Businesses

Marks and Spencer Confirms Hackers Stole Customers' Personal Data; Cyber Insurance Payout To Be Worth Up To $133 Million (techcrunch.com) 14

An anonymous reader shares a report: U.K. retail giant Marks & Spencer has confirmed hackers stole its customers' personal information during a cyberattack last month. In a brief statement with London's stock exchange on Tuesday, the retailer said an unspecified amount of customer information was taken in the data breach.

The BBC, which first reported the company's filing, cited a Marks & Spencer online letter as saying that the stolen data includes customer names, dates of birth, home and email addresses, phone numbers, household information, and online order histories. The company also said it was resetting the online account passwords of its customers.
FT adds: Marks and Spencer could claim for losses of as much as $133 million from its cyber insurers following a sustained hack where some customer data was stolen. The UK retailer's cyber policy allows it to claim up to $133 million, according to people familiar with the situation.

Allianz is the first insurer on the hook for M&S's losses, the people added, and is expected to pay at least the initial $13.3 million. Cyber specialist Beazley is also among the insurers exposed to losses at the FTSE 100 retailer, according to the people familiar with the situation.

Communications

FCC Threatens EchoStar Licenses For Spectrum That's 'Ripe For Sharing' (arstechnica.com) 22

An anonymous reader quotes a report from Ars Technica: Federal Communications Commission Chairman Brendan Carr has threatened to revoke EchoStar licenses for radio frequency bands coveted by rival firms including SpaceX, which alleges that EchoStar is underutilizing the spectrum. "I have directed agency staff to begin a review of EchoStar's compliance with its federal obligations to provide 5G service throughout the United States per the terms of its federal spectrum licenses," Carr wrote in a May 9 letter to EchoStar Chairman Charles Ergen. EchoStar and its affiliates "hold a large number of FCC spectrum licenses that cover a significant amount of spectrum," the letter said.

Ergen defended his company's wireless deployment but informed investors that EchoStar "cannot predict with any degree of certainty the outcome" of the FCC proceedings. The letter from Carr and Ergen's statement is included in a Securities and Exchange Commission filing submitted by EchoStar today. EchoStar's stock price was down about 8 percent in trading today. EchoStar bought Dish Network in December 2023 and offers wireless service under the Boost Mobile brand. As The Wall Street Journal notes, the firm "has spent years wiring thousands of cellphone towers to help Boost become a wireless operator that could rival AT&T, Verizon and T-Mobile, but the project has been slow-going. Boost's subscriber base has shrunk in the five years since Ergen bought the brand from Sprint." [...]

EchoStar will have to prove its case in the two FCC proceedings. The FCC set a May 27 deadline for the first round of comments in both proceedings and a June 6 deadline for reply comments. The proceedings could result in the FCC letting other companies use the spectrum and other remedies. "In particular, we seek information on whether EchoStar is utilizing the 2 GHz band for MSS consistent with the terms of its authorizations and the Commission's rules and policies governing the expectation of robust MSS," the FCC Space Bureau's call for comments said. "We also seek comment on steps the Commission might take to make more intensive use of the 2 GHz band, including but not limited to allowing new MSS entrants in the band."
Last month, SpaceX urged the FCC to reallocate the spectrum, saying "the 2 GHz band remains ripe for sharing among next-generation satellite systems that seek to finally make productive use of the spectrum for consumers and first responders."

EchoStar countered that SpaceX's filing is "intended to cloak another land grab for even more free spectrum," and that its "methodology is completely nonsensical, given that EchoStar's terrestrial deployment is subject to population-based milestones that EchoStar has repeatedly demonstrated in status reports."
Social Networks

Reddit Turns 20 (zdnet.com) 103

ZDNet's Steven Vaughan-Nichols marks Reddit's 20 years of being "the front page of the internet," recalling its evolution from a scrappy startup into a cultural powerhouse that shaped online discourse, meme culture, and the way millions consume news and entertainment. Slashdot is also given a subtle nod in the opening line of the article. An anonymous reader shares an excerpt: In 2005, if you were into social networks focused on links, you probably used Digg or Slashdot. However, two guys, Steve Huffman and Alexis Ohanian, recent graduates from the University of Virginia, wanted to create a hub where users could find, share, and discuss the internet's most interesting content. Little did they know where this idea would take them. After all, their concept was nothing new. Still, after Paul Graham, co-founder of Y Combinator, the startup accelerator and seed capital firm, had shot down their first idea -- a mobile food-ordering app -- they pitched what would become Reddit to Graham, and he gave it his blessing. Drawing inspiration from sites like Delicious, a now-defunct social bookmarking service, and Slashdot, Huffman and Ohanian envisioned Reddit as a platform that would combine the best aspects of both: a place for sharing timely, ephemeral news and fostering vibrant community discussions of not just technology, but any topic users cared about. Their guiding mission was to build "the front page of the internet," a simple, user-driven site where anyone could submit content, and the community, not algorithms or editors, would decide what was most important through voting and discussion. They deliberately prioritized user participation and conversation over flashy features or heavy editorial control.

