The FBI searched the Texas home of a 20-year-old man accused of throwing a Molotov cocktail at Sam Altman's San Francisco residence. Authorities say the suspect also made threats at OpenAI's headquarters, and reports indicate he had written extensively about fears over AI and opposition to AI executives.

The suspect reportedly authored a Substack blog and was a member of the Discord server PauseAI, an activist group focused on banning the development of the most powerful AI models to protect the public. In one post, they wrote: "These machines have already shown themselves to be unaligned with the interest of the people creating them. Models have often been found lying, cheating on tasks, and blackmailing their own creators whenever convenient; let alone the broader question of aligning them to whatever general 'human interest' may be." The Houston Chronicle reports: The search happened hours before the Justice Department charged 20-year-old Daniel Moreno-Gama with possession of an unregistered firearm and damage and destruction of property by means of explosives. An FBI spokesperson on Monday morning confirmed agents were executing a search warrant in Spring, but provided no other information.

Around the same time, FOX News reported the search was being conducted at the home of Daniel Moreno-Gama, 20, who last week was arrested by San Francisco police suspicion of attempted murder, making criminal threats and possession of a destructive device. The charges were first reported by the Associated Press. When Moreno-Gama was arrested Friday, he was carrying a document that "identified views opposed to Artificial Intelligence (AI) and the executives of various AI companies," the Associated Press reported. Moreno-Gama has no criminal history in Harris or Montgomery counties, according to public records. [...] Agents had left the cul-de-sac by 1 p.m. It was unclear if they removed any items from the house. Another incident occurred outside Sam Altman's residence early Sunday morning. "Early Sunday morning, a car stopped and appears to have fired a gun at the Russian Hill home of OpenAI's CEO," reports The San Francisco Standard, citing reports from the local police department. Two suspects were arrested and booked for negligent discharge.

UPDATE: The suspect has been charged with attempted murder.

Arizona state prosecutors allege Kalshi is running an illegal gambling operation, charging the prediction market with 20 "wagering" misdemeanors. But Friday a federal judge "temporarily barred Arizona from enforcing its gambling laws against predictive market operators," reports the Associated Press, "and put the brakes on a criminal wagering case that the state has filed against Kalshi.

"U.S. District Judge Michael Liburdi's ruling means a Monday arraignment hearing for Kalshi has been called off." The order was issued in a lawsuit filed by the Trump administration. The judge's order said the federal Commodity Futures Trading Commission had sufficiently shown that "event contracts" fall within the Commodity Exchange Act's definition of "swaps," and that it had demonstrated a reasonable chance of success in showing that the act preempts Arizona law... The commission had sued Arizona in response to cease-and-desist letters sent to Kalshi from state gambling regulators and the criminal charges filed against the prediction market operator. The commission argued Arizona is intruding on its exclusive federal power to regulate national swaps markets...

Earlier this month, the federal government filed lawsuits against Connecticut, Arizona and Illinois challenging their efforts to regulate prediction market operators. The Trump administration has so far backed the platforms. President Donald Trump's eldest son is an adviser for both Kalshi and Polymarket and an investor in the latter. Trump's social media platform Truth Social is also launching its own cryptocurrency-based prediction market called Truth Predict.
Federal and state judges in Nevada and Massachusetts have now issued early rulings in favor of states looking to ban Kalshi and its competitor Polymarket from offering sports being in their states, according to the article, "while federal judges in New Jersey and Tennessee have ruled in favor of Kalshi."

And Arizona's attorney general's office said it disagrees with the court's ruling and "will evaluate our next steps."

San Francisco police arrested a suspect after a Molotov cocktail was allegedly thrown at Sam Altman's home and threats were later made outside OpenAI's headquarters. "Thankfully, no one was hurt," said OpenAI in a statement to WIRED. "We deeply appreciate how quickly SFPD responded and the support from the city in helping keep our employees safe. The individual is in custody, and we're assisting law enforcement with their investigation." From the report: "At approximately 3:45am PT, an unidentified individual approached Sam's residence and threw an incendiary device toward the property. The device landed nearby and extinguished. There were no injuries and only minimal damage was reported," the message to staff reads. "Shortly afterward, an individual matching the suspect's description was contacted by security outside MB1," the message continues, referring to OpenAI's headquarters in San Francisco's Mission Bay neighborhood. "This person made threatening statements about the building."

