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Microsoft

Microsoft Accuses the New York Times of Doom-Mongering in OpenAI Lawsuit (engadget.com) 55

Microsoft has filed a motion seeking to dismiss key parts of a lawsuit The New York Times filed against the company and Open AI, accusing them of copyright infringement. From a report: If you'll recall, The Times sued both companies for using its published articles to train their GPT large language models (LLMs) without permission and compensation. In its filing, the company has accused The Times of pushing "doomsday futurology" by claiming that AI technologies pose a threat to independent journalism. It follows OpenAI's court filing from late February that's also seeking to dismiss some important elements on the case.

Like OpenAI before it, Microsoft accused The Times of crafting "unrealistic prompts" in an effort to "coax the GPT-based tools" to spit out responses matching its content. It also compared the media organization's lawsuit to Hollywood studios' efforts to " stop a groundbreaking new technology:" The VCR. Instead of destroying Hollywood, Microsoft explained, the VCR helped the entertainment industry flourish by opening up revenue streams. LLMs are a breakthrough in artificial intelligence, it continued, and Microsoft collaborated with OpenAI to "help bring their extraordinary power to the public" because it "firmly believes in LLMs' capacity to improve the way people live and work."

The Courts

Discord Leaker Jack Teixeira Pleads Guilty, Seeks Light 11-Year Sentence (arstechnica.com) 50

An anonymous reader quotes a report from Ars Technica: Jack Teixeira, the National Guard airman who leaked confidential military documents on Discord, agreed Monday to plead guilty, promising to cooperate with officials attempting to trace the full extent of government secrets leaked. Under the plea deal, Teixeira will serve a much-reduced sentence, The Boston Globe reported, recommended between 11 years and 16 years and eight months. Previously, Teixeira had pleaded not guilty to six counts of "willful retention and transmission of national defense information," potentially facing up to 10 years per count. During a pretrial hearing, prosecutors suggested he could face up to 25 years, The Globe reported.

By taking the deal, Teixeira will also avoid being charged with violations of the Espionage Act, The New York Times reported, including allegations of unlawful gathering and unauthorized removal of top-secret military documents. According to prosecutors, it was clear that Teixeira, 22, was leaking sensitive documents -- including national security secrets tied to US foreign adversaries and allies, including Russia, China, Ukraine, and South Korea -- just to impress his friends on Discord -- some of them teenage boys. Investigators found no evidence of espionage. US District Judge Indira Talwani will decide whether or not to sign off on the deal at a hearing scheduled for September 27.

Television

Roku Disables Devices Until Users Agree To New Arbitration Rules 147

ZipK writes: Cord Cutters New reports that Roku has rolled out new terms of service that require users to accept individual arbitration. To gain acceptance, Roku devices pop up a dialog box that can only be dismissed if you accept the new terms or turn off your Roku and stop using it. As expected, much discussion has ensued in the Roku community.

Per the Roku Dispute Resolution Terms, users can opt out within 30 days of being subject to the new terms by sending a surface mail request to General Counsel, Roku Inc., 1701 Junction Court, Suite 100, San Jose, CA 95112. One poster in the community forum noted that the effective date of the change was Feb 20th, which may shorten the 30 day period for opting out.
Longtime Slashdot reader blastard also shared the news.
Emulation (Games)

Nintendo Switch Emulator Yuzu To Shut Down, Pay $2.4 Million To Settle Lawsuit (liliputing.com) 62

An anonymous reader quotes a report from Liliputing: Yuzu is a free and open source emulator that makes it possible to run Nintendo Switch games on Windows, Linux, and Android devices. First released in 2018, the software has been under constant development since then (the Android port was released less than a year ago). But last week Nintendo sued the developers, claiming that the primary purpose of the software is to circumvent Nintendo Switch encryption and allow users to play pirated games. Rather than fight the case in court, Tropic Haze (the developers behind Yuzu) have agreed to a settlement which involves paying $2.4 million in damages to Nintendo and basically shutting down Yuzu.