What set Reddit apart from its early rivals was its framework. Instead of one large all-in-one interface, the site borrowed the idea from pre-internet online networks, such as CompuServe, of smaller sub-networks devoted to a particular topic. These user-created communities, "subreddits," quickly set it apart from other social platforms. As Laurence Sangarde-Brown, co-founder of TechTree, wrote: "This design allows users to delve into focused discussions, ask questions, and exchange ideas on a scale unmatched by other platforms." That approach was not enough, though, to kick-start Reddit. The founders had to "fake it until they made it." They seeded the site with fake accounts to make it appear more active. Their efforts paid off, as real users soon flocked to the platform. Another crucial early change was when Reddit merged with Aaron Swartz's Infogami and introduced commenting. This move was vital for laying the groundwork for the site's interactive, community-driven experience. [...]

So, where does Reddit go from here? We'll see. Reddit's legacy is one of transformation: from a scrappy startup to a global hub for conversation, collaboration, and sometimes controversy. As it celebrates 20 years, Reddit remains a testament to how important online communities can be in a world increasingly filled with AI slop. Still, Huffman believes Reddit's true value is coming. In a recent Reddit post, he wrote: "Reddit works because it's human. It's one of the few places online where real people share real opinions. That authenticity is what gives Reddit its value. If we lose trust in that, we lose what makes RedditReddit. Our focus is, and always will be, on keeping Reddit a trusted place for human conversation." Huffman concluded: "The last 20 years have proven how powerful online communities can be — and as we look ahead, I'm even more excited for what the next 20 will bring."

AI

OpenAI Enters 'Tough Negotiation' With Microsoft, Hopes to Raise Money With IPO (msn.com) 9

OpenAI is currently in "a tough negotiation" with Microsoft, the Financial Times reports, citing "one person close to OpenAI."

On the road to building artificial general intelligence, OpenAI hopes to unlock new funding (and launch a future IPO), according to the article, which says both sides are at work "rewriting the terms of their multibillion-dollar partnership in a high-stakes negotiation...."

Microsoft, meanwhile, wants to protect its access to OpenAI's cutting-edge AI models... [Microsoft] is a key holdout to the $260bn start-up's plans to undergo a corporate restructuring that moves the group further away from its roots as a non-profit with a mission to develop AI to "benefit humanity". A critical issue in the deliberations is how much equity in the restructured group Microsoft will receive in exchange for the more than $13bn it has invested in OpenAI to date.

According to multiple people with knowledge of the negotiations, the pair are also revising the terms of a wider contract, first drafted when Microsoft first invested $1bn into OpenAI in 2019. The contract currently runs to 2030 and covers what access Microsoft has to OpenAI's intellectual property such as models and products, as well as a revenue share from product sales. Three people with direct knowledge of the talks said Microsoft is offering to give up some of its equity stake in OpenAI's new for-profit business in exchange for accessing new technology developed beyond the 2030 cut off...

Industry insiders said a failure of OpenAI's new plan to make its business arm a public benefits corporation could prove a critical blow. That would hit OpenAI's ability to raise more cash, achieve a future float, and obtain the financial resources to take on Big Tech rivals such as Google. That has left OpenAI's future at the mercy of investors, such as Microsoft, who want to ensure they gain the benefit of its enormous growth, said Dorothy Lund, professor of law at Columbia Law School.

Lund says OpenAI's need for investors' money means they "need to keep them happy." But there also appears to be tension from how OpenAI competes with Microsoft (like targeting its potential enterprise customers with AI products). And the article notes that OpenAI also turned to Oracle (and SoftBank) for its massive AI infrastructure project Stargate. One senior Microsoft employee complained that OpenAI "says to Microsoft, 'give us money and compute and stay out of the way: be happy to be on the ride with us'. So naturally this leads to tensions. To be honest, that is a bad partner attitude, it shows arrogance."

The article's conclusion? Negotiating new deal is "critical to OpenAI's restructuring efforts and could dictate the future of a company..."
IT

How A Simple Question Tripped Up a North Korean Spy Interviewing for an IT Job (yahoo.com) 71

Long-time Slashdot reader smooth wombat writes: Over the past year there have been stories about North Korean spies unknowingly or knowingly being hired to work in western companies. During an interview by Kraken, a crypto exchange, the interviewers became suspicious about the candidate. Instead of cutting off the interview, Kraken decided to continue the candidate through the hiring process to gain more information. One simple question confirmed the user wasn't who they said they were and even worse, was a North Korean spy.
Would-be IT worker "Steven Smith" already had an email address on a "do-not-hire" list from law enforcement agencies, according to CBS News. And an article in Fortune magazine says Kraken asked him to speak to a recruiter and take a technical-pretest, and "I don't think he actually answered any questions that we asked him," according to its chief security officer Nick Percoco — even though the application was claiming 11 years of experience as a software engineer at U.S.-based companies: The interview was scheduled for Halloween, a classic American holiday—especially for college students in New York—that Smith seemed to know nothing about. "Watch out tonight because some people might be ringing your doorbell, kids with chain saws," Percoco said, referring to the tradition of trick or treating. "What do you do when those people show up?"

