An anonymous reader quotes a report from Reuters: An environmental community group on Tuesday sued Stronghold Digital Mining claiming the company's bitcoin mine in northeastern Pennsylvania that burns waste coal and old tires for energy is polluting nearby communities with dangerous chemicals. The lawsuit by Save Carbon County filed in state court in Philadelphia, also names Pennsylvania as a defendant. The group, a nonprofit whose members live near the bitcoin mine, is seeking compensatory and punitive damages from the company, and an order directing the state to stop allowing the pollution to continue. The group said Stronghold has created a public and private nuisance by releasing mercury into waterways and spewing harmful chemicals like sulfur dioxide into the air from an aging power plant it bought to power its energy-thirsty operations. The state has issued permits allowing the pollution and subsidized the crypto-mine through tax incentives despite having an affirmative duty in the state constitution to protect the environment for its citizens, according to the lawsuit. A Stronghold spokesperson said in a statement that its operations actually clean up land and water in the area by using waste coal left behind by historic coal production in the region. "Stronghold's facilities have cleaned up millions of tons of waste coal and reclaimed over 1,050 acres of once-blighted land, now sports fields, parks, and fishing spots for local communities," the spokesperson said.

An anonymous reader quotes a report from The Register: It's sanctions central at the US Treasury this week as a further 15 are slapped on organizations and individuals in Russia. The Treasury's Office of Foreign Assets Control (OFAC) designated 13 organizations and two individuals -- all concerning financial services organizations, including cryptocurrency exchanges that offered services to already-sanctioned dark web marketplaces in Russia, and those who helped run them. Five of the 13 freshly designated entities were also controlled by individuals who were already sanctioned. The latest round of trade restrictions were placed on those who are believed to have helped evade existing US sanctions.

"Many of the individuals and entities designated today facilitated transactions or offered other services that helped OFAC-designated entities evade sanctions," an OFAC statement read. "These designations build upon OFAC's February 23, 2024 action to target companies servicing Russia's core financial infrastructure and curtail Russia's use of the international financial system to further its war against Ukraine." They follow the initial seven sanctions announced on Monday, all relating to Chinese nationals and members of Beijing's APT31 offensive cyber outfit.

A top executive from the crypto exchange Binance has escaped custody in Nigeria after being arrested for allegedly destabilizing the country's national currency. The Associated Press reports: Nadeem Anjarwalla, the regional manager for Binance in Africa, "fled Nigeria using a smuggled passport," the office of Nigeria's National Security Adviser said in a statement, calling for "whatever information that can assist law enforcement agencies to apprehend the suspect." Anjarwalla, who holds dual British and Kenyan citizenship, had been detained in Nigeria along with another colleague since Feb. 26 when they arrived in the country following a crackdown on the crypto platform. Tigran Gambaryan, the colleague who is an American citizen, remains in captivity.

Nigeria is Africa's largest crypto economy in terms of trade volume with many citizens using crypto to hedge their finances against surging inflation and the declining local currency. Binance stopped all trading with the Nigerian naira currency on its platform in early March after authorities accused it of being used for money laundering and terrorism financing -- without providing evidence publicly. It was not clear how Anjarwalla fled custody. The Abuja-based Premium Times newspaper, which broke the news of his escape, reported that he fled from a guest house in the capital city after guards led him to a nearby mosque for prayers. "The personnel responsible for the custody of the suspect have been arrested, and a thorough investigation is ongoing to unravel the circumstances that led to his escape from lawful detention," Zakari Mijinyawa, spokesman for the office of Nigeria's National Security Adviser said in a statement.

The FTX bankruptcy estate has raised $884 million by selling the majority of its Anthropic shares to two dozen institutional investors. "The sale of the Anthropic shares is a big win for the FTX estate, which pledged in January to pay back the defunct exchange's customers 100% of the value of their holdings at the time of the exchange's collapse," reports CoinDesk. "FTX's FTT token climbed 10% on the news." From the report: According to Friday court filings, the top buyer is ATIC Third International Investment Company, a tech investment company wholly owned by the government of Abu Dhabi's sovereign wealth fund, Mubadala. ATIC has agreed to purchase 16,664,167 shares of Anthropic from FTX for $500 million. Other buyers include Jane Street Global Trading -- an affiliate of the erstwhile employer of former FTX CEO Sam Bankman-Fried -- "certain funds" tied to Fidelity Investments and The Ford Foundation.

