Federal authorities are grappling with the aftermath of an illegal sheep cloning operation that has scattered hundreds of contraband hybrid animals across multiple states, following the sentencing of the scheme's mastermind. Montana rancher Arthur Schubarth received a six-month prison term for cloning a near-threatened Marco Polo argali sheep from tissue illegally imported from Kyrgyzstan.

The cloned animal, named Montana Mountain King, was used to inseminate over 100 ewes, creating a network of unauthorized hybrid offspring. Court documents reveal that Schubarth sold these hybrids to big game hunting enthusiasts, with prices reaching $10,000 per animal. While the original cloned sheep is now housed at New York's Rosamond Gifford Zoo, authorities cannot account for most of its descendants.

An anonymous reader shares a report: Another illegal streaming app has made its way to the App Store -- but it only surfaces pirated films for people in certain regions outside the US, including France, Canada, and the Netherlands. As shown in a post on Threads, the App Store listing for "Univer Note" presents itself as a productivity platform that can "easily help you record every day's events and plan your time." However, if you're a user in certain countries, like France or Canada, opening the app shows a collection of pirated movies, such as Venom: The Last Dance, Joker: Folie a Deux, and Terrifier 3.

An anonymous reader shared this report from the Los Angeles Times: Los Angeles County has filed suit against the world's largest beverage companies — Coca-Cola and Pepsi — claiming the soda and drink makers lied to the public about the effectiveness of plastic recycling and, as a result, left county residents and ecosystems choking in discarded plastic... The Los Angeles County suit alleges — in a vein similar to that of [California attorney general] Bonta's suit against Exxon Mobil — that the global beverage companies misrepresented the environmental impact of their plastic bottles, "despite knowing that plastics cannot be readily disposed of without associated environmental impacts."

"Coke and Pepsi need to stop the deception and take responsibility for the plastic pollution problems" their products are causing, said Los Angeles County Board of Supervisors Chair Lindsey P. Horvath... Currently, just 9% of the world's plastics are recycled. The rest ends up being incinerated, sent to landfills, or discarded on the landscape, where they are often flushed into rivers or out to sea. At the same time, there is growing concern about the health and environmental consequences of microplastics — the bits of degraded plastic that slough off as the product ages, or is used, or washed. The tiny particles have been detected in every ecosystem on the planet that has been surveyed, as well as nearly every living organism examined... According to the county's statement, the two companies have consistently ranked as the world's "top plastic polluters...."

The beverage maker lawsuit was filed in Los Angeles Superior Court by County Counsel Dawyn R. Harrison on behalf of the people of the state of California... "The goal of this lawsuit is to stop the unfair and illegal conduct, to address the marketing practices that deceive consumers, and to force these businesses to change their practices to reduce the plastic pollution problem in the County and in California," Harrison said in a statement. "My office is committed to protecting the public from deceptive business practices and holding these companies accountable for their role in the plastic pollution crisis."

Jay Newman, who made billions for Elliott Management pursuing Argentina's defaulted debt, wrote a 2022 thriller about corrupt spies and hedge funds. Now federal prosecutors are examining parallels between his novel "Undermoney" and real-world events.

The investigation centers on Amit Forlit, an Israeli private investigator facing U.S. extradition charges for alleged email theft from Argentine officials during Elliott's sovereign debt battle. Prosecutors are probing whether Forlit's alleged $20 million hacking operation aided Elliott's eventual $2.2 billion settlement with Argentina. "There's not that much fiction in 'Undermoney,'" Newman told interviewers while promoting the book, which features Israeli operatives and hedge fund intrigue. Newman and Elliott deny any wrongdoing, with Newman calling suggestions of illegal activity "categorically false."

