Bitcoin

US Indicts Suspected Russian 'Mastermind' of $4 Billion Bitcoin Laundering Scheme (reuters.com) 60

schwit1 shares a report from Reuters: A U.S. jury indicted a Russian man on Wednesday as the operator of a digital currency exchange he allegedly used to launder more than $4 billion for people involved in crimes ranging from computer hacking to drug trafficking. Alexander Vinnik was arrested in a small beachside village in northern Greece on Tuesday, according to local authorities, following an investigation led by the U.S. Justice Department along with several other federal agencies and task forces. U.S. officials described Vinnik in a Justice Department statement as the operator of BTC-e, an exchange used to trade the digital currency bitcoin since 2011. They alleged Vinnik and his firm "received" more than $4 billion in bitcoin and did substantial business in the United States without following appropriate protocols to protect against money laundering and other crimes. U.S. authorities also linked him to the failure of Mt. Gox, a Japan-based bitcoin exchange that collapsed in 2014 after being hacked. Vinnik "obtained" funds from the hack of Mt. Gox and laundered them through BTC-e and Tradehill, another San Francisco-based exchange he owned, they said in the statement.
Privacy

German Court Rules Bosses Can't Use Keyboard-Tracking Software To Spy On Workers (thelocal.de) 43

An anonymous reader quotes a report from The Local: The Federal Labour Court ruled on Thursday that evidence collected by a company through keystroke-tracking software could not be used to fire an employee, explaining that such surveillance violates workers' personal rights. The complainant had been working as a web developer at a media agency in North Rhine-Westphalia since 2011 when the company sent an email out in April 2015 explaining that employees' complete "internet traffic" and use of the company computer systems would be logged and permanently saved. Company policy forbade private use of the computers. The firm then installed keylogger software on company PCs to monitor keyboard strokes and regularly take screenshots. Less than a month later, the complainant was called in to speak with his boss about what the company had discovered through the spying software. Based on their findings, they accused him of working for another company while at work, and of developing a computer game for them. [...] So the programmer took his case to court, arguing that the evidence used against him had been collected illegally. The Federal Labour Court agreed with this argument, stating in the ruling that the keylogger software was an unlawful way to control employees. The judges added that using such software could be legitimate if there was a concrete suspicion beforehand of a criminal offense or serious breach of work duties.
Communications

FCC Is Not Complying With Freedom of Information Act Requests, Alleges Lawsuit (arstechnica.com) 91

burtosis writes: The FCC is being sued for failure to turn over documents related to "correspondence, e-mails, telephone call logs, calendar entries, meeting agendas," between chairman Ajit or his staff and ISPs. Given the FCCs recent transparency issues, which appear to be directly ignoring the vast majority of feedback from Americans that are pro net neutrality, a nonprofit group called American Oversight is trying to force the real conversations the FCC is holding into public view. They are also asking for any communications with the media, Congress, and congressional staff. Two extensions for missed deadlines have been given, but the third extension was denied on July 24th. The FCC also ignored a FOiA request by Ars for the DDoS attack during the public comment period on net neutrality. With the current administration's attitude toward transparency and catering only to the largest corporate donors, will the American people have any meaningful influence in how the country is run anymore?
Bitcoin

SEC Rules That ICO Tokens Are Securities (vice.com) 95

schwit1 shares a report from Business Insider: On Tuesday, the Securities and Exchange Commission (SEC) said that "ICOs" (Initial Coin Offerings) can sometimes be considered securities -- and as such are subject to strict laws and regulations. For the uninitiated, ICOs are a fancy new way of fundraising enabled by digital currencies like Ethereum -- participants invest money and receive digital "tokens" in return. Thus far, it has been largely unregulated, with some ICO crowdfunding events raising hundreds of millions of dollars -- leading some observers to argue that it is a massive bubble. But the SEC's warning means that this free-for-all may not last forever.