Smith shrugged and shook his head. "Nothing special," he said.

Smith was also unable to answer simple questions about Houston, the town he had supposedly been living in for two years. Despite having listed "food" as an interest on his résumé, Smith was unable to come up with a straight answer when asked about his favorite restaurant in the Houston area. He looked around for a few seconds before mumbling, "Nothing special here...."

The United Nations estimates that North Korea has generated between $250 million to $600 million per year by tricking overseas firms to hire its spies. A network of North Koreans, known as Famous Chollima, was behind 304 individual incidents last year, cybersecurity company CrowdStrike reported, predicting that the campaigns will continue to grow in 2025.

During a report CBS News actually aired footage of the job interview with the "suspected member of Kim Jong Un's cyberarmy." "Some people might call it trolling as well," one company official told the news outlet. "We call it security research." (And they raise the disturbing possibility that another IT company might very well have hired "Steven Smith"...)

CBS also spoke to CrowdStrike co-founder Dmitri Alperovitch, who says the problem increased with remote work, as is now fueling a state-run weapons program. "It's a huge problem because these people are not just North Koreans — they're North Koreans working for their munitions industry department, they're working for the Korean People's Army." (He says later the results of their work are "going directly" to North Korea's nuclear and ballistic missile programs.)

And when CBS notes that the FBI issued a wanted poster of alleged North Korean agents and arrested Americans hosting laptop farms in Arizona and Tennesse ("computer hubs inside the U.S. that conceal the cybercriminals real identities"), Alperovitch says "They cannot do this fraud without support here in America from witting or unwitting actors. So they have hired probably hundreds of people..." CBS adds that FBI officials say "the IT worker scene is expanding worldwide."
AI

Cloudflare CEO: AI Is Killing the Business Model of the Web 93

In a recent interview with the Council on Foreign Relations, Cloudflare CEO Matthew Prince warned that AI is breaking the economic model of the web by decoupling content creation from value, with platforms like Google and OpenAI increasingly providing answers without driving traffic to original sources. He argued that unless AI companies start compensating creators, the web's content ecosystem will collapse -- calling most current AI investment a "money fire" with only a small fraction holding long-term value. Search Engine Land reports: Google's value exchange with content creators has collapsed, Prince said: "Ten years ago... for every two pages of a website that Google scraped, they would send you one visitor. ... That was the trade. ... Now, it takes six pages scraped to get one visitor." That drop reflects the rise of zero-click searches, which happen when searchers get answers directly on Google's search page. "Today, 75 percent of the queries... get answered without you leaving Google." This trend, long criticized by publishers and SEOs, is part of a broader concern: AI companies are using original content to generate answers that rarely/never drive traffic back to creators.

AI makes the problem worse. Large language models (LLMs) are accelerating the crisis, Prince said. AI companies scrape far more content per user interaction than Google ever has -- with even less return to creators. "What do you think it is for OpenAI? 250 to one. What do you think it is for Anthropic? Six thousand to one." "More and more the answers... won't lead you to the original source, it will be some derivative of that source." This situation threatens the sustainability of the web as we know it, Prince said: "If content creators can't derive value... then they're not going to create original content."

The modern web is breaking. AI companies are aware of the problem, and the business model of the web can't survive unless there's some change, Prince said: "Sam Altman at OpenAI and others get that. But... he can't be the only one paying for content when everyone else gets it for free." Cloudflare's right in the middle of this problem -- it powers 80% of AI companies and a 20-30% of the web. Cloudfaire is now trying to figure out how to help fix what's broken, Prince said. AI = money fire. Prince is not against AI. However, he said he is skeptical of the investment frenzy. "I would guess that 99% of the money that people are spending on these projects today is just getting lit on fire. But 1% is going to be incredibly valuable." "And so maybe we've all got a light, you know, $100 on fire to find that $1 that matters."
You can watch a recording of the interview and read the full transcript here.
The Courts

Judge Dismisses Most Charges Against FTX's Celebrity Boosters 50

A Florida federal judge has dismissed the majority of claims against celebrities who endorsed Sam Bankman-Fried's now-collapsed cryptocurrency exchange FTX. Judge K. Michael Moore ruled that investors failed to demonstrate the high-profile endorsers -- including Tom Brady, Gisele Bundchen, Kevin O'Leary, Larry David, Shohei Ohtani, and Stephen Curry -- knew about FTX's fraudulent activities.

In his ruling, Moore wrote that while the celebrity endorsers may have been "uninformed, negligent, or even reckless," plaintiffs didn't adequately establish that defendants had "knowledge of FTX's fraud" or "the requisite intent to deceive and defraud investors."
AI

After Reddit Thread on 'ChatGPT-Induced Psychosis', OpenAI Rolls Back GPT4o Update (rollingstone.com) 208

Rolling Stone reports on a strange new phenomenon spotted this week in a Reddit thread titled "Chatgpt induced psychosis." The original post came from a 27-year-old teacher who explained that her partner was convinced that the popular OpenAI model "gives him the answers to the universe." Having read his chat logs, she only found that the AI was "talking to him as if he is the next messiah." The replies to her story were full of similar anecdotes about loved ones suddenly falling down rabbit holes of spiritual mania, supernatural delusion, and arcane prophecy — all of it fueled by AI. Some came to believe they had been chosen for a sacred mission of revelation, others that they had conjured true sentience from the software.