OpenAI's corporate security team told staff it is cooperating with law enforcement on an investigation, and that employees may notice an increased police and security presence around the office on Friday. The security team said that the company's offices remain open, but employees were advised to "not let anyone tailgate into the building."
"Officials subsequently confirmed that the suspect was arrested outside the OpenAI's Third Street offices as he threatened to burn down the building," reports the Financial Express.

UPDATE: Sam Altman has responded to the incident.

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."

One crime ring scammed 2,000 elderly people of more than $27 million between 2021 and 2023 using tech support/bank impersonation/refund scams. "Victims were in their 70s and 80s," reports the U.S. Attorney's office for California's southern district. Victims were first told they'd received a refund (either online or via phone), but then told they'd been "over-refunded" a massive amount, and asked to return that amount.

But 42-year-old Jiandong Chen just admitted Thursday in a U.S. federal court that he was involved in the fraud and money laundering via cryptocurrency — pleading guilty to two charges with maximum penalties of 40 years in prison and a $1 million fine, plus 20 years in prison with a maximum fine of $500,000 or twice the amount laundered. "Chen, a Chinese national, is the second defendant charged in a five-defendant indictment." And what tripped him up seems to be that "Certain members of the conspiracy also did in-person pickups of money directly from victims..."

And so YouTube enters the story — when the scammers called pranksters with 1,790,000 subscribers to their "Trilogy Media" channel. In an elaborate three-hour video, the team of pranksters lured the scammer to a rented Airbnb where they're staging a fake funeral with a nun. (One of the men acting in the video remembers "we start doing a prayer... I'm holding the scammer's hand in my nun outfit...")

They convince the scammer to collect the cash from a dead man — "Is there anything you'd like to say to him?" Then there's demon voices. The scammer's victim resurrects from the dead. Did the cash mule bring holy water?

The end result was a video titled "CONFRONTING SCAMMERS WITH A FAKE FUNERAL (EPIC REACTIONS)". But two and a half years later, their "cash mule sting house" video has racked up over 1.3 million views, 22,000 likes, and 2,979 comments. ("This video is longer than Oppenheimer. Thanks for the laughs fellas.")

And the scammer is facing 60 years in prison.

Anthropic's making a big and sudden change — and connecting its Claude AI to third-party agentic tools "is about to get a lot more expensive," writes the Verge: Beginning April 4th at 3PM ET, users will "no longer be able to use your Claude subscription limits for third-party harnesses including OpenClaw," according to an email sent to users on Friday evening. Instead, if users want to use OpenClaw with Claude, they'll have to use a "pay-as-you-go option" that will be billed separate from their Claude subscription.
Anthropic's announcement added these extra usage bundles are "now available at a discount." Users can also try Anthropic's API, notes VentureBeat, "which charges for every token of usage rather than allowing for open-ended usage up to certain limits, as the Pro and Max plans have allowed so far. " The technical reality, according to Anthropic, is that its first-party tools like Claude Code, its AI vibe coding harness, and Claude Cowork, its business app interfacing and control tool, are built to maximize "prompt cache hit rates" — reusing previously processed text to save on compute. Third-party harnesses like OpenClaw often bypass these efficiencies... [Claude Code creator Boris Cherny explained on X that "I did put up a few PRs to improve prompt cache hit rate for OpenClaw in particular, which should help for folks using it with Claude via API/overages."] Growth marketer Aakash Gupta observed on X that the "all-you-can-eat buffet just closed," noting that a single OpenClaw agent running for one day could burn $1,000 to $5,000 in API costs. "Anthropic was eating that difference on every user who routed through a third-party harness," Gupta wrote. "That's the pace of a company watching its margin evaporate in real time."

However, Peter Steinberger, the creator of OpenClaw who was recently hired by OpenAI, took a more skeptical view of the "capacity" argument."Funny how timings match up," Steinberger posted on X. "First they copy some popular features into their closed harness, then they lock out open source." Indeed, Anthropic recently added some of the same capabilities that helped OpenClaw catch-on — such as the ability to message agents through external services like Discord and Telegram — to Claude Code...