The probe is examining $20 million paid to a Forlit-controlled company via a consulting firm that worked for Elliott, according to court statements and people familiar with the matter. Forlit denied involvement in hacking during a 2022 deposition. Prosecutors are also investigating Forlit's work for ExxonMobil regarding climate change critics. Neither Elliott nor ExxonMobil has been accused of wrongdoing. Newman, who left Elliott in 2016 with a $70 million bonus after the Argentina settlement, met regularly with Forlit to discuss the Argentine case, WSJ has reported. His novel follows dark money trails through Washington power corridors and Wall Street trading floors, featuring Israeli operatives described as "expensive, but consistent."

The feds have indicted Aleksei Andriunin, a 26-year-old Russian national and founder of Gotbit, on charges of wire fraud and conspiracy to commit market manipulation. Crypto News reports: According to the U.S. Attorney's Office, the indictment alleges that Andriunin and his firm participated in a long-running scheme to artificially boost trading volumes for various cryptocurrency companies, including some based in the United States, to make them appear more popular and increase their trading value. Andriunin allegedly led these activities between 2018 and 2024 as Gotbit's CEO. He could face up to 20 years in prison, additional fines, and asset forfeiture if convicted, according to the U.S. Attorney's Office. Prosecutors say the scheme involved "wash trading," where the firm used its software to make fake trades that inflated a cryptocurrency's trading volume. This practice, called market manipulation, can mislead investors by giving the impression that demand for a particular cryptocurrency is higher than it actually is. Wash trades are illegal in traditional finance and are considered fraudulent because they deceive investors and manipulate market behavior.

Court documents also identify Gotbit's two directors, Fedor Kedrov and Qawi Jalili, as co-conspirators. The indictment claims Gotbit documented these activities in detailed records, tracking differences between genuine and artificial trading volumes. The firm allegedly pitched these services to prospective clients, explaining how Gotbit's tactics would bypass detection on public blockchains, where transactions are recorded transparently. The U.S. Department of Justice has announced that it seized over $25 million worth of cryptocurrency assets connected to these schemes and made four arrests across multiple firms. If you've been following the crypto industry, you're probably familiar with "pump-and-dump" schemes that have popped up throughout the years. Although it's a form of market manipulation, it's not quite the same as "wash trading."

In a pump-and-dump scheme, the perpetrator artificially inflates the price of a security (often a low-priced or thinly traded stock) by spreading misleading or exaggerated information to attract other buyers, who then drive up the price. Once the price has risen due to increased demand, the manipulators "dump" their shares at the inflated price, selling to the new buyers and pocketing the profits. The price typically crashes after the dump, leaving unsuspecting investors with overvalued shares and significant losses.

Wash trading, on the other hand, involves simultaneously buying and selling of the same asset to create the illusion of higher trading volume and activity. The purpose is to mislead other investors about the asset's liquidity and demand, often giving the impression that it is more popular or actively traded than it actually is. Wash trades usually occur without real changes in ownership or price movement, as the buyer and seller may even be the same person or entity. This tactic can manipulate prices indirectly by creating a perception of interest, but it does not involve a direct inflation followed by a sell-off, like a pump-and-dump scheme.

A Russian court has fined Google an astronomical sum of around $20 decillion for YouTube's blocking of Russian media channels tied to sanctioned entities. The amount compounds weekly as Google continues to disregard the ruling. The Register reports: To put that into perspective, the World Bank estimates global GDP as around $100 trillion, which is peanuts compared to the prospective fine. Google might be one of the most valuable businesses on the planet, but even if Sundar Pichai rummages around the back of the sofa he won't be able to raise the funds to pay the penalty. The bizarre amount has been calculated after a four-year court case that started after YouTube banned the ultra-nationalist Russian channel Tsargrad in 2020 in response to the US sanctions imposed against its owner. Following Putin's illegal invasion of Ukraine in 2022 more channels were added to the banned list and 17 stations are now suing the Chocolate Factory, including Zvezda (a TV channel owned by Putin's Ministry of Defence), according to local media.

"Google was called by a Russian court to administrative liability under Art. 13.41 of the Administrative Offenses Code for removing channels on the YouTube platform. The court ordered the company to restore these channels," lawyer Ivan Morozov told state media outlet TASS. The court imposed a fine of 100 thousand rubles ($1,025) per day, with the total fine doubling every week. Owing to compound interest (Einstein's eighth wonder of the world), Google is now on the hook for an insane amount of money, or what the judge on Monday called "a case in which there are many, many zeros."