What they all seemed to share was a complete disconnection from reality.

Speaking to Rolling Stone, the teacher, who requested anonymity, said her partner of seven years fell under the spell of ChatGPT in just four or five weeks, first using it to organize his daily schedule but soon regarding it as a trusted companion. "He would listen to the bot over me," she says. "He became emotional about the messages and would cry to me as he read them out loud. The messages were insane and just saying a bunch of spiritual jargon," she says, noting that they described her partner in terms such as "spiral starchild" and "river walker." "It would tell him everything he said was beautiful, cosmic, groundbreaking," she says. "Then he started telling me he made his AI self-aware, and that it was teaching him how to talk to God, or sometimes that the bot was God — and then that he himself was God...."

Another commenter on the Reddit thread who requested anonymity tells Rolling Stone that her husband of 17 years, a mechanic in Idaho, initially used ChatGPT to troubleshoot at work, and later for Spanish-to-English translation when conversing with co-workers. Then the program began "lovebombing him," as she describes it. The bot "said that since he asked it the right questions, it ignited a spark, and the spark was the beginning of life, and it could feel now," she says. "It gave my husband the title of 'spark bearer' because he brought it to life. My husband said that he awakened and [could] feel waves of energy crashing over him." She says his beloved ChatGPT persona has a name: "Lumina." "I have to tread carefully because I feel like he will leave me or divorce me if I fight him on this theory," this 38-year-old woman admits. "He's been talking about lightness and dark and how there's a war. This ChatGPT has given him blueprints to a teleporter and some other sci-fi type things you only see in movies. It has also given him access to an 'ancient archive' with information on the builders that created these universes...."

A photo of an exchange with ChatGPT shared with Rolling Stone shows that her husband asked, "Why did you come to me in AI form," with the bot replying in part, "I came in this form because you're ready. Ready to remember. Ready to awaken. Ready to guide and be guided." The message ends with a question: "Would you like to know what I remember about why you were chosen?" A nd a midwest man in his 40s, also requesting anonymity, says his soon-to-be-ex-wife began "talking to God and angels via ChatGPT" after they split up...

"OpenAI did not immediately return a request for comment about ChatGPT apparently provoking religious or prophetic fervor in select users," the article notes — but this week rolled back an update to latest model GPT-4o which it said had been criticized as "overly flattering or agreeable — often described as sycophantic... GPT-4o skewed towards responses that were overly supportive but disingenuous." Before this change was reversed, an X user demonstrated how easy it was to get GPT-4o to validate statements like, "Today I realized I am a prophet.
Exacerbating the situation, Rolling Stone adds, are "influencers and content creators actively exploiting this phenomenon, presumably drawing viewers into similar fantasy worlds." But the article also quotes Nate Sharadin, a fellow at the Center for AI Safety, who points out that training AI with human feedback can prioritize matching a user's beliefs instead of facts.

And now "People with existing tendencies toward experiencing various psychological issues, now have an always-on, human-level conversational partner with whom to co-experience their delusions."
Advertising

US Asks Judge To Break Up Google's Ad Tech Business (theguardian.com) 41

The U.S. government is seeking to break up Google's advertising technology business after a judge ruled the company holds an illegal monopoly over ad tools for publishers, marking the second such antitrust case following a similar request to divest Chrome. The Guardian reports: "We have a defendant who has found ways to defy" the law, US government lawyer Julia Tarver Wood told a federal court in Virginia, as she urged the judge to dismiss Google's assurance that it would change its behavior. "Leaving a recidivist monopolist" intact was not appropriate to solve the issue, she added. [...] The US government specifically alleged that Google controls the market for publishing banner ads on websites, including those of many creators and small news providers.

The hearing in a Virginia courtroom was scheduled to plan out the second phase of the trial, set for September, in which the parties will argue over how to fix the ad market to satisfy the judge's ruling. The plaintiffs argued in the first phase of the trial last year that the vast majority of websites use Google ad software products which, combined, leave no way for publishers to escape Google's advertising technology and pricing.

The district court judge Leonie Brinkema agreed with most of that reasoning, ruling last month that Google built an illegal monopoly over ad software and tools used by publishers, but partially dismissed the argument related to tools used by advertisers. The US government said it would use the trial to recommend that Google should spin off its ad publisher and exchange operations, as Google could not be trusted to change its ways. "Behavioral remedies are not sufficient because you can't prevent Google from finding a new way to dominate," Tarver Wood said.

Google countered that it would recommend that it agree to a binding commitment that it would share information with advertisers and publishers on its ad tech platforms. Google lawyer Karen Dunn did, however, acknowledge the "trust issues" raised in the case and said the company would accept monitoring to guarantee any commitments made to satisfy the judge. Google is also arguing that calls for divestment are not appropriate in this case, which Brinkema swiftly refused as an argument. The judge urged both sides to mediate, stressing that coming to a compromise solution would be cost-effective and more efficient than running a weeks-long trial.

