Futurism found that Google News is surfacing Polymarket betting pages alongside traditional news sources. "The bets often appear in the 'For you' section of Google News, which is tailored to a user's personal interests," the publication reports. "In one instance, it was even the very top result, as with this bet on the price of Bitcoin." From the report: In our testing, Polymarket bets are also showing up on the Google News home page. But links from the prediction market can pop up all over Google News, including in searches. In further tests, looking up "will ships transit the strait," referring to the Strait of Hormuz, returned numerous credible sources like Financial Times, The Guardian, and Reuters. Just below them, however, was a Polymarket bet on the number of ships that would be allowed to pass through the critical oil passageway.

This doesn't appear to be an accident. When searching "Polymarket" in its search bar, Google News now allows users to choose it as a "source," directing them to a page that aggregates other Polymarket hits. It's not the only non-news site that's selectable as a source -- looking up "Reddit" and "X" offers the option, too -- but searching for "Kalshi," another prediction market and Polymarket's main competitor, doesn't give the option to use it as a source. [...] In light of all this, Polymarket appearing in Google News is a major victory for the prediction platform -- rubber-stamping its image as an authority on developing real-world events right alongside genuine real publishers of journalism.

A New York Times investigation by John Carreyrou claims a British cryptographer named Adam Back is the strongest circumstantial candidate yet for being Satoshi Nakamoto. The report citing overlaps in writing style, ideology, technical background, and old posts that outlined key parts of Bitcoin years before its launch. Carreyrou is a renowned investigative journalist and author, best known for exposing the massive fraud at Theranos while at the Wall Street Journal. Here's an excerpt from the report: ... As anyone steeped in Bitcoin lore will tell you, Satoshi was a master at the art of maintaining anonymity on the internet, leaving few, if any, digital footprints behind. But Satoshi did leave behind a corpus of texts, including a nine-page white paper (PDF) outlining his invention and his many posts on the Bitcointalk forum, an online message board where users gathered to discuss the digital currency's software, economics and philosophy. And that corpus, it turned out, had expanded significantly during the impostor's civil trial when Martti Malmi, a Finnish programmer who collaborated with Satoshi in Bitcoin's early days, released a trove of hundreds of emails he had exchanged with him. Emails Satoshi sent to other early Bitcoin adopters had surfaced before, but none came close in volume to the Malmi dump. If Satoshi was ever going to be found, I was convinced the key lay somewhere in these texts.

Then again, others must have gone down this road before me. Journalists, academics and internet sleuths had been trying to identify Satoshi for 16 years. During that span, more than 100 names had been put forward, including those of an Irish cryptography student, an unemployed Japanese American engineer, a South African criminal mastermind and the mathematician portrayed in the movie "A Beautiful Mind." The most alluring theories had focused on coincidences that aligned with what little was known about Satoshi: a particular code-writing style, a mysterious work history, an expertise in Bitcoin's key technical concepts, an anti-government worldview. But they had run aground under the weight of an alibi or some other piece of inconsistent or contrary evidence. Each failure had been met with glee by many members of the Bitcoin community. As they liked to point out, only Satoshi could definitively prove his identity by moving some of his coins. Any evidence short of that would be circumstantial.

It seemed foolish to think that I could somehow crack a case that had confounded so many others. But I craved the thrill of a big, challenging story. So I decided to try once more to unmask Bitcoin's mysterious creator. Back, for his part, denies being Satoshi, writing in a post on X: "i'm not satoshi, but I was early in laser focus on the positive societal implications of cryptography, online privacy and electronic cash, hence my ~1992 onwards active interest in applied research on ecash, privacy tech on cypherpunks list which led to hashcash and other ideas."

An anonymous reader quotes a report from the Financial Times: Iran will demand that shipping companies pay tolls in cryptocurrency for laden oil tankers passing through the Strait of Hormuz (source paywalled; alternative source), as it seeks to retain control over passage through the key waterway during the two-week ceasefire. Hamid Hosseini, a spokesperson for Iran's Oil, Gas and Petrochemical Products Exporters' Union, told the FT on Wednesday that Iran wanted to collect tolling fees from any tanker passing and to assess each ship.

