The Courts

Self-Proclaimed Bitcoin Inventor's Claim 'a Brazen Lie,' London Court Told (reuters.com) 91

In a London court, lawyers for a group supported by the Crypto Open Patent Alliance (COPA) argued that Craig Wright's assertion of being the inventor of bitcoin is "a brazen lie," challenged by accusations of extensive document forgery to substantiate his claim. Wright's defense disputes these allegations, maintaining that he has presented definitive proof of his role in creating bitcoin. Reuters reports: Craig Wright says he is the author of a 2008 white paper, the foundational text of bitcoin and other cryptocurrencies, published in the name "Satoshi Nakamoto". He argues this means he owns the copyright in the white paper and has intellectual property rights over the bitcoin blockchain. But the Crypto Open Patent Alliance (COPA) -- whose members include Twitter founder Dorsey's payments firm Block -- is asking London's High Court to rule that Wright is not Satoshi.

The five-week hearing, at which Wright will give evidence from Tuesday, is the culmination of years of speculation about the true identity of Satoshi. Wright first publicly claimed to be Satoshi in 2016 and has since taken legal action against cryptocurrency developers and exchanges. COPA, however, says Wright has never provided any genuine proof, accusing him of repeatedly forging documents to support his claim, which Wright denies. Wright sat in court as COPA's lawyer Jonathan Hough said his claim was "a brazen lie, an elaborate false narrative supported by forgery on an industrial scale." Hough said that "there are elements of Dr Wright's conduct that stray into farce," citing his alleged use of ChatGPT to produce forgeries.

But he added: "Dr Wright's conduct is also deadly serious. On the basis of his dishonest claim to be Satoshi, he has pursued claims he puts at hundreds of billions of dollars, including against numerous private individuals." Wright's lawyer Anthony Grabiner, however, argued in court filings that he has produced "clear evidence demonstrating his authorship of the white paper and creation of bitcoin." Grabiner added that it was "striking" that no one else had publicly claimed to be Satoshi. "If Dr Wright were not Satoshi, the real Satoshi would have been expected to come forward to counter the claim," he said.

AI

Inside the Underground Site Where 'Neural Networks' Churn Out Fake IDs (404media.co) 28

An anonymous reader shares a report: An underground website called OnlyFake is claiming to use "neural networks" to generate realistic looking photos of fake IDs for just $15, radically disrupting the marketplace for fake identities and cybersecurity more generally. This technology, which 404 Media has verified produces fake IDs nearly instantly, could streamline everything from bank fraud to laundering stolen funds. In our own tests, OnlyFake created a highly convincing California driver's license, complete with whatever arbitrary name, biographical information, address, expiration date, and signature we wanted. The photo even gives the appearance that the ID card is laying on a fluffy carpet, as if someone has placed it on the floor and snapped a picture, which many sites require for verification purposes. 404 Media then used another fake ID generated by this site to successfully step through the identity verification process on OKX. OKX is a cryptocurrency exchange that has recently appeared in multiple court records because of its use by criminals.

Rather than painstakingly crafting a fake ID by hand -- a highly skilled criminal profession that can take years to master -- or waiting for a purchased one to arrive in the mail with the risk of interception, OnlyFake lets essentially anyone generate fake IDs in minutes that may seem real enough to bypass various online verification systems. Or at least fool some people. "The era of rendering documents using Photoshop is coming to an end," an announcement posted to OnlyFake's Telegram account reads. As well as "neural networks," the service claims to use "generators" which create up to 20,000 documents a day. The service's owner, who goes by the moniker John Wick, told 404 Media that hundreds of documents can be generated at once using data from an Excel table.

Open Source

'Linux Foundation Energy' Partners With US Government on Interoperability of America's EV Charging (substack.com) 21

The non-profit Linux Foundation Energy hopes to develop energy-sector solutions (including standards, specifications, and software) supporting rapid decarbonization by collaborating with industry stakeholders.

And now they're involved in a new partnership with America's Joint Office of Energy — which facilitates collaboration between the federal Department of Energy and its Department of Transportation. The partnership's goal? To "build open-source software tools to support communications between EV charging infrastructure and other systems."

The Buildout reports: The partnership and effort — known as "Project EVerest" — is part of the administration's full-court press to improve the charging experience for EV owners as the industry's nationwide buildout hits full stride. "Project EVerest will be a game changer for reliability and interoperability for EV charging," Gabe Klein, executive director of the administration's Joint Office of Energy and Transportation, said yesterday in a post on social media....

