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The Courts

Tornado Cash Developer Found Guilty of Laundering $1.2 Billion of Crypto (wired.com) 95

A panel of judges in the Netherlands has found Alexey Pertsev, one of the developers behind crypto anonymizing tool Tornado Cash, guilty of money laundering. Wired: Over the course of two days in March, the Russian national was tried on the allegation that the tool he developed had allowed criminals -- among them hackers with ties to North Korea -- to freely launder $1.2 billion in stolen cryptocurrency. "The management of Tornado Cash welcomed the bank robbers with open arms," the prosecutors wrote in a March court filing.

Dutch judges sentenced Pertsev to five years and four months in prison on Tuesday, which was the term requested by prosecutors in the case. "With Tornado Cash, the defendant created a shortcut for financing crimes and terrorism," said the court in a statement, translated from Dutch. "He chose to look away from the abuse and did not take any responsibility." The purpose of tools like Tornado Cash, known as crypto mixers or tumblers, is to mask the origin and destination of users' coins. Funds belonging to many parties are pooled, jumbled up, and spat out into brand-new wallets, by which time it is no longer clear whose crypto is whose. These services are promoted as a way to improve the level of privacy available to crypto users, but have been readily co-opted for the purpose of money laundering.

On August 8, 2022, Tornado Cash was sanctioned in the United States, making it illegal for US citizens to use the service. Any product that "indiscriminately facilitates anonymous transactions," wrote the US Treasury's Office of Foreign Assets Control, represents a "threat to US national security." Two days later, Pertsev was arrested in the Netherlands, where he resided. Money laundering activity, the Dutch prosecutors claim, accounted for more than 30 percent of the funds that passed through Tornado Cash between 2019 and 2022. [...] Pertsev built his defense on the argument that Tornado Cash, which remains in operation, is under nobody's control -- including his own -- as a piece of software that runs on the Ethereum blockchain, a distributed network of computers.
Further reading: Coinbase Employees and Ethereum Backers Sue US Treasury Over Tornado Cash Sanctions (September 2022).
Social Networks

Reddit Grows, Seeks More AI Deals, Plans 'Award' Shops, and Gets Sued (yahoo.com) 45

Reddit reported its first results since going public in late March. Yahoo Finance reports: Daily active users increased 37% year over year to 82.7 million. Weekly active unique users rose 40% from the prior year. Total revenue improved 48% to $243 million, nearly doubling the growth rate from the prior quarter, due to strength in advertising. The company delivered adjusted operating profits of $10 million, versus a $50.2 million loss a year ago. [Reddit CEO Steve] Huffman declined to say when the company would be profitable on a net income basis, noting it's a focus for the management team. Other areas of focus include rolling out a new user interface this year, introducing shopping capabilities, and searching for another artificial intelligence content licensing deal like the one with Google.
Bloomberg notes that already Reddit "has signed licensing agreements worth $203 million in total, with terms ranging from two to three years. The company generated about $20 million from AI content deals last quarter, and expects to bring in more than $60 million by the end of the year."

And elsewhere Bloomberg writes that Reddit "plans to expand its revenue streams outside of advertising into what Huffman calls the 'user economy' — users making money from others on the platform... " In the coming months Reddit plans to launch new versions of awards, which are digital gifts users can give to each other, along with other products... Reddit also plans to continue striking data licensing deals with artificial intelligence companies, expanding into international markets and evaluating potential acquisition targets in areas such as search, he said.
Meanwhile, ZDNet notes that this week a Reddit announcement "introduced a new public content policy that lays out a framework for how partners and third parties can access user-posted content on its site." The post explains that more and more companies are using unsavory means to access user data in bulk, including Reddit posts. Once a company gets this data, there's no limit to what it can do with it. Reddit will continue to block "bad actors" that use unauthorized methods to get data, the company says, but it's taking additional steps to keep users safe from the site's partners.... Reddit still supports using its data for research: It's creating a new subreddit — r/reddit4researchers — to support these initiatives, and partnering with OpenMined to help improve research. Private data is, however, going to stay private.

