Government

How One Company Finally Exposed North Korea's Massive Remote Workers Scam (nbcnews.com) 11

NBC News investigates North Korea's "wide-ranging effort to place remote workers at U.S. companies in order to funnel money back to its coffers and, in some cases, steal sensitive information."

And working with the FBI, one corporate security/investigations company decided to knowingly hire one of North Korea's remote workers — then "ship him a laptop and gain as much information as possible" about this "sprawling international employment scheme that is estimated to include hundreds of American companies, thousands of people and hundreds of millions of dollars per year." It worked.... Over a roughly three-month investigation, Nisos uncovered an apparent network of at least 20 North Korean operatives including "Jo" who had collectively applied to at least 160,000 roles. During that time, workers in the network — which some evidence showed were based in China — were employed by five U.S.-based companies and allegedly helped by an American citizen operating out of two nondescript suburban homes in Florida...

Nisos estimated that in about a year, "Jo", who was likely a newer member of the team, applied to about 5,000 jobs... "They attended interviews all day every day, and then once they secured a job, they would collect paychecks until they were terminated," [according to Jared Hudson, Nisos' chief technology officer]... With the ability to see which other U.S. companies Jo and his team were working for — all remote technology roles — Nisos' CEO, Ryan LaSalle, began making calls to their security teams to alert them of the fraud. "Most of the companies weren't aware of it, even if they had pretty robust security teams," LaSalle said. "It wasn't really high on the radar."

NBC News describes North Korea's 10-year effort — and its educational pipeline that steers promising students into "computer science and hacking training before being placed into cyberunits under military and state agencies, according to a recent report by DTEX, a risk-adaptive security and behavioral intelligence firm that tracks North Korea's cybercrime." In one case, a North Korean worker stole sensitive information related to U.S. military technology, according to the Justice Department. In another, an American accomplice obtained an ID that enabled access to government facilities, networks and systems. At least three organizations have been extorted and suffered hundreds of thousands of dollars in damages after proprietary information was posted online by IT workers... Analysts warn that North Korean IT workers are targeting larger organizations, increasing extortion attempts and seeking out employers that pay salaries in cryptocurrency. More recently, security researchers have uncovered fake job application platforms impersonating major U.S. cryptocurrency and AI firms, including Anthropic, designed to infect legitimate applicants' networks with malware to be utilized once hired. The global cybersecurity company CrowdStrike identified a 220% rise in 2025 in instances of North Koreans gaining fraudulent employment at Western companies to work remotely as developers...

The payoff flowing back to Pyongyang from these schemes is enormous. Some North Korean IT workers earn more than $300,000 per year, far more than they'd be able to earn domestically, with as much as 90% of their wages directed back to the regime, according to congressional testimony from Bruce Klinger, a former CIA deputy division chief for Korea. The United Nations estimates the schemes, which proliferated after the pandemic when more companies' workforces went remote, generate as much as $600 million annually, while a U.S. State Department-led sanctions monitoring assessment placed earnings for 2024 as high as $800 million... So far, at least 10 alleged U.S.-based facilitators have been federally charged, including one active-duty member of the U.S. Army, for their alleged roles in hosting laptop farms, laundering payments and moving proceeds through shell companies. At least six other alleged U.S. facilitators have been identified in court documents but not named...

"We believe there are many more hundreds of people out there who are participating in these schemes," said Rozhavsky, the FBI assistant director. "They could never pull this off if they didn't have willing facilitators in the U.S. helping them...." The scheme itself is also becoming more complex. North Korean IT teams are now subcontracting work to developers in Pakistan, Nigeria and India, expanding into fields like customer service, financial processing, insurance and translation services — roles far less scrutinized than software development.

The Media

Should Banksy Remain Anonymous? (reuters.com) 66

He's "the most famous anonymous man in the world," suggests Reuters. But investigating Banksy's artworks in a bombed Ukrainian village (and other clues in the U.K. and Manhattan) have led them to "a hand-written confession by the artist to a long-ago misdemeanor charge of disorderly conduct — a document that revealed, beyond dispute, Banksy's true identity."