An anonymous reader shares a report: About 6,000 older Bitcoin mining machines in the US will soon be idled and sent to a warehouse in Colorado Springs where they'll be refreshed and resold to buyers overseas looking to profit from mining in lower-cost environs. Wholesaler SunnySide Digital operates the 35,000 square-foot facility taking in the equipment from a mining client. The outdated machines are among several hundred-thousand it expects to receive and refurbish around a major quadrennial update in the Bitcoin blockchain.

Known as the halving, the late April event will slash the reward that's the main revenue stream for miners, who will try to lessen the impact by upgrading to the latest and most efficient technology. With electricity the biggest expense, mining companies including publicly traded giants Marathon Digital Holdings and Riot Platforms need to lower usage costs to maintain a positive margin. Their older computers may still bring a profit, just not likely in the US.

Some 600,000 S19 series computers, which account for a majority of machines currently in use, are moving out of the US mostly to Africa and South America, according to an estimate by Ethan Vera, chief operating officer at crypto-mining services and logistics provider Luxor Technology in Seattle. In Bitcoin mining, specialized machines are used to validate transactions on the blockchain and earn operators a fixed token reward. Anonymous Bitcoin creator Satoshi Nakamoto baked in the once-every-four-years halving to maintain the hard cap of 21 million tokens. Next month's event is the fourth since 2012 and the reward will drop to 3.125 Bitcoin from 6.25 now.

"If you've ever jokingly wondered if your search or viewing history is going to 'put you on some kind of list,' your concern may be more than warranted," writes Mashable : In now unsealed court documents reviewed by Forbes, Google was ordered to hand over the names, addresses, telephone numbers, and user activity of Youtube accounts and IP addresses that watched select YouTube videos, part of a larger criminal investigation by federal investigators.

The videos were sent by undercover police to a suspected cryptocurrency launderer... In conversations with the bitcoin trader, investigators sent links to public YouTube tutorials on mapping via drones and augmented reality software, Forbes details. The videos were watched more than 30,000 times, presumably by thousands of users unrelated to the case. YouTube's parent company Google was ordered by federal investigators to quietly hand over all such viewer data for the period of Jan. 1 to Jan. 8, 2023...
"According to documents viewed by Forbes, a court granted the government's request for the information," writes PC Magazine, adding that Google was asked "to not publicize the request." The requests are raising alarms for privacy experts who say the requests are unconstitutional and are "transforming search warrants into digital dragnets" by potentially targeting individuals who are not associated with a crime based simply on what they may have watched online.
That quote came from Albert Fox-Cahn, executive director at the Surveillance Technology Oversight Project, who elaborates in Forbes' article. "No one should fear a knock at the door from police simply because of what the YouTube algorithm serves up. I'm horrified that the courts are allowing this."

Thanks to long-time Slashdot reader schwit1 for sharing the article.

mrspoonsi shares a report from the BBC: A former takeaway worker found with Bitcoin worth more than $2.5 billion has been convicted at Southwark Crown Court of a crime linked to money laundering. Jian Wen, 42, from Hendon in north London, was involved in converting the currency into assets including multi-million-pound houses and jewelry. On Monday she was convicted of entering into or becoming concerned in a money laundering arrangement. The Met said the seizure is the largest of its kind in the UK.

Although Wen was living in a flat above a Chinese restaurant in Leeds when she became involved in the criminal activity, her new lifestyle saw her move into a six-bedroom house in north London in 2017 which was rented for more than $21,000 per month. She posed as an employee of an international jewelry business and moved her son to the UK to attend private school, the Crown Prosecution Service (CPS) said. That same year, Wen tried to buy a string of expensive houses in London, but struggled to pass money-laundering checks and her claims she had earned millions legitimately mining Bitcoin were not believed. She later travelled abroad, buying jewelry worth tens of thousands of pounds in Zurich, and purchasing properties in Dubai in 2019.