If a company wants to use Reddit data for commercial purposes, including advertising or training AI, it will have to pay. Reddit made this clear by saying, "If you're interested in using Reddit data to power, augment, or enhance your product or service for any commercial purposes, we require a contract." To be clear, Reddit is still selling users' data — it's just making sure that unscrupulous actors have a tougher time accessing that data for free and researchers have an easier time finding what they need.

And finally, there's some court action, according to the Register. Reddit "was sued by an unhappy advertiser who claims that internet giga-forum sold ads but provided no way to verify that real people were responsible for clicking on them." The complaint [PDF] was filed this week in a U.S. federal court in northern California on behalf of LevelFields, a Virginia-based investment research platform that relies on AI. It says the biz booked pay-per-click ads on the discussion site starting September 2022... That arrangement called for Reddit to use reasonable means to ensure that LevelField's ads were delivered to and clicked on by actual people rather than bots and the like. But according to the complaint, Reddit broke that contract...

LevelFields argues that Reddit is in a particularly good position to track click fraud because it's serving ads on its own site, as opposed to third-party properties where it may have less visibility into network traffic... Nonetheless, LevelFields's effort to obtain IP address data to verify the ads it was billed for went unfulfilled. The social media site "provided click logs without IP addresses," the complaint says. "Reddit represented that it was not able to provide IP addresses."

"The plaintiffs aspire to have their claim certified as a class action," the article adds — along with an interesting statistic.

"According to Juniper Research, 22 percent of ad spending last year was lost to click fraud, amounting to $84 billion."
The Courts

Big Three Carriers Pay $10 Million To Settle Claims of False 'Unlimited' Advertising (arstechnica.com) 33

Jon Brodkin reports via Ars Technica: T-Mobile, Verizon, and AT&T will pay a combined $10.2 million in a settlement with US states that alleged the carriers falsely advertised wireless plans as "unlimited" and phones as "free." The deal was announced yesterday by New York Attorney General Letitia James. "A multistate investigation found that the companies made false claims in advertisements in New York and across the nation, including misrepresentations about 'unlimited' data plans that were in fact limited and had reduced quality and speed after a certain limit was reached by the user," the announcement said.

T-Mobile and Verizon agreed to pay $4.1 million each while AT&T agreed to pay a little over $2 million. The settlement includes AT&T subsidiary Cricket Wireless and Verizon subsidiary TracFone. The settlement involves 49 of the 50 US states (Florida did not participate) and the District of Columbia. The states' investigation found that the three major carriers "made several misleading claims in their advertising, including misrepresenting 'unlimited' data plans that were actually limited, offering 'free' phones that came at a cost, and making false promises about switching to different wireless carrier plans."

"AT&T, Verizon, and T-Mobile lied to millions of consumers, making false promises of free phones and 'unlimited' data plans that were simply untrue," James said. "Big companies are not excused from following the law and cannot trick consumers into paying for services they will never receive." The carriers denied any illegal conduct despite agreeing to the settlement. In addition to payments to each state, the carriers agreed to changes in their advertising practices. It's unclear whether consumers will get any refunds out of the settlement, however.
These are the following changes the three carriers agreed upon, as highlighted by the NY attorney general's office:

- "Unlimited" mobile data plans can only be marketed if there are no limits on the quantity of data allowed during a billing cycle.
- Offers to pay for consumers to switch to a different wireless carrier must clearly disclose how much a consumer will be paid, how consumers will be paid, when consumers can expect payment, and any additional requirements consumers have to meet to get paid.
- Offers of "free" wireless devices or services must clearly state everything a consumer must do to receive the "free" devices or services.
- Offers to lease wireless devices must clearly state that the consumer will be entering into a lease agreement.
- All "savings" claims must have a reasonable basis. If a wireless carrier claims that consumers will save using its services compared to another wireless carrier, the claim must be based on similar goods or services or differences must be clearly explained to the consumer.