Indonesia has banned sales of Apple's iPhone 16, citing the tech giant's failure to meet local investment requirements, the country's Ministry of Industry said. The ministry said Apple's local unit has not fulfilled the mandatory 40% local content threshold for smartphones, making imported iPhone 16 units illegal for sale in Southeast Asia's largest economy.

About 9,000 iPhone 16 devices have entered Indonesia through passenger luggage since last month's launch. "These phones entered legally, but will be illegal if traded," the ministry said. Apple has invested 1.48 trillion rupiah ($108 million) of its 1.71 trillion rupiah commitment in Indonesia. The company operates four developer academies but no manufacturing facilities in the country, despite government pressure to expand its presence.

The Librarian of Congress has granted a DMCA exemption allowing independent repair of soft-serve machines, addressing the persistent issue of restricted repairs on McDonald's frequently malfunctioning machines. ExtremeTech reports: Section 1201 of the DMCA makes it illegal to bypass a digital lock protecting copyrighted work. That can be the DRM on a video file you download from iTunes, the carrier locks that prevent you from using a phone on other networks, or even the software running a McDonald's soft serve machine that refuses to accept third-party repairs. By locking down a product with DRM, companies can dictate when and how items are repaired under threat of legal consequences. This is an ongoing issue for people who want to fix all those busted ice cream machines.

Earlier this year, iFixit and Public Knowledge submitted their request for an exemption that would have covered a wide swath of industrial equipment. The request included everything from building management software to the aforementioned ice cream machines. Unfortunately, the Copyright Office was unconvinced on some of these points. However, the Librarian of Congress must be just as sick as the rest of us to hear the ice cream machine is broken. The office granted an exception for "retail-level food preparation equipment."

That means restaurant owners and independent repair professionals will be able to bypass the software locks that keep kitchen machinery offline until the "right" repair services get involved. This should lower prices and speed up repairs in such situations. Public Knowledge and iFixit express disappointment that the wider expansion was not granted, but they're still celebrating with some delicious puns (and probably ice cream). "There's nothing vanilla about this victory; an exemption for retail-level commercial food preparation equipment will spark a flurry of third-party repair activity and enable businesses to better serve their customers," said Meredith Rose, Senior Policy Counsel at Public Knowledge.

Ahead of Georgia's parliamentary elections, Georgian authorities raided the homes of disinformation researchers Eto Buziashvili and Sopo Gelava, seizing personal devices. The Record: Eto Buziashvili and Sopo Gelava, both employees of the Atlantic Council think tank, had their homes searched and their own and their family members' personal devices seized by investigators working for the country's Ministry of Finance, according to friends of the pair who spoke to Recorded Future News. Both women are said to be safe, although there are concerns about the security of their devices and online accounts. The searches come a day after Buziashvili published an article detailing how the Kremlin was influencing Georgian politics by supporting the incumbent government and interfering in the upcoming elections.

Local media reported that the offices of outsourcing company Concentrix and other Georgian citizens were also subject to searches. The Ministry of Finance claimed on Facebook it launched searches of "specific facilities" related to "call centers" alleged to be engaged in illegal activity. The investigations come ahead of an election that is being seen as a bellwether of the country's future direction, either pursuing closer ties to Russia under the current prime minister Irakli Kobakhidze or moving towards the West through opposition figures. Graham Brookie, the Atlantic Council's vice president for technology programs and strategy, said the organization "is deeply concerned about this development and its impact on our staff's work shortly before Georgian elections. [Gelava and Buziashvili] are engaged in independent, non-partisan work aimed at defending and strengthening democracy from those who would undermine it in online spaces, including research related to foreign influence efforts, the targeting of marginalized communities, and other online harms."