Administration officials said that a key driver of the move to institute broad standards for software is to move beyond an era of unreliable and disparate EV charging services throughout the U.S. Dr. K. Shankari, a principal software architect at the Joint Office of Energy and Transportation, said that local and state governments now working to build out EV charging infrastructure could include a requirement that bidding contractors adhere to Project EVerest standards. That, in turn, could have a profound impact on providers of EV charging stations and services by requiring them to adapt to open source standards or lose the opportunity to bid on public projects. Charging availability and reliability are consistently mentioned as key turnoffs for potential EV buyers who want the infrastructure to be ready, easy, and consistent to use before making the move away from gas cars.

Specifically, the new project will aim to create what's known as an open source reference implementation for EV charging infrastructure — a set of standards that will be open to developers who are building applications and back-end software... And, because the software will be available for any company, organization, or developer to use, it will allow the creation of new EV infrastructure software at all levels without software writers having to start from scratch. "LF Energy exists to build the shared technology investment that the entire industry can build on top of," said Alex Thompson of LF Energy during the web conference. "You don't want to be re-inventing the wheel."

The tools will help communication between charging stations (and adjacent chargers), as well as vehicles and batteries, user interfaces and mobile devices, and even backend payment systems or power grids. An announcement from the Joint Office of Energy and Transportation says this software stack "will reduce instances of incompatibility resulting from proprietary systems, ultimately making charging more reliable for EV drivers." "The Joint Office is paving the way for innovation by partnering with an open-source foundation to address the needs of industry and consumers with technical tools that support reliable, safe and interoperable EV charging," said Sarah Hipel, Standards and Reliability Program Manager at the Joint Office.... With this collaborative development model, EVerest will speed up the adoption of EVs and decarbonization of transportation in the United States by accelerating charger development and deployment, increase customizability, and ensure high levels of security for the nation's growing network.
Linux Foundation Energy adds that reliable charging "is key to ensuring that anyone can confidently choose to ride or drive electric," predicting it will increase customizability for different use cases while offering long-term maintainability, avoiding vendor-lock in, and ensuring high levels of security. This is a pioneering example of the federal government collaborating to deploy code into an open source project...

"The EVerest project has been demonstrated in pilots around the world to make EV charging far more reliable and reduces the friction and frustration EV drivers have experienced when a charger fails to work or is not continually maintained," said LF Energy Executive Director Alex Thornton. "We look forward to partnering with the Joint Office to create a robust firmware stack that will stand the test of time, and be maintained by an active and growing global community to ensure the nation's charging infrastructure meets the needs of a growing fleet of electric vehicles today and into the future."

Thanks to Slashdot reader ElectricVs for sharing the article.
Crime

YouTube, Discord, and Lord of the Rings Led Police To a Teen Accused of a US Swatting Spree (wired.com) 60

An anonymous reader quotes a report from Wired: A California teenager prosecutors say is responsible for hundreds of swatting attacks around the United States was exposed after law enforcement pieced together a digital trail left on some of the internet's largest platforms, according to court records released this week. Alan Winston Filion, a 17-year-old from Lancaster, California, faces four felony charges in Florida's Seminole County related to swatting, or fake threats called into the police to provoke a forceful response, according to Florida state prosecutors. Police arrested Filion on January 18, and he was extradited to Seminole County this week.

Filion's arrest, first reported by WIRED on January 26, marks the culmination of a multi-agency manhunt for the person police claim is responsible for swatting attacks on high schools, historically black colleges and universities, mosques, and federal agents, and for threats to bomb the Pentagon, members of the United States Senate, and the US Supreme Court. Ultimately, a YouTube channel, Discord chats, and usernames related to The Lord of the Rings helped lead authorities to Filion's doorstep.

Florida prosecutors charged Filion with four felony counts, including three related to allegedly making false reports to law enforcement and one for unlawful use of a two-way radio for "facilitating or furthering an act of terrorism" that authorities say targeted people based on race, religion, or other protected classes. While prosecutors alleged that Filion "is responsible for hundreds of swatting and bomb threat incidents throughout the United States," the charges Filion faces relate to a single May 12, 2023, swatting attack against the Masjid Al Hayy Mosque in Sanford, Florida. [...] At 2 pm EST on Wednesday, Filion shuffled into a Seminole County courtroom and stood quietly as the judge read the charges against him. He is currently being held without bond.