But Banksy's long-time lawyer "urged us not to publish this report, saying doing so would violate the artist's privacy, interfere with his art and put him in danger" and "would harm the public, too." Working "anonymously or under a pseudonym serves vital societal interests," he wrote. "It protects freedom of expression by allowing creators to speak truth to power without fear of retaliation, censorship or persecution — particularly when addressing sensitive issues such as politics, religion or social justice."

Reuters took into account Banksy's privacy claims — and the fact that many of his fans wish for him to remain anonymous. Yet we concluded that the public has a deep interest in understanding the identity and career of a figure with his profound and enduring influence on culture, the art industry and international political discourse... As for the risk he might face of retaliation or censorship, Britain's legal and political establishments seem comfortable with Banksy's messages and how he delivers them...

His mastery of disguise began as a way of shaking the police, says former manager [Steve] Lazarides. In an interview, Lazarides said anonymity served a practical purpose in Bristol, where authorities enforced "draconian" policies against graffiti... Eventually, keeping the secret became a burden. By the end of their partnership, Lazarides estimates he spent half or more of his time managing and maintaining the artist's mystique. "I think it became a good gag, and then, if you want my honest, honest opinion, I think it then became a disease," he said.

Lazarides wrote a two-volume book about managing Banksy from the late 1990s to 2008, including a story about Banksy's arrest in 2000 for this defacing of a billboard. Reuters geolocated that building, then found police documents and a court file including the hand-written confession. This investigation spawned a 7,000-word article with everything from a comic strip Banksy drew when he was 11 to his connections with Robert Del Naja of the trip hop band Massive Attack — and a 2017 podcast interview where a music producer apparently revealed Banksy's real first name.

But the article also reveals how protective the art community is of Banksy's secret. Reuters investigated that Banksy auctioned in 2018 for $1.4 million — and then immediately started shredding itself with a device Banksy embedded in its frame: That piece, renamed "Love is in the Bin," sold three years later for about $25 million. Art dealer [Robert] Casterline was at the auction and remembers when the shredder began to beep. He pulled out his phone to take pictures. "Unfortunately, there was one person standing in front of me," blocking the view, he said. It was an eccentric-looking man with a broad neck scarf and thick eyewear. Oddly, the man wasn't watching the painting get shredded. He was looking in the other direction, observing the crowd's reaction. Only later, reviewing what he shot, did Casterline notice that the man's glasses appeared to have a small camera built into the bridge. (Banksy later posted a video of the stunt, including shots of the astonished audience.)
Having seen a photo of the man suspected of being Banksy, Casterline confirmed to Reuters that he was "pretty sure" it was the same man.

But "I don't want to be the guy who exposes Banksy."
Canada

Does Canada Need Nationalized, Public AI? (schneier.com) 63

While AI CEOs worry governments might nationalize AI, others are advocating for something similar. Canadian security professional Bruce Schneier and Harvard data scientist Nathan Sanders published this call to action in Canada's most widely-read newspaper (with a readership over 6 million): "Canada Needs Nationalized, Public AI." While there are Canadian AI companies, they remain for-profit enterprises, their interests not necessarily aligned with our collective good. The only real alternative is to be bold and invest in a wholly Canadian public AI: an AI model built and funded by Canada for Canadians, as public infrastructure. This would give Canadians access to the myriad of benefits from AI without having to depend on the U.S. or other countries. It would mean Canadian universities and public agencies building and operating AI models optimized not for global scale and corporate profit, but for practical use by Canadians...

We are already on our way to having AI become an inextricable part of society. To ensure stability and prosperity for this country, Canadian users and developers must be able to turn to AI models built, controlled, and operated publicly in Canada instead of building on corporate platforms, American or otherwise... [Switzerland's funding of a public AI model, Apertus] represents precisely the paradigm shift Canada should embrace: AI as public infrastructure, like systems for transportation, water, or electricity, rather than private commodity... Public AI systems can incorporate mechanisms for genuine public input and democratic oversight on critical ethical questions: how to handle copyrighted works in training data, how to mitigate bias, how to distribute access when demand outstrips capacity, and how to license use for sensitive applications like policing or medicine...