"Going forward, according to the SEC, companies that are issuing tokens as part of an ICO (if they are considered securities) need to register with the commission," reports Motherboard. "This will force companies to comply with regulations that ask them to reveal their financial position and the identities of their management. The SEC also concluded that online exchanges where tokens are bought and traded may have to register as security exchanges."

schwit1 adds a quote from Benito Mussolini: "All within the state, nothing outside the state, nothing against the state."

Crime

Feds Crack Trump Protesters' Phones To Charge Them With Felony Rioting (thedailybeast.com) 437

An anonymous reader quotes a report from The Daily Beast: Officials seized Trump protesters' cell phones, cracked their passwords, and are now attempting to use the contents to convict them of conspiracy to riot at the presidential inauguration. Prosecutors have indicted over 200 people on felony riot charges for protests in Washington, D.C. on January 20 that broke windows and damaged vehicles. Some defendants face up to 75 years in prison, despite little evidence against them. But a new court filing reveals that investigators have been able to crack into at least eight defendants' locked cell phones. Now prosecutors want to use the internet history, communications, and pictures they extracted from the phones as evidence against the defendants in court. [A] July 21 court document shows that investigators were successful in opening the locked phones. The July 21 filing moved to enter evidence from eight seized phones, six of which were "encrypted" and two of which were not encrypted. A Department of Justice representative confirmed that "encrypted" meant additional privacy settings beyond a lock screen. For the six encrypted phones, investigators were able to compile "a short data report which identifies the phone number associated with the cell phone and limited other information about the phone itself," the filing says. But investigators appear to have bypassed the lock on the two remaining phones to access the entirety of their contents.
Patents

Apple Ordered To Pay $506 Million In Damages For Processor Patent Infringement (hothardware.com) 118

MojoKid writes from a report via Hot Hardware: Apple has been ordered to feed a recognized patent troll hundreds of millions of dollars for infringing on a patent that has to do with technology built into its A-series mobile processors. Initially Apple was on the hook for $234 million, owed to the University of Wisconsin-Madison Alumni Research Foundation (WARF) after it won a patent dispute against the Cupertino tech giant. However, a judge this week more than doubled the fine by tacking on an additional $272 million. U.S District Judge William Conley in Madison ruled that Apple owed additional damages plus interest because it continued to infringe on the patent all the way up until it expired in 2016. WARF is reportedly a non-practicing entity that exists only currently by defending its patents in litigation. The lawsuit filed in 2014 involves U.S. Patent No. 5,871,752, which describes the use of a predictor circuit that can help processors run more efficiently. WARF claimed the technology was used in Apple's A7, A8, and A8X processors that power the iPhone 5s, iPhone 6, iPhone 6 Plus, and various iterations of the iPad. Apple is not commenting on the matter, though it's being reported that Apple plans to fight and appeal the ruling.
Government

Travelers' Electronics At US Airports To Get Enhanced Screening, TSA Says (arstechnica.com) 149

An anonymous reader quotes a report from Ars Technica: Aviation security officials will begin enhanced screening measures of passengers' electronics at US airports, the Transportation Security Administration announced Wednesday. Travelers must remove electronics larger than a mobile phone from their carry-on bags and "place them in a bin with nothing on top or below, similar to how laptops have been screened for years. This simple step helps TSA officers obtain a clearer X-ray image," the TSA announced amid growing fears that electronic devices can pose as homemade bombs. The TSA was quick to point out that the revised security measures do not apply to passengers enrolled in the TSA Precheck program.

"Whether you're flying to, from, or within the United States, TSA is committed to raising the baseline for aviation security by strengthening the overall security of our commercial aviation network to keep flying as a safe option for everyone," TSA Acting Administrator Huban A. Gowadia said. "It is critical for TSA to constantly enhance and adjust security screening procedures to stay ahead of evolving threats and keep passengers safe. By separating personal electronic items such as laptops, tablets, e-readers and handheld game consoles for screening, TSA officers can more closely focus on resolving alarms and stopping terror threats."

Businesses

Tech Leaders Speak Out Against Trump Ban on Transgender Troops (axios.com) 500

Technology executives, including Facebook CEO Mark Zuckerberg and Google CEO Sundar Pichai took to social media to voice their displeasure over President Donald Trump's latest stance on transgendered people in the military.