As part of a permanent injunction, Tropic Haze has agreed to stop distributing, advertising, or promoting Yuzu or any of its source code or features or any other "software or devices that circumvent Nintendo's technical protection measures." The court is also ordering the developers to turn over the yuzu-emu.org website to Nintendo and bars them "from supporting or facilitating access" to any other related websites, social media, chatrooms, or apps. In one of the more bizarre parts of the court order, the Yuzu team is told to delete all "circumvention devices," which includes any tools used for development of Yuzu and "all copies of Yuzu."

United States

JetBlue and Spirit Call Off Their Merger (nytimes.com) 38

JetBlue Airways and Spirit Airlines announced on Monday that they would walk away from their planned $3.8 billion merger after federal antitrust regulators successfully challenged the deal in court. JetBlue said it would pay Spirit $69 million to exit the deal. From a report: A federal judge in Boston blocked the proposed merger on Jan. 16, siding with the Justice Department in determining that the merger would reduce competition in the industry and give airlines more leeway to raise ticket prices. The judge, William G. Young of the U.S. District Court for the District of Massachusetts, noted that Spirit played a vital role in the market as a low-cost carrier and that travelers would have fewer options if JetBlue absorbed it.

"We are proud of the work we did with Spirit to lay out a vision to challenge the status quo, but given the hurdles to closing that remain, we decided together that both airlines' interests are better served by moving forward independently," JetBlue's chief executive, Joanna Geraghty, said in a statement on Monday. "We wish the very best going forward to the entire Spirit team." JetBlue and Spirit appealed Judge Young's decision. JetBlue filed an appellate brief last week arguing that the deal should be allowed to go through. But in a regulatory filing on Jan. 26, JetBlue said it might terminate the deal. Spirit said in its own filing the same day that it believed "there is no basis for terminating" the agreement.

EU

European Commission Confirms Apple's Anti-Competitive Behavior Is Illegal and Harms Consumers (spotify.com) 87

The EU Commission on Monday fined Apple about $2 billion for stifling competition from rival music streaming services. In a blog post, Spotify writes: Apple's rules muzzled Spotify and other music streaming services from sharing with our users directly in our app about various benefits -- denying us the ability to communicate with them about how to upgrade and the price of subscriptions, promotions, discounts, or numerous other perks. Of course, Apple Music, a competitor to these apps, is not barred from the same behaviour. By requiring Apple to stop its illegal conduct in the EU, the EC is putting consumers first. It is a basic concept of free markets -- customers should know what options they have, and customers, not Apple, should decide what to buy, and where, when and how.

While we appreciate the EC addressing this important case, we also know that the details matter. Apple has routinely defied laws and court decisions in other markets. So we're looking forward to the next steps that will hopefully clearly and conclusively address Apple's long-standing unfair practices.

From the beginning, the foundational belief of the internet is that it should be a fair and open ecosystem. That belief has fueled growth, innovation and discovery around the world. Today the leading way people access the internet is via their mobile phones. So why should the same principles not apply? And while we are pleased that this case delivers some justice, it does not solve Apple's bad behaviour towards developers beyond music streaming in other markets around the world. Our work will not be done until we succeed in securing a truly fair digital marketplace everywhere and our commitment to helping to make this a reality remains unwavering.
Further reading: Apple's response.
Open Source

French Court Issues Damages Award For Violation of GPL (heathermeeker.com) 52

Some news from "Copyleft Currents", the blog of open-source/IP lawyer Heather Meeker: On February 14, 2024, the Court of Appeal of Paris issued an order stating that Orange, a major French telecom provider, had infringed the copyight of Entr'Ouvert's Lasso software and violated the GPL.

They ordered Orange to pay €500,000 in compensatory damages and €150,000 for moral damages.

This case has been ongoing for many years. Entr'ouvert is the publisher of Lasso, a reference library for the Security Assertion Markup Language (SAML) protocol, an open standard for identity providers to authenticate users and pass authentication tokens to online services. This is the open protocol that enables single sign-on (SSO). The Lasso product is dual licensed by Entr'Ouvert under GPL or commercial licenses.