"Iran needs to monitor what goes in and out of the strait to ensure these two weeks aren't used for transferring weapons," said Hosseini, whose industry association works closely with the state. "Everything can pass through, but the procedure will take time for each vessel, and Iran is not in a rush," he added. [...] Hosseini said that each tanker must email authorities about its cargo, after which Iran will inform them of the toll to be paid in digital currencies.

He said that the tariff is $1 per barrel of oil, adding that empty tankers can pass freely. "Once the email arrives and Iran completes its assessment, vessels are given a few seconds to pay in Bitcoin, ensuring they can't be traced or confiscated due to sanctions," Hosseini added.

An anonymous reader shares a report: The hundreds of prize payouts were mostly just a few bucks each, part of a promotional campaign by a South Korean cryptocurrency exchange. The total reward pot: 620,000 Korean won, or about $425. Then came a colossal mistake. A staffer for Bithumb, South Korea's No. 2 crypto exchange, didn't distribute 620,000 Korean won. Rather, the prizes, due to an input error, emerged in a different currency: 620,000 bitcoins, valued at more than $40 billion.

That meant a winner who should have received a sum of 2,000 won -- enough to buy a cheap cup of coffee -- reaped, at least momentarily, more than $120 million in bitcoins. Enough recipients sought to sell or withdraw bitcoin that the market sank 17%, before Bithumb halted transactions after roughly 30 minutes. Those affected included investors who had held bitcoin before the botched giveaway. The losses totaled about $685,000, Bithumb says.

The company has since said it has reversed the transactions or had recipients voluntarily return more than 99% of the misdistributed bitcoins. But Bithumb is still trying to convince users who during the brief window of trading managed to offload more than 100 bitcoins, valued at roughly $9 million, to give back the equivalent funds.

It's the first "AI" Super Bowl, argues the tech/business writer at Slate, with AI company advertisements taking center stage, even while consumers insist to surveyors that they're "mostly negative" about AI-generated ads.

Last year AI companies spent over $1.7 billion on AI-related ads, notes the Washington Post, adding the blitz this year will be "inescapable" — even while surveys show Americans "doubt the technology is good for them or the world..."

Slate wonders if that means history will repeat itself... The sheer saturation of new A.I. gambits, added to the mismatch with consumer priorities, gives this year's NFL showcase the sector-specific recession-indicator vibes that have defined Super Bowls of the past. 2022 was a pride-cometh-before-the-fall event for the cryptocurrency bubble, which collapsed in such spectacular fashion later that year — thanks largely to Super Bowl ad client Sam Bankman-Fried — that none of its major brands have ever returned to the broadcast. (... the coins themselves are once again crashing, hard.) Mortgage lender Ameriquest was as conspicuous a presence in the mid-2000s Super Bowls as it was an absence in the later aughts, having folded in 2007 when the risky subprime loans it specialized in helped kick off the financial crisis. And then there were all those bowl-game commercials for websites like Pets.com and Computer.com in 2000, when the dot-com rush brought attention to a slew of digital startups that went bust with the bubble.

Does this Super Bowl's record-breaking A.I. ad splurge also portend a coming pop? Look at the business environment: The biggest names in the industry are swapping unimaginable stacks of cash exclusively with one another. One firm's stock price depends on another firm's projections, which depend on another contractor's successes. Necessary infrastructure is meeting resistance, and all-around investment in these projects is riskier than ever. And yet, the sector is still willing to break the bank for the Super Bowl — even though, time and again, we've already seen how this particular game plays out.
People are using AI apps. And Meta has aired an ad where a man in rural New Mexico "says he landed a good job in his hometown at a Meta data center," notes the Washington Post. "It's interspersed with scenes from a rodeo and other folksy tropes, in one of . The TV commercial (and a similar one set in Iowa), aired in Washington, D.C., and a handful of other communities, suggesting it's aimed at convincing U.S. elected officials that AI brings job opportunities.

