Crime

Suspect Arrested for Allegedly Throwing Molotov Cocktail at Sam Altman's Home (wired.com) 41

San Francisco police arrested a suspect after a Molotov cocktail was allegedly thrown at Sam Altman's home and threats were later made outside OpenAI's headquarters. "Thankfully, no one was hurt," said OpenAI in a statement to WIRED. "We deeply appreciate how quickly SFPD responded and the support from the city in helping keep our employees safe. The individual is in custody, and we're assisting law enforcement with their investigation." From the report: "At approximately 3:45am PT, an unidentified individual approached Sam's residence and threw an incendiary device toward the property. The device landed nearby and extinguished. There were no injuries and only minimal damage was reported," the message to staff reads. "Shortly afterward, an individual matching the suspect's description was contacted by security outside MB1," the message continues, referring to OpenAI's headquarters in San Francisco's Mission Bay neighborhood. "This person made threatening statements about the building."

OpenAI's corporate security team told staff it is cooperating with law enforcement on an investigation, and that employees may notice an increased police and security presence around the office on Friday. The security team said that the company's offices remain open, but employees were advised to "not let anyone tailgate into the building."

"Officials subsequently confirmed that the suspect was arrested outside the OpenAI's Third Street offices as he threatened to burn down the building," reports the Financial Express.

UPDATE: Sam Altman has responded to the incident.
The Almighty Buck

New Revelations Reignite Crypto Scandal Involving Argentina's President Milei (nytimes.com) 38

An anonymous reader quotes a report from the New York Times: President Javier Milei of Argentina promoted a cryptocurrency last year that quickly skyrocketed in value then cratered just as fast, costing investors millions of dollars and setting off a scandal and an investigation. Mr. Milei said he was simply highlighting a private venture and had no connection to the digital coin called $Libra. New evidence is now raising questions about his assertion. Phone logs from a federal investigation by Argentine prosecutors into the coin's collapse show seven phone calls between Mr. Milei and one of the entrepreneurs behind the cryptocurrency on the night in 2025 when Mr. Milei posted about $Libra on X. The contents of the calls, which took place before and after Mr. Milei's post, are not known.

But the phone logs -- which were obtained by The New York Times and first reported by a local cable news channel, C5N -- suggest a greater degree of communication between Mr. Milei and the entrepreneurs who launched the token than what the president has publicly acknowledged. Newly uncovered messages also suggest Mr. Milei received regular payments from one of the entrepreneurs while he was a congressman. Mr. Milei has not publicly commented on the call logs and other documents, and he did not respond to a request for comment. He is named as a person of interest in the federal prosecutor's continuing investigation into the digital coin, according to court documents reviewed by The Times, but has not been formally charged with any crime. The latest revelations have revived a scandal that threatens the very foundation of a president who rose to power and was elected president in 2023 by attacking a political class he called corrupt.

Crime

Crooks Behind $27M in 'Refund' Scams Busted By YouTube Pranksters After Being Lured to Fake Funeral (sfgate.com) 29

One crime ring scammed 2,000 elderly people of more than $27 million between 2021 and 2023 using tech support/bank impersonation/refund scams. "Victims were in their 70s and 80s," reports the U.S. Attorney's office for California's southern district. Victims were first told they'd received a refund (either online or via phone), but then told they'd been "over-refunded" a massive amount, and asked to return that amount.

But 42-year-old Jiandong Chen just admitted Thursday in a U.S. federal court that he was involved in the fraud and money laundering via cryptocurrency — pleading guilty to two charges with maximum penalties of 40 years in prison and a $1 million fine, plus 20 years in prison with a maximum fine of $500,000 or twice the amount laundered. "Chen, a Chinese national, is the second defendant charged in a five-defendant indictment." And what tripped him up seems to be that "Certain members of the conspiracy also did in-person pickups of money directly from victims..."