Another suspect is thought to be behind the fraud but they remain at large. The Met said it carried out a large scale investigation as part of the case - searching several addresses, reviewing 48 electronic devices, and examining thousands of digital files including many which were translated from Mandarin. The CPS has obtained a freezing order from the High Court, while it carries out a civil recovery investigation that could lead to the forfeiture of the Bitcoin. The value of the Bitcoin was worth around $2.5 billion at the time of initial estimates -- but due to the fluctuation in the currency's value, it has since increased to around $4.3 billion.

CoinDesk: The Ethereum Foundation -- the Swiss non-profit organization at the heart of the Ethereum ecosystem -- is under investigation by an unnamed "state authority," according to the group's website's GitHub repository. The scope of the investigation and its focus was unknown at press time. According to the GitHub commit dated Feb. 26, 2024, "we have received a voluntary enquiry from a state authority that included a requirement for confidentiality."

The investigation comes during a time of change for Ethereum's technology. Ethereum is the second-largest blockchain by market cap after Bitcoin, launching in 2015 following an initial coin offering for the chain's native ETH token. Earlier this month, the chain underwent a major technical upgrade, dubbed Dencun, designed to bring down transaction costs for users of Ethereum-based layer-2 platforms.

Refund fraud groups are exploiting lenient refund policies, resulting in significant losses for retailers like Amazon and prompting civil lawsuits and arrests. The scheme has become so pervasive that groups now market their services on Reddit, TikTok and Telegram. CNBC reports: Fraud groups are taking advantage of retailers' lenient return policies, experts told CNBC, which often include unlimited free returns and sometimes even a preference that customers keep the items. It's ballooned into a massive problem for retailers, costing them more than $101 billion last year, according to a survey by the National Retail Federation and Appriss Retail. The figure includes multiple forms of fraud, such as sending back clothing after it's been worn, known as "wardrobing," and returning shoplifted merchandise, the survey said.

In December, Amazon filed a lawsuit against Page and 47 other people across the globe with alleged ties to Rekk, accusing them of conspiring to steal millions of dollars worth of products in a refund fraud operation. Amazon described these services as "illegitimate 'businesses'" that look to "exploit the refund process for their own financial gain to the detriment of honest consumers and retailers who must bear the brunt of increased costs, decreased inventory, and service disruption that impacts genuine customers." An Amazon spokesperson said the company is addressing the issue "head on" through specialized teams and machine learning tools that detect and prevent refund fraud.

Here's how it works: A shopper buys a product online and sends the order information to a group such as Rekk, which then poses as the customer in requesting a refund. Amazon refunds the money to the customer, who then pays the fraud group usually between 15% and 30% of the refund amount, often via PayPal or with bitcoin. That means the customer ends up buying the product for what amounts to a huge discount. The fraud group then pays the conspiring employee at the retailer, typically a certain amount for a batch of packages the employee scans as returned.

A judge in the UK High Court has declared that Australian computer scientist Craig Wright is not Satoshi Nakamoto, the creator of Bitcoin, marking the end of a years-long debate. From a report: "The evidence is overwhelming," said Honourable Mr. Justice James Mellor, delivering a surprise ruling at the close of the trial. "Dr. Wright is not the author of the Bitcoin white paper. Dr. Wright is not the person that operated under the pseudonym Satoshi Nakamoto. Dr. Wright is not the person that created the Bitcoin system. Nor is Dr. Wright the author of the Bitcoin software," he said.

The ruling brings to a close a six-week trial, in which the Crypto Open Patent Alliance, a nonprofit consortium of crypto companies, asked the court to declare that Wright is not Satoshi on the basis that he had allegedly fabricated his evidence and contorted his story repeatedly as new inconsistencies came to light. "After all the evidence in this remarkable trial, it is clear beyond doubt that Craig Wright is not Satoshi Nakamoto," claimed Jonathan Hough, legal counsel for COPA, as he began his closing submissions on Tuesday. "Wright has lied, and lied, and lied."