In 2005, Orange won a contract with the French Agency for the Development of Electronic Administration to develop parts of the service-public.fr portal, which allows users to interact online with the government for administrative procedures. Orange used the Lasso software in the solution, but did not pass on the rights to its modifications free of charge under GPL, or make the source code to its modifications available. Entr'Ouvert sued Orange in 2010, and the case wended its way through the courts, turning on, among other things, issues of proof of Entr'Ouvert 's copyright interest in the software, and whether the case properly sounded in breach of contract or copyright infringement...

The compensatory damages were based on both lost profits of the plaintiff and disgorgement of profits of Orange. Moral damages compensate the plaintiff for harm to reputation or other non-monetary injury.

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

Watch the Moment 43 Unionized YouTube Contractors Were All Laid Off (msn.com) 178

An anonymous Slashdot reader shared this report from The Washington Post: A YouTube contractor was addressing the Austin City Council on Thursday, calling on them to urge Google to negotiate with his union, when a colleague interrupted him with jaw-dropping news: His 43-person team of contractors had all been laid off...

The YouTube workers, who work for Google and Cognizant, unanimously voted to unionize under the Alphabet Workers Union-CWA in April 2023. Since then, the workers say that Google has refused to bargain with them. Thursday's layoff signifies continued tensions between Google and its workers, some of whom in 2021 formed a union...

Workers had about 20 minutes to gather their belongings and leave the premises before they were considered trespassing.

Video footage of the moment is embedded at the top of the article. "I was speechless, shocked," said the contractor who'd been speaking. He told the Washington Post "I didn't know what to do. But angered, that was the main feeling." The council meeting was streaming live online and has since spread on social media. The contractors view the layoff as retaliation for unionizing, but Google and information technology subcontractor Cognizant said it was the normal end of a business contract.

The ability for layoffs to spread over social media highlights how the painful experience of a job loss is frequently being made public, from employees sharing recordings of Zoom meetings to posting about their unemployment. The increasing tension between YouTube's contractors and Google comes as massive layoffs continue to hit the tech industry — leaving workers uneasy and companies emboldened. Google already has had rounds of cuts the past two years.

Google has been in a long-running battle with many of its contractors as they seek the perks and high pay that full-time Google workers are accustomed to. The company has tens of thousands of contractors doing everything from food service to sales to writing code... Google maintains that Cognizant is responsible for the contractors' employment and working conditions, and therefore isn't responsible for bargaining with them. Cognizant said it is offering the workers seven weeks of paid time to explore other roles at the company and use its training resources.

Last year, the National Labor Relations Board ruled that Cognizant and Google are joint employers of the contractors. In January, the NLRB sent a cease-and-desist letter to both employers for failing to bargain with the union. Since then the issue of joint employment, which would ultimately determine which company is responsible for bargaining, has landed in an appeals court and has yet to be ruled on.

"Workers say they don't have sick pay, receive minimal benefits and are paid as little as $19 an hour," according to the article, "forcing some to work multiple jobs to make ends meet." Sam Regan, a data analyst contractor for YouTube Music, told the Washington Post that he was one of the last workers to leave the meeting where the layoffs were announced.

"Upon leaving, he heard one of the security guards call the non-emergency police line to report trespassers."
Canada

Police Now Need Warrant For IP Addresses, Canada's Top Court Rules (www.cbc.ca) 36

The Supreme Court of Canada ruled today that police must now have a warrant or court order to obtain a person or organization's IP address. CBC News reports: The top court was asked to consider whether an IP address alone, without any of the personal information attached to it, was protected by an expectation of privacy under the Charter. In a five-four split decision, the court said a reasonable expectation of privacy is attached to the numbers making up a person's IP address, and just getting those numbers alone constitutes a search. Writing for the majority, Justice Andromache Karakatsanis wrote that an IP address is "the crucial link between an internet user and their online activity." "Thus, the subject matter of this search was the information these IP addresses could reveal about specific internet users including, ultimately, their identity." Writing for the four dissenting judges, Justice Suzanne Cote disagreed with that central point, saying there should be no expectation of privacy around an IP address alone. [...]

