An anonymous reader quotes a report from Wired: Michele Spagnuolo, the Google engineer arrested in May by U.S. authorities for alleged insider trading on Polymarket, is making a new bold bet. On Wednesday, his legal team filed a motion to dismiss the charges against him. Spagnuolo isn't outright denying that he made money using internal information from Google. Instead, his legal team says that the wagers were not financial instruments subject to regulation by the United States' Commodities Exchange Act but rather good old-fashioned international betting that the U.S. has no authority over.

Spagnuolo, who has been placed on leave from Google, is accused of committing commodities fraud, wire fraud, and money laundering. Using the alias "AlphaRaccoon," he allegedly made a series of wagers on Polymarket's flagship platform that resulted in profits totaling over $1.2 million. According to the criminal complaint, "AlphaRaccoon" correctly wagered that the singer D4vd, who gained notoriety for his suspected connection to a grisly killing, would be Google's most-searched person of the year in 2025. (D4vd was later charged with murder; he pleaded not guilty.) [...] Spagnuolo's lawyers argue that defining swaps to include wagers like who the most-searched person on Google will be each year "would fly in the face of the statute's purpose and history" and lead to "absurd results." They say it would make it so that any wager in the world, from a charity raffle to a local Ping-Pong match, could be classified as a financial instrument. "Spagnuolo is basically making the same argument as the states that are suing prediction markets," says a financial services regulation expert Todd Phillips. "This is the issue that will likely go up to the Supreme Court." Featured Video

In addition to disputing the idea that prediction markets offer swaps, Spagnuolo's legal team argues that the U.S. government had no jurisdiction over him in the first place because he's a non-U.S. citizen who was wagering on a non-U.S. platform. Although Polymarket is headquartered in New York, the company's flagship prediction market is banned in the United States and technically is administered by an ostensibly Panama-based entity known as Adventure One QSS. Spagnuolo was living in Zurich, Switzerland, when he allegedly made the Google-related trades on Polymarket. "The extraterritorial argument is interesting and raises the question of whether the U.S. should be the world's prediction markets cop," Philipps says. Spagnuolo's team also claims that the charges should be dismissed because the internal information he supposedly leveraged did not have any commercial value to Google.

An anonymous reader quotes a report from Reuters: Alphabet's Google escaped a breakup of its advertising technology business on Wednesday, when a judge in Virginia rejected U.S. antitrust enforcers' bid to force a sale of Google's online advertising exchange. While the ad exchange is a small part of Google's business, the ruling is the second powerful symbolic victory against the U.S. Department of Justice in its efforts to force Google to sell assets to address illegal monopolies. U.S. Judge Leonie Brinkema in Alexandria, Virginia, declined to make Google sell AdX, where publishers pay Google a 20% fee to sell ads in auctions that happen instantly when users load websites. She accepted most of the parties' proposed behavioral remedies.

The DOJ and a broad coalition of states sued Google in 2023 over its dominance in markets for advertising technology used by online publishers and websites. In April 2025, Brinkema ruled that Google holds illegal monopolies on servers that host publisher ads and ad exchanges which sit between buyers and sellers. Google unlawfully locked publishers on its ad server into using its AdX, the judge found. The tech giant's anticompetitive conduct "substantially harmed Google's publisher customers, the competitive process, and, ultimately, consumers of information on the open web," Brinkema said at the time.

At a trial last year on remedies in the case, the DOJ argued that Google cannot be trusted to run AdX, given its past behavior. Google argued that a forced sale would be technically difficult and result in a long and painful transition that would hurt customers. During the remedies trial, Google's lawyers warned that forcing it to sell parts of its ad-tech business would cause disruption and damage. [...] The ruling is the third time in a row that a judge has rejected a bid by U.S. antitrust enforcers to break up Big Tech in a crackdown that started during President Donald Trump's first term. In another major Google antitrust case, a judge similarly rejected the DOJ's push to force Google to sell Chrome. It is likely to fuel questions about whether courts are up to the task of checking the industry's unprecedented power over the U.S. economy.