User @ashen_one, founder of Telaga Charity, voiced a concern likely shared by other small-scale builders: "If I switch both [OpenClaw instances] to an API key or the extra usage you're recommending here, it's going to be far too expensive to make it worth using. I'll probably have to switch over to a different model at this point."

"I know it sucks," Cherny replied. "Fundamentally engineering is about tradeoffs, and one of the things we do to serve a lot of customers is optimize the way subscriptions work to serve as many people as possible with the best mode..." OpenAI appears to be positioning itself as a more "harness-friendly" alternative, potentially using this moment as a customer acquisition channel for disgruntled Claude power users.

By restricting subscription limits to their own "closed harness," Anthropic is asserting control over the UI/UX layer. This allows them to collect telemetry and manage rate limits more granularly, but it risks alienating the power-user community that built the "agentic" ecosystem in the first place. Anthropic's decision is a cold calculation of margins versus growth. As Cherny noted, "Capacity is a resource we manage thoughtfully." In the 2026 AI landscape, the era of subsidized, unlimited compute for third-party automation is over. For the average user on Claude.ai, the experience remains unchanged; for the power users running autonomous offices, the bell has tolled.

An anonymous reader quotes a report from Bloomberg: Amazon will start charging sellers who use its shipping services a 3.5% "fuel and logistics" surcharge later this month, joining the ranks of shipping companies raising prices as the war in Iran pushes oil prices higher. The fees take effect on April 17 for customers of the company's Fulfillment by Amazon service -- which is used by many of the independent sellers who list their products on Amazon's retail sites -- in the US and Canada. Items shipped by Amazon on behalf of merchants who sell on their own sites or at other retailers will carry the surcharge beginning May 2. "Elevated costs in fuel and logistics have increased the cost of operating across the industry," Ashley Vanicek, an Amazon spokesperson, said on Thursday. "We have absorbed these increases so far, but similar to other major carriers, when costs remain elevated we implement temporary surcharges to partially recover these costs."

Vanicek notes that the fee will apply to the sum Amazon charges to ship an item, not the product's sale price.

Last month, USPS announced that it would impose its first-ever fuel surcharge on packages.

Chinese authorities have barred two Manus executives from leaving the country while investigating whether Meta's reported $2 billion acquisition of the Singapore-based AI startup violated foreign investment reporting rules. "Manus was founded in China but last year relocated its headquarters and core team to Singapore," notes the Financial Times. "Meta acquired it for $2 billion at the end of last year." The Financial Times reports: Manus's chief executive Xiao Hong and chief scientist Ji Yichao were summoned to a meeting in Beijing with the National Development and Reform Commission this month, according to three people with knowledge of the matter. They said Xiao and Ji were questioned on potential violations of foreign direct investment rules related to its onshore Chinese entities.

After the meeting, the Singapore-based executives were told they were not allowed to leave China because of a regulatory review, while they remain free to travel within the country, two of the people said. No formal investigation has been opened and no charges have been brought. Manus is actively seeking law firms and consultancies to help resolve the matter, said a person with knowledge of the move.

An anonymous reader quotes a report from TechCrunch: Senators Adam Schiff (D-CA) and John Curtis (R-UT) introduced (PDF) a bill on Monday that could prevent prediction market platforms Kalshi and Polymarket from allowing users to wager money on sports events or play casino-style games. This bipartisan bill would not apply to FanDuel and DraftKings, which are subject to state-by-state gambling laws, rather than federal ones. "Sports prediction contracts are sports bets -- just with a different name. And yet, these contracts are currently offered in all fifty states in clear violation of state and federal law," Schiff said in a statement.

Prediction markets like Kalshi and Polymarket are regulated under the Commodity Futures Trading Commission (CFTC), which is why Schiff and Curtis are able to address them under federal jurisdiction, rather than leaving them to state-regulated sportsbooks. But these senators argue that there isn't much of a difference in practice between betting on sports via federally or state-regulated apps. Kalshi's Super Bowl trading volume, for instance, reached over $1 billion this year -- a 2700% increase year-over-year. "Too many young people in Utah are getting exposed to addictive sports betting and casino-style gaming contracts that belong under state control, not under federal regulators," Curtis said in a statement. The report notes that Kalshi is temporarily banned in Nevada and is facing criminal charges in Arizona. "Kalshi may brand itself as a 'prediction market,' but what it's actually doing is running an illegal gambling operation and taking bets on Arizona elections, both of which violate Arizona law," Arizona Attorney General Kris Mayes said in a statement last week.

