AI

Analyst Mocks the Idea That It's 'The End of Programming' Again (zdnet.com) 97

January's Communications of the ACM includes an essay predicting "the end of programming," in an AI-powered future where "programming will be obsolete."

But IT analyst and ZDNet contributor Joe McKendrick remains skeptical, judging by a new essay sardonically titled "It's the end of programming as we know it — again." Over the past few decades, various movements, paradigms, or technology surges — whatever you want to call them — have roiled the software world, promising either to hand a lot of programming grunt work to end users, or automate more of the process. CASE tools, 4GL, object-oriented programming, service oriented architecture, microservices, cloud services, Platform as a Service, serverless computing, low-code, and no-code all have theoretically taken the onerous burdens out of software development. And, potentially, threaten the job security of developers.

Yet, here we are. Software developers are busier than ever, with demand for skills only increasing.

"I remember when the cloud first started becoming popular and companies were migrating to Office 365, everyone was saying that IT Pros will soon have no job," says Vlad Catrinescu, author at Pluralsight. "Guess what — we're still here and busier than ever."

The question is how developers' job will ultimately evolve. There is the possibility that artificial intelligence, applied to application development and maintenance, may finally make low-level coding a thing of the past.... Catrinescu believes that the emerging generation of automated or low-code development solutions actually "empowers IT professionals and developers to work on more challenging applications. IT departments can focus on enterprise applications and building complicated apps and automations that will add a lot of value to the enterprise."

Even the man predicting "the end of programming" in an AI-powered future also envisions new technology that "potentially opens up computing to almost anyone" (in ACM's video interview). But in ZDNet's article Jared Ficklin, chief creative technologist and co-founder of argodesign, even predicts the possibility of real-time computing.

"You could imagine asking Alexa to make you an app to help organize your kitchen. AI would recognize the features, pick the correct patterns and in real time, over the air deliver an application to your mobile phone or maybe into your wearable mobile computer."
AI

AI-Powered Software Delivery Company Predicts 'The End of Programming' (acm.org) 150

Matt Welsh is the CEO and co-founder of Fixie.ai, an AI-powered software delivery company founded by a team from Google and Apple. "I believe the conventional idea of 'writing a program' is headed for extinction," he opines in January's Communications of the ACM, "and indeed, for all but very specialized applications, most software, as we know it, will be replaced by AI systems that are trained rather than programmed."

His essay is titled "The End of programming," and predicts a future will "Programming will be obsolete." In situations where one needs a "simple" program (after all, not everything should require a model of hundreds of billions of parameters running on a cluster of GPUs), those programs will, themselves, be generated by an AI rather than coded by hand.... with humans relegated to, at best, a supervisory role.... I am not just talking about things like Github's CoPilot replacing programmers. I am talking about replacing the entire concept of writing programs with training models. In the future, CS students are not going to need to learn such mundane skills as how to add a node to a binary tree or code in C++. That kind of education will be antiquated, like teaching engineering students how to use a slide rule.

The engineers of the future will, in a few keystrokes, fire up an instance of a four-quintillion-parameter model that already encodes the full extent of human knowledge (and then some), ready to be given any task required of the machine. The bulk of the intellectual work of getting the machine to do what one wants will be about coming up with the right examples, the right training data, and the right ways to evaluate the training process. Suitably powerful models capable of generalizing via few-shot learning will require only a few good examples of the task to be performed. Massive, human-curated datasets will no longer be necessary in most cases, and most people "training" an AI model will not be running gradient descent loops in PyTorch, or anything like it. They will be teaching by example, and the machine will do the rest.

In this new computer science — if we even call it computer science at all — the machines will be so powerful and already know how to do so many things that the field will look like less of an engineering endeavor and more of an an educational one; that is, how to best educate the machine, not unlike the science of how to best educate children in school. Unlike (human) children, though, these AI systems will be flying our airplanes, running our power grids, and possibly even governing entire countries. I would argue that the vast majority of Classical CS becomes irrelevant when our focus turns to teaching intelligent machines rather than directly programming them. Programming, in the conventional sense, will in fact be dead....

We are rapidly moving toward a world where the fundamental building blocks of computation are temperamental, mysterious, adaptive agents.... This shift in the underlying definition of computing presents a huge opportunity, and plenty of huge risks. Yet I think it is time to accept that this is a very likely future, and evolve our thinking accordingly, rather than just sit here waiting for the meteor to hit.

"I think the debate right now is primarily around the extent to which these AI models are going to revolutionize the field," Welsh says in a video interview. "It's more a question of degree rather than whether it's going to happen....

"I think we're going to change from a world in which people are primarily writing programs by hand to a world in which we're teaching AI models how to do things that we want them to do... It starts to feel more like a field that focuses on AI education and maybe even AI psychiatry. In order to solve these problems, you can't just assume that people are going to be writing the code by hand."
China

Police in China Can Track Protests By Enabling 'Alarms' on Hikvision Software (theguardian.com) 36

Chinese police can set up "alarms" for various protest activities using a software platform provided by Hikvision, a major Chinese camera and surveillance manufacturer, the Guardian has learned. From the report: Descriptions of protest activity listed among the "alarms" include "gathering crowds to disrupt order in public places," "unlawful assembly, procession, demonstration" and threats to "petition." These activities are listed alongside offenses such as "gambling" or disruptive events such as "fire hazard" in technical documents available on Hikvision's website and flagged to the Guardian by surveillance research firm IPVM, or Internet Protocol Video Market. The company's website also included alarms for "religion" and "Falun Gong" -- a spiritual movement banned in China and categorized as a cult by the government -- until IPVM contacted the company.