Roman Sterlingov, the founder of a $400 million crypto-mixing service called Bitcoin Fog, has been convicted of money laundering in a United State District Court on Tuesday. Other charges include money laundering conspiracy, operating an unlicensed money-transmitting business, and violations of the D.C. Money Transmitters Act. CoinTelegraph reports: Sterlingov, however, had argued throughout the trial that he was only a user of the service, and not its operator. His attorney, Tok Ekeland said in a March 12 X post that his team will appeal the verdict. According to evidence presented at the trial, Sterlingov operated Bitcoin Fog from October 2011 to April 2021, which acted as a money laundering service for "criminals seeking to hide their illicit proceeds from law enforcement."

The service moved over 1.2 million Bitcoin over the decade-long operation -- worth $400 million at the time of the transactions -- with the bulk of cryptocurrency coming from darknet marketplaces tied to narcotics, computer fraud abuse and identity theft, the government said. Bitcoin Fog also served distributors of child sexual abuse material. Evidence used to convict Sterlingov found that the "vast majority" of crypto deposited to his crypto exchange accounts came from "Bitcoin clusters" associated with Bitcoin Fog. "Evidence presented at trial clearly showed that the defendant laundered hundreds of millions of illicit funds from the dark web through Bitcoin Fog in an attempt to conceal the origin of those funds," said Internal Revenue Service (IRS) Criminal Investigation Chief Jim Lee.

Two top executives from the crypto exchange Binance have been arrested in Nigeria for allegedly destabilizing the national currency. Quartz reports: According to a Wall Street Journal report, Tigran Gambaryan, head of financial-crime compliance at Binance who previously worked at the U.S. Internal Revenue Service (IRS), and Nadeem Anjarwalla, a British-Kenyan national and Binance's regional manager for Africa, have been held against their will for the past two weeks in the country. As per reports, Nigerian government officials invited Binance executives to discuss an ongoing dispute about the world's largest crypto exchange allegedly driving down the value of their national currency. Gambaryan and Anjarwalla arrived in Nigeria on February 25th; after their meeting with government officials, both were taken to their hotels. Later, they were instructed to pack their belongings and move to a guesthouse run by Nigeria's National Security Agency, as stated by their families, per reports.

The Nigerian government has accused Binance of exacerbating the country's foreign exchange challenges through rate manipulation for profit. The authorities have also accused the crypto exchange of illegal operations and have restricted access to the company's website. There are also reports that Nigeria sought a $10 billion penalty from Binance for processing around $26 billion in untraceable funds in the country. [...] The reason why and how Nigeria's economic crisis is linked with Binance is yet to be found out. Binance is hoping to resolve the matter soon, according to CoinDesk. The report notes that Nigeria is experiencing its worst economic crisis in recent years due to inflation and the devaluation of their currency, the naira.

An anonymous reader quotes a report from The Week Magazine: The advancement of new technologies appears to have given rise to a new problem across the United States: a crippling power shortage on the horizon. The advent of these technologies, such as eco-friendly factories and data centers, has renewed concerns that America could run out of electrical power. These worries also come at a time when the United States' aging power grid is in desperate need of repair. Heavily publicized incidents such as the 2021 Texas power outage, which was partially blamed on crypto-farming, exposed how vulnerable the nation's power supply is, especially during emergencies. There have also been warnings from tech moguls such as Elon Musk, who has stated that the United States is primed to run out of electricity and transformers for artificial intelligence in 2025. But the push to extend the life of the nation's power grid, while also maintaining eco-friendly sustainability, begs the question: Is the United States really at risk of going dark?

The emergence of new technologies means demand is soaring for power across the country; in Georgia, "demand for industrial power is surging to record highs, with the projection of electricity use for the next decade now 17 times what it was only recently," Evan Halper said for The Washington Post. Northern Virginia "needs the equivalent of several large nuclear power plants to serve all [its] new data centers," Halper said, while Texas faces a similar problem. This demand is resulting in a "scramble to try to squeeze more juice out of an aging power grid." At the same time, companies are "pushing commercial customers to go to extraordinary lengths to lock down energy sources, such as building their own power plants," Halper said. Much of this relates to the "rapid innovation in artificial intelligence, which is driving the construction of large warehouses of computing infrastructure," Halper said. This infrastructure requires significantly more power than traditional data centers, with the aforementioned crypto farms also sucking up massive amounts of power.