And so YouTube enters the story — when the scammers called pranksters with 1,790,000 subscribers to their "Trilogy Media" channel. In an elaborate three-hour video, the team of pranksters lured the scammer to a rented Airbnb where they're staging a fake funeral with a nun. (One of the men acting in the video remembers "we start doing a prayer... I'm holding the scammer's hand in my nun outfit...")

They convince the scammer to collect the cash from a dead man — "Is there anything you'd like to say to him?" Then there's demon voices. The scammer's victim resurrects from the dead. Did the cash mule bring holy water?

The end result was a video titled "CONFRONTING SCAMMERS WITH A FAKE FUNERAL (EPIC REACTIONS)". But two and a half years later, their "cash mule sting house" video has racked up over 1.3 million views, 22,000 likes, and 2,979 comments. ("This video is longer than Oppenheimer. Thanks for the laughs fellas.")

And the scammer is facing 60 years in prison.
Microsoft

Microsoft To Invest $10 Billion In Japan For AI, Cyber Defense Expansion (reuters.com) 10

Microsoft plans to invest $10 billion in Japan from 2026 to 2029 to expand AI infrastructure, boost local cloud capacity, train 1 million engineers and developers, and deepen cybersecurity cooperation with the Japanese government. Reuters reports: The investment includes the training of 1 million engineers and developers by 2030, Microsoft said, which was unveiled during a visit to Tokyo by Vice Chair and President Brad Smith. In a statement, the company said the plan aligns with Prime Minister Sanae Takaichi's goal to boost growth through advanced, strategic technologies while safeguarding national security.

Microsoft will work with domestic firms including SoftBank and Sakura Internet to expand Japan-based AI computing capacity, allowing Ecompanies and government agencies to keep sensitive data within the country while accessing Microsoft Azure services, it said. It will also deepen cooperation with Japanese authorities on sharing intelligence related to cyber threats and crime prevention.

Privacy

Leaked Email Suggests Ring Plans To Expand 'Search Party' Surveillance Beyond Dogs (404media.co) 47

Ring's AI-powered "Search Party" feature, which links neighborhood cameras into a networked surveillance system to find lost dogs, was never intended to stop at pets, according to an internal email from founder Jamie Siminoff obtained by 404 Media.

Siminoff told employees in early October, shortly after the feature launched, that Search Party was introduced "first for finding dogs" and that the technology would eventually help "zero out crime in neighborhoods." The on-by-default feature faced intense backlash after Ring promoted it during a Super Bowl ad. Ring has since also rolled out "Familiar Faces," a facial recognition tool that identifies friends and family on a user's camera, and "Fire Watch," an AI-based fire alert system.

A Ring spokesperson told the publication Search Party does not process human biometrics or track people.
Security

After Six Years, Two Pentesters Arrested in Iowa Receive $600,000 Settlement (desmoinesregister.com) 66

"They were crouched down like turkeys peeking over the balcony," the county sheriff told Ars Technica. A half hour past midnight, they were skulking through a courthouse in Iowa's Dallas County on September 11 "carrying backpacks that remind me and several other deputies of maybe the pressure cooker bombs." More deputies arrived... Justin Wynn, 29 of Naples, Florida, and Gary De Mercurio, 43 of Seattle, slowly proceeded down the stairs with hands raised. They then presented the deputies with a letter that explained the intruders weren't criminals but rather penetration testers who had been hired by Iowa's State Court Administration to test the security of its court information system. After calling one or more of the state court officials listed in the letter, the deputies were satisfied the men were authorized to be in the building.
But Sheriff Chad Leonard had the men arrested on felony third-degree burglary charges (later reduced to misdemeanor trespassing charges). He told them that while the state government may have wanted to test security, "The State of Iowa has no authority to allow you to break into a county building. You're going to jail."

More than six years later, the Des Moines Register reports: Dallas County is paying $600,000 to two men who sued after they were arrested in 2019 while testing courthouse security for Iowa's Judicial Branch, their lawyer says.