In the Supreme Court majority decision, Karakatsanis said that only considering the information associated with an IP address to be protected by the Charter and not the IP address itself "reflects piecemeal reasoning" that ignores the broad purpose of the Charter. The ruling said the privacy interests cannot be limited to what the IP address can reveal on its own "without consideration of what it can reveal in combination with other available information, particularly from third-party websites." It went on to say that because an IP address unlocks a user's identity, it comes with a reasonable expectation of privacy and is therefore protected by the Charter. "If [the Charter] is to meaningfully protect the online privacy of Canadians in today's overwhelmingly digital world, it must protect their IP addresses," the ruling said.

Justice Cote, writing on behalf of justices Richard Wagner, Malcolm Rowe and Michelle O'Bonsawin, acknowledged that IP addresses "are not sought for their own sake" but are "sought for the information they reveal." "However, the evidentiary record in this case establishes that an IP address, on its own, reveals only limited information," she wrote. Cote said the biographical personal information the law was designed to protect are not revealed through having access to an IP address. Police must use that IP address to access personal information that is held by an ISP or a website that tracks customers' IP addresses to determine their habits. "On its own, an IP address does not even reveal browsing habits," Cote wrote. "What it reveals is a user's ISP -- hardly a more private piece of information than electricity usage or heat emissions." Cote said placing a reasonable expectation of privacy on an IP address alone upsets the careful balance the Supreme Court has struck between Canadians' privacy interests and the needs of law enforcement. "It would be inconsistent with a functional approach to defining the subject matter of the search to effectively hold that any step taken in an investigation engages a reasonable expectation of privacy," the dissenting opinion said.

AI

Elon Musk Sues OpenAI and Sam Altman (techcrunch.com) 179

Elon Musk has sued OpenAI, its co-founders Sam Altman and Greg Brockman and affiliated entities, alleging the ChatGPT makers have breached their original contractual agreements by pursuing profits instead of the non-profit's founding mission to develop AI that benefits humanity. TechCrunch: Musk, a co-founder and early backer of OpenAI, claims Altman and Brockman convinced him to help found and bankroll the startup in 2015 with promises it would be a non-profit focused on countering the competitive threat from Google. The founding agreement required OpenAI to make its technology "freely available" to the public, the lawsuit alleges.

The lawsuit, filed in a court in San Francisco late Thursday, says that OpenAI, the world's most valuable AI startup, has shifted to a for-profit model focused on commercializing its AGI research after partnering with Microsoft, the world's most valuable company that has invested about $13 billion into the startup. "In reality, however, OpenAI, Inc. has been transformed into a closed-source de facto subsidiary of the largest technology company in the world: Microsoft. Under its new board, it is not just developing but is actually refining an AGI to maximize profits for Microsoft, rather than for the benefit of humanity," the lawsuit adds. "This was a stark betrayal of the Founding Agreement."

The Courts

ExxonMobil Is Suing Investors Who Want Faster Climate Action (npr.org) 110

An anonymous reader quotes a report from NPR: ExxonMobil faces dozens of lawsuits from states and localities alleging the company lied for decades about its role in climate change and the dangers of burning fossil fuels. But now, ExxonMobil is going on the offensive with a lawsuit targeting investors who want the company to slash pollution that's raising global temperatures. Investors in publicly-traded companies like ExxonMobil try to shape corporate policies by filing shareholder proposals that are voted on at annual meetings. ExxonMobil says it's fed up with a pair of investor groups that it claims are abusing the system by filing similar proposals year after year in an effort to micromanage its business.

ExxonMobil's lawsuit points to growing tensions between companies and activist investors calling for corporations to do more to shrink their climate impact and prepare for a hotter world. Interest groups on both sides of the case say it could unleash a wave of corporate litigation against climate activists. It is happening at a time when global temperatures continue to rise, and corporate analysts say most companies aren't on track to meet targets they set to reduce their heat-trapping emissions. "Exxon is really upping the ante here in a big way by bringing this case," says Josh Zinner, chief executive of an investor coalition called the Interfaith Center on Corporate Accountability, whose members include a defendant in the ExxonMobil case. "Other companies could use this tactic not just to block resolutions," Zinner says, "but to intimidate their shareholders from even bringing these [climate] issues to the table."