Longtime Slashdot reader AmiMoJo shares a report from CNN: The co-founder of Super Micro Computer and two others were charged with diverting $2.5 billion worth of servers with Nvidia's artificial intelligence chips to China, in violation of U.S. laws barring exports to that country without a license. Yih-Shyan Liaw, known as Wally; Ruei-Tsang Chang, known as Steven; and Ting-Wei Sun, known as Willy, were charged with conspiring to violate export control laws, smuggling goods from the U.S. and conspiring to defraud the U.S.

Liaw, who co-founded Super Micro Computer and served on its board of directors, was arrested Thursday in California and released on bail. Sun, a contractor, is held awaiting a detention hearing. Chang, who worked in the Taiwan office of Super Micro, remains at large. [...] According to the indictment, the men used a pass-through company based in Southeast Asia to place orders to obscure that the servers would end up in China. The men worked with executives at the pass-through company to provide false documents to the server manufacturer to further the deception, the indictment said. They used a shipping and logistic company to repackage the servers into unmarked boxes to conceal their contents before they were shipped to China.

To deceive the manufacturer's auditors, who checked the pass-through company for compliance with export laws, the men allegedly used "dummy" nonworking copies of the servers when the actual servers were on their way to China. Two of the defendants allegedly worked to stage the dummy servers at a warehouse rented by the pass-through company, according to the indictment. Sun took photos and videos of the staged servers to one of the compliance auditors who instead of conducting the audit was "off-site enjoying entertainment paid for" by the pass-through company, according to the indictment. In another instance, prosecutors said surveillance cameras documented individuals using hair dryers to remove labels and add labels and serial number stickers to the boxes and dummy servers. Super Micro said it's fully cooperating with the investigation, but that hasn't prevented its stock from plunging. It's down nearly 30% following the news.

The company issued the following statement: "The conduct by these individuals alleged in the indictment is a contravention of the Company's policies and compliance controls, including efforts to circumvent applicable export control laws and regulations. Supermicro maintains a robust compliance program and is committed to full adherence to all applicable U.S. export and re-export control laws and regulations."

Longtime Slashdot reader UnknowingFool writes: Rapper Afroman, born Joseph Edgar Foreman, famous for his 2000 hit "Because I Got High", has won a defamation lawsuit that seven Ohio police offers filed against him. A jury found he did not defame the officers in music videos he made about a 2022 police raid of his home. In August 2022, Adams County Sheriff's Department raided Afroman's home on suspicion of drug trafficking and kidnapping. Neither drugs nor kidnapping victims were found, and charges were never filed. However, local officials would not pay for damages occurred during the raid including a broken front door and a video surveillance camera. Afroman used his home security footage of the raid to create music rap videos criticizing the police over the incident; "Will You Help Me Repair My Door?", "Why You Disconnecting My Video Camera?", and "Lemon Pound Cake". He posted the videos on YouTube.

In March 2023, seven officers filed a lawsuit against Afroman for invasion of privacy and the unauthorized use of their images from the security footage in addition to defamation claims. The officers requested an injunction for Afroman to stop speaking about them or using their photos. The officers also wanted all proceeds from the videos, song sales, performances, and merchandise claiming they had suffered "emotional distress" due to the videos. Afroman's defense included Freedom of Speech rights to criticize public officials. The ACLU filed an amicus brief supporting the rapper, arguing that the lawsuit was a SLAPP suit only meant to silence criticism. In October 2023, the court agreed and dismissed the invasion of privacy, "right of publicity", and "unauthorized use of individual's persona" claims but allowed the defamation case to proceed.