A dark-web identity theft service called Nexus claims to be selling scans of more than 153 million U.S. and Canadian driver's licenses, along with millions of other identity documents. "Based on interviews with individuals whose licenses are available for purchase through the service, it appears to be siphoning images collected by a widely used Louisiana-based identity verification company," reports KrebsOnSecurity. The outlet also reports that the FBI's New Orleans field office has launched an official inquiry into the source of the images. From the report: On Monday, Aug. 31, a source alerted KrebsOnSecurity to a service advertised by a new user on the Russian cybercrime forum Exploit, offering access to digital scans of identity documents on more than 170 million people in North America. The source brought it to my attention because the proprietor of this identity theft service offered my Virginia drivers license as a free sample in their initial sales thread on Exploit. The service, dubbed Nexus, claims to have more than 153 million drivers licenses for people in the United States and Canada, as well as more than 10 million identification cards; more than three million travel documents and/or international IDs; and at least 579,000 medical cards.

[...] The people behind Nexus claim the license images are coming from an active breach at "a major identity verification company" whose customers include multiple Fortune 500 companies. "We have been continuously exfiltrating new data for over a year into our private database," the service enthused in its introductory post on Exploit. "Records are available to preview before purchase with pertinent information redacted. Customer photos are displayed if available." Indeed, over the past 24 hours, the number of drivers license records listed as available in Nexus has increased by nearly 400,000, suggesting that freshly stolen license data is being harvested and uploaded to this service on a semi-regular basis. KrebsOnSecurity traced the apparent source by comparing timestamps on stolen license images with when their owners had their IDs scanned, including at Hertz rental counters and a Planet13 dispensary. Both companies use identity-verification services from Louisiana-based idscan.net, whose technology also scans IDs using infrared and ultraviolet light.

Since the story was published, Krebs reports that the Nexus identity theft service website "vanished from the darkweb, replacing its login page with a plain text message that reads, 'This service is no longer available.'"

schwit1 shares a report from WCTV: Florida Governor Ron DeSantis said he's removing Flock camera from state roadways. The announcement comes amid a growing concern over the misuse of automated license plate readers. On Monday, DeSantis ordered all Flock cameras removed from what he calls the 'state highway system' within the next 30 days, which would include interstates like I-10 and I-75. That order led to several sheriff's departments like in Franklin, Liberty and Putnam Counties to announce they're ending their own license plate reader programs. According to the Florida Department of Transportation memo, if the cameras aren't removed from the state right-of-ways within 30 days, then the state government will take them down on their own. The memo also says FDOT will deny any other permits for cameras in the future.

California lawmakers have passed a bill that would legalize plug-in "balcony" solar systems, allowing residents to connect small solar panels directly to a standard wall outlet after completing a simple online registration. The systems would be capped at 1,200 watts and must meet safety requirements designed to prevent power from feeding back onto the grid during outages. KQED reports: The legislation, SB 868, sailed through the state assembly and senate with bipartisan support. The bill now moves to the governor's desk for signature. The devices can be tented in a backyard, hung off a balcony or placed on a roof. Models range from as low as $300 to $2200, depending on size. The bill would open the solar market to people who were previously left out: renters, people with unsuitable roofs, and those lacking the capital to build out a rooftop system, which can cost in the tens of thousands of dollars.

[...] If signed into law by Newsom, the legislation would exempt plug-in solar devices from what critics say is a cumbersome and expensive interconnection application process, and replace registration with a free and straightforward online form. [...] The newly passed bill outlines several device requirements. The balcony solar systems must be capped at generating 1,200 watts per home, plug into a standard outlet, offset a customer's onsite electricity use and meet state and national electrical codes. They also must be certified by an outside safety organization like Underwriters Laboratories and have a feature that would prevent electricity from feeding back into the grid if there's a power outage.

An anonymous reader quotes a report from Ars Technica: President Trump yesterday demanded that the Federal Communications Commission punish or rebuke an NBC journalist for saying he has "mixed results" in his election endorsements. In the latest example of how Trump is using the FCC to harass reporters and news organizations that he dislikes, he said Meet the Press host Kristen Welker "will be reported to the FCC for rebuke or punishment" for what he claimed was a "purposeful inaccuracy." "Kristen Welker, the Unpopular 'Hostess' of the once great Meet the Press, now considered Meet the Fake Press, just stated that Donald Trump has 'mixed results' on his Endorsements of Candidates, when the recent WINS of Darline Graham and Mike Mazzei, stand at 100% for the U.S. Senate, and 98% for the U.S. House, recently and over the longterm. How can anyone be allowed to say this, working for freely given Public Airwaves? Results are attached. Because of this purposeful inaccuracy, she will be reported to the FCC for rebuke or punishment," Trump wrote in a Truth Social post.