ExxonMobil said in an email that it is suing the investor groups Arjuna Capital and Follow This because the U.S. Securities and Exchange Commission (SEC) isn't enforcing rules governing when investors can resubmit shareholder proposals. A court is the "the right place to get clarity on SEC rules," ExxonMobil said, adding that the case "is not about climate change." Other corporations are watching ExxonMobil's case, says Charles Crain, a vice president at the National Association of Manufacturers, which represents ExxonMobil and other industrial companies. "If companies are decreasingly able to get the SEC to allow them to exclude proposals that are obviously politically motivated, then the next question is, well, can the courts succeed where the SEC has failed -- or, more accurately, not even tried?," Crain says.
"The shareholder proposal from Arjuna and Follow This called for ExxonMobil to cut emissions faster from its own operations and from its supply chain, including the pollution that's created when customers burn its oil and natural gas," notes NPR. "That indirect pollution, known as Scope 3 emissions, accounts for 90% of ExxonMobil's carbon footprint."

"ExxonMobil says it is committed to cutting emissions from its operations. But the idea that activist investors like Arjuna and Follow This can quickly push the company out of the oil and gas business with new climate policies is 'simplistic and against the interests of the vast majority of ExxonMobil shareholders,' the company said in a court filing in Texas." The company added that while shareholders are entitled to submit proposals, they don't have "an unlimited right to put forth any proposal to do anything."

"Their intent is to advance their agenda rather than creating long-term value for shareholders," ExxonMobil said of Arjuna and Follow This.
Software

Court Orders Maker of Pegasus Spyware To Hand Over Code To WhatsApp (theguardian.com) 53

Stephanie Kirchgaessner reports via The Guardian: NSO Group, the maker of one the world's most sophisticated cyber weapons, has been ordered by a US court to hand its code for Pegasus and other spyware products to WhatsApp as part of the company's ongoing litigation. The decision by Judge Phyllis Hamilton is a major legal victory for WhatsApp, the Meta-owned communication app which has been embroiled in a lawsuit against NSO since 2019, when it alleged that the Israeli company's spyware had been used against 1,400 WhatsApp users over a two-week period.

NSO's Pegasus code, and code for other surveillance products it sells, is seen as a closely and highly sought state secret. NSO is closely regulated by the Israeli ministry of defense, which must review and approve the sale of all licences to foreign governments. In reaching her decision, Hamilton considered a plea by NSO to excuse it of all its discovery obligations in the case due to "various US and Israeli restrictions."

Ultimately, however, she sided with WhatsApp in ordering the company to produce"all relevant spyware" for a period of one year before and after the two weeks in which WhatsApp users were allegedly attacked: from 29 April 2018 to 10 May 2020. NSO must also give WhatsApp information "concerning the full functionality of the relevant spyware." Hamilton did, however, decide in NSO's favor on a different matter: the company will not be forced at this time to divulge the names of its clients or information regarding its server architecture.

Cellphones

The FBI Is Using Push Notifications To Catch Sexual Predators (gizmodo.com) 34

According to the Washington Post (paywalled), the FBI is using mobile push notification data to unmask people suspected of serious crimes, such as pedophilia, terrorism, and murder. Gizmodo reports: The Post did a little digging into court records and found evidence of at least 130 search warrants filed by the feds for push notification data in cases spanning 14 states. In those cases, FBI officials asked tech companies like Google, Apple, and Facebook to fork over data related to a suspect's mobile notifications, then used the data to implicate the suspect in criminal behavior linked to a particular app, even though many of those apps were supposedly anonymous communication platforms, like Wickr.

How exactly is this possible? Push notifications, which are provided by a mobile operating system provider, include embedded metadata that can be examined to understand the use of the mobile apps on a particular phone. Apps come laced with a quiet identifier, a "push token," which is stored on the corporate servers of a company like Apple or another phone manufacturer after a user signs up to use a particular app. Those tokens can later be used to identify the person using the app, based on the information associated with the device on which the app was downloaded. Even turning off push notifications on your device doesn't necessarily disable this feature, experts contend. [...]

If finding new ways to catch pedophiles and terrorists doesn't seem like the worst thing in the world, the Post article highlights the voices of critics who fear that this kind of mobile data could be used to track people who have not committed serious crimes -- like political activists or women seeking abortions in states where the procedure has been restricted.