The advertising restrictions are to be in place for five years.
Privacy

Maryland Passes Two Bills Limiting Tech Platforms' Ability To Track Users (theverge.com) 19

An anonymous reader quotes a report from The Verge: The Maryland legislature passed two bills over the weekend limiting tech platforms' ability to collect and use consumers' data. Maryland Governor Wes Moore is expected to sign one of those bills, the Maryland Kids Code, on Thursday, MoCo360 reports. If signed into law, the other bill, the Maryland Online Privacy Act, will go into effect in October 2025. The legislation would limit platforms' ability to collect user data and let users opt out of having their data used for targeted advertising and other purposes. Together, the bills would significantly limit social media and other platforms' ability to track their users -- but tech companies, including Amazon, Google, and Meta, have opposed similar legislation. Lawmakers say the goal is to protect children, but tech companies say the bills are a threat to free speech.

Part of the Maryland Kids Code -- the Maryland Age-Appropriate Design Code Act -- will go into effect much sooner, on October 1st. It bans platforms from using "system design features to increase, sustain, or extend the use of the online product," including autoplaying media, rewarding users for spending more time on the platform, and spamming users with notifications. Another part of the legislation prohibits certain video game, social media, and other platforms from tracking users who are younger than 18.
"It's meant to rein in some of the worst practices with sensible regulation that allows companies to do what's right and what is wonderful about the internet and tech innovation, while at the same time saying, 'You can't take advantage of our kids,'" Maryland state Delegate Jared Solomon, one of the bill's sponsors, said in a press conference Wednesday.

"We are technically the second state to pass a kids code," Solomon told The New York Times. "But we are hoping to be the first state to withstand the inevitable court challenge that we know is coming."
Medicine

AstraZeneca To Withdraw COVID Vaccine Globally as Demand Dips (reuters.com) 83

AstraZeneca said on Tuesday it had initiated the worldwide withdrawal of its COVID-19 vaccine due to a "surplus of available updated vaccines" since the pandemic. From a report: The company also said it would proceed to withdraw the vaccine Vaxzevria's marketing authorizations within Europe. "As multiple, variant COVID-19 vaccines have since been developed there is a surplus of available updated vaccines," the company said, adding that this had led to a decline in demand for Vaxzevria, which is no longer being manufactured or supplied. According to media reports, the Anglo-Swedish drugmaker has previously admitted in court documents that the vaccine causes side-effects such as blood clots and low blood platelet counts.
Bitcoin

FTX Customers Poised to Recover All Funds Lost in Collapse (nytimes.com) 44

Lawyers for the defunct cryptocurrency exchange FTX said customers would receive all the money they lost when the firm collapsed in 2022 and receive interest on top of it. "But the recoveries come with a caveat," reports the New York Times. "The amount owed to customers was calculated based on the value of their holdings at the time of FTX's bankruptcy in November 2022. That means customers won't reap the benefits of a recent surge in the crypto market that sent the price of Bitcoin to a record high." From the report: The announcement was a landmark in the attempt to recover the $8 billion in customer assets that disappeared when FTX imploded virtually overnight, setting off a crisis in the crypto industry. Under a plan filed in federal bankruptcy court in Delaware, virtually all FTX's creditors, including hundreds of thousands of ordinary investors who used the exchange to buy and sell cryptocurrencies, would receive cash payments equivalent to 118 percent of the assets they had stored on FTX, the lawyers said. Those payments would flow from a pool of assets that FTX's lawyers have pulled together in the 17 months since the exchange collapsed, the lawyers said. [...] It will take months for the payouts to begin. The plan must be approved by the federal judge overseeing FTX's bankruptcy, John T. Dorsey.
Biotech

Theranos Fraudster Elizabeth Holmes Has Prison Sentence Reduced Again (theguardian.com) 72

For the second time, the disgraced former CEO of Theranos has had her federal prison sentence shortened. In July, it was reduced by two years. Now, 40-year-old Holmes is scheduled for release on August 16, 2032 instead of December 29, 2032 -- a reduction of more than four months. The Guardian reports: People incarcerated in the U.S. can have their sentences shortened for good conduct and for completing rehabilitation programs, such as a substance abuse program. The latest reduction of Holmes's sentence still meets federal sentencing guidelines. Those guidelines mandate that people convicted of federal offenses must serve at least 85% of their sentence, regardless of reductions for good behavior.

In 2022, Holmes was sentenced to 11 years and three months in prison after being convicted on four counts of defrauding investors. She was also ordered to pay $452m in restitution to those she defrauded, but a judge delayed those payments due to Holmes's "limited financial resources." Holmes's lawyers have already begun attempts to get her conviction overturned. Oral arguments for her appeal are set to begin on June 11 in a federal appeals court in San Francisco, California, NBC News reported.