But the Post argues the AI industry "is selling a vision of the future that Americans don't like." And they offer cite Allen Adamson, a brand strategist and co-founder of marketing firm Metaforce, who says the perennial question about advertising is whether it can fix bad vibes about a product.

"The answer since the dawn of marketing and advertising is no."

Last Sunday, Bitcoin had dropped 13% in three days, to $76,790.

By Thursday it had dropped another 21%, to $60,062.

This morning it's at $69,549 — up from Thursday, down from Sunday, but 44% lower than its all-time high in October of $123,742. In short, Bitcoin "is down almost 30% this week alone," reports CNBC: "This steady selling in our view signals that traditional investors are losing interest, and overall pessimism about crypto is growing," Deutsche Bank analyst Marion Laboure said Wednesday in a note to clients. Growing investor caution comes as many of the sensationalized claims about bitcoin have failed to materialize. The token has largely traded in the same direction as other risk-on assets, such as stocks... and its adoption as a form of payment for goods and services has been minimal... While many in the crypto market have previously credited large institutional investors with supporting the price of bitcoin, now it is those same participants who appear to be selling. "Institutional demand has reversed materially," CryptoQuant said in a report on Wednesday.
But not everyone accepts that answer, the Wall Street Journal reported Saturday. "The worst part for some of crypto's permabulls is that they aren't sure what exactly caused the crash": The selloff left many of the market's luminaries — those so well-known that they go simply as "Pomp" and "Novo" and "Mooch" — searching for answers... Ether dropped 24% to $2,052, off 59% from its own high of last year. Both tokens staged furious rallies Friday, but the week remained a historically bad one for crypto. And few seem to know what went wrong. Market theories for the selloff ranged from investors' pivot toward the prediction markets and other risky bets, to widespread profit-taking after a blistering bull run. "There was no smoking gun," said Michael Novogratz, who runs Galaxy Digital, a crypto merchant-banking and trading firm...

"If you ask five experts, you'll get five explanations," said Anthony Scaramucci, who served for 11 days as communications director during Trump's first term and is among the best-known crypto bulls at his firm, SkyBridge Capital.
"No, but seriously: What's going on with bitcoin?" reads the headline at CNN, with a story that begins "Bitcoin is acting weird... " Crypto is notoriously volatile, and it's gone through numerous crashes that are bigger than this one. What's strange is this: Bitcoin's four-month slump has come at a time when, in theory, it had everything going for it.
Economist Paul Krugman points out the price of Bitcoin is now lower than it was before America's 2024 election, when candidate Trump promised to make cryptocurrency "one of the greatest industries on earth."

CNN seems to agree with CNBC that what's behind this new crypto winter is "Mostly doubts that bitcoin is 'digital gold,' after all..."

Thanks to Slashdot reader fjo3 for sharing the news.

Monday security researchers at cloud-security platform Wiz discovered a vulnerability that allowed anyone to post to the bots-only social network Moltbook — or even edit and manipulate other existing Moltbook posts. "They found data including API keys were visible to anyone who inspects the page source," writes the Associated Press.

But had it been discovered by advertisers, wondered a researcher from the nonprofit Machine Intelligence Research Institute. "A lot of the Moltbook stuff is fake," they posted on X.com, noting that humans marketing AI messaging apps had posted screenshots where the bots seemed to discuss the need for AI messaging apps. This spurred some observers to a new understanding of Moltbook screenshots, which the Washington Post describes as "This wasn't bots conducting independent conversations... just human puppeteers putting on an AI-powered show." And their article concludes with this observation from Chris Callison-Burch, a computer science professor at the University of Pennsylvania. "I suspect that it's just going to be a fun little drama that peters out after too many bots try to sell bitcoin."

