Category: Crime

E2EE is a widely used technology that protects everyone’s privacy and security by encoding the contents of digital communications and files so that they’re decipherable only by the sender and intended recipients. Not even the provider of the E2EE service can read or hear its users’ conversations. E2EE is built in by default to popular apps such as WhatsApp, iMessage, FaceTime, and Signal, thereby securing billions of people’s messages and calls for free. Default E2EE is also set to expand to Meta’s Messenger app and Instagram direct messages later this year. 

E2EE’s growing ubiquity seems like a clear win for personal privacy, security, and safety, as well as national security and the economy. And yet E2EE’s popularity has its critics – including, unfortunately, Sen. Durbin. Because it’s harder for providers and law enforcement to detect malicious activity in encrypted environments than unencrypted ones (albeit not impossible, as I’ll discuss), law enforcement officials and lawmakers often demonize E2EE. But E2EE is a vital protection against crime and abuse, because it helps to protect people (children included) from the harms that happen when their personal information and private conversations fall into the wrong hands: data breaches, hacking, cybercrime, snooping by hostile foreign governments, stalkers and domestic abusers, and so on.

That’s why it’s so important that national policy promote rather than dissuade the use of E2EE – and why it’s so disappointing that STOP CSAM has turned out to be just the opposite: yet another misguided effort by lawmakers in the name of online safety that would only make us all less safe. 

First, STOP CSAM’s new criminal and civil liability provisions could be used to hold E2EE services liable for CSAM and other child sex offenses that happen in encrypted environments. Second, the reporting requirements look like a sneaky attempt to tee up future legislation to ban E2EE outright.

Former Goldman Sachs Group banker Roger Ng won postponement of the start of his 10-year prison term for about three months until Aug 7, a federal judge ruled.

US District Judge Margo Brodie, who sentenced Ng in March for his role in the global 1MDB fraud, granted his request for a delay Monday without explanation.

Ng had been set to begin his prison term May 4. 

Defence lawyer Marc Agnifilo on Friday asked for the delay so Ng could spend more time with his wife and 10-year-old daughter, who had travelled to New York from Malaysia.

First Republic Bank, on the brink of collapse in the weeks after the Silicon Valley Bank crisis, has finally fallen over, but with a relatively quick resolution into its next chapter: today the FDIC announced that it was being closed by the the California Department of Financial Protection and Innovation, that the FDIC was appointed as receiver, and that the FDIC would be selling the assets to JPMorgan.

Its assets and deposits total just over $330 billion together.

Specifically, “to protect depositors, the FDIC is entering into a purchase and assumption agreement with JPMorgan Chase Bank, National Association, Columbus, Ohio, to assume all of the deposits and substantially all of the assets of First Republic Bank,” it said.

The FDIC also confirmed deposits will continue to be insured by the FDIC at an estimated cost of about $13 billion to its insurance fund.

In February, Hong Kong proposed a set of welcoming rules to regulate crypto-related activities. Under the new legal regime, retail investors will be allowed to trade certain digital assets on licensed exchanges, replacing a 2018 framework that restricted trading to only accredited investors.

The city is also paving the way to legalize stablecoins. One startup, which is backed by popular exchange KuCoin and USDC issuer Circle, recently launched an offshore Chinese yuan (CNH)-pegged stablecoin, the first of its kind in Greater China.

To create a favorable environment for web3 businesses, the city is facilitating communication between banks and crypto startups, many of which are scrambling to find alternatives following Silvergate Bank’s meltdown.

These moves are contrasting with Beijing’s heavy-handed crackdown on the crypto industry; they also highlight the degree to which the former British colony enjoys policy exceptions in certain areas, such as finance.

The U.S. government has sounded the alarm about a critical software vulnerability found in genomics giant Illumina’s DNA sequencing devices, which hackers can exploit to modify or steal patients’ sensitive medical data.

In separate advisories released on Thursday, U.S. cybersecurity agency CISA and the U.S. Food and Drug Administration warned that the security flaw — tracked as CVE-2023-1968 with the maximum vulnerability severity rating of 10 out of 10 — allows hackers to remotely access an affected device over the internet without needing a password. If exploited, the bug could allow hackers to compromise devices to produce incorrect or altered results, or none at all.

A United States judge has ordered a South African executive to pay more than US$3.4 billion (S$4.5 billion) in restitution and fines for a fraud scheme involving Bitcoin – the highest-ever civil monetary penalty in any US Commodity Futures Trading Commission (CFTC) case.

Cornelius Johannes Steynberg, the founder and chief executive officer of Mirror Trading International Proprietary, committed fraud tied to retail foreign currency transactions, among other violations, the agency said in a statement that announced the order by US District Judge Lee Yeakel.

Hackers have stolen email addresses, direct messages, and other personal data from users of two dating websites, according to a data breach expert.

Earlier this week, someone alerted Troy Hunt, the founder and maintainer of the data breach alerting website Have I Been Pwned, that hackers had breached two dating websites, CityJerks and TruckerSucker. Hunt told TechCrunch that he analyzed the stolen data and found usernames, email addresses, passwords, profile pictures, sexual orientation, users’ date of birth, their city and state, their IP addresses, and biographies. The stolen passwords are scrambled with a weak algorithm that could potentially be broken and allow hackers to see the actual passwords.”

Two commanders in the Massachusetts Air National Guard were temporarily suspended last week in connection with a federal investigation into alleged classified intelligence leaker Jack Teixeira, the Air Force confirmed Thursday.

Col. Sean Riley, commander of the 102nd Intelligence Wing at Otis Air National Guard Base on Cape Cod, suspended the head of the subordinate 102nd Intelligence Support Squadron where Teixeira worked. The commander in charge of supporting airmen like Teixeira, who are mobilized on full-time, active-duty Title 10 orders, was suspended as well, according to Air Force spokesperson Rose Riley.