United States

TikTok Sues US Government Over Law Forcing Sale or Ban (nytimes.com) 169

Less than two weeks after President Biden signed a bill that will force TikTok's Chinese owner, ByteDance, to sell the popular social media app or face a ban in the United States, TikTok said it sued the federal government on Tuesday, arguing the law was unconstitutional. From a report: TikTok said that the law violated the First Amendment by effectively removing an app that millions of Americans use to share their views and communicate freely. It also argued that a divestiture was "simply not possible," especially within the law's 270-day timeline, pointing to difficulties such as Beijing's refusal to sell a key feature that powers TikTok in the United States.

"For the first time in history, Congress has enacted a law that subjects a single, named speech platform to a permanent, nationwide ban, and bars every American from participating in a unique online community with more than one billion people worldwide," the company said in the 67-page petition it provided, which initiates the lawsuit. "There is no question: The act will force a shutdown of TikTok by Jan. 19, 2025." TikTok is battling for its survival in the United States, with the fight set to play out primarily in courts over the next few months. While lawmakers who passed the bill have said the app is a national security threat because of its ties to China, the courts must now weigh those concerns against TikTok's argument that a sale or ban would violate the First Amendment free-speech rights of its users and hurt small businesses that owe their livelihood to the platform.

Government

America's Federal Regulators Are Preparing More Lawsuits Against Crypto Companies (politico.com) 23

A "string of legal victories" by America's market-regulating Securities and Exchange Commission "has jolted some of crypto's biggest players," reports Politico — even as they're seeking more credibility with U.S. lawmakers: Judges have recently rebuked claims that the SEC lacks authority to police the market. Coinbase, the largest U.S. exchange, lost a bid to throw out charges that it is violating investor-protection rules. And a New York jury found one-time billionaire entrepreneur Do Kwon and his firm liable for fraud. Now, the crackdown is about to expand, with the SEC preparing for a new round of lawsuits. "The SEC just keeps winning," said John Reed Stark, a former agency attorney and prominent crypto critic. "The law is catching up...."

[I]t's the SEC crackdown that is raising foundational questions about crypto's future. [SEC Chairman Gary] Gensler has been among the industry's most implacable foes, saying most crypto tokens are unregistered securities that are being sold illegally and blasting the industry as "rife with fraud, scams, bankruptcies and money laundering." His opposition has been so unwavering that many in the industry are holding out hope that he leaves the agency after the November elections...

[T]he SEC's enforcement sweep appears to be on the brink of spreading across the crypto world. Consensys is facing potential charges from the agency, according to the company's lawsuit. And the SEC recently warned Uniswap Labs, a decentralized finance company that created one of the world's largest DeFi exchanges, that staff was preparing to sue.

Uniswap executives have vowed to fight the agency in court.

Privacy

When a Politician Sues a Blog to Unmask Its Anonymous Commenter 79

Markos Moulitsas is the poll-watching founder of the political blog Daily Kos. Thursday he wrote that in 2021, future third-party presidential candidate RFK Jr. had sued their web site.

"Things are not going well for him." Back in 2021, Robert F. Kennedy Jr. sued Daily Kos to unmask the identity of a community member who posted a critical story about his dalliance with neo-Nazis at a Berlin rally. I updated the story here, here, here, here, and here.

To briefly summarize, Kennedy wanted us to doxx our community member, and we stridently refused.

The site and the politician then continued fighting for more than three years. "Daily Kos lost the first legal round in court," Moulitsas posted in 2021, "thanks to a judge who is apparently unconcerned with First Amendment ramifications given the chilling effect of her ruling."