Gary DeMercurio and Justin Wynn were arrested Sept. 11, 2019, after breaking into the Dallas County Courthouse. They spent about 20 hours in jail and were charged with burglary and possession of burglary tools, though the charges were later dropped. The men were employees of Colorado-based cybersecurity firm Coalfire Labs, with whom state judicial officials had contracted to perform an analysis of the state court system's security. Judicial officials apologized and faced legislative scrutiny for how they had conducted the security test.

But even though the burglary charges against DeMercurio and Wynn were dropped, their attorney previously said having a felony arrest on their records made seeking employment difficult. Now the two men are to receive a total of $600,000 as a settlement for their lawsuit, which has been transferred between state and federal courts since they first filed it in July 2021 in Dallas County. The case had been scheduled to go to trial Monday, Jan. 26 until the parties notified the court Jan. 23 of the impending deal...

"The settlement confirms what we have said from the beginning: our work was authorized, professional, and done in the public interest," DeMercurio said in a statement. "What happened to us never should have happened. Being arrested for doing the job we were hired to do turned our lives upside down and damaged reputations we spent years building...."

"This incident didn't make anyone safer," Wynn said. "It sent a chilling message to security professionals nationwide that helping government identify real vulnerabilities can lead to arrest, prosecution, and public disgrace. That undermines public safety, not enhances it."

County Attorney Matt Schultz said dismissing the charges was the decision of his predecessor, according to the newspaper, and that he believed the sheriff did nothing wrong.

"I am putting the public on notice that if this situation arises again in the future, I will prosecute to the fullest extent of the law."
AI

Hollywood's AI Bet Isn't Paying Off (wired.com) 46

Hollywood's recent attempts to build entertainment around AI have consistently underperformed or outright flopped, whether the AI in question is a plot device or a production tool. The horror sequel M3GAN 2.0, Mission: Impossible -- The Final Reckoning, and Disney's Tron: Ares all disappointed at the box office in 2025 despite centering their narratives on AI.

The latest casualty is Mercy, a January 2026 crime thriller in which Chris Pratt faces an AI judge bot played by Rebecca Ferguson; one reviewer has already called it "the worst movie of 2026," and its ticket sales have been mediocre. AI-generated content hasn't fared any better. Darren Aronofsky executive-produced On This Day...1776, a YouTube web series that uses Google DeepMind video generation alongside real voice actors to dramatize the American Revolution. Viewer response has been brutal -- commenters mocked the uncanny faces and the fact that DeepMind rendered "America" as "Aamereedd."

A Taika Waititi-directed Xfinity commercial set to air during this weekend's Super Bowl, which de-ages Jurassic Park stars Sam Neill, Laura Dern and Jeff Goldblum, has already been mocked for producing what one viewer called "melting wax figures."
Printer

New York Introduces Legislation To Crack Down On 3D Printers That Make Ghost Guns (3dprintingindustry.com) 156

New York Governor Kathy Hochul is proposing first-of-its-kind legislation that would require 3D printers sold in the state to include built-in software designed to block the printing of gun parts used to make "ghost guns." The plan would also add criminal penalties for making 3D-printed firearms and hold printer owners or manufacturers liable if safety controls aren't in place. 3D Printing Industry reports: "From the iron pipeline to the plastic pipeline, these proposals will keep illegal ghost guns off of New York streets, and enhance measures to track and block the production of dangerous and illegal firearms in our state," Hochul said.

In addition to mandating printer-level safeguards and restricting access to CAD files, the proposed legislation would require law enforcement agencies to report any recovered 3D printed firearms to a statewide database. The measure also includes a provision requiring commercial gun manufacturers to redesign pistols so they cannot be easily converted for automatic fire.
"These illegal firearms are being manufactured in homes and used in crimes right now, which is why I have been working with my colleagues in Albany and the private sector over the past several years to stop their proliferation. Passing these measures will reduce crime and strengthen public safety for all New Yorkers," said Manhattan District Attorney Alvin Bragg.
Crime

Cybersecurity Employees Plead Guilty To Ransomware Attacks 17

Two cybersecurity professionals who spent their careers defending organizations against ransomware attacks have pleaded guilty in a Florida federal court to using ALPHV/BlackCat ransomware to extort American businesses throughout 2023.