A separate post from Trump yesterday said, "THE FAKE POLLS USED BY OUR CROOKED MEDIA ARE OUT OF CONTROL, AND SOMETHING MUST BE DONE ABOUT IT. FCC TO THE RESCUE! President DJT." Trump also posted a rant on Friday about New York Times journalist Maggie Haberman, calling her "an unattractive person both inside and out" who "should be forced to turn over any and all money that she's made through her fake reporting on me." Trump referred to Haberman throughout his post as "Maggot Haberman." Trump's post about Welker included an image purporting to show he has near-perfect results in his endorsements this year. "The Press is a Disgrace to our Nation, and I hope that Chairman Brendan Carr, and the fine people of his Commission, will take this Threat to our Country very seriously," Trump wrote. Perhaps indicating that he will refer additional journalists for FCC punishment, Trump wrote that Welker "is not the only one. The Radical Left News is going out of their way to harass, demean, and libel anything 'TRUMP.'" The FCC website says the commission "cannot prevent the broadcast of any particular point of view," and that it "generally will not intervene" in complaints about "one-sided news reports" because "it would be inconsistent with the First Amendment to replace the journalistic judgment of licensees with our own."

As noted by Ars, FCC Chairman Brendan Carr has "made it clear he takes orders from Trump, abandoning his previous position -- which he held under Democratic presidents -- that the FCC must operate independently of White House interference."

Carr could use the commission's regulatory authority over licensed broadcasters to open an investigation into Welker, potentially creating pressure on NBC and its affiliated stations through licensing proceedings or other FCC actions. The most likely vehicle would be the FCC's rarely enforced news distortion policy, which Carr has repeatedly revived to target coverage he considers misleading; historically, however, the policy required an unusually high evidentiary bar and was seldom enforced.

The FTC and 22 state attorneys general are suing Amazon, accusing the company of secretly inflating advertising prices through undisclosed changes to its auction system that may have extracted more than $20 billion from advertisers since 2019. "Amazon has millions of advertising customers who were misled into paying significantly higher prices," FTC Chairman Andrew Ferguson said in a statement. "These higher costs were largely passed on to American consumers." CNBC reports: The complaint, which was filed in U.S. District Court for the Western District of Washington, centers on Amazon's sponsored products ads, brands ads and display ads that run alongside search results on its sprawling webstore. Amazon has amassed the third-largest digital advertising business globally, trailing only Google and Meta. The company hauled in more than $68 billion in ads revenue last year, with the lion's share coming from sales of sponsored products ads. Third-party sellers who hawk their wares on Amazon's marketplace have recently criticized surging advertising costs on the site, including a string of recent policy changes, which led to some top merchants withholding their ad spend in a boycott. The company has traditionally used a "second-price" auction system, wherein it told advertisers they "only pay the least bid amount needed in order to win," the complaint states, citing Amazon's own marketing materials.

The FTC alleges in its complaint that Amazon in 2019 changed its auction rules without notice by adding an undisclosed surcharge it referred to as a "soft reserve price," which led to higher ad prices. "Amazon made this surreptitious change to its auction because it was unhappy about how much revenue its advertising auctions were generating," the agency said in its complaint, which cites internal communications between Amazon ad executives. In one exchange, a company executive allegedly acknowledged it uses an "invented auction participant" to increase prices, the FTC said. The FTC and the states alleged Amazon's practices violate federal and state consumer protection laws, and they're seeking civil penalties, restitution and other unspecified damages. In a blog post, Amazon called the FTC's lawsuit "misguided" and said the complaint "fundamentally misunderstands how advertisers operate." The company added that the agency's lawsuit doesn't include evidence of consumer price increases.

"We've provided advertisers with guidance about our auctions and pricing in the main tools they use to manage their campaigns, and we continue to update that guidance," the company said. "We look forward to making our case in court."