Canada already has many of the building blocks for public AI. The country has world-class AI research institutions, including the Vector Institute, Mila, and CIFAR, which pioneered much of the deep learning revolution. Canada's $2-billion Sovereign AI Compute Strategy provides substantial funding. What's needed now is a reorientation away from viewing this as an opportunity to attract private capital, and toward a fully open public AI model.

Long-time Slashdot reader sinij has a different opinion. "To me, this sounds dystopian, because I can also imagine AI declining your permits, renewal of license, or medication due to misalignment or 'greater good' reasons."

But the Schneier/Sanders essays argues this creates "an alternative ownership structure for AI technology" that is allocating decision-making authority and value "to national public institutions rather than foreign corporations."
Privacy

New Freenet Network Launches, Along With 'River' Group Chat (freenet.org) 17

Wikipedia describes Freenet as "a peer-to-peer platform for censorship-resistant, anonymous communication," released in the year 2000. "Both Freenet and some of its associated tools were originally designed by Ian Clarke," Wikipedia adds. (And in 2000 Clarke answered questions from Slashdot's readers...)

And now Ian Clarke (aka Sanity — Slashdot reader #1,431) returns to share this announcement: Freenet's new generation peer-to-peer network is now operational, along with the first application built on the network: a decentralized group chat system called River.

The new version is a complete redesign of the original project, focusing on real-time decentralized applications rather than static content distribution. Applications run as WebAssembly-based contracts across a small-world peer network, allowing software to operate directly on the network without centralized infrastructure.

An introductory video demonstrating the system is available on YouTube.

"While the original Freenet was like a decentralized hard drive, the new Freenet is like a full decentralized computer," Clarke wrote in 2023, "allowing the creation of entirely decentralized services like messaging, group chat, search, social networking, among others... designed for efficiency, flexibility, and transparency to the end user."

"Freenet 2023 can be used seamlessly through your web browser, providing an experience that feels just like using the traditional web,"
United States

America's First Large-Scale Offshore Wind Project Finally Finishes Construction (wbur.org) 45

It's America's first large-scale offshore wind project, reports WBUR — enough clean energy to power 400,000 homes in Massachusetts from 62 offshore wind turbines generating 800 megawatts.

But it took a while... The plant's first construction delay happened back in 2019, they point out — and then "Just three months ago, when the project was 95% complete, the U.S. Interior Department issued a stop-work order." But after successfully challenging that order in court, and "with a stretch of good weather offshore, the developers behind the $4.5 billion project managed to get over the finish line."

The Associated Press notes it was "one of five major East Coast offshore wind projects the Trump administration halted construction on days before Christmas, citing national security concerns." Developers and states sued, and federal judges allowed all five to resume construction, essentially concluding that the government did not show that the national security risk was so imminent that construction must halt. Another one of the five, Revolution Wind, began sending power for the first time to New England's electric grid on Friday and will scale up in the weeks ahead until it is fully operational.
"That project is nearly complete as well," notes WBUR, "and will eventually be capable of powering up to 350,000 homes."
United States

Are U.S. Utilities Trying to Delay Easy-to-Use Solar 'Balcony' Panels? (npr.org) 94

Plug-in (or "balcony") solar panels can also be hung out a window or be set up in a backyard, reports NPR. They channel energy from the sun straight into a home's electrical outlet, generating enough electricity to power a refrigerator or microwave while "displacing electricity that otherwise would come in from the grid..."

But what's holding up their adoption in America? For the panels to become more widely available in the U.S., state lawmakers are proposing bills that eliminate complicated utility connection agreements, which are required for larger rooftop solar installations and, most utilities say, should apply to plug-in solar too. Those agreements, along with permitting and other installation costs, can double the price of solar panels. Utah enacted the first law, last May, supporting plug-in solar, and now some 30 pieces of similar legislation have been introduced around the United States. [And Virginia seems poised to pass a similar law.]