Ryan Goldberg, a 40-year-old incident response manager from Georgia, and Kevin Martin, a 36-year-old ransomware negotiator from Texas, admitted to conspiring to obstruct commerce through extortion. Between April and December 2023, Goldberg, Martin, and a third unnamed co-conspirator deployed the ransomware against multiple U.S. victims and agreed to pay ALPHV BlackCat's operators a 20% cut of any ransoms received. They successfully extracted approximately $1.2 million in Bitcoin from one victim, splitting their 80% share three ways before laundering the proceeds. Both men face up to 20 years in prison and are scheduled for sentencing on March 12, 2026.

The Justice Department noted that all three conspirators possessed specialized skills in securing computer systems against the very attacks they carried out. ALPHV BlackCat has targeted more than 1,000 victims globally and was the subject of an FBI disruption operation in December 2023 that saved victims an estimated $99 million through a custom decryption tool.
Books

Some Audiobooks Are Outselling Hardcovers (msn.com) 26

In a year when print book sales have slipped 1% to 679 million copies through early December, according to Circana BookScan, audiobooks continue to carve out territory that once belonged exclusively to hardcovers, and in several notable cases this year, the audio versions have outright outsold their physical counterparts.

S.A. Cosby's southern crime novel "King of Ashes" moved more copies as an audiobook than as a hardcover, according to publisher Macmillan Audio. The same is true for celebrity memoirs from Jeremy Renner, Alyson Stoner, and Brooke Shields -- all narrated by the authors themselves. Karin Slaughter's thriller "We Are All Guilty Here" and comedian Nate Bargatze's "Big Dumb Eyes" also saw their audio editions outpace hardcover sales.

Digital audiobook revenue jumped nearly 24% in 2024 to $1.1 billion, per the Association of American Publishers, though growth has cooled to 1% through October this year, bringing in nearly $888 million. The format's strength has professional narrators watching AI developments nervously. Emily Lawrence, who has narrated more than 600 audiobooks, said there's "a lot of water cooler talk about people who haven't had work in months." Hachette Audio publisher Ana Maria Allessi said voice-cloning technology is becoming more sophisticated and could change how authors approach narration.
AI

China Drafts World's Strictest Rules To End AI-Encouraged Suicide, Violence (arstechnica.com) 34

An anonymous reader quotes a report from Ars Technica: China drafted landmark rules to stop AI chatbots from emotionally manipulating users, including what could become the strictest policy worldwide intended to prevent AI-supported suicides, self-harm, and violence. China's Cyberspace Administration proposed the rules on Saturday. If finalized, they would apply to any AI products or services publicly available in China that use text, images, audio, video, or "other means" to simulate engaging human conversation. Winston Ma, adjunct professor at NYU School of Law, told CNBC that the "planned rules would mark the world's first attempt to regulate AI with human or anthropomorphic characteristics" at a time when companion bot usage is rising globally.

[...] Proposed rules would require, for example, that a human intervene as soon as suicide is mentioned. The rules also dictate that all minor and elderly users must provide the contact information for a guardian when they register -- the guardian would be notified if suicide or self-harm is discussed. Generally, chatbots would be prohibited from generating content that encourages suicide, self-harm, or violence, as well as attempts to emotionally manipulate a user, such as by making false promises. Chatbots would also be banned from promoting obscenity, gambling, or instigation of a crime, as well as from slandering or insulting users. Also banned are what are termed "emotional traps," -- chatbots would additionally be prevented from misleading users into making "unreasonable decisions," a translation of the rules indicates.

