when streaming services are too expensive, according to a new government survey released this week. The Ipsos poll of 1,411 respondents found that 32% of all Norwegians justify using pirate sites to save money, with acceptance rising to 50% among those under 30.

The rates increase further when specifically asked about pirating due to high streaming costs. Despite concerns about piracy, 61% of Norwegians paid for streaming services in the past year, including 64% of those under 30. Among active pirates, 41% said they would stop if legal services were more affordable, while 35% wanted broader content per service. Only 47% of respondents believed piracy supports organized crime, with 24% expressing uncertainty about this connection.

According to a new report from Bloomberg, Apple plans to license some of its Apple TV+ content to competing services in an effort to save money and spread its reach. From the report: Apple has hired an executive to license its original productions to other companies, a strategy designed to increase sales from its film business and improve the visibility of its content. [...] Apple is focused on licensing its movies to other companies, such as foreign TV networks and stores, where viewers can rent or buy them, according to a person familiar with the plans. The company isn't planning to license its original TV shows to third parties. (At least not yet.)"

Chief Executive Officer Tim Cook and services boss Eddy Cue have pushed the team overseeing Apple TV+ to lower costs, improve the financial performance of the service and deliver more hits. The company has spent billions of dollars on original films and TV shows and has received strong reviews and praise from critics. Yet few of its titles have attracted a large audience and its streaming service doesn't make money. Apple has already started selling TV+ via Amazon in a bid to increase the audience for the service. Licensing to third parties will generate additional revenue and introduce Apple movies to people who don't yet pay for TV+. Since Apple TV+ launched in 2019, Apple has spent over $20 billion to build a library of original content. Yet, the streaming service only garnered 0.3 percent of U.S. screen viewing time in June 2024, according to Nielsen. "Apple TV+ generates less viewing in one month than Netflix does in one day," wrote Bloomberg's Lucas Shaw in July.

Ars Technica notes that Apple is estimated to have 25 million subscribers, making it "one of the smallest mainstream streaming services."

Ranga Dias, a physics professor who made headlines with claims that he had discovered a room-temperature superconductor and then was found to have engaged in research misconduct, is no longer employed by the University of Rochester. WSJ: A spokeswoman for the university confirmed on Monday that Dias is out but declined to comment on the terms of his departure. The Wall Street Journal previously reported that Rochester President Sarah Mangelsdorf had called for terminating his position in an August letter to the chair and vice chair of the university's Board of Trustees.

Dias leaves the university after years of accusations that he had misrepresented data in multiple papers. He is a senior author on at least five papers retracted in just over two years. One of those, which identified a material that functioned as a superconductor at room temperature, was pulled by the journal Nature after several co-authors told the journal that Dias had misrepresented information in the paper. Dias didn't respond to requests for comment. He has previously denied manipulating or misrepresenting data.

His departure follows a monthslong university investigation completed in February that was led by three outside experts who reviewed documents and data from Dias's laboratory computers and interviewed Dias and his collaborators. The investigative panel found evidence of misconduct in four papers in which Dias is a senior author and in a grant proposal he submitted to the National Science Foundation. Then-provost David Figlio accepted the conclusions and referred his case to a faculty committee "for potential removal." Dias sued the university in February claiming that the probe into his work was biased and didn't follow university policies.

HarperCollins has partnered with an AI technology company to allow limited use of select nonfiction backlist titles for training AI models, offering authors the choice to opt in for a $2,500 non-negotiable fee. 404 Media reports: On Friday, author Daniel Kibblesmith, who wrote the children's book Santa's Husband and published it with HarperCollins, posted screenshots on Bluesky of an email he received, seemingly from his agent, informing him that the agency was approached by the publisher about the AI deal. "Let me know what you think, positive or negative, and we can handle the rest of this for you," the screenshotted text in an email to Kibblesmith says. The screenshots show the agent telling Kibblesmith that HarperCollins was offering $2,500 (non-negotiable).