"I am grateful to the transgender members of the military for their service," Google CEO Sundar Pichai said.
Apple CEO Tim Cook said, "We are indebted to all who serve. Discrimination against anyone holds everyone back."
Brad Smith, Microsoft President and Chief Legal Officer said, "We honor and respect all who serve, including the transgender members of our military."
Salesforce said it "believes in equality for all. We support and thank all U.S. service members, including transgender Americans."
Facebook CEO Mark Zuckerberg said, "Everyone should be able to serve their country -- no matter who they are."
Veteran entrepreneur Max Levchin urged support for transgender people across party lines. "Trans kids, soldiers etc need our support today and to know they are valued & respected regardless of politics. Let us not be divided."
Uber told news outlet Axios, "We owe the deepest debt of gratitude to all those who volunteer to serve in the US Armed Forces and defend our values. These patriotic Americans deserve to be honored and respected, not turned away because of who they are."
Twitter CEO Jack Dorsey said, "Discrimination in any form is wrong for all of us."
Security

Some Low-Cost Android Phones Come at a Price -- Your Privacy (cnet.com) 86

Cheap phones are coming at the price of your privacy, security analysts discovered. From a report: At $60, the BLU R1 HD is the top-selling phone on Amazon. Last November, researchers caught it secretly sending private data to China. Shanghai Adups Technology, the group behind the spying software on the BLU R1 HD, called it a mistake. But analysts at Kryptowire found the software provider is still making the same "mistake" on other phones. At the Black Hat security conference in Las Vegas on Wednesday, researchers from Kryptowire, a security firm, revealed that Adups' software is still sending a device's data to the company's server in Shanghai without alerting people. But now, it's being more secretive about it. "They replaced them with nicer versions," Ryan Johnson, a research engineer and co-founder at Kryptowire, said. "I have captured the network traffic of them using the Command and Control channel when they did it." An Adups spokeswoman said that it had resolved the issues in 2016 and that the issues "are not existing anymore." Kryptowire said it has observed the company sending data without telling users on at least three different phones.
Government

Apple-Supplier Foxconn To Announce New Factory in Wisconsin in Much-needed Win For Trump and Scott Walker (washingtonpost.com) 129

An anonymous reader shares a Washington Post report: Foxconn, one of the world's largest electronics manufacturers, will unveil plans Wednesday evening to build a new factory in southeastern Wisconsin (alternative source), delivering a much-needed win for President Trump and Gov. Scott Walker, according to four officials with knowledge of the announcement. The facility will make flat-screen displays and will be located in Southeast Wisconsin within House Speaker Paul Ryan's congressional district. It is not clear how many jobs would be created. Shortly after Trump was elected, Foxconn's chairman Terry Gou said his company would invest at least $7 billion in the United States and create between 30,000 and 50,000 jobs. If it follows through with that commitment, Foxconn would become a major employer on par with Chrysler. In April, Gou spent more than two hours at the White House.
Businesses

Kaspersky Launches Its Free Antivirus Software Worldwide (engadget.com) 141

Kaspersky has finally launched its free antivirus software after a year-and-a-half of testing it in select regions. From a report: While the software was only available in Russia, Ukraine, Belarus, China and in Nordic countries during its trial run, Kaspersky is releasing it worldwide. The free antivirus doesn't have VPN, Parental Controls and Online Payment Protection its paid counterpart offers, but it has all the essential features you need to protect your PC. It can scan files and emails, protect your PC while you use the web and quarantine malware that infects your system. The company says the software isn't riddled with advertisements like other free antivirus offerings. Instead of trying to make ad money off your patronage, Kaspersky will use the data you contribute to improve machine learning across its products. The free antivirus will be available in the US, Canada and most Asia-Pacific countries over the next couple of days, if it isn't yet. After this initial release, the company will roll it out in other regions from September to November.
Government

Donald Trump Says US Military Will Not Allow Transgender People To Serve (theguardian.com) 872