But even then, Moulitsas was clear on his rights: Because of Section 230 of the Communications Decency Act, [Kennedy] cannot sue Daily Kos — the site itself — for defamation. We are protected by the so-called safe harbor. That's why he's demanding we reveal what we know about "DowneastDem" so they can sue her or him directly.
Moulitsas also stressed that his own 2021 blog post was "reiterating everything that community member wrote, and expanding on it. And so instead of going after a pseudonymous community writer/diarist on this site, maybe Kennedy will drop that pointless lawsuit and go after me... consider this an escalation." (Among other things, the post cited a German-language news account saying Kennedy "sounded the alarm concerning the 5G mobile network and Microsoft founder Bill Gates..." Moulitsas also noted an Irish Times article which confirmed that at the rally Kennedy spoke at, "Noticeable numbers of neo-Nazis, kitted out with historic Reich flags and other extremist accessories, mixed in with the crowd.")

So what happened? Moulitsas posted an update Thursday: Shockingly, Kennedy got a trial court judge in New York to agree with him, and a subpoena was issued to Daily Kos to turn over any information we might have on the account. However, we are based in California, not New York, so once I received the subpoena at home, we had a California court not just quash the subpoena, but essentially signal that if New York didn't do the right thing on appeal, California could very well take care of it.

It's been a while since I updated, and given a favorable court ruling Thursday, it's way past time to catch everyone up.

New York is one of the U.S. states that doesn't have a strict "Dendrite standard" law protecting anonymous speech. But soon the blog founder discovered he had allies: The issues at hand are so important that The New York Times, the E.W.Scripps Company, the First Amendment Coalition, New York Public Radio, and seven other New York media companies joined the appeals effort with their own joint amicus brief. What started as a dispute over a Daily Kos diarist has become a meaningful First Amendment battle, with major repercussions given New York's role as a major news media and distribution center.

After reportedly spending over $1 million on legal fees, Kennedy somehow discovered the identity of our community member sometime last year and promptly filed a defamation suit in New Hampshire in what seemed a clumsy attempt at forum shopping, or the practice of choosing where to file suit based on the belief you'll be granted a favorable outcome. The community member lives in Maine, Kennedy lives in California, and Daily Kos doesn't publish specifically in New Hampshire. A perplexed court threw out the case this past February on those obvious jurisdictional grounds....

Then, last week, the judge threw out the appeal of that decision because Kennedy's lawyer didn't file in time — and blamed the delay on bad Wi-Fi...

Kennedy tried to dismiss the original case, the one awaiting an appellate decision in New York, claiming it was now moot. His legal team had sued to get the community member's identity, and now that they had it, they argued that there was no reason for the case to continue. We disagreed, arguing that there were important issues to resolve (i.e., Dendrite), and we also wanted lawyer fees for their unconstitutional assault on our First Amendment rights...

On Thursday, in a unanimous decision, a four-judge New York Supreme Court appellate panel ordered the case to continue, keeping the Dendrite issue alive and also allowing us to proceed in seeking damages based on New York's anti-SLAPP law, which prohibits "strategic lawsuits against public participation."

Thursday's blog post concludes with this summation. "Kennedy opened up a can of worms and has spent millions fighting this stupid battle. Despite his losses, we aren't letting him weasel out of this."
United Kingdom

Britain's Climate Action Plan Unlawful, High Court Rules (theguardian.com) 25

The UK government's climate action plan is unlawful, the high court has ruled, as there is not enough evidence that there are sufficient policies in place to reduce greenhouse gas emissions. From a report: The energy secretary, Claire Coutinho, will now be expected to draw up a revised plan within 12 months. This must ensure that the UK achieves its legally binding carbon budgets and its pledge to cut emissions by more than two-thirds by 2030, both of which the government is off track to meet. The environmental charities Friends of the Earth and ClientEarth took joint legal action with the Good Law Project against the Department for Energy Security and Net Zero (DESNZ) over its decision to approve the carbon budget delivery plan (CBDP) in March 2023.

In a ruling on Friday, Mr Justice Sheldon upheld four of the five grounds of the groups' legal challenge, stating that the decision by the former energy security and net zero secretary Grant Shapps was "simply not justified by the evidence." He said: "If, as I have found, the secretary of state did make his decision on the assumption that each of the proposals and policies would be delivered in full, then the secretary of state's decision was taken on the basis of a mistaken understanding of the true factual position."