Perhaps most troubling to AI developers, China's rules would also put an end to building chatbots that "induce addiction and dependence as design goals." [...] AI developers will also likely balk at annual safety tests and audits that China wants to require for any service or products exceeding 1 million registered users or more than 100,000 monthly active users. Those audits would log user complaints, which may multiply if the rules pass, as China also plans to require AI developers to make it easier to report complaints and feedback. Should any AI company fail to follow the rules, app stores could be ordered to terminate access to their chatbots in China. That could mess with AI firms' hopes for global dominance, as China's market is key to promoting companion bots, Business Research Insights reported earlier this month.

Crime

In 2025 Scammers Have Stolen $835M from Americans Using Fake Customer Service Numbers (straitstimes.com) 26

They call it "the business-impersonator scam". And it's fooled 396,227 Americans in just the first nine months of 2025 — 18% more than the 335,785 in the same nine months of 2024. That's according to a Bloomberg reporter (who also fell for it in late November), citing the official statistics from America's Federal Trade Commission: Some pose as airline staff on social media and respond to consumer complaints. Others use texts or e-mails claiming to be an airline reporting a delayed or cancelled flight to phish for travellers' data. But the objective is always the same: to hit a stressed out, overwhelmed traveller at their most vulnerable. In my case, the scammer exploited weaknesses in Google's automated ad-screening system, so that fraudulent sponsored results rose to the top [They'd typed "United airlines agent on demand" into Google, and the top search result on their phone said United.com, had a 1-888 number next to it and said it had had 1M+ visits in past month. "It looked legit. I tapped the number..." ]

After I reported the fake "United Airlines" ad to Google, via an online form for consumers, it was taken down. But a few days later, I entered the same search terms and the identical ad featuring the same 1-888 number was back at the top of my results. I reported it again, and it was quickly removed again... A [Google] spokesperson there said the company is constantly evolving its tactics "to stay ahead of bad actors." Of the 5.1 billion ads blocked by the company last year, she said, 415 million were taken down for "scam-related violations." Google updated its ads misrepresentation policy in 2024 to include "impersonating or falsely implying affiliation with a public figure, brand or organization to entice users to provide money or information." Still, many impostor ads slip through the cracks.

"Reported losses from business-impostor scams in the United States rose 30 per cent, to US$835 million, in the first three quarters of 2025," the article points out (citing more figures from the America's Federal Trade Commision). An updated version of the article also includes a response from United Airlines. "We encourage customers to only use customer-service contact information that is listed on our website and app."

And what happened to the scammed reporter? "I called American Express and contested the charge before cancelling my credit card. I then contacted Experian, one of the three major credit bureaus, to put a fraud alert on my file. Next, I filed a complaint with the FTC and reported the fake ad to Google.

"American Express wound up resolving the dispute in my favour, but the memories of this chaotic Thanksgiving will stay with us forever. "
Crime

Flock Executive Says Their Camera Helped Find Shooting Suspect, Addresses Privacy Concerns (cnn.com) 59

During a search for the Brown shoogin suspect, a law enforcement press conference included a request for "Ring camera footage from residents and businesses near Brown University," according to local news reports.

But in the end it was Flock cameras according to an article in Gizmodo, after a Reddit poster described seeing "odd" behavior of someone who turned out to be the suspect: The original Reddit poster, identified only as John in the affidavit, contacted police the next day and came in for an interview. He told them about his odd encounter with the suspect, noting that he was acting suspiciously by not having appropriate cold-weather clothes on when he saw him in a bathroom at Brown University. That was two hours before the shooting. After spotting him in the bathroom wearing a mask, John actually started following the suspect in what he called a "game of cat and mouse...." Police detectives showed John two images obtained through Flock, the company that's built extensive surveillance infrastructure across the U.S. used by investigators, and he recognized the suspect's vehicle, replying, "Holy shit. That might be it," according to the affidavit. Police were able to track down the license plate of the rental car, which gave them a name, and within 24 hours, they had found Claudio Manuel Neves Valente dead in a storage facility in Salem, New Hampshire, where he reportedly rented a unit.
"We intend to continue using technology to make sure our law enforcement are empowered to do their jobs," Flock's safety CEO Garrett Langley wrote on X.com, pinning the post to the top of his feed.