Bitcoin

Three People Indicted In $400 Million FTX Crypto Hack Conspiracy (cnbc.com) 20

When FTX filed for bankruptcy in November 2022, the defunct cryptocurrency exchange suffered a hack that resulted in more than $380 million in crypto stolen from FTX's virtual wallets. It turns out that FTX was hit with a SIM-swapping scam orchestrated by ringleader Robert Powell. Powell, along with Carter Rohn and Emily Hernandez, have been indicted and are due to appear in Chicago federal court later Friday for a detention hearing. CNBC reports: The three defendants are charged with conspiracy to commit wire fraud and conspiracy to commit aggravated identity theft and access device fraud, in a scheme that ran from March 2021 to last April, and involved the co-conspirators traveling to cellphone retail stores in more than 15 states. The indictment says the trio shared the personal identifying information of more than 50 victims, created fake identification documents in the victims' names, impersonated them and then accessed their victims' "online, financial and social media accounts for the purpose of stealing money and data."

The scheme relied on duping phone companies into swapping the Subscriber Identity Module of cell phone subscribers into a cellphone controlled by members of the conspiracy, the indictment said. That in turn allowed the conspirators to defeat the multifactor authentication protection on the victims' accounts, giving them access to the money in those accounts. The indictment does not identify FTX by name as the main victim of the conspiracy, but the details of the hack described in that charging document align with the details publicly known about the theft from FTX, which was collapsing at the time of the attack.

Bitcoin

Craig Wright Claims He's Bitcoin Creator Satoshi Nakamoto. Can He Prove It in Court? (wired.com) 92

Satoshi Nakamoto is the founding father of cryptocurrency -- and a mystery. In October 2008, Nakamoto gave Bitcoin to the world. Then they disappeared. To this day, nobody knows who Nakamoto is. Amongst the speculation, one man stepped forward: Craig Wright, an Australian computer scientist who has, since 2016, maintained that he is Nakamoto. Now he'll have to prove it in court. Wired: On February 5, a trial will begin in the UK High Court, the purpose of which is to challenge Wright's claim to Satoshi-hood. The case is being brought by the Crypto Open Patent Alliance (COPA), a nonprofit consortium of crypto and tech firms, in response to a slew of lawsuits filed by Wright against Bitcoin developers and other parties, in which he is trying to assert intellectual property rights over Bitcoin as its ostensible creator.

In its complaint, COPA claims that Wright's behavior has had a "chilling effect," obstructing the progress of Bitcoin by scaring away developers. It is seeking a declaration that Wright does not own the copyright to the white paper that first proposed Bitcoin and did not author the original code, and an injunction preventing him from saying otherwise. In effect, COPA is asking the court to rule that Wright is not Nakamoto. The verdict will have direct implications for a tangle of interlocking cases, which will determine whether Wright can prevent developers from working on Bitcoin without his permission and dictate the terms under which the Bitcoin system can be used.

Wright was first nominated as a potential candidate by both WIRED and Gizmodo on the same day in December 2015. The original story, based on a trove of leaked documents, proposed that Wright had "either invented Bitcoin or is a brilliant hoaxer who very badly wants us to believe he did." A few days later, WIRED published a second story, pointing to discrepancies in the evidence that supported the latter interpretation. Wright did not respond initially to reports that he was Nakamoto, although he did largely scrub his online accounts. By the following year, though, he had begun to present himself publicly as Bitcoin's creator. He has tried on multiple occasions -- through various means -- to categorically prove the claim, earning himself a band of supporters who swear by his credibility. In 2016, Wright was able to convince Gavin Andresen, an early contributor to Bitcoin's underlying software, and Jon Matonis, former director of the Bitcoin Foundation, an advocacy group.

Crime

Ex-CIA Software Engineer Sentenced To 40 Years For Giving Secrets To WikiLeaks (theguardian.com) 147

Joshua Schulte, a former CIA software engineer, was sentenced to 40 years in prison on Thursday for carrying out the largest theft of classified information in the agency's history and possessing child pornography. The Guardian reports: The 40-year sentence by US district judge Jesse Furman was for "crimes of espionage, computer hacking, contempt of court, making false statements to the FBI, and child pornography," federal prosecutors said in a statement. The judge did not impose a life sentence as sought by prosecutors. Joshua Schulte was convicted in July 2022 on four counts each of espionage and computer hacking and one count of lying to FBI agents, after giving classified materials to the whistleblowing agency WikiLeaks in the so-called Vault 7 leak. Last August, a judge mostly upheld the conviction.

WikiLeaks in March 2017 began publishing the materials, which concerned how the CIA surveilled foreign governments, alleged extremists and others by compromising their electronics and computer networks. Prosecutors characterized Schulte's actions as "the largest data breach in the history of the CIA, and his transmission of that stolen information to WikiLeaks is one of the largest unauthorized disclosures of classified information" in US history. Prosecutors also said Schulte received thousands of images and videos of child sexual abuse, and that they found the material in Schulte's New York apartment, in an encrypted container beneath three layers of password protection, during the CIA leaks investigation.