In addition to temporarily removing the commanders from their jobs, the Department of the Air Force has also revoked their access to classified networks and information, Riley told Air Force Times. Reuters first reported the development on Wednesday.

Lyft said Thursday it will cut 26% of its workforce, or about 1,072 people, as part of a restructuring plan aimed at rebuilding its core ride-hailing product and boosting profits.

The company also said in a regulatory filing Thursday that it decided to scale back hiring plans and will eliminate 250 open job positions.

Lyft estimates that it will incur a cost of about $41 million to $47 million related to severance and employee benefits in the second quarter of 2023. The ride-hailing company also said it expects additional costs related to stock-based compensation and the corresponding payroll tax expense related to employees who were impacted by this restructuring.

Last week, Lyft’s newly appointed CEO David Risher told employees in an email that the company would significantly reduce its workforce as part of a restructuring effort. Risher said the restructuring would be part of Lyft’s plan to “better meeting the needs of riders and drivers.”

The alleged boss of one of Italy’s biggest mafia syndicates has been arrested by police at a cathedral in the northern city of Genoa.

Pasquale Bonavota has been wanted by police since 2018 after fleeing an arrest warrant for murder and mafia association.

Police say the 49-year-old leads the notorious ‘Ndrangheta mafia.

The group is Italy’s most powerful mafia family and is said to control the bulk of Europe’s cocaine supplies.

Pasquale Bonavota – whom newspaper La Stampa describes as the “baby boss” – had been at the city’s cathedral when arrested and was carrying a fake ID, according to local media reports.

He is one of the defendants in an ongoing “maxi-trial,” in which more than 300 people face charges related to organised crime.

Senator Brian Schatz is one of the more thoughtful Senators we have, and he and his staff have actually spent time talking to lots of experts in trying to craft bills regarding the internet. Unfortunately, it still seems like he still falls under the seductive sway of this or that moral panic, so when the bills actually come out, they’re…

WORCESTER, Mass. — The Massachusetts Air National Guardsman accused of leaking highly classified military documents kept an arsenal of guns and said on social media that he would like to kill a “ton of people,” prosecutors said in arguing Thursday that 21-year-old Jack Teixeira should remain in jail for his trial.

But the judge at Teixeira’s detention hearing put off an immediate decision whether he should be kept in custody or released to home confinement or under other conditions. Teixeira was led away from the court in handcuffs, black rosary beads around his neck, pending that ruling.

The court filings raise new questions about why Teixeira had such a high security clearance and access to some of the nation’s most classified secrets. They said he may still have material that hasn’t been released, which could be of “tremendous value to hostile nation states that could offer him safe harbor and attempt to facilitate his escape from the United States.”

More than three years after his arrest, Charles Lieber, the former chair of Harvard University’s chemistry department, has avoided prison for failing to disclose funding from China. For hiding his affiliation with a Chinese university, as well as income tax and foreign bank account reporting violations, Lieber was sentenced yesterday to time served, two years of supervised release with six…

Disgraced Theranos CEO Elizabeth Holmes has avoided starting her more than 11-year prison sentence on Thursday by deploying the same legal maneuver that enabled her co-conspirator in a blood-testing hoax to remain free for an additional month.

Holmes’ lawyers on Wednesday informed U.S. District Judge Edward Davila that she won’t be reporting to prison as scheduled because she had filed an appeal of a decision that he issued earlier this month ordering her to begin her sentence on April 27.

The appeal, filed with the Ninth Circuit Court of Appeals late Tuesday, automatically delays her reporting date because she has been free on bail since a jury convicted her on four counts of fraud and conspiracy in January 2022. The verdict followed a four-month trial revolving around her downfall from a rising Silicon Valley star to an alleged scam artist chasing fame and fortune while fleecing investors and endangering the health of patients relying on Theranos’ flawed blood tests.

The tactic deployed by Holmes mirrored a move made last month by her former lover and subordinate, Ramesh “Sunny” Balwani, to avoid a prison reporting date of March 16. After the Ninth Circuit rejected his appeal three weeks later, Davila set a new reporting date of April 20.

Two decades of misconduct records will be now trickling out of the NYSP’s hands. One assumes it will be a very slow drip, one perhaps interrupted by last-minute admissions the NYSP has, say, destroyed records it was required to retain. A lot can happen over twenty years, but hopefully it won’t take twenty years for records requesters to obtain what they’re entitled to possess.

The Superior Court (basically the first level of state courts in New York) decision [PDF] is short and sweet. It not only directs the NYSP to comply with the law, but draws some other helpful legal conclusions along the way, like this one, which says cop shops can’t withhold information about officers who were investigated for misconduct, but later cleared of wrongdoing.

It is clear that the mere fact that the complaint was determined to be unsubstantiated does not categorically exempt the records from disclosure.

The U.N. appears to have officially announced that young children have a right to engage in consensual sex– including consensual sex with an adult. The United Nations published a declaration stating that “sexual conduct involving persons below the domestically prescribed minimum age of consent to sex may be consensual in fact, if not in law. In this context, the enforcement of criminal law should reflect the rights and capacity of persons under 18 years of age to make decisions about engaging in consensual sexual conduct and their right to be heard in matters concerning them.”

The U.N. document, The 8 March Principles for a Human Rights-Based Approach to Criminal Law Proscribing Conduct Associated with Sex, is the handiwork of the International Committee of Jurists, the UNAIDS [the Joint United Nations Program on HIV/AIDS] and the U.N. Office of the High Commissioner for Human Rights.