AI

BC Lawyer Reprimanded For Citing Fake Cases Invented By ChatGPT 42

A B.C. lawyer has been ordered to pay costs for opposing counsel for the time they took to discover that two cases she cited as precedent were created by ChatGPT. CBC News reports: The cases would have provided compelling precedent for a divorced dad to take his children to China -- had they been real. But instead of savouring courtroom victory, the Vancouver lawyer for a millionaire embroiled in an acrimonious split has been told to personally compensate her client's ex-wife's lawyers for the time it took them to learn the cases she hoped to cite were conjured up by ChatGPT. In a decision released Monday, a B.C. Supreme Court judge reprimanded lawyer Chong Ke for including two AI "hallucinations" in an application filed last December. The cases never made it into Ke's arguments; they were withdrawn once she learned they were non-existent.

Justice David Masuhara said he didn't think the lawyer intended to deceive the court -- but he was troubled all the same. "As this case has unfortunately made clear, generative AI is still no substitute for the professional expertise that the justice system requires of lawyers," Masuhara wrote in a "final comment" appended to his ruling. "Competence in the selection and use of any technology tools, including those powered by AI, is critical."
Bitcoin

Winklevoss Twins' Start-Up Will Pay Burned Customers $1 Billion (thedailybeast.com) 17

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."

AI

The Intercept, Raw Story, and AlterNet Sue OpenAI and Microsoft (theverge.com) 58

The Intercept, Raw Story, and AlterNet have filed separate lawsuits against OpenAI and Microsoft, alleging copyright infringement and the removal of copyright information while training AI models. The Verge reports: The publications said ChatGPT "at least some of the time" reproduces "verbatim or nearly verbatim copyright-protected works of journalism without providing author, title, copyright or terms of use information contained in those works." According to the plaintiffs, if ChatGPT trained on material that included copyright information, the chatbot "would have learned to communicate that information when providing responses."

Raw Story and AlterNet's lawsuit goes further (PDF), saying OpenAI and Microsoft "had reason to know that ChatGPT would be less popular and generate less revenue if users believed that ChatGPT responses violated third-party copyrights." Both Microsoft and OpenAI offer legal cover to paying customers in case they get sued for violating copyright for using Copilot or ChatGPT Enterprise. The lawsuits say that OpenAI and Microsoft are aware of potential copyright infringement. As evidence, the publications point to how OpenAI offers an opt-out system so website owners can block content from its web crawlers.
The New York Times also filed a lawsuit in December against OpenAI, claiming ChatGPT faithfully reproduces journalistic work. OpenAI claims the publication exploited a bug on the chatbot to regurgitate its articles.
Bitcoin

SBF Asks For 5-Year Prison Sentence, Calls 100-Year Recommendation 'Grotesque' (arstechnica.com) 189

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.

Businesses

Amazon Aggregator Thrasio Files For Bankruptcy (nasdaq.com) 18

Thrasio, which acquires third-party Amazon sellers, filed for Chapter 11 bankruptcy protection and received commitments for $90 million in new financing from existing shareholders, it said on Wednesday. From a report: Thrasio also entered into a restructuring agreement with some of its lenders to reduce debt of $495 million from its existing debt pile, it said in a statement. It listed its estimated assets in the range of $1 billion to $10 billion and estimated liabilities of $500 million to $1 billion, according to a document filed with the New Jersey bankruptcy court. Billions of dollars, primarily in loans and other debt instruments, were invested into newly-formed startups aggregating third-party merchants on Amazon's marketplace during the COVID-19 pandemic as investors bet heavily on a prolonged explosion in online shopping. But as lockdowns eased and consumers returned to brick-and-mortar stores, sales growth on Amazon slowed, leaving these heavily-indebted "roll-up" companies struggling to service interest payments.
Nintendo

Nintendo Suing Makers of Open-Source Switch Emulator Yuzu (polygon.com) 107

Nintendo has filed a 41-page lawsuit against the makers of Yuzu, an open-source Nintendo Switch emulator, accusing them of "facilitating piracy at a colossal scale." Polygon reports: Yuzu is a free emulator that was released in 2018 months after the Nintendo Switch originally launched. The same folks who made Citra, a Nintendo 3DS emulator, made this one. Basically, it's a piece of software that lets people play Nintendo Switch games on Windows PC, Linux, and Android devices. (It also runs on Steam Deck, which Valve showed -- then wiped -- in a Steam Deck video clip.) Emulators aren't necessarily illegal, but pirating games to play on them is. But Nintendo said in its lawsuit that there's no way to legal way to use Yuzu.