But the drive toward plug-in solar is facing pushback from electric utilities. They are raising safety concerns and prompting legislators to delay votes on the bills. So far, utilities have won over lawmakers in five states and convinced them to delay votes on plug-in solar bills... Plug-in solar advocates say that safety concerns about the new technology have been addressed and that utilities are really just worried about losing business, because every kilowatt-hour generated by a plug-in solar panel is one less the utility sells to a customer... There are safety risks with any electrical appliance, and it's true that plug-in solar panels present some unique problems. But safety experts also say those issues can be managed....

German utilities expressed many of the same concerns nearly a decade ago when plug-in solar started to become popular in Germany. But with more than a million systems installed, no safety incidents have been reported for customers who used the panels as instructed, according to a research paper funded by the U.S. Department of Energy.

Government

System76 CEO Sees 'Real Possibility' Colorado's Age-Verification Bill Excludes Open-Source (phoronix.com) 20

Last week System76 CEO Carl Richell criticized age-verification laws for operating systems — but he now sees a "real possibility" Colorado's law might exclude open-source.

Phoronix reports that the System76 CEO met with the state Senator who co-authored Colorado's bill, and then posted on X.com that the Senator "suggested excluding open source software from the bill." Richell: This appears to be a real possibility. Amendments are expected... It's my hope we can move fast enough to influence excluding open source.. No illusions, it's an uphill battle, but we have an open door to advocate for the open source community.
Vague language has been a recurring problem with new state age-verification legislation. Richell pointed out later that "In one proposed bill, Garmin would have to verify the age of their watch customers at device setup." Richell also sees New York's bill as "unlikely to be applicable to Linux distributions," since its language calls for "commercially reasonable age assurance" that free operating systems could use — and Richell isn't sure one exists as described by the bill. "As written today, it's extremely broad and vague and that makes it scary."

Richell answered several follow-up questions about operating system age-verification laws. "What about California?" someone asked... Richell: We hope to make sensible, strong arguments for excluding open source which then becomes a standard for other states. It's going to be difficult.

Q: Open source is not the only target to exclude. Please ensure that the bill is amended so that it does not require applications that have no possible use for the age bracket to ask about it.

Richell: We discussed this as well. I proposed that apps that do not require age to modify app behavior or access by some other legislation be barred from reading age brackets to better protect privacy.

Social Networks

US Set To Receive $10 Billion Fee For Brokering TikTok Deal (msn.com) 41

The deal to take control of TikTok's U.S. business came with an unusual condition, according to people familiar with the matter. The investors — which include Oracle, Abu Dhabi investor MGX, and private-equity firm Silver Lake — "paid the Treasury Department about $2.5 billion when the deal closed in January," reports the Wall Street Journal, "and are set to make several additional payments until hitting the $10 billion total." The $10 billion payment would be nearly unprecedented for a government helping arrange a transaction, historians have said... Investment bankers advising on a typical deal receive fees of less than 1% of the transaction value, and the percentage generally gets smaller as the deal size increases. Bank of America is in line to make some $130 million for advising railroad operator Norfolk Southern on its $71.5 billion sale to Union Pacific, one of the largest fees on record for a single bank on a deal. Administration officials have said the fee is justified given Trump's role in saving TikTok in the U.S. and navigating negotiations with China to get the deal done while addressing the security concerns of lawmakers...

The TikTok fee extracted from private-sector investors is the administration's latest transaction involving the nation's largest businesses. Trump took a nearly 10% stake in semiconductor company Intel and has agreed to take a chunk of chip sales to China from Nvidia in exchange for granting export licenses. The administration has also taken equity stakes in other companies and has a say in the operations of U.S. Steel following a "golden share" agreement with Japan's Nippon Steel in its takeover.

Reuters notes earlier this month, a lawsuit was filed by investors in two of TikTok's social media rivals, seeking to reverse the approval of the deal.