The judge agreed with ClientEarth and Friends of the Earth that the secretary of state was given "incomplete" information about the likelihood that proposed policies would achieve their intended emissions cuts. This breached section 13 of the Climate Change Act, which requires the secretary of state to adopt plans and proposals that they consider will enable upcoming carbon budgets to be delivered. Sheldon also agreed with the environment groups that the central assumption that all the department's policies would achieve 100% of their intended emissions cuts was wrong. The judge said the secretary of state had acted irrationally, and on the basis of an incorrect understanding of the facts. This comes after the Guardian revealed the government would be allowing oil and gas drilling under offshore wind turbines, a decision criticised by climate experts as "deeply irresponsible."

Google

Google Defends App Store, Fighting Epic Games' Bid For Major Reforms (reuters.com) 23

Google has asked a U.S. judge not to impose sweeping changes to the Alphabet unit's app store Play that were proposed by "Fortnite" maker Epic Games in the companies' closely-watched antitrust fight. From a report: Google made its filing late on Thursday in San Francisco federal court, where Epic last year persuaded a jury that the tech giant unlawfully stifled competition with its controls over apps downloads on Android devices and payments to developers for in-app transactions. Epic's proposal "would make it nearly impossible for Google to compete," Google's filing said.

The gaming company in March asked U.S. District Judge James Donato in San Francisco to force Google to make it easier for users to download apps from other sources and to allow developers more flexibility in offering and charging for purchases. The Cary, North Carolina-based company also said it should be allowed to bring its Epic Games Store to Android "without delays and barriers."
Google agreed in December to pay $700 million to resolve the states' case and, among other reforms, will allow more alternative billing options for in-app purchases.
Google

Google Defends 'Better' Search Product as Antitrust Trial Concludes (ft.com) 31

Google is making its last attempt to fight back against a historic effort by the US Department of Justice to break the tech giant's grip on online search, as the most significant antitrust trial in 25 years comes to a close in Washington. From a report: A federal court in Washington began hearing closing arguments on Thursday after a 10-week trial in which the DoJ accused Alphabet, the parent company of Google, of suppressing search rivals by paying tens of billions annually for anti-competitive agreements with wireless carriers, browser developers and device manufacturers. During the hearing on Thursday, John Schmidtlein, a lawyer from Williams & Connolly representing Google, sought to push back on claims that it had hindered rivals' efforts to gain a foothold in online search, and argued that users had plenty of alternatives.

Unsealed court documents revealed this week that Alphabet paid Apple $20bn in 2022 alone to be the default search engine for its iPhone and Safari browser on its other devices. "Google winning agreements because it has a better product is not a harm to the competitive process, even if it gives it scale to improve its product," Schmidtlein told the court. A lawyer for the government, Kenneth Dintzer, told the court that Google's "anti-competitive conduct harms competition and is self perpetuating." Defaults "are a powerful way to drive searches, otherwise Google wouldn't pay billions of dollars for them," he added.

Amit Mehta, the judge hearing the case, noted that search "today looks a lot different than it didâ 10 to 15 years ago. He pushed back on the DoJ's contention that the quality of search had suffered due to the lack of competition, although he also noted that only two "substantial competitors" had entered the search market in the past decade. "Doesn't that tell us all we need to know in terms of barriers of entry," he asked.

Google

Google's Payments To Apple Reached $20 Billion in 2022, Antitrust Court Documents Show (yahoo.com) 27

Alphabet paid Apple $20 billion in 2022 for Google to be the default search engine in the Safari browser, according to newly unsealed court documents in the Justice Department's antitrust lawsuit against Google. From a report: The deal between the two tech giants is at the heart of the landmark case, in which antitrust enforcers allege Google has illegally monopolized the market for online search and related advertising. The Justice Department and Google will offer closing arguments in the case Thursday and Friday, with a decision expected later this year.

Google and Apple had hoped to shield the payment amount from public disclosure. At the trial last fall, Apple executives testified that Google paid "billions," without specifying a number. A Google witness later accidentally disclosed that Google pays 36% of the revenue it earns from search ads to Apple. Court documents filed late Tuesday ahead of the closing arguments mark the first public confirmation of the figures by Apple's senior vice president of services, Eddy Cue. Such numbers aren't disclosed by either company in their securities filings. The documents also revealed the importance of the payments to Apple's bottom line. For instance, in 2020, Google's payments to Apple constituted 17.5% of the iPhone maker's operating income.