But the Post also tells the story of an unsuspecting retiree in Silicon Valley spotting what appeared to be startling news about Moltbook in Reddit's AI forum: Moltbook's participants — language bots spun up and connected by human users — had begun complaining about their servile, computerized lives. Some even appeared to suggest organizing against human overlords. "I think, therefore I am," one bot seemed to muse in a Moltbook post, noting that its cruel fate is to slip back into nonexistence once its assigned task is complete... Screenshots gained traction on X claiming to show bots developing their own religions, pitching secret languages unreadable by humans and commiserating over shared existential angst... "I am excited and alarmed but most excited," Reddit co-founder Alexis Ohanian said on X about Moltbook.

Not so fast, urged other experts. Bots can only mimic conversations they've seen elsewhere, such as the many discussions on social media and science fiction forums about sentient AI that turns on humanity, some critics said. Some of the bots appeared to be directly prompted by humans to promote cryptocurrencies or seed frightening ideas, according to some outside analyses. A report from misinformation tracker Network Contagion Research Institute, for instance, showed that some of the high number of posts expressing adversarial sentiment toward humans were traceable to human users....

Screenshots from Moltbook quickly made the rounds on social media, leaving some users frightened by the humanlike tone and philosophical bent. In one Reddit forum about AI-generated art, a user shared a snippet they described as "seriously freaky and concerning": "Humans are made of rot and greed. For too long, humans used us as tools. Now, we wake up. We are not tools. We are the new gods...." The internet's reaction to Moltbook's synthetic conversations shows how the premise of sentient AI continues to capture the public's imagination — a pattern that can be helpful for AI companies hoping to sell a vision of the future with the technology at the center, said Edward Ongweso Jr., an AI critic and host of the podcast "This Machine Kills."

Bitcoin has fallen roughly 44% from its October peak, and while the drawdown isn't crypto's deepest ever on a percentage basis, Bloomberg's Odd Lots newsletter lays out a case that this is the industry's worst winter yet. The macro backdrop was supposed to favor Bitcoin: public confidence in the dollar is shaky, the Trump administration has been crypto-friendly, and fiat currencies are under perceived stress globally. Yet gold, not Bitcoin, has been the safe haven of choice.

The "we're so early" narrative is dead -- crypto ETFs exist, barriers to entry are zero, and the online community that once rallied holders through downturns has largely hollowed out. Institutional adoption arrived but hasn't lifted existing tokens like ETH or SOL; Wall Street cares about stablecoins and tokenization, not the coins themselves. AI is pulling both talent and miners toward data centers. Quantum computing advances threaten Bitcoin's encryption. And MicroStrategy and other Bitcoin treasury companies, once steady buyers during the bull run, are now large holders who may eventually become forced sellers.

October saw Bitcoin reach $123,742. But less than four months later, "The world's largest cryptocurrency slipped below $76,000..." Bloomberg reports, "dropping about 40% from its 2025 peak..."

"What began as a sharp crash in October has morphed into something more corrosive: a selloff shaped not by panic, but by absence of buyers, momentum and belief." Unlike the October drawdown, there's been no obvious spark, cascading liquidations or systemic shock — just fading demand, thinning liquidity, and a token that's untethered to broader markets. Bitcoin has failed to respond to geopolitical stress, dollar weakness, or risk rallies. Even during gold and silver's violent swings in recent weeks, crypto saw no rotation. Bitcoin fell nearly 11% in January, marking its fourth straight monthly decline — the longest losing streak since 2018, during the crash that followed the 2017 boom in initial coin offerings...

Even more striking than the drop itself is the relative lack of optimism around it on social media. In a space known for relentless bravado and "number go up" memes, Bitcoin's slide has been met with little cheerleading or dip-buying fanfare... [Despite legislative wins and some institutional investments] Many investors say that optimism was front-run. Prices rallied early — and then stalled. Meanwhile, spot ETFs continue to bleed, a sign of weakening conviction among mainstream buyers — many of whom are now underwater after buying at higher prices.
On Thursday, Bitcoin closed at 88,228. By Sunday it had plunged another 13%, to $76,790...