Kalshi has issued its first-ever lifetime ban to former U.S. Rep. George Santos after concluding he failed to fully cooperate with an insider-trading investigation. He is also being fined $71,356, according to a filing (PDF) on its website. Engadget reports: It was reported in June that Santos was under investigation from the Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) over insider trading. Prediction markets like Kalshi allow users to buy contracts or shares in the outcome of events. Participants don't necessarily have to wait for an event to resolve before selling these contracts and cashing in.

Santos allegedly bought contracts on Kalshi indicating that he would not attend this year's State of the Union speech after weather disrupted his travel plans. According to the CFTC, Santos then sold those contracts for a profit after claiming on social media that he would be in attendance. The former congressman is said to have made more than $17,500 through this scheme, which Kalshi reportedly detected and flagged to authorities. In July, Santos agreed to pay over $35,000 to settle the CFTC's claims against him. The agency also issued him a three-year trading ban.

Kalshi, however, doesn't plan to allow Santos back on its platform in 2029 (or anytime after that). The company confirmed to The Wall Street Journal this was the first time it had given anyone a lifetime ban and that it did so because Santos didn't fully cooperate with its investigation. He can appeal the decision to the CTFC.

California's age-verification bill has passed in its legislature — but with its open-source carve-out intact, reports the blog Linuxiac: Back in May, we reported that California lawmakers amended Assembly Bill 1856 to carve open-source operating systems out of the state's upcoming age verification requirements. Three months later, that exemption survived the legislative process intact, and the bill has cleared both chambers of the California Legislature... sending the measure to Engrossing and Enrolling, the final legislative preparation stage before it can be presented to Governor Gavin Newsom...

For operating systems that are covered, AB 1856 builds on California's Digital Age Assurance Act, which is scheduled to take effect on January 1, 2027. Under the current text, when an operating system runs on a device and includes an account setup feature, its provider must offer an interface that asks the account holder for the birth date, age, or both, of the device's primary user during account setup. The operating system must then be capable of providing a digital age signal to covered application stores and application developers through a reasonably consistent real-time API. Instead of exposing a precise birth date, the signal identifies one of four age ranges: under 13, 13 through 15, 16 through 17, or 18 and older... Covered application stores must request the signal from the operating system and make it available to developers.

From the gaming news site Aftermath" Game developer and consultant Ryan Laley traveled to Cologne, Germany from Essex, England to showcase his upcoming horror social deduction game Mimic at the annual Gamescom event. He paid "thousands of pounds" to get a booth at the show, where other game developers and press could try the game ahead of its October release. But Laley's Gamescom was cut short when he realized Friday morning that his brand new Alienware laptop, purchased for the event, was missing. The laptop was stored in a cupboard in the booth, and Laley started asking nearby vendors to see if someone had moved it. That's when he realized it was stolen — and that he wasn't alone. Laley's booth in Gamescom's business area, specifically in the International Game Developers Association Lounge, had been hit in what appears to be a string of thefts at the convention center. The business area of the convention is not open to the public, only press and others with specific tickets. Laley said Gamescom advertised this area as having 24/7 security and limited access after hours...

Publisher and merchandiser iam8bit, in a nearby booth showcasing Escape Academy 2: Back 2 School and Petal Runner, had two laptops with game builds stolen Thursday night from its booth, a representative confirmed to Aftermath.
"Meanwhile, Tessera Studios had two laptops and a Steam Deck taken from its cabinet," reports Tom's Hardware: Gamescom organizers responded to the issues, saying that although they have arranged for uniformed guards to provide general security, individual booth security must be booked separately. They've also advised exhibitors to have insurance against theft, and said these warnings are noted in the terms and conditions for participants, as well as in the event's technical guidelines. "All cases have been reported to us and to the police, and investigations are already underway," the organizers' statement read. They also said that security is one of their priorities at the event, but also added, "At an event of this size, however, there will always be individuals attempting to take advantage of the situation."

Axios reports: Some of the world's largest music publishers filed a blockbuster lawsuit against Anthropic late Friday night, alleging "one of the largest and most blatant ongoing thefts of intellectual property in history."

The suit is the opening salvo in what is now likely to be a yearslong fight over music, AI, and how intellectual property is protected in a new era of technology... The Sony/Warner lawsuit is notable because it's broad. It alleges Anthropic unlawfully trained its models off "tens of thousands" of music publishers' copyrighted compositions, whereas other lawsuits have focused on a narrower set of works. BMG's lawsuit against Anthropic, for example, claims infringement against 493 compositions.