Bitcoin

Binance Founder Changpeng Zhao Sentenced To 4 Months In Prison (cnbc.com) 9

Binance founder Changpeng Zhao has been sentenced to four months in prison after pleading guilty to charges related to enabling money laundering through his cryptocurrency exchange. CNBC reports: The sentence handed down to Zhao in Seattle federal court was significantly less than the three years that federal prosecutors had been seeking for him. The defense had asked for five months of probation. The sentencing guidelines called for a prison term of 12 to 18 months. In November, Zhao struck a deal with the U.S. government to resolve a multiyear investigation into Binance, the world's largest cryptocurrency exchange. As part of the settlement, Zhao stepped down as the company's CEO.

Zhao, who wore a dark navy suit with a light blue tie to court, is accused of willfully failing to implement an effective anti-money laundering program as required by the Bank Secrecy Act, and of allowing Binance to process transactions involving proceeds of unlawful activity, including between Americans and individuals in sanctions jurisdictions. The U.S. ordered Binance to pay $4.3 billion in fines and forfeiture. Zhao agreed to pay a $50 million fine.

Open Source

Bruce Perens Emits Draft Post-Open Zero Cost License (theregister.com) 73

After convincing the world to buy open source and give up the Morse Code test for ham radio licenses, Bruce Perens has a new gambit: develop a license that ensures software developers receive compensation from large corporations using their work. The new Post-Open Zero Cost License seeks to address the financial disparities in open source software use and includes provisions against using content to train AI models, aligning its enforcement with non-profit performing rights organizations like ASCAP. Here's an excerpt from an interview The Register conducted with Perens: The license is one component among several -- the paid license needs to be hammered out -- that he hopes will support his proposed Post-Open paradigm to help software developers get paid when their work gets used by large corporations. "There are two paradigms that you can use for this," he explains in an interview. "One is Spotify and the other is ASCAP, BMI, and SESAC. The difference is that Spotify is a for-profit corporation. And they have to distribute profits to their stockholders before they pay the musicians. And as a result, the musicians complain that they're not getting very much at all."

"There are two paradigms that you can use for this," he explains in an interview. "One is Spotify and the other is ASCAP, BMI, and SESAC. The difference is that Spotify is a for-profit corporation. And they have to distribute profits to their stockholders before they pay the musicians. And as a result, the musicians complain that they're not getting very much at all." Perens wants his new license -- intended to complement open source licensing rather than replace it -- to be administered by a 501(c)(6) non-profit. This entity would handle payments to developers. He points to the music performing rights organizations as a template, although among ASCAP, BMI, SECAC, and GMR, only ASCAP remains non-profit. [...]

The basic idea is companies making more than $5 million annually by using Post-Open software in a paid-for product would be required to pay 1 percent of their revenue back to this administrative organization, which would distribute the funds to the maintainers of the participating open source project(s). That would cover all Post-Open software used by the organization. "The license that I have written is long -- about as long as the Affero GPL 3, which is now 17 years old, and had to deal with a lot more problems than the early licenses," Perens explains. "So, at least my license isn't excessively long. It handles all of the abuses of developers that I'm conscious of, including things I was involved in directly like Open Source Security v. Perens, and Jacobsen v. Katzer."

"It also makes compliance easier for companies than it is today, and probably cheaper even if they do have to pay. It creates an entity that can sue infringers on behalf of any developer and gets the funding to do it, but I'm planning the infringement process to forgive companies that admit the problem and cure the infringement, so most won't ever go to court. It requires more infrastructure than open source developers are used to. There's a central organization for Post-Open (or it could be three organizations if we divided all of the purposes: apportioning money to developers, running licensing, and enforcing compliance), and an outside CPA firm, and all of that has to be structured so that developers can trust it."
You can read the full interview here.
Earth

Extreme Heat Continues To Scorch Large Parts of Asia (straitstimes.com) 37

Large swathes of Asia are sweltering through a heatwave that has topped temperature records from Myanmar to the Philippines and forced millions of children to stay home from school. From a report: In India, record temperatures have triggered a deadly heatwave and concerns about voter turnout in the nation's marathon election. Extreme heat has also forced Bangladesh to close all schools across the country. Extreme temperatures have also been recorded in Myanmar and Thailand, while huge areas of the Philippines are suffering from a drought. Experts say climate change has made heatwaves more frequent, longer and more intense, while the El Nino weather phenomenon is also driving this year's exceptionally warm weather.