Bitcoin

FTX Scraps Plans To Revive Exchange, Will Repay Billions To Customers (theguardian.com) 24

A lawyer for FTX said the defunct crypto exchange has abandoned its plans to relaunch, instead opting to liquidate all assets and return funds to customers. The Guardian reports: The exchange, founded by Sam Bankman-Fried, has been negotiating for months with potential bidders and investors, but none were willing to put in enough money to rebuild it, FTX attorney Andy Dietderich said at a bankruptcy court hearing in Delaware. The failed negotiations underscored the fact that FTX was never what it appeared to be, and that Bankman-Fried never built the underlying technology or administration necessary to run the company as a viable business, Dietderich said.

Bankman-Fried has been convicted on fraud charges related to his operation of FTX. He faces decades in prison. "FTX was an irresponsible sham created by a convicted felon," Dietderich said. "The costs and risks of creating a viable exchange from what Mr Bankman-Fried left in a dumpster were simply too high." The company will instead focus on liquidating its assets to repay customers whose cryptocurrency deposits were locked when the company filed for bankruptcy in November 2022. FTX has recovered over $7 billion in assets to repay customers, and it has reached agreements with government regulators who have agreed to wait until customers are fully repaid before attempting to collect on about $9 billion in claims, Dietderich said.
While FTX plans to repay its customers, the exchange will calculate their repayment based on cryptocurrency prices from November 2022, when the crypto market was suffering a prolonged slump. "The price of bitcoin has risen to about $43,300 from its November 2022 price of $16,872," notes the report.
United States

California And Big Oil Are Splitting After Century-Long Affair (reuters.com) 140

It is the end of an era for Big Oil in California, as the most populous U.S. state divorces itself from fossil fuels in its fight against climate change. From a report: California's oil output a century ago amounted to it being the fourth-largest crude producer in the U.S., and spawned hundreds of oil drillers, including some of the largest still in existence. Oil led to its car culture of iconic highways, drive-in theaters, banks and restaurants that endures today. On Friday, however, the marriage will officially end. The two largest U.S. oil producers, Exxon Mobil and Chevron will formally disclose a combined $5 billion writedown of California assets when they report fourth-quarter results.

"They are definitely getting a divorce," said Jamie Court, president of advocacy group Consumer Watchdog, which said the companies long ago stopped investing in California production, and now want to hive off their old wells there. "They've been separated for more than a decade, now they are just signing the papers," he said. Exxon Mobil last year exited onshore production in the state, ending a 25-year-long partnership with Shell when they sold their joint-venture properties. The state's regulatory environment has impeded efforts to restart offshore production, Exxon said this month, leading to an exit that includes financing a Texas company's purchase of its offshore properties. The No.1 U.S. oil producer's asset writedown will cost about $2.5 billion and officially end five decades of oil production off the coast of Southern California.

United States

NY AG Sues Citibank For Failing To Protect Customers From Hackers And Scammers (cnn.com) 50

New York Attorney General Letitia James filed a lawsuit against Citibank on Tuesday, alleging the big bank failed to do enough to protect and reimburse victims of fraud. From a report: The lawsuit argues that New York customers lost millions of dollars -- in some cases their entire lifesavings -- to scammers and hackers because of Citi's weak security and anti-fraud measures. According to the NY AG, Citi does not do enough to prevent unauthorized account takeovers, illegally refuses to reimburse fraud victims and "misleads" customers about their rights after their accounts are hacked.

The lawsuit, filed in US District Court for the Southern District of New York, alleges that Citi has "overpromised and underdelivered on security" and failed to respond appropriately to red flags. "Banks are supposed to be the safest place to keep money, yet Citi's negligence has allowed scammers to steal millions of dollars from hardworking people, James said in a statement. There is no excuse for Citi's failure to protect and prevent millions of dollars from being stolen from customers' accounts and my office will not write off illegal behavior from big banks."

Medicine

Amid Recall Crisis, Philips Agrees To Stop Selling Sleep Apnea Machines In the United States (propublica.org) 61

An anonymous reader quotes a report from ProPublica: Reeling from one of the most catastrophic recalls in decades, Philips Respironics said it will stop selling sleep apnea machines and other respiratory devices in the United States under a settlement with the federal government that will all but end the company's reign as one of the top makers of breathing machines in the country. The agreement, announced by Philips early Monday, comes more than two years after the company pulled millions of its popular breathing devices off the shelves after admitting that an industrial foam fitted in the machines to reduce noise could break apart and release potentially toxic particles and fumes into the masks worn by patients.