Nintendo argued that Yuzu executes codes that "defeat" Nintendo's security measures, including decryption using "an illegally-obtained copy of prod.keys." "In other words, without Yuzu's decryption of Nintendo's encryption, unauthorized copies of games could not be played on PCs or Android devices," Nintendo wrote in the lawsuit. As to the alleged damages created by Yuzu, Nintendo pointed to the release of The Legend of Zelda: Tears of the Kingdom. Tears of the Kingdom leaked almost two weeks earlier than the game's May 12 release date. The pirated version of the game spread quickly; Nintendo said it was downloaded more than 1 million times before Tears of the Kingdom's release date. People used Yuzu to play the game; Nintendo said more than 20% of download links pointed people to Yuzu.

Though Yuzu doesn't give out pirated copies of games, Nintendo repeatedly said that most ROM sites point people toward Yuzu to play whatever games they've downloaded. Nintendo said its "expended significant resources to stop the illegal copying, marketing, sale, and distribution" of its Nintendo Switch games. It says that Yuzu earns the team $30,000 per month on its Patreon from more than 7,000 patrons. Nintendo said the company has earned at least $50,000 in paid Yuzu downloads. Nintendo said that Yuzu's Patreon doubled its paid members in the period between May 1 and May 12, when Tears of the Kingdom was released. Nintendo is asking the court to shut down the emulator, and for damages.

Security

Hackers Backed By Russia and China Are Infecting SOHO Routers Like Yours, FBI Warns (arstechnica.com) 36

An anonymous reader quotes a report from Ars Technica: The FBI and partners from 10 other countries are urging owners of Ubiquiti EdgeRouters to check their gear for signs they've been hacked and are being used to conceal ongoing malicious operations by Russian state hackers. The Ubiquiti EdgeRouters make an ideal hideout for hackers. The inexpensive gear, used in homes and small offices, runs a version of Linux that can host malware that surreptitiously runs behind the scenes. The hackers then use the routers to conduct their malicious activities. Rather than using infrastructure and IP addresses that are known to be hostile, the connections come from benign-appearing devices hosted by addresses with trustworthy reputations, allowing them to receive a green light from security defenses.

"In summary, with root access to compromised Ubiquiti EdgeRouters, APT28 actors have unfettered access to Linux-based operating systems to install tooling and to obfuscate their identity while conducting malicious campaigns," FBI officials wrote in an advisory Tuesday. APT28 -- one of the names used to track a group backed by the Russian General Staff Main Intelligence Directorate known as GRU -- has been doing just for at least the past four years, the FBI has alleged. Earlier this month, the FBI revealed that it had quietly removed Russian malware from routers in US homes and businesses. The operation, which received prior court authorization, went on to add firewall rules that would prevent APT28 -- also tracked under names including Sofacy Group, Forest Blizzard, Pawn Storm, Fancy Bear, and Sednit -- from being able to regain control of the devices.

On Tuesday, FBI officials noted that the operation only removed the malware used by APT28 and temporarily blocked the group using its infrastructure from reinfecting them. The move did nothing to patch any vulnerabilities in the routers or to remove weak or default credentials hackers could exploit to once again use the devices to surreptitiously host their malware. "The US Department of Justice, including the FBI, and international partners recently disrupted a GRU botnet consisting of such routers," they warned. "However, owners of relevant devices should take the remedial actions described below to ensure the long-term success of the disruption effort and to identify and remediate any similar compromises."

Those actions include:

- Perform a hardware factory reset to remove all malicious files
- Upgrade to the latest firmware version
- Change any default usernames and passwords
- Implement firewall rules to restrict outside access to remote management services

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