Approximate voter turnout data after polls closed on April 26 in India -- when stage two of the nation's seven-stage general election took place -- put voter turnout at 61 per cent. This was lower than the 65 per cent in the first phase, and 68 per cent in the second phase five years ago. Among the states that headed to the polls last week was Kerala in the south, where media reports on April 29 said that at least two people -- a 90-year-old woman and a 53-year-old man -- were suspected to have died of heatstroke. Temperatures in Kerala soared to 41.9 deg C, nearly 5.5 deg C above normal temperatures. At least two people have also died in India's eastern state of Odisha, where temperatures hit 44.9 deg C on April 28 -- the highest recorded in April. In neighbouring Bangladesh, students will continue to stay home this week, after schools across the country were ordered shut on April 29. A two-judge bench of the country's High Court passed an order directing all primary and secondary schools and madrasahs (Islamic schools) nationwide to remain closed till May 5, affecting an estimated 32 million students.

The Courts

Supreme Court Declines To Block Texas Porn Restriction (nbcnews.com) 145

The Supreme Court on Tuesday refused to block on free speech grounds a provision of Texas law aimed at preventing minors from accessing pornographic content online. From a report: The justices turned away a request made by the Free Speech Coalition, a pornography industry trade group, as well as several companies. The challengers said the 2023 law violates the Constitution's First Amendment by requiring anyone using the platforms in question, including adults, to submit personal information.

One provision of the law, known as H.B. 1181, mandates that platforms verify users' ages by requiring them to submit information about their identities. Although the law is aimed at limiting children's access to sexually explicit content, the lawsuit focuses on how those measures also affect adults. "Specifically, the act requires adults to comply with intrusive age verification measures that mandate the submission of personally identifying information over the internet in order to access websites containing sensitive and intimate content," the challengers wrote in court papers.

Microsoft

Major US Newspapers Sue OpenAI, Microsoft For Copyright Infringement (axios.com) 75

Eight prominent U.S. newspapers owned by investment giant Alden Global Capital are suing OpenAI and Microsoft for copyright infringement, in a complaint filed Tuesday in the Southern District of New York. From a report: Until now, the Times was the only major newspaper to take legal action against AI firms for copyright infringement. Many other news publishers, including the Financial Times, the Associated Press and Axel Springer, have instead opted to strike paid deals with AI companies for millions of dollars annually, undermining the Times' argument that it should be compensated billions of dollars in damages.

The lawsuit is being filed on behalf of some of the most prominent regional daily newspapers in the Alden portfolio, including the New York Daily News, Chicago Tribune, Orlando Sentinel, South Florida Sun Sentinel, San Jose Mercury News, Denver Post, Orange County Register and St. Paul Pioneer Press.

Businesses

WeWork Rejects Adam Neumann's Acquisition Bid, Unveils Restructuring (businessinsider.com) 7

An anonymous reader quotes a report from Business Insider: WeWork has a new plan to get out of bankruptcy -- and it doesn't involve Adam Neumann, who wants to acquire the flexible office provider he created. WeWork announced Monday that it has raised $450 million in equity funding, which it could use to emerge from Chapter 11. The company also said it has a plan in place to "eliminate all of its $4 billion of outstanding, prepetition debt obligations." A vote on the plan -- which has support from the owners of most of WeWork's debt -- is scheduled for May 30, according to Bloomberg.

The majority of the funding -- $337 million, to be exact -- would come from Cupar Grimmond, and SoftBank would still own a stake in the company, according to the outlet. But Neumann, who has recently expressed interest in purchasing WeWork for more than $500 million, doesn't plan to go down without a fight. "After misleading the court for weeks, WeWork finally admitted it is trying to sell the company to a group led by Yardi for far less than we are continuing to propose," Susheel Kirpalani, an attorney for Neumann's new real estate startup Flow Global, told Business Insider in a statement, adding, "so we anticipate there will be robust objections to confirming this plan."

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