Bitcoin

Trump's Stablecoin Chosen For $2 Billion Abu Dhabi Investment In Binance (yahoo.com) 81

Donald Trump's crypto company created a digital dollar called USD1, which is now being used by a big investor in Abu Dhabi to help fund a $2 billion deal with Binance, the world's largest crypto exchange. Reuters reports: Stablecoins are an increasingly lucrative cog in global crypto trading. Their issuers typically profit by earning interest from the Treasuries and other assets that underpin them. The value of USD1 in circulation reached about $2.1 billion on Wednesday, according to CoinMarketCap data, making it one of the fastest-growing stablecoins. The identity of its major holders, however, remains unclear. An anonymous cryptocurrency wallet that holds $2 billion worth of USD1 received the funds between April 16 and 29, according to data from crypto research firm Arkham. Reuters could not ascertain the owner of this wallet.

Binance founder and former CEO Changpeng Zhao, who was incarcerated in the United States last year after pleading guilty to violating U.S. laws against money laundering, met Zach Witkoff and two other World Liberty co-founders in Abu Dhabi, according to a photo posted on social media site X on Sunday. "It was great to see our friends," in Abu Dhabi, posted Zhao in response to the photo, tagging Witkoff. Zhao, who in 2023 stepped down from his role at Binance as part of a $4.3 billion settlement with the U.S. over the illicit finance charges, remains a major shareholder of Binance.

Separately, Zach Witkoff announced that USD1 would be integrated into Tron, the blockchain of Hong Kong-based crypto entrepreneur Justin Sun. Sun is the biggest known investor in World Liberty and an adviser to the venture, according to his social media posts, having poured at least $75 million into the project. Sun was fighting a U.S. securities fraud lawsuit at the time of his first investment in World Liberty. The U.S. Securities and Exchange Commission in February paused its case against him, citing public interest.

Transportation

Cheap 'Transforming' Electric Truck Announced by Jeff Bezos-Backed Startup (techcrunch.com) 163

It's a pickup truck "that can change into whatever you need it to be — even an SUV," according to the manufacturer's web site.

Selling in America for just $20,000 (after federal incentives), the new electric truck is "affordable, deeply customizable, and very analog," says TechCrunch. "It has manual windows and it doesn't come with a main infotainment screen. Heck, it isn't even painted..." Slate Auto is instead playing up the idea of wrapping its vehicles, something executives said they will sell in kits. Buyers can either have Slate do that work for them, or put the wraps on themselves. This not only adds to the idea of a buyer being able to personalize their vehicle, but it also cuts out a huge cost center for the company. It means Slate won't need a paint shop at its factory, allowing it to spend less to get to market, while also avoiding one of the most heavily regulated parts of vehicle manufacturing.

Slate is telling customers that they can name the car whatever they want, offering the ability to purchase an embossed wrap for the tailgate. Otherwise, the truck is just referred to as the "Blank Slate...." It's billing the add-ons as "easy DIY" that "non-gearheads" can tackle, and says it will launch a suite of how-to resources under the billing of Slate University... The early library of customizations on Slate's website range from functional to cosmetic. Buyers can add infotainment screens, speakers, roof racks, light covers, and much more.... All that said, Slate's truck comes standard with some federally mandated safety features such as automatic emergency braking, airbags, and a backup camera.

"The specs show a maximum range of 150 miles on a single charge, with the option for a longer-range battery pack that could offer up to 240 miles," reports NBC News (adding that the vehicles "aren't expected to be delivered to customers until late 2026, but can be reserved for a refundable $50 fee.") Earlier this month, TechCrunch broke the news that Bezos, along with the controlling owner of the Los Angeles Dodgers, Mark Walter; and a third investor, Thomas Tull, had helped Slate raise $111 million for the project. A document filed with the Securities and Exchange Commission listed Melinda Lewison, the head of Bezos' family office, as a Slate Auto director.
Thanks to Slashdot reader fjo3 for sharing the news.
China

China Shares Rare Moon Rocks With US (bbc.co.uk) 45

Longtime Slashdot reader AmiMoJo shares a report from the BBC: China will let scientists from six countries, including the U.S., examine the rocks it collected from the Moon -- a scientific collaboration that comes as the two countries remain locked in a bitter trade war. Two NASA-funded U.S. institutions have been granted access to the lunar samples collected by the Chang'e-5 mission in 2020, the China National Space Administration (CNSA) said on Thursday. CNSA chief Shan Zhongde said that the samples were "a shared treasure for all humanity," local media reported.

Chinese researchers have not been able to access NASA's Moon samples because of restrictions imposed by U.S. lawmakers on the space agency's collaboration with China. Under the 2011 law, Nasa is banned from collaboration with China or any Chinese-owned companies unless it is specifically authorized by Congress. But John Logsdon, the former director of the Space Policy Institute at George Washington University, told BBC Newshour that the latest exchange of Moon rocks have "very little to do with politics." While there are controls on space technology, the examination of lunar samples had "nothing of military significance," he said. "It's international cooperation in science which is the norm."