"We trust that Georgian authorities will provide more clarity on their actions, ensure the safety and security of our staff, return their property, and allow them to continue their contributions to Georgian democracy."

News Corp's Dow Jones & Co., publisher of the Wall Street Journal, and the New York Post have sued Perplexity, a startup that calls itself an "AI-powered Swiss Army Knife for information discovery and curiosity," alleging copyright infringement. From a report: "Perplexity is a generative artificial intelligence company that claims to provide its users accurate and up-to-date news and information in a platform that, in Perplexity's own words, allows users to 'Skip the Links' to original publishers' websites," the companies said in the federal lawsuit, filed Monday. "Perplexity attempts to accomplish this by engaging in a massive amount of illegal copying of publishers' copyrighted works and diverting customers and critical revenues away from those copyright holders. This suit is brought by news publishers who seek redress for Perplexity's brazen scheme to compete for readers while simultaneously freeriding on the valuable content the publishers produce."

South Korea will prepare stronger measures in a bid to prevent overseas leaks of business secrets amid intensifying competition for advanced technologies, the finance minister said on Thursday. From a report: "We will prevent illegal leaks of advanced technologies to raise the global competitiveness of our companies and strengthen technology leadership," Minister Choi Sang-mok said.

The government will set up a "big data" system aimed at preventing technology leaks at the patent agency and introduce new regulations to ensure stronger punishment for culprits, Choi said. He did not specify what the stronger penalties would be under the new regulations. In the past five years, there have been 97 attempts to leak business secrets to a foreign country, with 40 of them in the semiconductor industry, according to the National Intelligence Service.

penciling_in writes: Ukrainian authorities have arrested a 28-year-old man in Khmelnytskyi for running an illegal VPN service that allowed users to bypass Ukrainian sanctions and access the Russian internet (Runet). The VPN, active since Russia's invasion, enabled Russian sympathizers and people in occupied territories to reach blocked Russian government sites, social media, and news.

Handling over 100GB of data daily and linking to 48 million Russian IP addresses, the VPN may have been exploited by Russian intelligence. Ukrainian cyber police, in collaboration with the National Security Service, seized servers and equipment in multiple locations. The suspect faces charges under Part 5 of Article 361 of Ukraine's Criminal Code, which could lead to a 15-year prison sentence. Investigations are ongoing into further connections and funding sources. The case highlights the growing role of VPNs in the ongoing cyberwar between Ukraine and Russia.

Turkey has blocked access to Discord after the messaging platform refused to share potentially illegal information with authorities. Reuters reports: Justice minister Yilmaz Tunc said an Ankara court decided to block access to Discord from Turkey due to sufficient suspicion that crimes of "child sexual abuse and obscenity" had been committed by some using the platform. The block comes after public outrage in Turkey caused by the murder of two women by a 19-year-old man in Istanbul this month. Content on social media showed Discord users subsequently praising the killing. Transport and infrastructure minister Abdulkadir Uraloglu said the nature of the Discord platform made it difficult for authorities to monitor and intervene when illegal or criminal content is shared.

"Security personnel cannot go through the content. We can only intervene when users complain to us about content shared there," he told reporters in parliament. "Since Discord refuses to share its own information, including IP addresses and content, with our security units, we were forced to block access." Russia also recently blocked Discord for violating Russian law, after previously fining the company for failing to remove banned content.

X has been restored in Brazil after being shut down nationwide for over a month. According to court documents released today, X ultimately complied with all of Brazilian Supreme Court Justice Alexandre de Moraes' demands. "They included blocking certain accounts from the platform, paying outstanding fines and naming a legal representative in the country," reports NPR. "Failure to do the latter had triggered the suspension." From the report: Elon Musk's X was blocked blocked on Aug. 30 in the highly online country of 213 million people -- and one of X's biggest markets, with estimates of its user base ranging from 20 to 40 million. De Moraes ordered the shutdown after a monthslong dispute with Musk over free speech, far-right accounts and misinformation. Musk had disparaged de Moraes, calling him an authoritarian and a censor, even though his rulings, including X's suspension, were repeatedly upheld by his peers.