It could be years before Philips can resume sales of the devices, made in two factories outside Pittsburgh. The company said all the conditions of the multiyear consent decree -- negotiated in the wake of the recall with the Department of Justice on behalf of the Food and Drug Administration -- must be met first. The move by a company that aggressively promoted its machines in ad campaigns and health conferences -- in one case with the help of an Elvis impersonator -- follows relentless criticism about the safety of the machines. A ProPublica and Pittsburgh Post-Gazette investigation found the company held back thousands of complaints about the crumbling foam for more than a decade before warning customers about the dangers. Those using the machines included some of the most fragile people in the country, including infants, the elderly, veterans and patients with chronic conditions.

"It's about time," said Richard Callender, a former mayor in Pennsylvania who spent years using one of the recalled machines. "How many people have to suffer and get sick and die?" Philips said the agreement includes other requirements the company must meet before it can start selling the machines again, including the marquee DreamStation 2, a continuous positive airway pressure, or CPAP, device heralded by Philips when it was unveiled in 2021 for the treatment of sleep apnea. The settlement, which is still being finalized, has to be approved by a court and has not yet been released by the government. It remains unclear how the halt in sales will impact patients and doctors. The company's U.S. market share for sleep apnea devices in 2020 was about 37% -- behind only one competitor, medical device maker ResMed, according to an analysis by iData Research. Philips has dominated the market in ventilator sales, the data shows.

The Courts

Tattoo Artist Kat Von D Wins Copyright Lawsuit Over Miles Davis Photo (billboard.com) 46

UnknowingFool writes: Jurors on Friday, January 26, 2024 ruled in favor of celebrity tattoo artist Kat Von D (real name Katherine von Drachenberg) in a copyright lawsuit regarding a photo of Miles Davis in that her use of the photo was not copyright infringement. The photographer of the photo, Jeffrey Sedlik, sued Von D in February 2021 after she used the photo as the basis for a tattoo she inked on a friend. Kat Von D, who gained fame in the reality shows about tattoo artists "LA Ink" and "Miami Ink", put the tattoo on her friend's arm in 2017 as a gift. The jury found that the tattoo was not "substantially similar" to the photo and were also persuaded that the non-commercial nature of the work meant her use of the photo would be fair use.

The plaintiff Sedilk said he is planning to appeal the ruling arguing it contradicts the Supreme Court ruling in Warhol Foundation vs Goldsmith (PDF) where the artist Andy Warhol made a silkscreen print of Lynn Goldsmith's photo of Prince. The main difference pointed out by Von D's lawyers is that Warhol charged $10,000 for his print whereas Von D did not charge her friend for the tattoo and that is was closer to "fan art".

AI

Following Lawsuit, Rep Admits 'AI' George Carlin Was Human-Written (arstechnica.com) 58

An anonymous reader shares a report: The estate of George Carlin has filed a federal lawsuit against the comedy podcast Dudesy for an hour-long comedy special sold as an AI-generated impression of the late comedian. But a representative for one of the podcast hosts behind the special now admits that it was actually written by a human. In the lawsuit, filed by Carlin manager Jerold Hamza in a California district court, the Carlin estate points out that the special, "George Carlin: I'm Glad I'm Dead," (which was set to "private" on YouTube shortly after the lawsuit was filed) presents itself as being created by an AI trained on decades worth of Carlin's material. That training would, by definition, involve making "unauthorized copies" of "Carlin's original, copyrighted routines" without permission in order "to fabricate a semblance of Carlin's voice and generate a Carlin stand-up comedy routine," according to the lawsuit.

Despite the presentation as an AI creation, there was a good deal of evidence that the Dudesy podcast and the special itself were not actually written by an AI, as Ars laid out in detail this week. And in the wake of this lawsuit, a representative for Dudesy host Will Sasso admitted as much to The New York Times. "It's a fictional podcast character created by two human beings, Will Sasso and Chad Kultgen," spokeswoman Danielle Del told the newspaper. "The YouTube video 'I'm Glad I'm Dead' was completely written by Chad Kultgen." Regardless of that admission, Carlin estate lawyer Josh Schiller told the Times that the lawsuit would move forward. "We don't know what they're saying to be true," he said. "What we will know is that they will be deposed. They will produce documents, and there will be evidence that shows one way or another how the show was created."