Climate change is also hurting sustainability efforts. A recent report from the North American Electric Reliability Corporation estimated that more than 300 million people in the U.S. and Canada could face power shortages in 2024. It also found that electricity demand is rising faster now than at any time in the past five years. This is partially because the "push for the electrification of heating and transportation systems -- including electric cars -- is also creating new winter peaks in electricity demand," Jeremy Hsu said for New Scientist. One of the main issues with these sustainability efforts is the push to move away from fossil fuels toward renewable power. Natural gas is often seen as a bridge between fossils and renewables, but this has also had unintended consequences for the power grid. The system delivering natural gas "doesn't have to meet the same reliability standards as the electric grid, and in many cases, there's no real way to guarantee that fuel is available for the gas plants in the winter," Thomas Rutigliano of the Natural Resources Defense Council said to New Scientist. As a result, the "North American electricity supply has become practically inseparable from the natural gas supply chain," John Moura of the North American Electric Reliability Corporation said to New Scientist. As such, a "reliable electricity supply that lowers the risk of power outages depends on implementing reliability standards for the natural gas industry moving forward," but this may be easier said than done.

Bitcoin surged to a record as demand from new US exchange-traded funds and a looming reduction in the token's supply growth fuel a breathtaking rebound in the original cryptocurrency. From a report: The largest digital asset rose as much as 2.5% to $69,191.95 as of 10:10 a.m. Tuesday in New York. Bitcoin has climbed about 62% so far in 2024, outperforming global stocks and spreading optimism across the digital-asset market.

In an ironic twist, Bitcoin owes much of its resurgence to a regulator long-viewed as hostile to crypto: the US Securities and Exchange Commission. The SEC approved spot-Bitcoin exchange-traded funds in early January after suffering a legal defeat last year in its attempt to reject them. The move has widened the mass-market accessibility of Bitcoin, helping the crypto sector to turn the page following a bear market in 2022 and a string of subsequent bankruptcies, including the implosion of Sam Bankman-Fried's FTX exchange.

Emily Shugerman reports via The Daily Beast: Gemini, the crypto startup owned by the Winklevoss twins, will have to return $1.1 billion to customers who lost money in their partnership with the now-bankrupt crypto lender Genesis. In a deal with the New York State Department of Financial Services, Gemini agreed to return the funds lost by customers of its Earn program, in which users could loan their crypto to Genesis in exchange for interest payments. According to the Department of Financial Services, Gemini "did not fully vet or sufficiently monitor [Genesis] throughout the life of Earn," and the company defaulted on its loans and then went bankrupt, leaving some 200,000 Earn customers empty-handed. "Gemini failed to conduct due diligence on an unregulated third party, later accused of massive fraud, harming Earn customers who were suddenly unable to access their assets after Genesis Global Capital experienced a financial meltdown," DFS Superintendent Adrienne A.Harris said in a statement. "Today's settlement is a win for Earn customers, who have a right to the assets they entrusted to Gemini."

In a tweet, Gemini said it was "pleased to announce that we have finally reached a settlement in principle with Genesis and other creditors in the Genesis Bankruptcy that will, if approved by the Bankruptcy Court, result in all Earn users receiving 100% of their digital assets back in kind." The DFS said Gemini would also pay $40 million to the Genesis bankruptcy for the benefit of Earn customers, as well as a $37 million fine for "significant failures that threatened the safety and soundness of the company."

As part of its IPO filing with the SEC, Reddit disclosed that it has invested some of its excess cash in bitcoin, ether and Polygon. From a report: Based on the document, the firm now holds BTC and ETH in its balance sheet. Notably, Reddit filing came as part of the IPO registration statement with the SEC. Apart from ETH and BTC, the filing revealed Reddit's investment in Polygon (MATIC). According to the document, the social media platform plans to use both Ether and Polygon as a form of payment for digital goods. Further, Reddit noted that the amount of Polygon and Ethereum from virtual goods is currently immaterial. However, it indicated the possibility of a continuous addition of Bitcoin and Ethereum to its treasury. Also, it plans to keep trying out its passion for virtual goods. Moreover, the document revealed that Reddit made the investments using some of its excess cash reserves. However, the firm didn't disclose details of the crypto investments it made.