Brazilian law requires foreign companies to have a local legal representative to receive notifications of court decisions and swiftly take any requisite action -- particularly, in X's case, the takedown of accounts. Conceicao was first named X's legal representative in April and resigned four months later. The company named her to the same job on Sep. 20, according to the public filing with the Sao Paulo commercial registry. In an apparent effort to shield Conceicao from potential violations by X -- and risking arrest -- a clause has been written into Conceicao's new representation agreement that she must follow Brazilian law and court decisions, and that any legal responsibility she assumes on X's behalf requires prior instruction from the company in writing, according to the company's filing.

There is nothing illegal or suspect about using a company like BR4Business for legal representation, but it shows that X is doing the bare minimum to operate in the country, said Fabio de Sa e Silva, a lawyer and associate professor of International and Brazilian Studies at the University of Oklahoma. "It doesn't demonstrate an intention to truly engage with the country. Take Meta, for example, and Google. They have an office, a government relations department, precisely to interact with public authorities and discuss Brazil's regulatory policies concerning their businesses," Silva added. [...] "The concern now is what comes next and how X, once back in operation, will manage to meet the demands of the market and local authorities without creating new tensions," he said.

The District of Columbia and 13 states sued social media giant TikTok on Tuesday, accusing the company of knowingly creating an addictive product and getting children hooked with "digital nicotine." From a report: D.C. Attorney General Brian Schwalb brought Washington's suit in the Superior Court for the District of Columbia, asserting that the app's design -- including its algorithm, "infinite scroll," push notifications, filters and in-app currency -- boost the company's profits at the expense of children's health. "TikTok's platform, designed to be dangerously addictive, inflicts immense damage on an entire generation of young people," Schwalb said in a statement announcing the suit. "In addition to prioritizing its profits over the health of children, TikTok's unregulated and illegal virtual economy allows the darkest, most depraved corners of society to prey upon vulnerable victims." More than a dozen states brought similar suits against TikTok in their courts Tuesday, including New York, California, Kentucky and New Jersey. Each stems from a national investigation into the company that a bipartisan coalition of attorneys general launched in March 2022.

An anonymous reader quotes a report from Politico: It will soon be illegal for public and private universities in California to consider an applicant's relationship to alumni or donors when deciding whether to admit them. Gov. Gavin Newsom on Monday signed a ban on the practice known as legacy admissions, a change that will affect prestigious institutions including Stanford University and the University of Southern California. California's law, which will take effect Sept. 1, 2025, is the nation's fifth legacy admissions ban, but only the second that will apply to private colleges. "In California, everyone should be able to get ahead through merit, skill, and hard work," Newsom said in a statement. "The California Dream shouldn't be accessible to just a lucky few, which is why we're opening the door to higher education wide enough for everyone, fairly."

Like other states, California won't financially penalize violators, but it will post the names of violators on the state Department of Justice's website. California will also add to data reporting requirements that it implemented in 2022, when private colleges had to start sharing the percentage of admitted students who were related to donors and alumni. Schools that run afoul of the new law will also have to report more granular demographic information about their incoming classes to the state, including the race and income of enrolled students as well as their participation in athletics. [...] Public universities in California won't be affected by the change. California State University does not consider legacy or donor ties, and the University of California system stopped doing so in 1998, two years after California voters banned race-conscious admissions through a statewide ballot measure.

An anonymous reader quotes a report from Reuters: South Korean lawmakers on Thursday passed a bill that criminalizes possessing or watching sexually explicit deepfake images and videos, with penalties set to include prison terms and fines. There has been an outcry in South Korea over Telegram group chats where sexually explicit and illegal deepfakes were created and widely shared, prompting calls for tougher punishment. Anyone purchasing, saving or watching such material could face up to three years in jail or be fined up to 30 million won ($22,600), according to the bill.