Thanks to long-time Slashdot reader schwit1 for sharing the news.
Biotech

U.S. State Bans on Lab-Grown Meats Challenged in Court (austinchronicle.com) 36

Last June Texas Agriculture Commissioner Sid Miller said in a statement that Texans "have a God-given right to know what's on their plate, and for millions of Texans, it better come from a pasture, not a lab. It's plain cowboy logic that we must safeguard our real, authentic meat industry from synthetic alternatives."

But California company Wildtype sells lab-grown salmon — and is suing Texas over its ban on cell-cultivated meat, the Austin Chronicle reported this week. The company's founder says lab-grown salmon eliminates the mercury, microplastic, and antibiotic contamination commonly found in seafood. And one chef in Austin, Texas says lab-grown salmon is "awesome" and "something new"-- at the only Texas restaurant that was serving it last summer: Just two months after the salmon hit the menu, Texas banned the sale of cell-cultivated meat... A lawsuit from Wildtype and one other FDA-approved cultivated meat company [argues] it's anti-capitalism and unconstitutional... This law "was not enacted to protect the health and safety of Texas consumers — indeed, it allows the continued distribution of cultivated meat to consumers so long as it is not sold. Instead, SB 261 was enacted to stifle the growth of the cultivated meat industry to protect Texas' conventional agricultural industry from innovative competition that is exclusively based outside of Texas...." [according to the lawsuit]. It was filed in September, immediately after the ban took effect, and cell-cultivated companies are awaiting judgment.
That Texas ban would last two years, notes U.S. News and World Reports, adding that Alabama, Florida, Indiana, Mississippi, Montana, and Nebraska have also passed bans, some temporary "on the manufacturing, sale or distribution of cell-cultured meat." Meanwhile, a new five-year moratorium on lab-grown meat was signed this week by the governor of South Dakota "after rejecting a permanent ban last month," reports South Dakota Searchlight: The new law bars the sale, manufacture or distribution of "cell-cultured protein" products from July 1 this year through June 30, 2031. Violations are punishable by up to 30 days in jail, a fine of up to $500, or both.
"But supporters of lab-grown meat are not going down without a fight," adds U.S. News and World Reports, with another lawsuit also filed challenging a ban in Florida: When Florida Gov. Ron DeSantis signed the ban in Florida, he described it as "fighting back against the global elite's plan to force the world to eat meat grown in a petri dish or bugs to achieve their authoritarian goals." He added that his administration "will save our beef."
AI

ChatGPT, Other Chatbots Approved For Official Use In the Senate (nytimes.com) 34

An anonymous reader quotes a report from the New York Times: A top Senate administrator on Monday gave aides the green light to use three artificial intelligence chatbots for official work, a reflection of how widespread the use of the products has become in workplaces around the globe. The chief information officer for the Senate sergeant-at-arms, who oversees the chamber's computers as well as security, said in a one-page memo reviewed by The New York Times that aides could use Google's Gemini chat, OpenAI's ChatGPT or Microsoft Copilot, which is already integrated into Senate platforms.

Copilot "can help with routine Senate work, including drafting and editing documents, summarizing information, preparing talking points and briefing material, and conducting research and analysis," the memo said. The document later added that "data shared with Copilot Chat stays within the secure Microsoft 365 Government environment and is protected by the same controls that safeguard other Senate data."
It's unclear how widely AI is used in the Senate or how widespread it might become, as individual offices and committees set their own rules. The chamber has also not publicly released comprehensive guidance on chatbots, the report notes.

In contrast, the House has clearer policies allowing the general use of AI for limited internal tasks but restricting it from sensitive data or for being used for deepfakes and certain decision-making activities.
The Courts

Live Nation Execs Brag About 'Robbing' Ticket Buyers In Slack DMs (pitchfork.com) 81

An anonymous reader quotes a report from Pitchfork: Earlier this week, the U.S. Department of Justice and Live Nation reached a settlement in the DOJ's antitrust lawsuit against the concert giant. During the trial, which lasted only a week, representatives for Live Nation had moved to exclude a collection of Slack direct messages from 2022 between two of the company's regional directors from the evidence presented to the jury. Bloomberg and a number of other publications have, as of today (March 12), successfully petitioned New York federal judge Arun Subramanian to release the chats.