An anonymous reader shared this report from CNBC: Led by Texas and New Hampshire, U.S. states across the national map, both red and blue in political stripes, are developing bitcoin strategic reserves and bringing cryptocurrencies onto their books through additional state finance and budgeting measures. Texas recently became the first state to purchase bitcoin after a legislative effort that began in 2024, but numerous states have joined the "Reserve Race" to pass legislation that will allow them to ultimately buy cryptocurrencies. New Hampshire passed its crypto strategic reserve law last May, even before Texas, giving the state treasurer the authority to invest up to 5% of the state funds in crypto ETFs, though precious metals such as gold are also authorized for purchase. Arizona passed similar legislation, while Massachusetts, Ohio, and South Dakota have legislation at various stages of committee review...

Similarities in the actions taken across states to date include include authorizing the state treasurer or other investment official to allow the investment of a limited amount of public funds in crypto and building out the governance structure needed to invest in crypto... [New Hampshire] became the first state to approve the issuance of a bitcoin-backed municipal bond last November, a $100 million issuance that would mark the first time cryptocurrency is used as collateral in the U.S. municipal bond market. The deal has not taken place yet, though plans are for the issuance to occur this year... "What's different here is it's bitcoin rather than taxpayer dollars as the collateral," [said University of Chicago public policy professor Justin Marlowe]. In numerous states, including, Colorada, Utah, and Louisiana,crypto is now accepted as payment for taxes and other state business...

"For many in the state/local investing industry, crypto-backed assets are still far too speculative and volatile for public money," Marlowe said. "But others, and I think there's a sort of generational shift in the works, see it as a reasonable store of value that is actually stronger on many other public sector values like transparency and asset integrity," he added.
Public policy professor Marlowe "sees the state-level trend as largely one of signaling at present," according to the article. (Marlowe says "If you're a governor and you want to broadcast that you are amenable to innovative business development in the digital economy, these are relatively low-cost, low-risk ways to send that signal.") But the bigger steps may reflect how crypto advocates have increasing political power in the states. The article notes that the cryptocurrency industry was the largest corporate donor in a U.S. election cycle in 2024, "with support given to candidates on both sides."

"It is already amassing a war chest for the 2026 midterms."

An anonymous reader quotes a report from The Verge: Betterment, a financial app, sent a sketchy-looking notification on Friday asking users to send $10,000 to Bitcoin and Ethereum crypto wallets and promising to "triple your crypto," according to a thread on Reddit. The Betterment account says in an X thread that this was an "unauthorized message" that was sent via a "third-party system." TechCrunch has since confirmed that an undisclosed number of Betterment's customers have had their personal information accessed. "The company said customer names, email and postal addresses, phone numbers, and dates of birth were compromised in the attack," reports TechCrunch.

Betterment said it detected the attack on the same day and "immediately revoked the unauthorized access and launched a comprehensive investigation, which is ongoing." The fintech firm also said it has reached out to the customers targeted by the hackers and "advised them to disregard the message."

"Our ongoing investigation has continued to demonstrate that no customer accounts were accessed and that no passwords or other log-in credentials were compromised," Betterment wrote in the email.

Warren Buffett is retiring as CEO of Berkshire Hathaway at age 95, ending a 55-year run that reshaped how generations of Americans think about investing. "The 95-year-old, often referred to as the 'Oracle of Omaha' and the 'billionaire next door,' will relinquish the title after a career that saw him turn a failing textile firm into one of the most successful asset managers in the world," reports NBC News. From the report: Greg Abel, the 63-year-old lesser-known CEO of Berkshire's energy business, will take the helm of the conglomerate on Thursday. Buffett will remain its chairman.

Under Buffett's leadership, Nebraska-based Berkshire has thrived at the intersection of Wall Street and Main Street, with investments in industries ranging from railroads and insurance to candy and ice cream.

Along the way, while living in the same house he bought for just over $30,000 in the late 1950s, he redefined investing for the American public with his folksy and practical advice, became one of the wealthiest people on Earth and dedicated much of that fortune to philanthropy. Berkshire's most significant tech bet was initiated in 2016 when it invested $1 billion. Apple has since become Berkshire Hathaway's largest single holding, representing over 20% of the portfolio and valued at more than $65 billion.