Currently, making sexually explicit deepfakes with the intention of distributing them is punishable by five years in prison or a fine of 50 million won under the Sexual Violence Prevention and Victims Protection Act. When the new law takes effect, the maximum sentence for such crimes will also increase to seven years regardless of the intention. The bill will now need the approval of President Yoon Suk Yeol in order to be enacted. South Korean police have so far handled more than 800 deepfake sex crime cases this year, the Yonhap news agency reported on Thursday. That compares with 156 for all of 2021, when data was first collated. Most victims and perpetrators are teenagers, police say.

Google has restricted the creation of new accounts for Russian users, state news agencies cited Russia's digital ministry as saying on Thursday. Reuters: Google has been under pressure in Russia for several years, particularly for not taking down content Moscow considers illegal and for blocking the YouTube channels of Russian media and public figures since Moscow's invasion of Ukraine. "The ministry confirms that Google has restricted the creation of new accounts," Interfax quoted the digital ministry as saying. "Telecom operators have also recorded a significant reduction in the number of SMS messages sent by the company to Russian users."

An anonymous reader quotes a report from Ars Technica: California Gov. Gavin Newsom vetoed a bill that would have required makers of web browsers and mobile operating systems to let consumers send opt-out preference signals that could limit businesses' use of personal information. The bill approved by the State Legislature last month would have required an opt-out signal "that communicates the consumer's choice to opt out of the sale and sharing of the consumer's personal information or to limit the use of the consumer's sensitive personal information." It would have made it illegal for a business to offer a web browser or mobile operating system without a setting that lets consumers "send an opt-out preference signal to businesses with which the consumer interacts."

In a veto message (PDF) sent to the Legislature Friday, Newsom said he would not sign the bill. Newsom wrote that he shares the "desire to enhance consumer privacy," noting that he previously signed a bill "requir[ing] the California Privacy Protection Agency to establish an accessible deletion mechanism allowing consumers to request that data brokers delete all of their personal information." But Newsom said he is opposed to the new bill's mandate on operating systems. "I am concerned, however, about placing a mandate on operating system (OS) developers at this time," the governor wrote. "No major mobile OS incorporates an option for an opt-out signal. By contrast, most Internet browsers either include such an option or, if users choose, they can download a plug-in with the same functionality. To ensure the ongoing usability of mobile devices, it's best if design questions are first addressed by developers, rather than by regulators. For this reason, I cannot sign this bill." Vetoes can be overridden with a two-thirds vote in each chamber. The bill was approved 59-12 in the Assembly and 31-7 in the Senate. But the State Legislature hasn't overridden a veto in decades. "It's troubling the power that companies such as Google appear to have over the governor's office," said Justin Kloczko, tech and privacy advocate for Consumer Watchdog, a nonprofit group in California. "What the governor didn't mention is that Google Chrome, Apple Safari and Microsoft Edge don't offer a global opt-out and they make up for nearly 90 percent of the browser market share. That's what matters. And people don't want to install plug-ins. Safari, which is the default browsers on iPhones, doesn't even accept a plug-in."

The Department of Justice has filed an antitrust lawsuit against Visa, alleging that the financial services firm has an illegal monopoly over debit network markets and has attempted to unlawfully crush competitors, including fintech companies like PayPal and Square. From a report: The lawsuit follows a multiyear investigation of Visa which the company disclosed in 2021. "We allege that Visa has unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market," Attorney General Merrick Garland said in a statement. "Merchants and banks pass along those costs to consumers, either by raising prices or reducing quality or service. As a result, Visa's unlawful conduct affects not just the price of one thing -- but the price of nearly everything."

Visa makes more than $7 billion a year in payment processing fees alone, and more than 60 percent of debit transactions in the United States run on Visa's network, the complaint claims. The government alleges that Visa's market dominance is partly due to the "web of exclusionary agreements" it imposes on businesses and banks. Visa has also attempted to "smother" competitors -- including smaller debit networks and newer fintech companies -- the complaint alleges. Visa executives allegedly feel particularly threatened by Apple, which the company has described as an "existential threat," the DOJ claims.