"You are receiving this memo because we have been informed by HarperCollins that they would like permission to include your book in an overall deal that they are making with a large tech company to use a broad swath of nonfiction books for the purpose of providing content for the training of an Al language learning model," the screenshots say. "You are likely aware, as we all are, that there are controversies surrounding the use of copyrighted material in the training of Al models. Much of the controversy comes from the fact that many companies seem to be doing so without acknowledging or compensating the original creators. And of course there is concern that these Al models may one day make us all obsolete." Kibblesmith called the deal "abominable."

"It seems like they think they're cooked, and they're chasing short money while they can. I disagree," Kibblesmith told the AV Club. "The fear of robots replacing authors is a false binary. I see it as the beginning of two diverging markets, readers who want to connect with other humans across time and space, or readers who are satisfied with a customized on-demand content pellet fed to them by the big computer so they never have to be challenged again."

Silicon Valley's venture-capital firms are having an easy time finding promising startups to back. The hard part is cashing out. From a report: Last year, U.S. venture firms returned $26 billion worth of shares back to their investors, the lowest amount since 2011, according to the data provider PitchBook. Startup investors say 2024 has continued the trend, with high levels of investment and few acquisition deals or initial public offerings. "We've raised a lot of money, and we've given very little back," Thomas Laffont, co-founder of investment firm Coatue Management, said at a recent conference. "We are bleeding cash as an industry."

Last year, U.S. venture firms invested $60 billion more than they collected, the highest such deficit in PitchBook's 26 years of data. As a result, the investors that back VC firms, such as university endowments and pension funds, aren't seeing the type of profits the industry has long delivered. The decline is particularly notable because the past three years have been the highest three on record for total VC firm investments since 1998 -- as far as back as the PitchBook data goes. Much of that money has recently gone to artificial-intelligence startups -- a white-hot space in which valuations are rising fast and companies quickly burn through cash to develop new technology.

A new six-episode Dune series premiers tonight on HBO and Max — a prequel to the Denis Villeneuve-directed Dune movies set 10,000 years before the birth f Paul Atreides. The Hollywood Reporter writes that it "draws on source material from the 2012 novel Sisterhood of Dune by Brian Herbert and Kevin J. Anderson, and Frank Herbert's 1965 novel Dune, the origin of the Dune universe." Cord-cutters can stream Dune: Prophecy online without cable on Max, with subscriptions starting at $9.99 per month through both Prime Video and the Max website directly. Amazon offers a seven-day free trial to the Max channel. Those who want to watch Dune: Prophecy online without a traditional cable service can also get Max as an add-on to existing streaming services, including Hulu and DirecTV Stream.
The San Francisco Chronicle describes the series as "">all palace intrigues, agonizing deaths and magical mind games." Taking a further cue from the network's top-rated Game of Thrones, this show indulges more sex and nudity than the Dune movies allow. It could be argued that elements like this introduce a liveliness often missing from the portentous big-screen behemoths, marking an improvement. Another fun touch here: Many characters are constantly baked.

Set a millennium before Frank Herbert's novels and the films' events, and a century after humans overthrew their "thinking machine" overlords, the psychoactive "Spice" from the desert planet Arrakis is already the most valued substance in the universe. It's not only vital for spaceship navigation and to expand the mental powers of sorceressy sisterhoods like the Bene Gesserit, it's the club drug of choice for younger members of the galaxy-ruling Great Houses. As ever with "Dune" business, control of the Spice trade fuels much of the conflict and character motivations.

Of which there are just enough to keep things interesting without becoming confusing... While the show can't match the outsize visual scope of Denis Villeneuve's films, it does pleasingly approximate those vast alien landscapes, Brutalist edifices and high-ceilinged chambers on a TV budget. For those who find Villeneuve's formal gigantism oppressive, the series' more human scale might be another welcome change of pace... There may not be an original thought in this "Dune" product's Spice-soaked head, but it is one professionally put-together piece of this sort of entertainment.
"Tasked with making more material with less money and time, Prophecy cannot hope to equal Villeneuve's aesthetic accomplishments," writes Variety. "But at its best, the show does justice to the intricate politics and ethical debates that form a cornerstone of Frank Herbert's fictional universe... The primary Dune plot finds many echoes throughout Prophecy..."