Though ironically, hours before Providence Police Chief Oscar Perez credited Flock for helping to find the suspect, CNN was interviewing Flock's safety CEO to discuss "his response to recent privacy concerns surrounding Flock's technology." To Langley, the situation underscored the value and importance of Flock's technology, despite mounting privacy concerns that have prompted some jurisdictions to cancel contracts with the company... Langley told me on Thursday that he was motivated to start Flock to keep Americans safer. His goal is to deter crime by convincing would-be criminals they'll be caught... One of Flock's cameras had recently spotted [the suspect's] car, helping police pinpoint Valente's location. Flock turned on additional AI capabilities that were not part of Providence Police's contract with the company to assist in the hunt, a company spokesperson told CNN, including a feature that can identify the same vehicle based on its description even if its license plates have been changed.

The company has faced criticism from some privacy advocates and community groups who worry that its networks of cameras are collecting too much personal information from private citizens and could be misused. Both the Electronic Frontier Foundation and the American Civil Liberties Union have urged communities not to work with Flock. "State legislatures and local governments around the nation need to enact strong, meaningful protections of our privacy and way of life against this kind of AI surveillance machinery," ACLU Senior Policy Analyst Jay Stanley wrote in an August blog post. Flock also drew scrutiny in October when it announced a partnership with Amazon's Ring doorbell camera system... ["Local officers using Flock Safety's technology can now post a request directly in the Ring Neighbors app asking for help," explains Flock's blog post.]

Langley told me it was up to police to reassure communities that the cameras would be used responsibly... "If you don't trust law enforcement to do their job, that's actually what you're concerned about, and I'm not going to help people get over that." Langley added that Flock has built some guardrails into its technology, including audit trails that show when data was accessed. He pointed to a case in Georgia where that audit found a police chief using data from LPR cameras to stalk and harass people. The chief resigned and was arrested and charged in November...

More recently, the company rolled out a "drone as first responder" service — where law enforcement officers can dispatch a drone equipped with a camera, whose footage is similarly searchable via AI, to evaluate the scene of an emergency call before human officers arrive. Flock's drone systems completed 10,000 flights in the third quarter of 2025 alone, according to the company... I asked what he'd tell communities already worried about surveillance from LPRs who might be wary of camera-equipped drones also flying overhead. He said cities can set their own limitations on drone usage, such as only using drones to respond to 911 calls or positioning the drones' cameras on the horizon while flying until they reach the scene. He added that the drones fly at an elevation of 400 feet.

Education

MIT Grieves Shooting Death of Renowned Director of Plasma Science Center (theguardian.com) 64

An anonymous reader quotes a report from the Guardian: The Massachusetts Institute of Technology (MIT) community is grieving after the "shocking" shooting death of the director of its plasma science and fusion center, according to officials. Nuno FG Loureiro, 47, had been shot multiple times at his home in the affluent Boston suburb of Brookline on Monday night when police said they received a call to investigate. Emergency responders brought Loureiro to a hospital, and the award-winning scientist was pronounced dead there Tuesday morning, the Norfolk county district attorney's office said in a statement.

The Boston Globe reported speaking with a neighbor of Loureiro who heard gunshots, found the academic lying on his back in the foyer of their building and then called for help alongside the victim's wife. The statement from the Norfolk district attorney's office said an investigation into Loureiro's slaying remained ongoing later Tuesday. But the agency did not immediately release any details about a possible suspect or motive in the killing, which gained widespread attention across academic circles, the US and in Loureiro's native Portugal.

Portugal's minster of foreign affairs announced Loureiro's death in a public hearing Tuesday, as CNN reported. Separately, MIT president Sally Kornbluth issued a university-wide letter expressing "great sadness" over the death of Loureiro, whose survivors include his wife. "This shocking loss for our community comes in a period of disturbing violence in many other places," said Kornbluth's letter, released after a weekend marred by deadly mass shootings at Brown University in Rhode Island -- about 50 miles away from MIT -- as well as on Australia's Bondi Beach. The letter concluded by providing a list of mental health resources, saying: "It's entirely natural to feel the need for comfort and support."