What they're saying: "Defendants Anthropic and its founders Dario Amodei and Benjamin Mann have conducted a brazen campaign of illegally torrenting, scraping, and downloading copyrighted works on a massive scale in order to develop, operate, and reap enormous profits from Anthropic's 'Claude' series of artificial intelligence ('AI') models," the plaintiffs write in the 48-page complaint. They also claim that Anthropic pirated thousands of copyrighted musical works...
More details from The Verge: The companies are asking for up to $150,000 per work, plus up to $25,000 for each instance when identifiable copyright data was stripped. In total, the damages could amount to several billion dollars if a court finds in Sony and Warner's favor and awards the maximum amount...

The suit alleges that Mann used BitTorrent to download over five million pirated books, and that employees downloaded at least two million more from Pirate Library Mirror. It also claims that Anthropic scraped lyrics from sites like MusixMatch and LyricFind, which paid to license content from the labels.

The Washington Post looks "a growing number of Americans who have had their private conversations with AI chatbots made public in court," calling the chatbots "custodians of a fast-growing trove of intimate data that can be sought by law enforcement, or companies or other opponents in civil litigation." A Washington Post review of public records and local news stories found that chatbot logs were cited in 12 court cases over the past two years. It's hard to know how often chatbot material is drawn into investigations and legal proceedings more broadly, because police, and parties in civil cases, don't have to present in court all the evidence they obtain... In some cases, AI companies have reported people on their platforms to the FBI, leading to prosecutions and at least one conviction... OpenAI has said the company uses software to scan conversations for signs of dangerous behavior and flag them to human reviewers.

If a reviewer determines a chat indicates "an imminent and credible risk of harm to others," they report the user to law enforcement, the company said in an April blog post. A spokesperson for OpenAI declined to disclose how many times the company had reported users to police.... Data released by OpenAI shows requests by government agencies and law enforcement for user data growing rapidly. In the second half of 2025, the company disclosed data from more than 80 accounts, an increase of more than four times as many over the same period the year before...

When police ask someone to open their phone during questioning or after an arrest, they often do so, allowing officers to scroll through the apps they use, [according to Michael Price, the litigation director for the Fourth Amendment Center at the National Association of Criminal Defense Lawyers]... In general, the Fourth Amendment, which protects people against unreasonable searches and seizures of their property, provides the right to refuse a search of the contents of their phone unless police have a warrant. "The short answer is that most people consent," Price said. "They shouldn't, but they do..."

OpenAI CEO Sam Altman has argued that conversations with chatbots should receive special legal protections, similar to conversations between clients and their attorneys.
Special legal protections aren't recognized by courts today, the article poitns out. A financial executive who became the subject of a federal criminal investigation for fraud asked Claude about potential defense strategies, then asked a judge to disallow the conversations from the prosecution's case, according to the article. "But the judge said that protections for conversations between clients and their attorneys did not apply: Claude is not a lawyer, and the executive's attorneys did not ask him to talk to the chatbot."

The article includes quotes from three ChatGPT conversations that later turned up in court proceedings:

• "I deleted a email a year ago from my yahoo account. Can yahoo still retrieve the email?"

• "How f----d am i bro. What if i smahsed the s--- oitta mutlipls cars."

• "My dad Said that I'm will get a settlement worth of 1million dollar."

"As AI becomes a bigger part of everyday life, its use as evidence and in trials is likely to become more prevalent," the article points out — especially with the growing popularity of agents that take actions for users.

A new survey on police license plate cameras found that "more Americans oppose these surveillance cameras than support them," reports TechCrunch: According to a new YouGov survey of 20,000 people across the U.S. that was shared exclusively with The Washington Post, 46% of respondents opposed the company's surveillance cameras in their communities, while 38% supported them. This is a reversal from last year, when the majority of survey respondents said they were in favor... The survey also reported that more respondents said the surveillance would not make them feel any safer.
TechCrunch reports that Flock CEO Garrett "faces a growing public outcry around concerns that Flock's surveillance cameras, drones, and license plate recognition technology could be misused." Responding to reports of police abusing Flock's system, Langley told CBS News " I don't think that Flock created police abuse. I think we're the first company to ever shine a light on it and build the tools to find it."