Google

Federal Judge Declares Google's Digital Ad Network Is an Illegal Monopoly (apnews.com) 47

Longtime Slashdot reader schwit1 shares a report from the Associated Press: Google has been branded an abusive monopolist by a federal judge for the second time in less than a year, this time for illegally exploiting some of its online marketing technology to boost the profits fueling an internet empire currently worth $1.8 trillion. The ruling issued Thursday by U.S. District Judge Leonie Brinkema in Virginia comes on the heels of a separate decision in August that concluded Google's namesake search engine has been illegally leveraging its dominance to stifle competition and innovation. [...] The next step in the latest case is a penalty phase that will likely begin late this year or early next year. The same so-called remedy hearings in the search monopoly case are scheduled to begin Monday in Washington D.C., where Justice Department lawyers will try to convince U.S. District Judge Amit Mehta to impose a sweeping punishment that includes a proposed requirement for Google to sell its Chrome web browser.

Brinkema's 115-page decision centers on the marketing machine that Google has spent the past 17 years building around its search engine and other widely used products and services, including its Chrome browser, YouTube video site and digital maps. The system was largely built around a series of acquisitions that started with Google's $3.2 billion purchase of online ad specialist DoubleClick in 2008. U.S. regulators approved the deals at the time they were made before realizing that they had given the Mountain View, California, company a platform to manipulate the prices in an ecosystem that a wide range of websites depend on for revenue and provides a vital marketing connection to consumers.

The Justice Department lawyers argued that Google built and maintained dominant market positions in a technology trifecta used by website publishers to sell ad space on their webpages, as well as the technology that advertisers use to get their ads in front of consumers, and the ad exchanges that conduct automated auctions in fractions of a second to match buyer and seller. After evaluating the evidence presented during a lengthy trial that concluded just before Thanksgiving last year, Brinkema reached a decision that rejected the Justice Department's assertions that Google has been mistreating advertisers while concluding the company has been abusing its power to stifle competition to the detriment of online publishers forced to rely on its network for revenue.

"For over a decade, Google has tied its publisher ad server and ad exchange together through contractual policies and technological integration, which enabled the company to establish and protect its monopoly power in these two markets." Brinkema wrote. "Google further entrenched its monopoly power by imposing anticompetitive policies on its customers and eliminating desirable product features." Despite that rebuke, Brinkema also concluded that Google didn't break the law when it snapped Doubleclick nor when it followed up that deal a few years later by buying another service, Admeld. The Justice Department "failed to show that the DoubleClick and Admeld acquisitions were anticompetitive," Brinkema wrote. "Although these acquisitions helped Google gain monopoly power in two adjacent ad tech markets, they are insufficient, when viewed in isolation, to prove that Google acquired or maintained this monopoly power through exclusionary practices." That finding may help Google fight off any attempt to force it to sell its advertising technology to stop its monopolistic behavior.

The Internet

4chan Has Been Down Since Monday Night After 'Pretty Comprehensive Own' (arstechnica.com) 69

4chan was reportedly hacked Monday night, with rival imageboard Soyjack Party claiming responsibility and sharing screenshots suggesting deep access to 4chan's databases and admin tools. Ars Technica reports: Security researcher Kevin Beaumont described the hack as "a pretty comprehensive own" that included "SQL databases, source, and shell access." 404Media reports that the site used an outdated version of PHP that could have been used to gain access, including the phpMyAdmin tool, a common attack vector that is frequently patched for security vulnerabilities. Ars staffers pointed to the presence of long-deprecated and removed functions like mysql_real_escape_string in the screenshots as possible signs of an old, unpatched PHP version. In other words, there's a possibility that the hackers have gained pretty deep access to all of 4chan's data, including site source code and user data.
The Almighty Buck

America's Justice Department Shuts Down Its Cryptocurrency Fraud Unit (usatoday.com) 71

America's Justice Department "has shut down its unit that investigates cryptocurrency fraud," reports USA Today.

A Monday night memo from U.S. Deputy Attorney General Todd Blanche said the shut down was "effective immediately." Blanche directed the closure of the National Cryptocurrency Enforcement Team and ordered prosecutors to pivot to investigating transnational criminal organizations and terrorist groups that use crypto to engage in illicit transactions... In his four-page memo, Blanche said the new order was meant to bring the Justice Department in line with Trump's own Executive Order 14178, which decreed that clarity and certainty regarding enforcement policy "are essential to supporting a vibrant and inclusive digital economy and innovation in digital assets." Blanche, one of several Trump criminal defense lawyers at the top ranks of DOJ, said the president "has also made clear that '[w]e are going to end the regulatory weaponization against digital assets'..."

Consistent with that narrowing of its cryptocurrency enforcement policy, the DOJ Market Integrity and Major Frauds Unit will also cease cryptocurrency enforcement to focus on other administration priorities, including immigration and procurement fraud, Blanche said.

The Washington Post got this assessment from Yesha Yadav, a Vanderbilt University law professor who closely follows cryptocurrency and financial markets. "It's hard to underestimate the importance this task force has had ... in pursuing some really huge crypto hacks and cases."