Google

Google Sues Alleged Chinese Scam Group Behind Massive US Text Message Phishing Ring (nbcnews.com) 20

Google is suing a Chinese-speaking cybercriminal group it says is responsible for a massive wave of scam text messages sent to Americans this year, according to a legal complaint filed Tuesday. From a report: The group, known as Darcula, sells software that allows users to send phishing text messages en masse, impersonating organizations like the IRS or the U.S. Postal Service in scams. The lawsuit is designed to give Google legal standing so U.S. courts will allow it to seize websites the group uses, hampering their operations, a spokesperson said.

Darcula is possibly the most prominent name in an emerging, loosely affiliated cybercrime world that creates and sells hacking programs for aspiring scammers to use. Darcula's signature program, called Magic Cat, provides an easy-to-use, intuitive way for cybercriminals without advanced hacking skills to quickly spam millions of phone numbers with links to fake websites impersonating businesses like YouTube's premium service, then steal the credit card numbers victims put in.

Crime

Hollywood Director Found Guilty of Blowing $11 Million Netflix Budget on Crypto and Ferraris (decrypt.co) 43

Carl Rinsch, the director behind the 2013 Keanu Reeves film "47 Ronin," has been found guilty of defrauding Netflix out of $11 million that was meant to fund a science fiction series called "Conquest," which the streaming company ultimately cancelled in 2021 after Rinsch failed to meet any production milestones. A jury in the Southern District of New York convicted the 48-year-old on seven charges: one count each of wire fraud and money laundering, and five counts of transacting in illicitly obtained property.

Prosecutors alleged that Rinsch funneled the $11 million through multiple bank accounts into a personal brokerage account, lost more than half of it on securities within two months, and then began speculating on cryptocurrency. Court records show he also spent $2.4 million on a Ferrari and five Rolls Royces, $3.3 million on furniture and antiques, and $387,000 on a Swiss watch. Netflix has written off $55 million in total and has not recovered any funds. Rinsch faces up to 90 years in prison and is scheduled for sentencing on April 17, 2026.
Crime

TerraUSD Creator Do Kwon Sentenced To 15 Years Over $40 Billion Crypto Collapse 30

An anonymous reader quotes a report from Reuters: Do Kwon, the South Korean cryptocurrency entrepreneur behind two digital currencies that lost an estimated $40 billion in 2022, was sentenced in New York federal court on Thursday to 15 years in prison for fraud and conspiracy. Kwon, 34, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, previously pleaded guilty and admitted to misleading investors about a coin that was supposed to maintain a steady price during periods of crypto market volatility.

Kwon was one of several cryptocurrency moguls to face federal charges after a slump in digital token prices in 2022 prompted the collapse of a number of companies. [...] Kwon was accused of misleading investors in 2021 about TerraUSD, a so-called stablecoin designed to maintain a value of $1. Prosecutors alleged that when TerraUSD slipped below its $1 peg in May 2021, Kwon told investors a computer algorithm known as "Terra Protocol" had restored the coin's value. Instead, Kwon arranged for a high-frequency trading firm to secretly buy millions of dollars of the token to artificially prop up its price, according to charging documents.
"I made false and misleading statements about why it regained its peg by failing to disclose a trading firm's role in restoring that peg," Kwon said in court. "What I did was wrong."