On the other hand, Vulture argues the six-episode series is "stuck in prequel quicksand," even calling it "an act of cowardice and abdication of creativity" (while also noting moments where it "feels like it's stretching itself to be something other than what we expect..."

This week Alphabet CEO Sundar Picahi assured investors that their long-term AI focus and investment (and a "commitment to innovation") "are paying off," reports the Associated Press. Alphabet's stock has already soared 20% this year, and it's "still thriving" as the company "navigates through a pivotal shift to AI and battles regulators..." Alphabet earned $26.3 billion, or $2.12 per share during the most recent quarter, a 34% increase from a year ago. Revenue rose 15% from the same time last year to $88.27 billion... The profits would have been even higher if Google wasn't pouring so much money into building up its AI arsenal in a technological arms race that includes other industry heavyweights Microsoft, Amazon, Apple, Facebook parent Meta Platforms and rising star OpenAI. The AI investments are the primary reason Google's capital expenditures in the past quarter soared 62% from the same time last year to $13.1 billion. The AI spending will likely stay at roughly the same level during the current October-December period, and the rise even higher next year, according to Anat Ashkenazi, Alphabet's chief financial officer.

But Ashkenazi also emphasized the Mountain View, California, company will act on cost-cutting opportunities in other areas to help boost profits. Alphabet already has trimmed its payroll from more than 190,000 worldwide employees early last year to about 181,000 workers now. In an example of how AI can perform tasks that once required human brainpower, Pichai said the technology is now writing more than 25% of the company's new computer coding.
After the results, investors sent Alphabet's stock price up 5% in extended trading, the article points out. "Both Alphabet's profit and revenue increased at a brisker pace than industry analysts anticipated, thanks primarily to a moneymaking machine powered by Google's ubiquitous search engine... [Google's digital search-engine ads earned $49.39 billion, 12% more than the same quarter of 2023.] And Google's cloud division is growing at an even more robust rate, thanks to demand for AI services. The cloud division generated $11.35 billion in revenue during the past quarter, a 35% increase from last year."

And meanwhile over at Microsoft, quarterly sales surged 16% to $65.6 billion, reports the Associated Press. But again, "the company sought to assure investors its huge spending on artificial intelligence is paying off." The company has spent billions of dollars to expand its global network of data centers and other physical infrastructure required to develop AI technology... As a result, AI-related products are now on track to contribute about $10 billion to the company's annual revenue, the "fastest business in our history to reach this milestone," CEO Satya Nadella said on a call with analysts Wednesday. [Though Microsoft "hasn't yet formally reported revenue specifically from AI products," the article notes later, with Microsoft instead saying it's infused AI and Copilot into all its business segments.]
Just in the last quarter, Microsoft spent $20 billion "mostly for its cloud computing and AI needs," the article points out.

But there's still making plenty of money... The software maker also reported an 11% increase in quarterly profit to $24.7 billion, or $3.30 per share, which beat Wall Street expectations for the July-September period... Leading in sales for the quarter was Microsoft's productivity business segment, which includes its Office suite of email and other workplace products, growing 12% to $28.3 billion. Microsoft's cloud-focused business segment grew 20% from the same time last year to $24.1 billion for the three months ending Sept. 30. Its personal computing business, led by its Windows division, grew 17% to $13.2 billion. A big part of that growth came from Microsoft's Xbox video game business, which was boosted by its purchase of game publishing giant Activision Blizzard a year ago.

On a small network of islands north of Seattle, Washington, San Juan County just completed its first full year of 32-hour workweeks, reports CNN.