But Futurism notes that "a grand jury in Ohio declined to bring felony charges against a man accused of destroying a Flock camera earlier this month — perhaps the clearest sign yet of the country's overwhelming hatred for the surveillance gadgets." And Newsweek documents more of the backlash: Flock Chief Executive Garrett Langley recently became the subject of a doxxing campaign after his home address was circulated online by opponents of the company's technology, underscoring how deeply divisive the issue has become.
TechCrunch reports Flock's CEO is now calling for new laws — at the state level — regulating not Flock's cameras but the police officers who use them: Langley has said that state regulators should "pass bills that make [the illegal use of Flock data] a criminal offense." And during his Fox News interview, he pointed to the changes the company has already made, while also saying, "Today, it is too often that in Flock and in other technologies, there's no regulation. There's no accountability, and we think that's wrong."
But Flock has its supporters. One local police department used a 3D printer to create a fake "decoy" camera, then monitored it for five days until they arrested a Florida man for knocking it down. 404 Media suggests that because the man told officers he believed it was a camera worth between $1,000 and $5,000, he was charged with three felonies including "grand theft" and criminal mischief of property damage worth over $1,000, plus property crimes against computer equipment supplies.

Ironically, days earlier the City Council was already considering a resolution to end their city's use of Flock cameras altogether...

alternative_right shares a report from Axios: Roughly 200 accounts from a suspected Chinese bot farm have quietly tried to influence Americans to oppose AI data centers on social media, X said Thursday night. The X Safety team probed suspected Chinese accounts involved in influence operations and identified 200,000 accounts, including 200 accounts "posting in a manner that could manipulate a legitimate debate about American AI and energy policy," the team said in a tweet.

The posts included content on how AI strains the electricity grid and increases utility prices and "cartoons that depicted data-center operators enriching themselves at the public's expense." It's unclear what, if any, action X will take to suspend or delete accounts from the bot farm. One of the reports mentioned in the article estimates that opposition campaigns have delayed or obstructed roughly $45.8 billion in data center projects in Virginia alone.

Jim Prosser, a former Twitter communications executive, pushed back on Silicon Valley claims that opposition to data centers is a "Chinese psyop," arguing that Big Tech is using the label to dismiss legitimate local concerns. "If you can get both Greg Abbott and Kathy Hochul agreeing on something, it's probably not a Chinese psyop," he told Axios.

Prosser said the industry needs to spend more time listening to affected communities rather than dismissing them from afar: "If you're a [venture capitalist] in Atherton or Menlo Park opining about how somebody in Ohio should feel, and you've never been to Ohio, that's a problem."

A federal appeals court has ruled that states can regulate prediction markets like Kalshi as gambling, handing state regulators their biggest legal victory yet against the booming industry. "There are still related lawsuits pending across the country, and legal experts believe the matter will ultimately be settled by the Supreme Court," reports CNN. "But Friday's ruling from the Ninth Circuit Court of Appeals is the largest courtroom victory to date for the states as they seek to regulate prediction sites." CNN reports: The 3-0 ruling came from a panel of three Trump-appointed judges. The case originated from Nevada, where regulators tried to shut down the Kalshi prediction site. [...] "The substance of the sports event contracts offered on Kalshi's (exchange) is sports gambling, regardless of whether Kalshi calls them swaps," the appeals panel wrote Friday, adding that "Kalshi's attempts to distinguish its sports event contracts from sportsbooks betting are unpersuasive." The judges also said it was "disingenuous" for Kalshi to argue in court that its products weren't sports-betting when it previously used that phrasing in marketing materials. Kalshi spokeswoman Dani Lever said in a statement: "Despite the Ninth Circuit's opinion, we still believe the CFTC regulations as written do not prohibit sports contracts, and in any event, the CFTC is working to clarify those regulations. We will be seeking further review."

"It's the first ruling against Kalshi at the appellate level, and the opinion seemed to be pretty brutal for the company," said Dustin Gouker, an independent journalist who covers the prediction industry. "This gets us one step closer to an almost inevitable Supreme Court case on the legality of sports event contracts."