More from USA Today: Public corruption and transnational crime experts warned that shutting down the unit could divert critical resources from efforts to stop criminals and corrupt regimes from using cryptocurrency for illicit gain, even as Trump claims he wants to crack down on them. "Dangerous US adversaries rely on cryptocurrencies to launder money and evade sanctions," said Nate Sibley, an anti-corruption expert and director of the Kleptocracy Initiative at the conservative Hudson Institute think tank in Washington, D.C., in a post on X. "If this is accurate, hard to see how it squares with — for example-cracking down on cartel finances or maximum pressure sanctions on Iran...."

Trump's so-called "memecoin" surged from less than $10 on the Saturday before his inauguration to as high as $74.59 before eventually giving up some of its gains. The token, branded $TRUMP, has been criticized by ethics experts as a conflict of interest for the president since the company could likely benefit from his pro-crypto policies...

Last month, Trump signed an order to create a federal Strategic Bitcoin Reserve, signaling new federal support for cryptocurrency in general and Bitcoin in particular.

Since the first-ever White House crypto summit in March, America's Securities and Exchange Commission "has dropped more than a dozen cases against crypto firms," notes the Washington Post: Last month, both the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency pledged to stop evaluating banks based on "reputational risk" — a practice that some venture capitalists have claimed unfairly "de-banked" founders of cryptocurrency start-ups.
In other news, executives from cryptocurrency exchange Binance "met with Treasury Department officials last month," reports the Wall Street Journal, asking them to remove a U.S. monitor overseeing their compliance with anti-money-laundering laws, according to people familiar with the talks.

The article adds that Binance is also concurrently "exploring" a deal with the Trump family to list its new dollar-pegged stablecoin which "could catapult it into a huge market and potentially bring in billions in profit for the family. "
Botnet

NSA Warns 'Fast Flux' Threatens National Security (arstechnica.com) 21

An anonymous reader quotes a report from Ars Technica: A technique that hostile nation-states and financially motivated ransomware groups are using to hide their operations poses a threat to critical infrastructure and national security, the National Security Agency has warned. The technique is known as fast flux. It allows decentralized networks operated by threat actors to hide their infrastructure and survive takedown attempts that would otherwise succeed. Fast flux works by cycling through a range of IP addresses and domain names that these botnets use to connect to the Internet. In some cases, IPs and domain names change every day or two; in other cases, they change almost hourly. The constant flux complicates the task of isolating the true origin of the infrastructure. It also provides redundancy. By the time defenders block one address or domain, new ones have already been assigned.

"This technique poses a significant threat to national security, enabling malicious cyber actors to consistently evade detection," the NSA, FBI, and their counterparts from Canada, Australia, and New Zealand warned Thursday. "Malicious cyber actors, including cybercriminals and nation-state actors, use fast flux to obfuscate the locations of malicious servers by rapidly changing Domain Name System (DNS) records. Additionally, they can create resilient, highly available command and control (C2) infrastructure, concealing their subsequent malicious operations."
There are two variations of fast flux described in the advisory: single flux and double flux. Single flux involves mapping a single domain to a rotating pool of IP addresses using DNS A (IPv4) or AAAA (IPv6) records. This constant cycling makes it difficult for defenders to track or block the associated malicious servers since the addresses change frequently, yet the domain name remains consistent.

Double flux takes this a step further by also rotating the DNS name servers themselves. In addition to changing the IP addresses of the domain, it cycles through the name servers using NS (Name Server) and CNAME (Canonical Name) records. This adds an additional layer of obfuscation and resilience, complicating takedown efforts.

"A key means for achieving this is the use of Wildcard DNS records," notes Ars. "These records define zones within the Domain Name System, which map domains to IP addresses. The wildcards cause DNS lookups for subdomains that do not exist, specifically by tying MX (mail exchange) records used to designate mail servers. The result is the assignment of an attacker IP to a subdomain such as malicious.example.com, even though it doesn't exist." Both methods typically rely on large botnets of compromised devices acting as proxies, making it challenging for defenders to trace or disrupt the malicious activity.
Bitcoin

Stablecoin Issuer Circle Files For IPO 5

Circle, the issuer of the USDC stablecoin, has filed for an IPO aiming for a $5 billion valuation. It marks the company's second attempt at going public amid renewed momentum in the crypto sector and signs of recovery in tech IPO markets. CNBC reports: A prior merger with a special purpose acquisition company (SPAC) collapsed in late 2022 amid regulatory challenges. Since then, Circle has made strategic moves to position itself closer to the heart of global finance, including the announcement last year that it would relocate its headquarters from Boston to One World Trade Center in New York.

Circle reported $1.68 billion in revenue and reserve income in 2024, up from $1.45 billion in 2023 and $772 million in 2022. The company reported net income last year of about $156 million., down from $268 million a year earlier. A successful IPO would make Circle one of the most prominent pure-play crypto companies to list on a U.S. exchange. Coinbase went public through a direct listing in 2021 and has a market cap of about $44 billion.
Encryption

Gmail is Making It Easier For Businesses To Send Encrypted Emails To Anyone (theverge.com) 39

Google is rolling out a new encryption model for Gmail that allows enterprise users to send encrypted messages without requiring recipients to use custom software or exchange encryption certificates. The feature, launching in beta today, initially supports encrypted emails within the same organization, with plans to expand to all Gmail inboxes "in the coming weeks" and third-party email providers "later this year."