Power

Could America's Rooftop Solar Industry Be On the Verge of Collapse? (time.com) 158

Long-time Slashdot reader SonicSpike shared this investigation by Time magazine's senior economics correspondent which argues that America's residential solar industry "is floundering." In late 2023 alone, more than 100 residential solar dealers and installers in the U.S. declared bankruptcy, according to Roth Capital Partners — six times the number in the previous three years combined. Roth expects at least 100 more to fail. The two largest companies in the industry, SunRun and Sunnova, both posted big losses in their most recent quarterly reports, and their shares are down 86% and 81% respectively from their peaks in January 2021... At the root of these struggles is the complicated financial engineering that helped companies raise money but that some investors and analysts say was built on a framework of lies — or at least exaggerations. Since at least 2016, big solar companies have used Wall Street money to fund their growth. This financialization raised the consumer cost of the panels and led companies to aggressively pursue sales to make the cost of borrowing Wall Street money worth it. National solar companies essentially became finance companies that happened to sell solar, engaging in calculations that may have been overly optimistic about how much money the solar leases and loans actually bring in.

"I've often heard solar finance and sales compared to the Wild West due to the creativity involved," says Jamie Johnson, the founder of Energy Sense Finance, who has been studying the residential solar industry for a decade. "It's the Silicon Valley mantra of 'break things and let the regulators figure it out.'"

Leasing the panels lets the companies claim green-energy tax credits (which they then sell to companies like Google). And meanwhile, bundles of solar-panel leases become asset-backed securities. By 2017, there were over $1 billion such securities... However, these financial innovations also increased the pressure on companies to grow quickly. Solar companies needed lots of new customers in order to package the loans into asset-backed securities and sell them to investors. Public companies especially faced intense scrutiny from investors who expected double-digit quarterly growth. And with upfront costs no longer a barrier for new customers, solar companies began to see almost every homeowner as a target, and they deployed expensive sales teams to go out and sell as aggressively as they could... Even today, about one-third of the upfront cost of a residential solar system goes to intermediaries like sales and financing people, says Pol Lezcano, an analyst with Bloomberg New Energy Finance. In Germany, where installation is done locally and there are fewer intermediaries, the typical residential system costs about 50% less than it costs in the U.S. "The upfront cost of these systems is stupidly high," says Lezcano, making residential solar not "scalable."

After growing 31% in 2021 and 40% in 2022, residential solar will only grow by 13% in 2023 and then contract 12% in 2024, according to predictions from the research firm Wood Mackenzie... Meanwhile, the pressure for fast sales may have led some companies to look the other way when salespeople obscured the terms of the solar panel leases and loans they were selling in order to close a deal.

One customer complains the solar panel company actually took out a lien on his house without his knowledge, according to the article. He's "one of a growing number of consumers now saying in courts and in arbitration that salesmen from solar-panel and solar-panel-finance companies — including some of the biggest in the U.S., like GoodLeap, Mosaic, Sunnova, and SunRun — tricked them into taking out onerous loans they didn't want — or that someone signed them up for a loan without their knowledge." Even some people who voluntarily signed up for financing products say they were misled about the actual cost of the solar panels. That's because loans from companies like GoodLeap and Mosaic often include an unexplained and significant "dealer fee." For example, a customer buying a $30,000 solar panel system with a low interest rate may not know that price includes a $10,000 loan-dealer fee. In other words, the cost of the panels, had they paid cash, would have been just $20,000; the extra 30% is the price they paid for the low-interest loan, though many consumers allege this was not explained to them...

In some ways, the current situation in the residential solar market is analogous to the subprime lending crisis that set off the Great Recession, though on a smaller scale. Like in the subprime lending crisis, some companies issued loans to people who could not — or would not — pay them. Like in the subprime lending crisis, thousands of these loans — and in solar's case, also leases — were packaged and sold to investors as asset-backed securities with promised rates of return. The Great Recession was driven largely by the fact that people stopped paying their loans, and the asset-backed securities didn't deliver the promised rate of return to investors. Similar cracks may be forming in the solar asset-backed securities market. For instance, the rate of delinquencies of loans in one of Sunnova's asset-backed securities was approaching 5% in the fall of last year, according to an October 2023 report issued by KBRA, a bond ratings agency. Historically, delinquencies in solar asset-backed securities had been around 1%.

The firms that grade these asset-backed securities have long said delinquencies would be low because rooftop-solar customers had high credit scores. The problem is that they appear not to have considered that even customers with good credit scores may not want to pay for solar panels that they were told would be free — or that salesmen could be signing people up without their knowledge.

Besides consumer cases in court, there's the possibility that regulators may act against solar companies that used inflated projections to juice their tax credits. "As early as 2016, a researcher at MIT's Energy Initiative estimated that such companies were overstating this value by as much as 50%." The broad problems facing residential solar and financing companies are already causing some pain in the forms of layoffs — California alone lost 17,000 solar jobs in 2023, according to the California Solar and Storage Association. There are ripple effects in the industry; Enphase Energy, which makes microinverters for solar panels, said in December it was laying off 10% of its workforce amidst softening demand.