And Tuesday the county released a report touting "a host of positive outcomes — from recruiting to retention to employee happiness — and a cost savings of more than $975,000 compared to what the county would have paid if it met the union's pay increase demands." The county said the 32-hour workweek has attracted a host of new talent: Applications have spiked 85.5% and open positions are being filled 23.75% faster, while more employees are staying in their jobs — separation (employees quitting or retiring) dropped by 48%. And 84% of employees said their work-life balance was better. "This is meeting many of the goals that we set out to do when we implemented it," County Manager Jessica Hudson said. said, noting the county is looking for opportunities to expand the initiative...

Departments across San Juan County have implemented the 32-hour workweek differently, some staggering staffing to maintain their previous availability to the public while others have shortened schedules to be open just four days a week... "I tell people, you're not going to see things change from your perspective," said Joe Ingman, a park manager in the county. "Offices are going to stay open, bathrooms are going to get cleaned, grass is going to get mowed." His department adjusted schedules to stay staffed seven days a week, and while communication across shifts was an initial hurdle, issues were quickly ironed out. "It was probably the smoothest summer I've had, and I've been working in parks for over a decade," he said, crediting the new schedule as a boon for recruiting. While job postings used to languish unfilled for months, last summer the applicant pool was not only bigger but more qualified, and the two staffers he hired both cited coming to the county because of the 32-hour workweek.

"It's no more cost to the public to work 32 hours — but we have better applicants," he said. Ingman also said the four-day workweek has done wonders for his job satisfaction; he'd watched colleagues burn out for years, but now sees a path for his own future in the department... County employees have used their extra time off to spend less money on childcare, volunteer in their kids' schools, and contribute to the community... While San Juan County's motivation in adopting a shortened workweek was financial, the benefits its employees cite speak to a larger trend, as workplaces around the country increasingly explore flexible schedules to combat burnout and attract and retain talent.

A survey of CEOs this spring found nearly one third of large US companies were looking into solutions like four-day or four-and-a-half-day workweeks... Even without a reduction in total hours, a Gallup poll last year found a third day off would be widely embraced: 77% of US workers said a 4-day, 40-hour workweek would have a positive impact on their wellbeing.
One worker shared their thoughts with CNN. "Life shouldn't be about just working yourself into the ground..." And they added that "So far, I feel happy; I feel seen as an employee and as a human, and I feel like it could be a beautiful step forward for other people if we just trust it and try it."

They even had some advice for other employers. "Change happens by somebody actually doing the change. The only way we're going to find out if it works is by doing."

More than 120,000 bitcoin were stolen in a 2016 breach of Bitfinex. Seven years later the perpetrator pleaded guilty.

And Thursday he was sentenced to a five-year prison term, reports the Associated Press: Ilya Lichtenstein masterminded one of the largest-ever thefts from a virtual currency exchange before he and his wife, Heather Rhiannon Morgan, carried out an elaborate scheme to liquidate the stolen funds, according to federal prosecutors... "Over half a decade, the defendant engaged in what IRS agents described as the most complicated money laundering techniques they had seen to date," prosecutors wrote... The couple successfully laundered about 21 percent of the funds stolen from Bitfinex. The laundered money was worth at least $14 million at 2016 prices. Its value would have exceeded $1 billion at the time of their 2022 arrest.

Authorities seized the remaining funds, collectively valued at over $6 billion at current prices... An attorney for Bitfinex said the hack "devastated" its finances and its reputation with its customers, with the stolen funds accounting for approximately 36% of the company's assets at the time of theft. "Bitfinex had to take unprecedented and immediate action to ensure that any losses from the Hack would ultimately be borne by Bitfinex and its shareholders alone, not its customers," the lawyer, Barry Berke, wrote in a letter to the judge.