Defamation claims by the officers included the allegation Afroman repeatedly had sex with the wife of Randolph L. Walters, Jr. When Afroman's lawyer asked Walters "But we all know that's not true, right?", the officer replied he did not know. Defamation from emotional damages requires that harm arise from a false statement; however, if a statement is so outrageous that no one would believe it to be true, then reputational damage cannot be a result.

Trevor Milton, the pardoned founder of Nikola, is seeking $1 billion for AI-powered autonomous planes through a new venture called SyberJet. The Tech Buzz reports: "Autonomous planes will be 10 times harder than Nikola ever was," Milton told the Wall Street Journal in a rare interview. It's a remarkable admission from someone whose last venture collapsed under the weight of securities fraud charges after he overstated the capabilities of Nikola's electric and hydrogen-powered trucks. Milton was convicted in 2022 on three counts of fraud for misleading investors about Nikola's technology, including staging a video that made it appear a truck prototype was driving under its own power when it was actually rolling downhill. The conviction sent him to prison and turned Nikola into a cautionary tale about startup hype culture. His pardon, which came earlier this year, sparked immediate controversy in venture capital and legal circles.

Now he's betting that AI and autonomous aviation represent a clean slate. SyberJet appears focused on developing artificial intelligence systems capable of piloting aircraft without human intervention - a technical challenge that's stumped even well-funded players like Boeing and Airbus. [...] Milton hasn't detailed SyberJet's technical approach or revealed who's backing the venture. The company's website remains sparse, and aviation industry sources say they haven't seen concrete demonstrations of the technology. That opacity echoes the early days of Nikola, when Milton made sweeping claims about revolutionary trucks that existed mostly in renderings and promotional videos. If you need a quick refresher on the Nikola saga, here's a timeline of key events:

June, 2016: Nikola Motor Receives Over 7,000 Preorders Worth Over $2.3 Billion For Its Electric Truck
December, 2016: Nikola Motor Company Reveals Hydrogen Fuel Cell Truck With Range of 1,200 Miles
February, 2020: Nikola Motors Unveils Hybrid Fuel-Cell Concept Truck With 600-Mile Range
June, 2020: Nikola Founder Exaggerated the Capability of His Debut Truck
September, 2020: Nikola Motors Accused of Massive Fraud, Ocean of Lies
September, 2020: Nikola Admits Prototype Was Rolling Downhill In Promo Video
September, 2020: Nikola Founder Trevor Milton Steps Down as Chairman in Battle With Short Seller
October, 2020: Nikola Stock Falls 14 Percent After CEO Downplays Badger Truck Plans
November, 2020: Nikola Stock Plunges As Company Cancels Badger Pickup Truck
July, 2021: Nikola Founder Trevor Milton Indicted on Three Counts of Fraud
December, 2021: EV Startup Nikola Agrees To $125 Million Settlement
September, 2022: Nikola Founder Lied To Investors About Tech, Prosecutor Says in Fraud Trial

Arizona has filed criminal charges against Kalshi, accusing it of operating an illegal gambling business. "Kalshi may brand itself as a 'prediction market,' but what it's actually doing is running an illegal gambling operation and taking bets on Arizona elections, both of which violate Arizona law," Arizona Attorney General Kris Mayes said in a statement. The case could ultimately head to the Supreme Court to decide whether federal oversight by the Commodity Futures Trading Commission overrides state gambling laws. Bloomberg reports: While state regulators have taken steps to crack down on what they say is unlicensed betting on Kalshi's site, Arizona appears to be the first state to escalate to criminal charges. The charges cited in the complaint are misdemeanors, which carry less serious penalties than felonies. [...] Prediction market exchanges like Kalshi have said they should continue to be regulated by the US Commodity Futures Trading Commission despite opposition from some state officials, who argue the trading should come under state gambling laws.

Arizona's criminal complaint follows Kalshi's move last week to block the state's gaming department from taking enforcement action against the company. "These are the first criminal charges of any kind filed against Kalshi in any court in the United States, but it will likely be the first of several," said Daniel Wallach, a sports and gaming attorney.

Mr. Dollar Ton shares a report from the Guardian: Angela Lipps, 50, spent nearly six months in jail after Fargo police identified her as a suspect in an organized bank fraud case using facial recognition software, according to south-east North Dakota news outlet InForum. Lipps told the outlet she had never been to North Dakota and did not commit the crimes. Lipps, a mother of three and grandmother of five, said she has lived most of her life in north-central Tennessee. She had never been on an airplane until authorities flew her to North Dakota last year to face charges.