He also faces charges in South Korea, and under his plea deal, prosecutors won't oppose his transfer abroad after he serves half of his U.S. sentence.
Crime

UC Berkeley Professor Uses Secret Camera To Catch PhD Candidate Sabotaging Rival (mercurynews.com) 62

A UC Berkeley professor, suspecting years of targeted computer damage against one Ph.D. student, secretly installed a hidden camera that allegedly caught another doctoral candidate sabotaging the student's laptop. The student now faces felony vandalism charges and is due for his first court appearance on Dec. 15. The Mercury News reports: A UC Berkeley professor smelled a rat -- over the years there had been $46,855 in damage from computers that failed, and nearly all of it seemed to affect one particular Ph.D. candidate at the college's Electrical Engineering and Computer Sciences department.

The professor wondered if the student's luck was really that bad, or if something else was afoot. So he installed a hidden camera -- disguised in a department laptop, and pointed it at the student's computer. According to police, the sly move captured another Ph.D. candidate, 26-year-old Jiarui Zou, damaging his fellow student's computer with some implement that caused sparks to fly out of the laptop.

Now, Zou has been charged with three felony counts of vandalism, related to the destruction of three computers on Nov. 9-10. The charges allege the damage amounted to more than $400 each time, though the professor who reported the vandalism, and the affected student, told police they suspect Zou of the additional incidents that had been going on for years, court records show.

Biotech

Cold Case Inquiries Stall After Ancestry.com Revisits Policy For Users (nytimes.com) 48

An anonymous reader quotes a report from the New York Times: Since online genealogy services began operating, millions of people have sent them saliva samples in hopes of learning about their family roots and discovering far-flung relatives. These services also appeal to law enforcement authorities, who have used them to solve cold case murders and to investigate crimes like the 2022 killing of four University of Idaho students. Crime-scene DNA submitted to genealogy sites has helped investigators identify suspects and human remains by first identifying relatives.

The use of public records and family-tree building is crucial to this technique, and its main tool has been the genealogy site Ancestry, which has vast amounts of individual DNA profiles and public records. More than 1,400 cases have been solved with the help of so-called genetic genealogy investigations, most of them with help from Ancestry. But a recent step taken by the site is now deterring many police agencies from employing this crime-solving technique.

In August, Ancestry revised the terms and conditions on its site to make it clear that its services were off-limits "for law enforcement purposes" without a legal order or warrant, which can be hard to get, because of privacy concerns. This followed the addition last year to the terms and conditions that the services could not be used for "judicial proceedings." Investigators say the implications are dire and will result in crucial criminal cases slowing or stalling entirely, denying answers to grieving families.
"Everyone who does this work has depended on the records database that Ancestry controls," said David Gurney, who runs Ramapo College's Investigative Genetic Genealogy Center in New Jersey. "Without it, casework is going to be a lot slower, and there will be some cases that can't be resolved at all."
Crime

193 Cybercrims Arrested, Accused of Plotting 'Violence-As-a-Service' 19

Europol's GRIMM taskforce has arrested nearly 200 people accused of running or participating in "violence-as-a-service" schemes where cybercrime groups recruit youth online for real-world attacks. "These individuals are groomed or coerced into committing a range of violent crimes, from acts of intimidation and torture to murder," the European police said on Monday. The Register reports: GRIMM began in April, and includes investigators from Belgium, Denmark, Finland, France, Germany, Iceland, the Netherlands, Norway, Spain, Sweden, the UK, plus Europol experts and online service providers. During its first six months, police involved in this operation arrested 63 people directly involved in carrying out or planning violent crimes, 40 "enablers" accused of facilitating violence-for-hire services, 84 recruiters, and six "instigators," five of whom the cops labeled "high-value targets." [...]

Many of the criminals involved in recruiting and carrying out these violence-for-hire services are also members of The Com. This is a loosely knit gang, primarily English speakers, involved in several interconnected networks of hackers, SIM swappers, and extortionists. Their reach has spread across the Atlantic, and over the summer, the FBI warned that a subset of this cybercrime group, called In Real Life (IRL) Com, poses a growing threat to youth. The FBI's security bulletin specifically called out IRL Com subgroups that offer swat-for-hire services, in which hoaxers falsely report shootings at someone's residence or call in bomb threats to trigger massive armed police responses at the victims' homes.

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