A prosecutor said Lichtenstein immediately began cooperating with federal authorities after his arrest, helping them with other cybercrime investigations. Over 96% of the stolen funds have been recovered, with help from Lichtenstein, according to defense attorney Samson Enzer. The "vast bulk" of the stolen money was never spent, the lawyer said.
Lichtenstein also "pleaded with the judge to spare his wife from prison, blaming himself for her involvement," according to the article. His wife — a rap artist who records under the name Razzlekhan — will be sentenced Monday, but has pleaded guilty to the same charge, and prosecutors are recommending an 18-month sentence.

The White House said it's completed a $6.6 billion grant agreement with Taiwan Semiconductor Manufacturing Company (TSMC) through the Chips and Science Act. "Today's announcement is among the most critical milestones yet in the implementation of the bipartisan CHIPS & Science Act, and demonstrates how we are ensuring that the progress made to date will continue to unfold in the coming years, benefitting communities all across the country," Biden said in a statement. The Hill reports: The grant is expected to create $65 billion of private investment by TSMC in Arizona, Biden said, which will include three new facilities and the creation of tens of thousands of jobs by the end of the decade. The first of the company's new facilities is on track to open next year. Biden earlier this year announced a slew of preliminary grant agreements with companies, including TSMC, through the CHIPS law. The announcement of a final agreement underscores how the administration is hoping to get those deals across the finish line before President-elect Trump takes office. [...]

Biden has repeatedly touted the importance of the CHIPS and Science Act, citing the prevalence of microchips that are used in everyday technology such as phones, cars, home appliances and more. Officials have said the law is critical to bolster domestic production of the chips to make the U.S. less reliant on foreign supply chains.

Server maker Super Micro Computer is facing mounting challenges after EY resigned as its auditor on October 24, citing concerns about management's integrity and ethical values. EY's departure came just months after replacing Deloitte & Touche, which had audited Super Micro for two decades through June 2023.

The resignation raises questions about potential issues Deloitte may have missed. Super Micro has appointed a special committee and hired legal and forensic accounting firms to investigate, though details remain undisclosed. The company faces a November 16 deadline to submit a compliance plan to Nasdaq regarding delayed financial reports. A former employee's lawsuit alleges improper revenue recognition between 2020-2022 under Deloitte's watch, prompting a Justice Department investigation. WSJ adds: Persuading another major audit firm to sign on under the current circumstances would be an impressive feat. EY in its resignation letter said it was "unwilling to be associated with the financial statements prepared by management."

Why would any other auditor feel differently?

Brazilian officials are scrambling to control a gambling boom that has led some citizens to take out loans with interest rates as high as 438% to fund their betting habits, sparking concerns about household debt levels.

The surge in online betting has doubled Brazil's gambling population to 52 million in six months, with the central bank estimating monthly gambling spending between 18-21 billion reais ($3.1-3.6 billion) through August 2024. Central Bank President Roberto Campos Neto said lower-income families are disproportionately affected, with 20% of government social program payments in August directed to online gambling sites.

The Finance Ministry has accelerated regulatory measures, requiring over 100 betting companies to submit operating paperwork ahead of schedule. New rules starting January 1 will allow authorities to limit bet amounts, block payment systems, and monitor for money laundering. President Luiz Inacio Lula da Silva recently raised concerns at the UN about gambling's impact on Brazil's poorest citizens, while officials are moving to ban credit card use for betting and restrict gambling advertisements.

ZDNet's Steven Vaughan-Nichols reports: [...] At KubeCon North America 2024 this week, CNCF executive director Priyanka Sharma said in her keynote, "Patent trolls are not contributors or even adopters in our ecosystem. Instead, they prey on cloud-native adopters by abusing the legal system. We are here to tell the world that these patent trolls don't stand a chance because CNCF is uniting the ecosystem to deter them. Like a herd of musk oxen, we will run them off our pasture." CNCF CTO Chris Aniszczyk added: "The reason trolls can make money is that many companies find it too expensive to fight back, so they pay trolls a settlement fee to avoid the even higher cost of litigation. Now, when a whole herd of companies band together like musk oxen to drive a troll off, it changes the cost structure of fighting back. It disrupts their economic model."