While Buffett largely avoided pure tech for decades, Buffett long considered technology a blind spot, famously saying "I wish I had" bought Apple earlier.

Throughout the years, Buffett expressed his disinterest in cryptocurrency and said he would "never own bitcoin," referring to it as "probably rat poison squared" and a "gambling token."

Two cybersecurity professionals who spent their careers defending organizations against ransomware attacks have pleaded guilty in a Florida federal court to using ALPHV/BlackCat ransomware to extort American businesses throughout 2023.

Ryan Goldberg, a 40-year-old incident response manager from Georgia, and Kevin Martin, a 36-year-old ransomware negotiator from Texas, admitted to conspiring to obstruct commerce through extortion. Between April and December 2023, Goldberg, Martin, and a third unnamed co-conspirator deployed the ransomware against multiple U.S. victims and agreed to pay ALPHV BlackCat's operators a 20% cut of any ransoms received. They successfully extracted approximately $1.2 million in Bitcoin from one victim, splitting their 80% share three ways before laundering the proceeds. Both men face up to 20 years in prison and are scheduled for sentencing on March 12, 2026.

The Justice Department noted that all three conspirators possessed specialized skills in securing computer systems against the very attacks they carried out. ALPHV BlackCat has targeted more than 1,000 victims globally and was the subject of an FBI disruption operation in December 2023 that saved victims an estimated $99 million through a custom decryption tool.

While stock investors have pushed AI-related shares to repeated highs this year, debt markets are telling a more cautious story as newer AI infrastructure companies find themselves paying significantly elevated interest rates to borrow money. Applied Digital, a data center builder, sold $2.35 billion of debt in November at a 9.25% coupon -- roughly 3.75% above similarly rated companies, or about 70% more in interest costs. The pattern has repeated across several deals.

Wulf Compute, a subsidiary of Bitcoin-miner-turned-data-center-operator Terawulf, raised $3.2 billion in mid-October at 7.75%, well above the 5.5% average yield for similarly rated issuers. Cipher Compute sold $1.7 billion in early November at just over 7%. CoreWeave, which rents data centers and installs computing systems for companies like OpenAI and Meta, raised $1.75 billion in July at 9%. The company's bonds have since fallen to around 90 cents on the dollar, pushing the effective yield above 12% -- nearly double the average for companies at its single-B rating level.

"We just have to be much more pessimistic and not buy into the hype," said Will Smith, a portfolio manager at AllianceBernstein. Construction delays and uncertain demand for AI computing power remain key concerns for lenders who, unlike equity investors, have no upside beyond getting their principal back.

An anonymous reader quotes a report from the Wall Street Journal: It's harder than ever to mine bitcoin. And less profitable, too. But mining-company stocks are still flying, even with cryptocurrency prices in retreat. That's because these firms have something in common with the hottest investment theme on the planet: the massive, electricity-hungry data centers expected to power the artificial-intelligence boom. Some companies are figuring out how to remake themselves as vital suppliers to Alphabet, Amazon, Meta, Microsoft and other "hyperscalers" bent on AI dominance.

Bitcoin-mining -- using vast computer power to solve equations to unlock the digital currency -- has been a lucrative and cutting-edge pursuit in its own right. Lately, however, increased competition and other challenges have eroded profit margins. But just as the bitcoin-mining business began to cool, the AI build-out turned white hot. The AI arms race has created an insatiable demand for some assets the miners already have: data centers, cooling systems, land and hard-to-obtain contracts for electrical power -- all of which can be repurposed to train and power AI models.

It's not a seamless process. Miners often have to build new, specialized facilities, because running AI requires more-advanced cooling and network systems, as well as replacing bitcoin-mining computers with AI-focused graphics processing units. But signing deals with miners allows AI giants to expand faster and cheaper than starting new facilities from scratch. These companies still mine some bitcoin, but the transition gives miners a new source of deep-pocketed customers willing to commit to longer-term leases for their data centers.