The conversations are between Ben Baker, now head of ticketing for Venue Nation, and Jeff Weinhold, currently a senior director in the ticketing department. Baker and Weinhold joke about overcharging and price-gouging fans -- "Robbing them blind, baby," Baker brags in one exchange pertaining to a Kid Rock show in Tampa Bay -- as well as being able to raise prices on ancillary services such as parking seemingly at will. "These people are so stupid," Baker writes. "I almost feel bad taking advantage of them BAHAHAHAHAHA."
Live Nation described the messages as "off-the-cuff banter, not policy, decision-making, or facts of consequence." In a statement the company has since added: "The Slack exchange from one junior staffer to a friend absolutely doesn't reflect our values or how we operate."
Crime

Facial Recognition Error Jails Innocent Grandmother For Months (theguardian.com) 134

Mr. Dollar Ton shares a report from the Guardian: Angela Lipps, 50, spent nearly six months in jail after Fargo police identified her as a suspect in an organized bank fraud case using facial recognition software, according to south-east North Dakota news outlet InForum. Lipps told the outlet she had never been to North Dakota and did not commit the crimes. Lipps, a mother of three and grandmother of five, said she has lived most of her life in north-central Tennessee. She had never been on an airplane until authorities flew her to North Dakota last year to face charges.

In July, U.S. marshals arrested Lipps at her Tennessee home while she was babysitting four children. She said she was taken away at gunpoint and booked into a county jail as a fugitive from justice from North Dakota. "I've never been to North Dakota, I don't know anyone from North Dakota," Lipps told WDAY News. She remained in a Tennessee jail for nearly four months without bail while awaiting extradition. She was charged with four counts of unauthorized use of personal identifying information and four counts of theft.

According to Fargo police records obtained by WDAY News, detectives investigating bank fraud cases in April and May 2025 reviewed surveillance video of a woman using a fake U.S. army military ID to withdraw tens of thousands of dollars. The officers allegedly used facial recognition software to identify the suspect as Lipps. A detective reportedly wrote in court documents that Lipps appeared to match the suspect based on facial features, body type and hairstyle. Lipps told WDAY News that no one from the Fargo police department contacted her before the arrest. Lipps is now back home but says the experience has had lasting consequences. While jailed and unable to pay bills, Lipps lost her home, her car and her dog, she said. She also told WDAY News no one from the Fargo police department had apologized.

The Courts

Italian Prosecutors Seek Trial For Amazon, Four Execs Over Alleged $1.4 Billion Tax Evasion (reuters.com) 21

An anonymous reader quotes a report from Reuters: Milan prosecutors have requested trial for Amazon's European unit and four of its managers over alleged tax evasion worth around $1.38 billion, two sources with direct knowledge of the matter said on Thursday. The move is unprecedented for a case of this kind in Italy, as Amazon agreed in December to pay 527 million euros, including interest, to Italy's Revenue Agency to settle the tax dispute. In all previous cases involving other international groups, once a settlement was reached and payment made, prosecutors closed related criminal investigations, either through plea deals or by dropping the cases. This time, however, Milan prosecutors did not share the tax authority's approach and decided to press ahead with their probe, leading to a request that the suspects be sent to trial. After December's tax settlement, Amazon said it would "forcefully defend its position on the potential ungrounded criminal case." It added: "Unpredictable regulatory environments, disproportionate penalties, and protracted legal proceedings are increasingly affecting Italy's attractiveness as an investment destination."