It could get a lot worse before it gets better, with not just lost jobs, but near-total collapse of the current system. Some analysts, like Lezcano of Bloomberg New Energy Finance, think that the big, national players are going to have to fall apart for residential solar to become affordable in the U.S., and that in the future, the solar industry in the U.S. will look more like it does in Germany, where installations are done locally and there's fewer door-to-door sales.

"Over the past few years, a handful of people got rich off of Americans who were told they could simultaneously save money and save the planet. For example, Hayes Barnard, GoodLeap's founder and chairman, was named by Forbes as one of the 400 richest people in the world in 2023..."
Transportation

18-Year-Old Cleared After Encrypted Snapchat Joke Led To F-18s and Arrest (bbc.co.uk) 133

Slashdot reader Bruce66423 shared this report from the BBC: A Spanish court has cleared a British man of public disorder, after he joked to friends about blowing up a flight from London Gatwick to Menorca.

Aditya Verma admitted he told friends in July 2022: "On my way to blow up the plane. I'm a member of the Taliban." But he said he had made the joke in a private Snapchat group and never intended to "cause public distress"... The message he sent to friends, before boarding the plane, went on to be picked up by UK security services. They then flagged it to Spanish authorities while the easyJet plane was still in the air.

Two Spanish F-18 fighter jets were sent to flank the aircraft. One followed the plane until it landed at Menorca, where the plane was searched. Mr Verma, who was 18 at the time, was arrested and held in a Spanish police cell for two days. He was later released on bail... If he had been found guilty, the university student faced a fine of up to €22,500 (£19,300 or $20,967) and a further €95,000 (£81,204 or $103,200) in expenses to cover the cost of the jets being scrambled.

But how did his message first get from the encrypted app to the UK security services? One theory, raised in the trial, was that it could have been intercepted via Gatwick's Wi-Fi network. But a spokesperson for the airport told BBC News that its network "does not have that capability"... A spokesperson for Snapchat said the social media platform would not "comment on what's happened in this individual case".
richi (Slashdot reader #74,551) thinks it's obvious what happened: SnapChat's own web site says they scan messages for threats and passes them on to the authorities. ("We also work to proactively escalate to law enforcement any content appearing to involve imminent threats to life, such as...bomb threats...."

"In the case of emergency disclosure requests from law enforcement, our 24/7 team usually responds within 30 minutes."
United States

NSA Buys Americans' Internet Data Without Warrants, Letter Says (nytimes.com) 96

The National Security Agency buys certain logs related to Americans' domestic internet activities from commercial data brokers, according to an unclassified letter by the agency. The New York Times: The letter [PDF], addressed to a Democratic senator and obtained by The New York Times, offered few details about the nature of the data other than to stress that it did not include the content of internet communications. Still, the revelation is the latest disclosure to bring to the fore a legal gray zone: Intelligence and law enforcement agencies sometimes purchase potentially sensitive and revealing domestic data from brokers that would require a court order to acquire directly.

It comes as the Federal Trade Commission has started cracking down on companies that trade in personal location data that was gathered from smartphone apps and sold without people's knowledge and consent about where it would end up and for what purpose it would be used. In a letter to the director of national intelligence dated Thursday, the senator, Ron Wyden, Democrat of Oregon, argued that "internet metadata" -- logs showing when two computers have communicated, but not the content of any message -- "can be equally sensitive" as the location data the F.T.C. is targeting. He urged intelligence agencies to stop buying internet data about Americans if it was not collected under the standard the F.T.C. has laid out for location records. "The U.S. government should not be funding and legitimizing a shady industry whose flagrant violations of Americans' privacy are not just unethical, but illegal," Mr. Wyden wrote.

AI

George Carlin Estate Sues Creators Of AI-Generated Comedy Special (hollywoodreporter.com) 118

George Carlin's estate is suing over the release of a comedy special that uses generative AI to mimic the deceased comedian's voice and style of humor. From a report: The lawsuit, filed in California federal court on Thursday, accuses the creators of the special of utilizing without consent or compensation George Carlin's entire body of work consisting of five decades of comedy routines to train an AI chatbot, which wrote the episode's script. It also takes issue with using his voice and likeness for promotional purposes. The complaint seeks a court order for immediate removal of the special, as well as unspecified damages. It's among the first legal actions taken by the estate of a deceased celebrity for unlicensed use of their work and likeness to manufacture a new, AI-generated creation and was filed as Hollywood is sounding the alarm over utilization of AI to impersonate people without consent or compensation.
United States

FTC Bans TurboTax From Advertising 'Free' Services, Calls It Deceptive (cnn.com) 84

The Federal Trade Commission ruled in a final order and opinion Monday that TurboTax, the popular tax filing software, engaged in deceptive advertising and banned the company from advertising its services for free unless it is free for all customers. CNN adds: By running ads for "free" tax services that many customers were not qualified for, the tax filing software violated the FTC Act and deceived consumers, the agency said. The FTC had first sued Intuit, TurboTax's owner, for its deceptive advertising in 2022. The FTC staff alleged most tax filers couldn't use the company's "free" services -- "such as those who get a 1099 form for work in the gig economy, or those who earn farm income." TurboTax advertising their products as free misled those customers, according to the FTC.