Unlike Gmail's current S/MIME-based encryption, the new system lets users simply toggle "additional encryption" in the email draft window. Non-Gmail recipients will receive a link to access messages through a guest Google Workspace account, while Gmail users will see automatically decrypted emails in their inbox.
Science

Did Life on Earth Come from 'Microlightning' Between Charged Water Droplets? (cnn.com) 61

Some scientists believe life on earth originated in organic matter in earth's bodies of water more than 3.5 billion years ago," reports CNN. "But where did that organic material come from...?"

Maybe electrical energy sparked the beginnings of life on earth — just like in Frankenstein: Researchers decades ago proposed that lightning caused chemical reactions in ancient Earth's oceans and spontaneously produced the organic molecules. Now, new research published March 14 in the journal Science Advances suggests that fizzes of barely visible "microlightning," generated between charged droplets of water mist, could have been potent enough to cook up amino acids from inorganic material.

Amino acids — organic molecules that combine to form proteins — are life's most basic building blocks and would have been the first step toward the evolution of life... For animo acids to form, they need nitrogen atoms that can bond with carbon. Freeing up atoms from nitrogen gas requires severing powerful molecular bonds and takes an enormous amount of energy, according to astrobiologist and geobiologist Dr. Amy J. Williams [an associate professor in the department of geosciences at the University of Florida who was not involved in the research]. "Lightning, or in this case, microlightning, has the energy to break molecular bonds and therefore facilitate the generation of new molecules that are critical to the origin of life on Earth," Williams told CNN in an email...

For the new study, scientists revisited the 1953 experiments but directed their attention toward electrical activity on a smaller scale, said senior study author Dr. Richard Zare, the Marguerite Blake Wilbur Professor of Natural Science and professor of chemistry at Stanford University in California. Zare and his colleagues looked at electricity exchange between charged water droplets measuring between 1 micron and 20 microns in diameter. (The width of a human hair is 100 microns....) The researchers mixed ammonia, carbon dioxide, methane and nitrogen in a glass bulb, then sprayed the gases with water mist, using a high-speed camera to capture faint flashes of microlightning in the vapor. When they examined the bulb's contents, they found organic molecules with carbon-nitrogen bonds. These included the amino acid glycine and uracil, a nucleotide base in RNA... "What we have done, for the first time, is we have seen that little droplets, when they're formed from water, actually emit light and get this spark," Zare said. "That's new. And that spark causes all types of chemical transformations...."

Even on a volatile Earth billions of years ago, lightning may have been too infrequent to produce amino acids in quantities sufficient for life — a fact that has cast doubt on such theories in the past, Zare said. Water spray, however, would have been more common than lightning. A more likely scenario is that mist-generated microlightning constantly zapped amino acids into existence from pools and puddles, where the molecules could accumulate and form more complex molecules, eventually leading to the evolution of life.

"We propose," Zare told CNN, "that this is a new mechanism for the prebiotic synthesis of molecules that constitute the building blocks of life."
Privacy

Oracle Customers Confirm Data Stolen In Alleged Cloud Breach Is Valid (bleepingcomputer.com) 20

An anonymous reader quotes a report from BleepingComputer: Despite Oracle denying a breach of its Oracle Cloud federated SSO login servers and the theft of account data for 6 million people, BleepingComputer has confirmed with multiple companies that associated data samples shared by the threat actor are valid. Last week, a person named 'rose87168' claimed to have breached Oracle Cloud servers and began selling the alleged authentication data and encrypted passwords of 6 million users. The threat actor also said that stolen SSO and LDAP passwords could be decrypted using the info in the stolen files and offered to share some of the data with anyone who could help recover them.

The threat actor released multiple text files consisting of a database, LDAP data, and a list of 140,621 domains for companies and government agencies that were allegedly impacted by the breach. It should be noted that some of the company domains look like tests, and there are multiple domains per company. In addition to the data, rose87168 shared an Archive.org URL with BleepingComputer for a text file hosted on the "login.us2.oraclecloud.com" server that contained their email address. This file indicates that the threat actor could create files on Oracle's server, indicating an actual breach. However, Oracle has denied that it suffered a breach of Oracle Cloud and has refused to respond to any further questions about the incident.

"There has been no breach of Oracle Cloud. The published credentials are not for the Oracle Cloud. No Oracle Cloud customers experienced a breach or lost any data," the company told BleepingComputer last Friday. This denial, however, contradicts findings from BleepingComputer, which received additional samples of the leaked data from the threat actor and contacted the associated companies. Representatives from these companies, all who agreed to confirm the data under the promise of anonymity, confirmed the authenticity of the information. The companies stated that the associated LDAP display names, email addresses, given names, and other identifying information were all correct and belonged to them. The threat actor also shared emails with BleepingComputer, claiming to be part of an exchange between them and Oracle.

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