How? Jim Zemlin, the Linux Foundation's executive director, said, "We don't negotiate with trolls. Instead, with United Patents, we go to the PTO and crush those patents. We strive to invalidate them by working with developers who have prior art, bringing this to the attention of the USPTO, and killing patents. No negotiation, no settlement. We destroy the very asset that made patent trolls' business work. Together, since we've started this effort, 90% of the time, we've been able to go in there and destroy these patents." "It's time for us to band together," said Joanna Lee, CNCF's VP of strategic programs and legal. "We encourage all organizations in our ecosystem to get involved. Join the fight, enhance your own company's protection, protect your customers, enhance our community defense, and save money on legal expenses."

While getting your company and its legal department involved in the effort to fend off patent trolls is important, developers can also help. CNCF announced the Cloud Native Heroes Challenge, a patent troll bounty program in which cloud-native developers and technologists can earn swag and win prizes. They're asking you to find evidence of preexisting technology -- referred to by patent lawyers as "prior art" -- that can kill off bad patents. This could be open-source documentation (including release notes), published standards or specifications, product manuals, articles, blogs, books, or any publicly available information. All entrants who submit an entry that conforms to the contest rules will receive a free "Cloud Native Hero" t-shirt that can be picked up at any future KubeCon+CloudNativeCon. The winner will also receive a $3,000 cash prize.

In the inaugural contest, the CNCF is seeking information that can be used to invalidate Claim 1 from US Patent US-11695823-B1. This is the major patent asserted by Edge Networking Systems against Kubernetes users. As is often the case with such patents, it's much too broad. This patent describes a network architecture that facilitates secure and flexible programmability between a user device and across a network with full lifecycle management of services and infrastructure applications. That describes pretty much any modern cloud system. If you can find prior art that describes such a system before June 13, 2013, you could be a winner. Some such materials have already been found. This is already listed in the "known references" tab of the contest information page and doesn't qualify. If you care about keeping open-source software easy and cheap to use -- or you believe trolls shouldn't be allowed to take advantage of companies that make or use programs -- you can help. I'll be doing some digging myself.

An anonymous reader quotes a report from TechCrunch: U.K. consumer rights group 'Which?' is filing a legal claim against Apple under competition law on behalf of some 40 million users of iCloud, its cloud storage service. The collective proceeding lawsuit, which is seeking 3 billion pounds in compensation damages (around $3.8 billion at current exchange rates), alleges that Apple has broken competition rules by giving its own cloud storage service preferential treatment and effectively locking people into paying for iCloud at "rip-off" prices. "iOS has a monopoly and is in control of Apple's operating systems and it is incumbent on Apple not to use that dominance to gain an unfair advantage in related markets, like the cloud storage market. But that is exactly what has happened," Which wrote in a press release announcing filing the claim with the U.K.'s Competition Appeal Tribunal (CAT).

The lawsuit accuses Apple of encouraging users of its devices to sign up to iCloud for photo storage and other data storage needs, while simultaneously making it difficult for consumers to use alternative storage providers -- including by not allowing them to store or back-up all of their phone's data with a third-party provider. "iOS users then have to pay for the service once photos, notes, messages and other data go over the free 5GB limit," Which noted. The suit also accuses Apple of overcharging U.K. consumers for iCloud subscriptions owing to the lack of competition. "Apple raised the price of iCloud for UK consumers by between 20% and 29% across its storage tiers in 2023," it wrote, saying it's seeking damages for all affected Apple customers -- and estimating that individual consumers could be owed an average of 70 pounds (around $90), depending on how long they've been paying Apple for iCloud services. "Anyone who has 'obtained' iCloud services, including non-paying users, over the nine-year timeframe since the Consumer Rights Act came into force on October 1st, 2015," will be included in the claim. U.K.-based consumers will have to opt-out if they do not want to be included. "Consumers who live outside the U.K. and believe they are eligible to be included must actively opt-in to join the action," adds TechCrunch.