In July, U.S. marshals arrested Lipps at her Tennessee home while she was babysitting four children. She said she was taken away at gunpoint and booked into a county jail as a fugitive from justice from North Dakota. "I've never been to North Dakota, I don't know anyone from North Dakota," Lipps told WDAY News. She remained in a Tennessee jail for nearly four months without bail while awaiting extradition. She was charged with four counts of unauthorized use of personal identifying information and four counts of theft.

According to Fargo police records obtained by WDAY News, detectives investigating bank fraud cases in April and May 2025 reviewed surveillance video of a woman using a fake U.S. army military ID to withdraw tens of thousands of dollars. The officers allegedly used facial recognition software to identify the suspect as Lipps. A detective reportedly wrote in court documents that Lipps appeared to match the suspect based on facial features, body type and hairstyle. Lipps told WDAY News that no one from the Fargo police department contacted her before the arrest. Lipps is now back home but says the experience has had lasting consequences. While jailed and unable to pay bills, Lipps lost her home, her car and her dog, she said. She also told WDAY News no one from the Fargo police department had apologized.

Longtime Slashdot reader AmiMoJo shares a report from 404 Media: Privacy-focused email provider Proton Mail provided Swiss authorities with payment data that the FBI then used to determine who was allegedly behind an anonymous account affiliated with the Stop Cop City movement in Atlanta, according to a court record reviewed by 404 Media. The records provide insight into the sort of data that Proton Mail, which prides itself both on its end-to-end encryption and that it is only governed by Swiss privacy law, can and does provide to third parties. In this case, the Proton Mail account was affiliated with the Defend the Atlanta Forest (DTAF) group and Stop Cop City movement in Atlanta, which authorities were investigating for their connection to arson, vandalism and doxing. Broadly, members were protesting the building of a large police training center next to the Intrenchment Creek Park in Atlanta, and actions also included camping in the forest and lawsuits. Charges against more than 60 people have since been dropped.

While serving his 25-year prison sentence, "convicted former cryptocurrency mogul Sam Bankman-Fried on Tuesday requested a new federal trial," reports Courthouse News, "based on what he says is newly discovered evidence concerning his company's solvency and its ability to repay all FTX customers for what prosecutors portrayed as the looting of $8 billion of his customers' money..." Bankman-Fried says evidence disclosed since his trial disproves prosecutors' case about Bankman-Fried's hedge fund running a multi-billion deficit of FTX customer funds, and instead shows that FTX always had sufficient assets to repay the cryptocurrency platform's customer deposits in full. "What it faced was a short-term liquidity crisis caused by a run on the exchange, not insolvency," he wrote...

Bankman-Fried also accuses the Department of Justice of coercing a guilty plea and cooperation deal from Nishad Singh — a close friend of Bankman-Fried's younger brother — who testified at trial as a cooperating witness... Bankman-Fried says in the motion that prior to being pressured into a guilty plea, Singh's initial proffer to investigators "contradicted key parts of the government's version of events. But following threats from the government, Mr. Singh changed his proffers to fit the government's narrative and pleaded guilty to charges carrying up to 75 years in prison, with a promise from the prosecution that it would recommend little or no jail time if it concluded that his assistance in prosecuting Mr. Bankman-Fried was 'substantial,'" he wrote in the petition...

Additionally, Bankman-Fried requested that U.S. District Judge Lewis Kaplan, who presided over his 2023 trial, recuse himself from ruling on this motion, "because of the manifest prejudice he has demonstrated towards Mr. Bankman-Fried."
"Bankman-Fried's mother, Stanford Law School professor Barbara Fried, filed his self-represented bid for a new trial on his behalf in Manhattan federal court..."