Reddit's filing document revealed why the popular social media platform dabbled into crypto. According to the firm, it holds Bitcoin and Ethereum to enable its engineering and product teams to use them. Further, it cited the present regulatory stance that suggests these two assets are potentially non-securities under US laws. Also, Reddit disclosed its plans to expand its crypto holding by including other digital assets in its balance sheet. However, it highlighted that such a move will depend on future regulations that exempt crypto as a security.

An anonymous reader quotes a report from Ars Technica: Convicted FTX fraudster Sam Bankman-Fried pleaded for a lenient prison sentence in a court filing yesterday, saying that he isn't motivated by greed and "is already being punished." Bankman-Fried requested a sentence of 63 to 78 months, or 5.25 to 6.5 years. Because of "Sam's charitable works and demonstrated commitment to others, a sentence that returns Sam promptly to a productive role in society would be sufficient, but not greater than necessary, to comply with the purposes of sentencing," the court filing (PDF) said. Bankman-Fried's filing also said that he maintains his innocence and intends to appeal his convictions.

A presentence investigation report (PSR) prepared by a probation officer recommended that Bankman-Fried be sentenced to 100 years in prison, according to the filing. "That recommendation is grotesque," SBF's filing said, arguing that it is based on an erroneously calculated loss of $10 billion. The $10 billion loss asserted in the PSR is "illusory" because the "victims are poised to recover -- were always poised to recover -- a hundred cents on the dollar" in bankruptcy proceedings, SBF's filing said. The filing urged the court to "reject the PSR's barbaric proposal" of 100 years, saying that such sentences should only be for "heinous conduct" like terrorism and child sexual abuse.

The founder and ex-CEO of cryptocurrency exchange FTX, Bankman-Fried was convicted on seven charges with a combined maximum sentence of 110 years after a monthlong trial in US District Court for the Southern District of New York. The charges included wire fraud and conspiracy to commit wire fraud, securities fraud, commodities fraud, and money laundering. US government prosecutors are required to make a sentencing recommendation by March 15, and US District Judge Lewis Kaplan is scheduled to issue a sentence on March 28.

A federal judge in Texas has granted a temporary order blocking the U.S. government from monitoring the energy usage of cryptocurrency mining operations, stating that the industry had shown it would suffer "irreparable injury" if it was made to comply. The Guardian reports: The US Department of Energy had launched an "eemergency" initiative last month aimed at surveying the energy use of mining operations, which typically use vast amounts of computing power to solve various mathematical puzzles to add new tokens to an online network known as a blockchain, allowing the mining of currency such as bitcoin. The growth of cryptocurrency, and the associated mining of it, has been blamed for a surge in electricity use as data centers have sprung up across the US, even reviving, in some cases, ailing coal plants to help power the mining. [...]

"The massive energy consumption of cryptocurrency mining and its rapid growth in the United States threaten to undermine progress towards achieving climate goals, and threaten grids, communities and ratepayers," said Mandy DeRoche, deputy managing attorney of the clean energy program at Earthjustice. Until now, a lack of publicly available information has only benefited an "industry that has thrived in the shadows," DeRoche added.

The crypto mining industry, however, has claimed it is the victim of a "politically motivated campaign" by Joe Biden's administration and has, for now, succeeded in averting a survey that it contends is unfairly onerous. "This is an attack against legitimate American businesses with the administration feigning an emergency to score political points," said Lee Bratcher, president the Texas Blockchain Council, one of the groups that sued to stop the survey. "The White House has been clear that they desire to 'to limit or eliminate' bitcoin miners from operating in the United States. "Although bitcoin is resilient and cannot be banned, the administration is seeking to make the lives of bitcoin miners, their employees, and their communities too difficult to bear operating in the United States. This is deeply concerning."