Under what's described as a "VAT-avoidance algorithm," prosecutors accuse Amazon and four managers of enabling large-scale VAT evasion on goods sold in Italy between 2019 and 2021, allowing tens of thousands of non-EU marketplace sellers to sell goods in the country without clearly disclosing their identities. They allege that this helped the sellers avoid paying value-added tax. "Under Italian law, an intermediary offering goods for sale in Italy is jointly responsible for unpaid VAT by non-EU sellers operating through its platform," notes Reuters.
The Courts

London Man Wore Smart Glasses For High Court 'Coaching' (bbc.co.uk) 66

A witness in a London High Court case was caught using smart glasses connected to his phone to receive real-time coaching while giving evidence during cross-examination. "In my judgement, from what occurred in court, it is clear that call was made, connected to his smart glasses, and continued during his evidence until his mobile phone was removed from him," said Judge Raquel Agnello KC. "Not only have I held that Jakstys was untruthful in denying his use of the smart glasses and his calls to abra kadabra, but the effect of this is that his evidence is unreliable and untruthful." The BBC reports: The claim arose during a ruling by Judge Raquel Agnello KC in a case brought by Laimonas Jakstys over the directorship of a property development company that owns a flat in south-east London and land in Tonbridge. Jakstys was told to remove the glasses after the court noticed he "seemed to pause quite a bit" before answering questions, and that "interference" was heard coming from around the witness. The judge later found that he had been "assisted or coached in his replies to questions put to him during cross examination" during the January trial.

Once the glasses were taken off, an interpreter was still translating a question when Jakstys' mobile phone began broadcasting a voice -- which he later blamed on Chat GPT. Agnello said: "There was clearly someone on the mobile phone talking to Jakstys. He then removed his mobile phone from his inner jacket pocket." He denied using the smart glasses to receive answers, and denied they were connected to his phone. But the judge said multiple calls had been made from his phone to a contact named "abra kadabra," whom he claimed was a taxi driver.

The Courts

Binance Sues WSJ, Panicked By Gov't Probes Into Sanctioned Crypto Transfers (arstechnica.com) 34

An anonymous reader quotes a report from Ars Technica: Binance is hoping that suing (PDF) The Wall Street Journal for defamation might help shake off a fresh round of government probes into how the cryptocurrency exchange failed to detect $1.7 billion in transfers to a network that was funding Iran-backed terror groups. The lawsuit comes after a Wall Street Journal investigation, based on conversations with insiders and reviews of internal documents, reported that Binance had quietly dismantled its own investigation into the unlawful transfers and then fired compliance staff who initially flagged them.

Alleging that the report falsely accused Binance of retaliation -- among 10 other allegedly false claims -- Binance accused the Journal of conducting a "sham" investigation that intentionally disregarded the company's statements. That included supposedly failing to note that Binance had not closed its investigation into the unlawful transfers. Binance's role in the large-scale violation of US sanctions laws is currently being investigated by the Justice and Treasury Departments. Congress members also took notice, including Sen. Richard Blumenthal (D-Conn.), ranking member of the Senate Permanent Subcommittee on Investigations (PSI), who launched an additional inquiry. In a letter to Binance CEO Richard Teng, Blumenthal cited the Journal's report, as well as reporting from The New York Times and Fortune, while demanding that Binance explain how it managed to overlook the money-laundering for so long and why compliance staff members were fired.

In its complaint Wednesday, Binance claimed that these probes may "be just the tip of the iceberg" if the record is not corrected. The reputational harm is particularly damaging, the exchange noted, since Binance has allegedly worked hard to strengthen its compliance after reaching a settlement with the US government in 2023. In taking that plea deal, Binance admitted to violating anti-money laundering and sanctions laws and paid a $4.3 billion fine, and its founder, Changpeng Zhao, eventually pled guilty to a related charge. Since that scandal, Binance claimed that the WSJ has "made a business of maligning both the cryptocurrency industry generally and Binance specifically." That's why the Journal allegedly rushed to publish its story following a similar New York Times investigation. Alleging that the WSJ was financially motivated to publish a negative story that would get more clicks, Binance claimed the Journal provided little time to respond and then failed to make necessary corrections before and after publication.

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