"They were crouched down like turkeys peeking over the balcony," the county sheriff told Ars Technica. A half hour past midnight, they were skulking through a courthouse in Iowa's Dallas County on September 11 "carrying backpacks that remind me and several other deputies of maybe the pressure cooker bombs." More deputies arrived... Justin Wynn, 29 of Naples, Florida, and Gary De Mercurio, 43 of Seattle, slowly proceeded down the stairs with hands raised. They then presented the deputies with a letter that explained the intruders weren't criminals but rather penetration testers who had been hired by Iowa's State Court Administration to test the security of its court information system. After calling one or more of the state court officials listed in the letter, the deputies were satisfied the men were authorized to be in the building.
But Sheriff Chad Leonard had the men arrested on felony third-degree burglary charges (later reduced to misdemeanor trespassing charges). He told them that while the state government may have wanted to test security, "The State of Iowa has no authority to allow you to break into a county building. You're going to jail."

More than six years later, the Des Moines Register reports: Dallas County is paying $600,000 to two men who sued after they were arrested in 2019 while testing courthouse security for Iowa's Judicial Branch, their lawyer says.

Gary DeMercurio and Justin Wynn were arrested Sept. 11, 2019, after breaking into the Dallas County Courthouse. They spent about 20 hours in jail and were charged with burglary and possession of burglary tools, though the charges were later dropped. The men were employees of Colorado-based cybersecurity firm Coalfire Labs, with whom state judicial officials had contracted to perform an analysis of the state court system's security. Judicial officials apologized and faced legislative scrutiny for how they had conducted the security test.

But even though the burglary charges against DeMercurio and Wynn were dropped, their attorney previously said having a felony arrest on their records made seeking employment difficult. Now the two men are to receive a total of $600,000 as a settlement for their lawsuit, which has been transferred between state and federal courts since they first filed it in July 2021 in Dallas County. The case had been scheduled to go to trial Monday, Jan. 26 until the parties notified the court Jan. 23 of the impending deal...

"The settlement confirms what we have said from the beginning: our work was authorized, professional, and done in the public interest," DeMercurio said in a statement. "What happened to us never should have happened. Being arrested for doing the job we were hired to do turned our lives upside down and damaged reputations we spent years building...."

"This incident didn't make anyone safer," Wynn said. "It sent a chilling message to security professionals nationwide that helping government identify real vulnerabilities can lead to arrest, prosecution, and public disgrace. That undermines public safety, not enhances it."
County Attorney Matt Schultz said dismissing the charges was the decision of his predecessor, according to the newspaper, and that he believed the sheriff did nothing wrong.

"I am putting the public on notice that if this situation arises again in the future, I will prosecute to the fullest extent of the law."

Longtime Slashdot reader schwit1 shares a report from CBS News: A former Google engineer has been found guilty on multiple federal charges for stealing the tech giant's trade secrets on artificial intelligence to benefit Chinese companies he secretly worked for, federal prosecutors said. According to the U.S. Attorney's Office for the Northern District of California, a jury on Thursday convicted Linwei Ding on seven counts of economic espionage and seven counts of theft of trade secrets, following an 11-day trial. The 38-year-old, also known as Leon Ding, was hired by Google in 2019 and was a resident of Newark.

According to evidence presented at trial, Ding stole more than 2,000 pages of confidential information containing Google AI trade secrets between May 2022 and April 2023. He uploaded the information to his personal Google Cloud account. Around the same time, Ding secretly affiliated himself with two Chinese-based technology companies. Around June 2022, prosecutors said Ding was in discussions to be the chief technology officer for an early-stage tech company. Several months later, he was in the process of founding his own AI and machine learning company in China, acting as the company's CEO. Prosecutors said Ding told investors that he could build an AI supercomputer by copying and modifying Google's technology.

In late 2023, prosecutors said Ding downloaded the trade secrets to his own personal computer before resigning from Google. According to the superseding indictment, Google uncovered the uploads after finding out that Ding presented himself as CEO of one of the companies during an Beijing investor conference. Around the same time, Ding told his manager he was leaving the company and booked a one-way flight to Beijing. "Silicon Valley is at the forefront of artificial intelligence innovation, pioneering transformative work that drives economic growth and strengthens our national security. The jury delivered a clear message today that the theft of this valuable technology will not go unpunished," U.S. Attorney Craig Missakian said in a statement.