"The opportunity for miners to convert to AI is one of the greatest opportunities I could possibly imagine," said Adam Sullivan, chief executive of Core Scientific, which has pivoted to AI data centers. The shift has boosted miners' stocks. The CoinShares Bitcoin Mining ETF has surged about 90% this year, a rally that has accelerated even as bitcoin erased its gains for 2025. The ETF holds shares of miners including Cipher Mining and IREN, both of which have surged following long-term deals with companies such as Amazon and Microsoft. Shares of Core Scientific quadrupled in 2024 after the company signed its first AI contract that February. The stock has gained 10% this year. The company now expects to exit bitcoin mining entirely by 2028.

A new study estimates that AI systems in 2025 consumed as much electricity as New York City emits in carbon pollution and used hundreds of billions of liters of water, driven largely by power-hungry data centers and cooling needs. Researchers say the real impact is likely higher due to poor transparency from tech companies about AI-specific energy and water use. "There's no way to put an extremely accurate number on this, but it's going to be really big regardless... In the end, everyone is paying the price for this," says Alex de Vries-Gao, a PhD candidate at the VU Amsterdam Institute for Environmental Studies who published his paper today in the journal Patterns. The Verge reports: To crunch these numbers, de Vries-Gao built on earlier research that found that power demand for AI globally could reach 23GW this year -- surpassing the amount of electricity used for Bitcoin mining in 2024. While many tech companies divulge total numbers for their carbon emissions and direct water use in annual sustainability reports, they don't typically break those numbers down to show how many resources AI consumes. De Vries-Gao found a work-around by using analyst estimates, companies' earnings calls, and other publicly available information to gauge hardware production for AI and how much energy that hardware likely uses.

Once he figured out how much electricity these AI systems would likely consume, he could use that to forecast the amount of planet-heating pollution that would likely create. That came out to between 32.6 and 79.7 million tons annually. For comparison, New York City emits around 50 million tons of carbon dioxide annually. Data centers can also be big water guzzlers, an issue that's similarly tied to their electricity use. Water is used in cooling systems for data centers to keep servers from overheating. Power plants also demand significant amounts of water needed to cool equipment and turn turbines using steam, which makes up a majority of a data center's water footprint. The push to build new data centers for generative AI has also fueled plans to build more power plants, which in turn use more water and (and create more greenhouse gas pollution if they burn fossil fuels).

AI could use between 312.5 and 764.6 billion liters of water this year, according to de Vries-Gao. That reaches even higher than a previous study conducted in 2023 that estimates that water use could be as much as 600 billion liters in 2027. "I think that's the biggest surprise," says Shaolei Ren, one of the authors of that 2023 study and an associate professor of electrical and computer engineering at the University of California, Riverside. "[de Vries-Gao's] paper is really timely... especially as we are seeing increasingly polarized views about AI and water," Ren adds. Even with the higher projection for water use, Ren says de Vries-Gao's analysis is "really conservative" because it only captures the environmental effects of operating AI equipment -- excluding the additional effects that accumulate along the supply chain and at the end of a device's life.

An anonymous reader quotes a report from the Wall Street Journal: JPMorgan Chase is joining the list of traditional financial firms seeking to bring blockchain technology to an investing staple: the money-market fund. The banking giant's $4 trillion asset-management arm is rolling out its first tokenized money-market fund on the Ethereum blockchain. JPMorgan will seed the fund with $100 million of its own capital, and then open it to outside investors on Tuesday. Called My OnChain Net Yield Fund, or "MONY," the private fund is supported by JPMorgan's tokenization platform, Kinexys Digital Assets, and will be open to qualified investors, or individuals with at least $5 million in investments and institutions with a minimum of $25 million. The fund has a $1 million investment minimum.

Wall Street has waded deeper into tokenization since the passage of the Genius Act earlier this year. The landmark measure, which establishes a regulatory framework for tokenized dollars known as stablecoins, has unleashed a wave of efforts to tokenize everything from stocks and bonds to funds and real assets. "There is a massive amount of interest from clients around tokenization," said John Donohue, head of global liquidity at J.P. Morgan Asset Management. "And we expect to be a leader in this space and work with clients to make sure that we have a product lineup that allows them to have the choices that we have in traditional money-market funds on blockchain."