Donald Trump said on Wednesday he would not allow transgender individuals to serve in the US military in any capacity. From a report: The US president tweeted: "After consultation with my Generals and military experts, please be advised that the United States Government will not accept or allow ... transgender individuals to serve in any capacity in the U.S. Military." He added: "Our military must be focused on decisive and overwhelming ... victory and cannot be burdened with the tremendous medical costs and disruption that transgender in the military would entail." Trump's decision marks a sharp reversal of a policy initiated under Barack Obama, in which the Pentagon ended a longtime ban on transgender people from serving openly in the military. As a candidate, Trump cast himself as a supporter of LGBT rights and indicated he would uphold certain Obama-era policies designed to protect transgender people.
China

China Forces Muslim Minority To Install Spyware On Their Phones (bleepingcomputer.com) 373

An anonymous reader quotes a report from Bleeping Computer: Chinese authorities in the province of Xinjiang are forcing locals of the Uyghur Muslim minority to install an app on their phones that will allow the government to scan their device for "terrorist propaganda," local media reports. In reality, the app creates MD5 hashes for the user's files and matches them against a database of known terrorist content. The app also makes copies of the user's Weibo and WeChat databases and uploads it to a government server, along with the user's IMEI, IMSI, and WiFi login information. The app is called Jingwang (Citizen Safety) and was developed by police forces from Urumqi, Xinjiang's capital. Authorities launched the app in April, and also included the ability to report suspicious activity to the police. At the start of July, Xinjiang officials started sending WeChat messages in Uyghur and Chinese to locals, asking them to install the app or face detainment of up to 10 days. Police have also stopped people on the street to check if they installed the app. Several were detained for refusing to install it. Locals are now sharing the locations of checkpoints online, so others can avoid getting arrested.
Businesses

Cloudflare Wants to Eliminate 'Moot' Pirate Site Blocking Threat (torrentfreak.com) 23

Cloudflare is not happy with the RIAA's efforts to hold the company liable for pirate websites on its network. From a report: Representing various major record labels, the RIAA filed a lawsuit against MP3Skull in 2015. Last year a Florida federal court sided with the RIAA, awarding the labels more than $22 million in damages. In addition, it issued a permanent injunction which allowed the RIAA to take over the site's domain names. Despite the multi-million dollar verdict, MP3Skull continued to operate using a variety of new domain names, which were subsequently targeted by the RIAA's legal team. As the site refused to shut down, the RIAA eventually moved up the chain targeting CDN provider Cloudflare with the permanent injunction. The RIAA argued that Cloudflare was operating "in active concert or participation" with the pirates. Cloudflare objected and argued that the DMCA shielded the company from the broad blocking requirements. However, the court ruled that the DMCA doesn't apply in this case, opening the door to widespread anti-piracy filtering. The court stressed that, before issuing an injunction against Cloudflare, it still had to be determined whether the CDN provider is "in active concert or participation" with the pirate site. [...] Cloudflare now wants the dangerous anti-piracy filtering order to be thrown out. The company submitted a motion to vacate the order late last week, arguing that the issue is moot. In fact, it has been for a while for some of the contended domain names. The CDN provider says it researched the domain names listed in the injunction and found that only three of the twenty domains used Cloudflare's services at the time the RIAA asked the court to clarify its order. Some had never used CloudFlare's services at all, they say.
The Internet

House Panel Wants Google, Facebook, AT&T CEOs To Testify On Internet Rules (reuters.com) 35

The chairman of the U.S. House Energy and Commerce Committee on Tuesday asked the chief executives of Alphabet, Facebook, Amazon.com, AT&T, Verizon Communications and other companies to testify at a Sept. 7 hearing on the future of net neutrality rules. From a report: The U.S. Federal Communications Commission is considering tossing out 2015 Obama administration net neutrality rules that reclassified internet service like a public utility. The rules bar providers from blocking, slowing or offering paid prioritization of websites. Many internet providers want Congress to step in and write permanent rules. Other chief executives asked to testify include the heads of Comcast, Netflix and Charter. Some companies including Facebook said they were reviewing the letter but none immediately said if they will testify.

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