An anonymous reader quotes a report from Ars Technica, written by Dan Goodin: Two security professionals who were arrested in 2019 after performing an authorized security assessment of a county courthouse in Iowa will receive $600,000 to settle a lawsuit they brought alleging wrongful arrest and defamation. The case was brought by Gary DeMercurio and Justin Wynn, two penetration testers who at the time were employed by Colorado-based security firm Coalfire Labs. The men had written authorization from the Iowa Judicial Branch to conduct "red-team" exercises, meaning attempted security breaches that mimic techniques used by criminal hackers or burglars.

The objective of such exercises is to test the resilience of existing defenses using the types of real-world attacks the defenses are designed to repel. The rules of engagement for this exercise explicitly permitted "physical attacks," including "lockpicking," against judicial branch buildings so long as they didn't cause significant damage. [...] DeMercurio and Wynn's engagement at the Dallas County Courthouse on September 11, 2019, had been routine. A little after midnight, after finding a side door to the courthouse unlocked, the men closed it and let it lock. They then slipped a makeshift tool through a crack in the door and tripped the locking mechanism. After gaining entry, the pentesters tripped an alarm alerting authorities.

Within minutes, deputies arrived and confronted the two intruders. DeMercurio and Wynn produced an authorization letter -- known as a "get out of jail free card" in pen-testing circles. After a deputy called one or more of the state court officials listed in the letter and got confirmation it was legit, the deputies said they were satisfied the men were authorized to be in the building. DeMercurio and Wynn spent the next 10 or 20 minutes telling what their attorney in a court document called "war stories" to deputies who had asked about the type of work they do. When Sheriff Leonard arrived, the tone suddenly changed. He said the Dallas County Courthouse was under his jurisdiction and he hadn't authorized any such intrusion. Leonard had the men arrested, and in the days and weeks to come, he made numerous remarks alleging the men violated the law. A couple months after the incident, he told me that surveillance video from that night showed "they were crouched down like turkeys peeking over the balcony" when deputies were responding. I published a much more detailed account of the event here. Eventually, all charges were dismissed.

Three co-founders of the game studio That's No Moon "are suing another co-founder for allegedly hijacking the company's website domain name," reports the gaming news site Aftermath, "taking the website offline and disabling employee access to email accounts, according to a new lawsuit." Tina Kowalewski, Taylor Kurosaki, and Nick Kononelos filed a complaint against co-founder and former CEO Michael Mumbauer on Tuesday in a California court. [Game studio] That's No Moon, which was founded in 2020 by veterans of Infinity Ward, Naughty Dog, and other AAA studios, said in its complaint that Mumbauer is looking to "cripple" the studio after being fired in 2022...

Mumbauer, according to the complaint, purchased the domain name, and several others, when the studio was founded; it said both parties agreed these would be controlled by the studio. Mumbauer allegedly still has access to the domains, and That's No Moon said he took control over the website on Jan. 6, disabled the studio's access, and turned off employees' ability to email external addresses. The team was locked out for two days as a four-person IT team worked to get the services back online. On the public-facing side, the website briefly redirected to the Travel Switzerland page, according to the complaint. That's No Moon's lawyers said the co-founders sent Mumbauer a letter on Jan. 7 demanding he "relinquish his unauthorized access." That's when, according to the compliant, the website started redirecting to a GoDaddy Auction site, where the domain was priced at $6,666,666; That's No Moon remarked in the complaint: "A number that [Mumbauer] may well have selected for its Satanic connotation."

As of Wednesday, Aftermath was able to access a public-facing That's No Moon website using both the original domain and the new one... The charges listed as part of this lawsuit are trademark infringement, cybersquatting, computer fraud, conversion, trespass to chattels, and breach of contract. That's No Moon also asked a judge for a temporary restraining order to prevent Mumbauer from continued access to the domains. Mumbauer has not responded to Aftermath's request for comment. Mumbauer said, in an email to That's No Moon attorney Amit Rana published as part of the lawsuit, that he intends to file "a wrongful termination countersuit and will be seeking extensive damages...."

That's No Moon hasn't yet announced its first game, but has said the game is led by creative director Taylor Kurosaki and game director Jacob Minkoff. South Korean publisher Smilegate invested $100 million into the company, That's No Moon announced in 2021.