"Crypto mines will have to start reporting their energy use in the U.S.," wrote the Verge in January, saying America's Energy department would "begin collecting data on crypto mines' electricity use, following criticism from environmental advocates over how energy-hungry those operations are."

But then "constitutional freedoms" group New Civil Liberties Alliance (founded with seed money from the Charles Koch Foundation) objected. And "on behalf of its clients" — the Texas Blockchain Council and Colorado bitcoin mining company Riot Platforms — the group said it "looks forward to derailing the Department of Energy's unlawful data collection effort once and for all."

While America's Energy department said the survey would take 30 minutes to complete, the complaint argued it would take 40 hours. According to the judge, the complaint "alleged three main sources of irreparable injury..."

- Nonrecoverable costs of compliance with the Survey
- A credible threat of prosecution if they do not comply with the Survey
- The disclosure of proprietary information requested by the Survey, thus risking disclosure of sensitive business strategy

But more importantly, the survey was implemented under "emergency" provisions, which the judge said is only appropriate when "public harm is reasonably likely to result if normal clearance procedures are followed."

Or, as Semafor.com puts it, the complaint was "seeking to push off the reporting deadline, on the grounds that the survey was rushed through...without a public comment period." The judge, Alan Albright, granted the request late Friday night, blocking the [Department of Energy's Information Administration] from collecting survey data or requiring bitcoin companies to respond to it, at least until a more comprehensive injunction hearing scheduled for Feb. 28. The ruling also concludes that the plaintiffs are "likely to succeed in showing that the facts alleged by the U.S. Energy Information Administration to support an emergency request fall far short of justifying such an action."
The U.S. Department of Energy is now...

• Restrained from requiring Plaintiffs or their members to respond to the Survey
• Restrained from collecting data required by the Survey
• "...and shall sequester and not share any such data that Defendants have already received from Survey respondents."

Thanks to long-time Slashdot reader schwit1 for sharing the news.

Former FTX customers "have reasons to believe they could actually recoup their money," reports CNBC: Bankman-Fried, who could spend the rest of his life behind bars, was found guilty in November on seven criminal counts after roughly $10 billion in customer funds from his company went missing. Some of that money went to pay for Bankman-Fried's lavish lifestyle, but much of it went towards other investments that have, of late, appreciated dramatically in value. Lawyers representing the bankruptcy estate of FTX told a judge in Delaware last week that they expect to fully repay customers and creditors with legitimate claims. Bankruptcy attorney Andrew Dietderich, who works with FTX's new leadership team, said "there is still a great amount of work and risk" ahead in getting all the money back to clients, but that the team has a "strategy to achieve it."

It's a welcome development for the many thousands of customers (reportedly up to a million) who collectively lost billions of dollars in FTX's collapse 15 months ago, when the crypto exchange spiraled into bankruptcy in a matter of days. Given the lightly regulated and unsecured nature of FTX — and the crypto industry at large — those clients faced the real possibility that the vast majority of their money had evaporated. Plenty of failed hedge funds and lenders lost virtually everything during the 2022 crypto winter... [C]rypto was mired in a bear market, with bitcoin trading at around $16,000. It's now above $47,000... FTX's bitcoin stash, which was worth $560 million at the time of the September report, is today valued north of $1 billion.

Bankman-Fried's investments weren't limited to crypto. He also used client money to back startups like Anthropic, the artificial intelligence company founded by ex-OpenAI employees. FTX invested $500 million in Anthropic in 2021, before the generative AI boom. Anthropic's valuation hit $18 billion in December 2023, which would value FTX's roughly 8% stake at about $1.4 billion.
CNBC suggests this could affect the length of Bankman-Fried's prison sentence (which will be determined next month).

There's now also a so-called "FTX IOU" market where investors are selling their debt, CNBC adds. "One financial firm that had lost around $100 million initially sold its FTX debt for 6 cents on the dollar in a new secondary market out of concern that he may never get a better deal. As of December, those claims were going for more than 70 cents on the dollar."

CNBC also reports that FTX "had been negotiating with bidders about a potential reboot of the company, but those efforts were scrapped last month."