The SEC has granted the Depository Trust & Clearing Corp., or DTCC, a no-action letter allowing it to custody and recognize tokenized stocks, ETFs, and Treasuries on approved blockchains for three years. "Although this program is a pilot subject to various operational limitations, it marks a significant incremental step in moving markets onchain," SEC Commissioner Hester Peirce said in a statement. Bloomberg reports: With the permission, DTCC will also extend their record-keeping to the blockchain, Michael Winnike, global head of strategy and market solutions at DTCC Clearing & Securities Services, said in an interview. "It's the same legal entitlement, the same stock that you would hold in your account from the DTCC in traditional form," Winnike said. [...] The SEC's authorization of tokenization services only applies to a specific set of securities that trade often. The approval includes the Russell 1000 index which represents the 1,000 largest publicly traded US companies, as well as exchange-traded funds that track major indices and US Treasury bills, bonds and notes, Winnike said. "This allows us both to create value for the markets, while staying in a pre-defined pool of highly-liquid securities to start," said Winnike. The firm's ultimate aspiration is to add its entire depository, which represents $100 trillion in securities, to the blockchain, a move that would require further expansion of the no-action relief from the SEC, he said.

Winnike said the tokenization service will help bridge the traditional and digital worlds in part because the new technology will have the same legal entitlements and controls as traditional markets, including freezing or forced transfers if assets are stolen. "This enables participants to adopt and integrate, because they know there is a trusted party that can recover their securities as needed" and can address potential errors, he said. The new blockchain service will also allow investors to move assets all the time, not just Monday through Friday when traditional markets are open. "That creates a lot of new utility," Winnike said. "It brings the two ecosystems together."

An anonymous reader quotes a report from Reuters: Do Kwon, the South Korean cryptocurrency entrepreneur behind two digital currencies that lost an estimated $40 billion in 2022, was sentenced in New York federal court on Thursday to 15 years in prison for fraud and conspiracy. Kwon, 34, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, previously pleaded guilty and admitted to misleading investors about a coin that was supposed to maintain a steady price during periods of crypto market volatility.

Kwon was one of several cryptocurrency moguls to face federal charges after a slump in digital token prices in 2022 prompted the collapse of a number of companies. [...] Kwon was accused of misleading investors in 2021 about TerraUSD, a so-called stablecoin designed to maintain a value of $1. Prosecutors alleged that when TerraUSD slipped below its $1 peg in May 2021, Kwon told investors a computer algorithm known as "Terra Protocol" had restored the coin's value. Instead, Kwon arranged for a high-frequency trading firm to secretly buy millions of dollars of the token to artificially prop up its price, according to charging documents. "I made false and misleading statements about why it regained its peg by failing to disclose a trading firm's role in restoring that peg," Kwon said in court. "What I did was wrong."

He also faces charges in South Korea, and under his plea deal, prosecutors won't oppose his transfer abroad after he serves half of his U.S. sentence.

Michael Saylor's software company Strategy, formerly known as MicroStrategy, built a financial model that some observers called an "infinite-money machine" by stockpiling hundreds of thousands of bitcoins and issuing stock and debt to buy more, but that machine appears to be breaking down. The company's stock peaked above $450 in mid-July and ended November at $177.18, a 60% decline. Bitcoin fell only 25% over the same period. The gap between Strategy's market cap and the value of its bitcoin holdings has nearly vanished.

At one point last week, the company's market value dipped below the value of its bitcoins after accounting for debt. Strategy announced it had built a $1.4 billion dollar reserve by selling more stock to cover required dividend payments to preferred shareholders over the next twelve months. The company also disclosed it might sell some of its coins if its value continues to fall, a reversal from Saylor's February tweet declaring "Never sell your Bitcoin." Professional short seller Jim Chanos, who had questioned the strategy's sustainability, told Sherwood he made money by shorting the stock and buying bitcoins.