The FTC Administrative Law Judge D. Michael Chappell announced the initial decision in September, which the commission upheld Monday. Intuit had appealed to the FTC as part of the process. In a statement Monday, Intuit said it has appealed "this deeply flawed decision" to federal circuit court outside of the FTC. "Absolutely no one should be surprised that FTC Commissioners -- employees of the FTC -- ruled in favor of the FTC as they have done in every appeal for the last two decades. This decision is the result of a biased and broken system where the Commission serves as accuser, judge, jury, and then appellate judge all in the same case," an an Intuit spokesperson said.

Crime

IT Consultant Fined For Daring To Expose Shoddy Security (theregister.com) 102

Thomas Claburn reports via The Register: A security researcher in Germany has been fined $3,300 for finding and reporting an e-commerce database vulnerability that was exposing almost 700,000 customer records. Back in June 2021, according to our pals at Heise, an contractor identified elsewhere as Hendrik H. was troubleshooting software for a customer of IT services firm Modern Solution GmbH. He discovered that the Modern Solution code made an MySQL connection to a MariaDB database server operated by the vendor. It turned out the password to access that remote server was stored in plain text in the program file MSConnect.exe, and opening it in a simple text editor would reveal the unencrypted hardcoded credential.

With that easy-to-find password in hand, anyone could log into the remote server and access data belonging to not just that one customer of Modern Solution, but data belonging to all of the vendor's clients stored on that database server. That info is said to have included personal details of those customers' own customers. And we're told that Modern Solution's program files were available for free from the web, so truly anyone could inspect the executables in a text editor for plain-text hardcoded database passwords. The contractor's findings were discussed in a June 23, 2021 report by Mark Steier, who writes about e-commerce. That same day Modern Solution issued a statement [PDF] -- translated from German -- summarizing the incident [...]. The statement indicates that sensitive data about Modern Solution customers was exposed: last names, first names, email addresses, telephone numbers, bank details, passwords, and conversation and call histories. But it claims that only a limited amount of data -- names and addresses -- about shoppers who made purchases from these retail clients was exposed. Steier contends that's incorrect and alleged that Modern Solution downplayed the seriousness of the exposed data, which he said included extensive customer data from the online stores operated by Modern Solution's clients.

In September 2021 police in Germany seized the IT consultant's computers following a complaint from Modern Solution that claimed he could only have obtained the password through insider knowledge â" he worked previously for a related firm -- and the biz claimed he was a competitor. Hendrik H. was charged with unlawful data access under Section 202a of Germany's Criminal Code, based on the rule that examining data protected by a password can be classified as a crime under the Euro nation's cybersecurity law. In June, 2023, a Julich District Court in western Germany sided with the IT consultant because the Modern Solution software was insufficiently protected. But the Aachen regional court directed the district court to hear the complaint. Now, the district court has reversed its initial decision. On January 17, a Julich District Court fined Hendrik H. and directed him to pay court costs.

Businesses

Exxon Takes Activists To Court Over Emissions Proposal (techcrunch.com) 77

Exxon Mobil has filed a complaint in a Texas court seeking to block a climate proposal by activist investors from a shareholder vote in May. This marks Exxon's first legal action against such a proposal. Exxon argues the proposal, which urges adoption of emissions targets for Exxon's products, does not serve shareholder interests. The activist investors counter that Exxon is the only major oil company lacking these targets. TechCrunch: The problem Exxon faces is that the "basic rules of society," specifically "those embedded in ethical custom," are changing, and the company now finds itself on the wrong side of them. Two-thirds of Americans say we should prioritize alternative energy over fossil fuels, and 69% say the U.S. should move toward net-zero emissions by 2050, according to the Pew Research Center. Internationally, most people want their governments to do something about climate change.

Exxon would normally take its grievances to the SEC, filing a request with the regulator to omit the proposal from this year's proxy statement. But under the Biden administration, the SEC has been siding more frequently with shareholders. After all, who's the boss?

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