The findings come a month after mass protests against the country's zero-Covid policies erupted across China. Though the demonstrations resulted in the government easing restrictions, many protesters later received calls from police. The US government has long had its sights set on Hikvision. The company was placed on a commerce department blacklist that restricts the use of federal funds to purchase equipment manufactured by the firm as well as US exports to the surveillance firm for its complicity in human rights violations associated with China's mass incarceration of Uyghurs and other ethnic minorities. In November, the Federal Communications Commission also introduced new rules that prohibited imports and sales of future Hikvision communications equipment in the US.

Intel

Intel Settles To Escape $4 Billion Patent Suit with VLSI (theregister.com) 11

Intel and SoftBank-backed VLSI Technology have agreed to end a $4 billion patent dispute, according to documents filed in Delaware District Court this week. From a report: The decision marks a victory for Intel, which has already lost $3 billion in failed patent disputes to VLSI over the past few years. The case in question dates back to 2018 and alleged that Intel had infringed on five VLSI-owned patents governing things like secure communications, power optimization and delivery, and flip-chip interconnects.

If VLSI sounds familiar, that's because the company has been lurking around the semiconductor industry in one shape or form since the late '70s. The company originally made ASICs before it was acquired by Philips Electronics and later spun off under NXP. But despite any early successes in chipmaking, VLSI is now owned by SoftBank's Fortress Investment Group, and appears to exist solely to sue chipmakers it believes have violated its intellectual property -- in other words, it's a patent troll. The decision to call it quits comes after nearly five years of litigation. Tuesday, Intel and VLSI released a joint filing in which Intel and VLSI mutually agreed to dismiss the case and resolve all disputes over Intel's use of the aforementioned patents. Critically, VLSI has done so with prejudice. As we understand it, this means the company can't refile the case.

United States

Group Shaping US Nutrition Receives Millions from Big Food Industry (theguardian.com) 33

Newly released documents show an influential group that helps shape US food policy and steers consumers toward nutritional products has financial ties to the world's largest processed food companies and has been controlled by former industry employees who have worked for companies like Monsanto. From a report: The documents reveal the Academy of Nutrition and Dietetics has a record of quid pro quos with a range of food giants, owns stock in ultra-processed food companies and has received millions in contributions from producers of pop, candy, and processed foods linked to diabetes, heart disease, obesity and other health problems.

The findings are a part of a recently published peer-reviewed study that examined a trove of financial documents and internal communications obtained through a Freedom of Information Act (Foia) request. "It's incredibly influential so if the Academy is corrupt then nutritional policy in the US is going to be corrupt," said Gary Ruskin, executive director of US Right to Know, and a co-author of the study. The investigative non-profit developed the study with researchers from non-profits and universities in the US and UK. "If we're ever going to solve the problems of obesity and diabetes in the US and elsewhere, then we're going to have to tackle the corruption in our health institutions," Ruskin added.

United States

FCC Can Finally Hammer Predatory Prison Phone Call Companies (techcrunch.com) 89

A brand-new law (awaiting only the president's signature) will let the Federal Communications Commission directly regulate rates in the notoriously predatory prison calling industry. From a report: Under the threat of having to provide a solid product for a reasonable price, companies may opt to call it a day and open up the market to a more compassionate and forward-thinking generation of providers. Prison calling systems depend on the state and the prison system, and generally have run the gamut from good enough to shockingly bad. With a literally captive customer base, companies had no real reason to innovate, and financial models involving kickbacks to the prisons and states incentivized income at all costs. Inmates are routinely charged extortionate rates for simple services like phone calls and video calls (an upsell), and have even had visitation rights rescinded, leaving paid calls the only option.

Needless to say, this particular financial burden falls disproportionately on people of color and those with low incomes, and it's a billion-dollar industry. It's been this way for a long time, and former FCC commissioner Mignon Clyburn spent years trying to change it. When I talked with her in 2017, before she left the agency, she called inmate calling "the clearest, most glaring type of market failure I've ever seen as a regulator." It was an issue she spent years working on, but she gave a lot of credit to Martha Wright-Reed, a grandmother who had organized and represented the fight to bring reform to the system right up until she died.

Patents

23 Years Ago, Amazon Gave Barnes & Noble a 1-Click Patent Lawsuit For Xmas (aboutamazon.com) 54

Long-time Slashdot reader theodp writes: In recognition of the innovation and unique nature of 1-Click, the U.S. Patent Office awarded Patent No. 5960411 to Amazon.com for 1-Click on September 28, 1999," boasted an Oct. 1999 Amazon press release. "First made available to Amazon.com customers in September 1997, 1-Click combines with Gift-Click and Wish List to make Amazon.com the most convenient, easiest-to-use shopping destination this holiday season."

The following day, Amazon weaponized its new patent, filing a lawsuit on Oct. 20th saying defendant and competitor Barnes and Noble had illegally copied Amazon's patented 1-Click ordering technology. "We're pleased that Judge Pechman recognized the innovation underlying our 1-Click feature," said Amazon CEO and 1-Click co-inventor Jeff Bezos in a Dec. 1999 Amazon press release celebrating a preliminary injunction that barred barnesandnoble.com from using its 'copycat version of 1-Click technology' while the lawsuit was pending (Amazon and B&N settled in 2002).

"The patent system is designed to encourage innovation on behalf of customers," Amazon had written in its 1999 press release, arguing that in 1997 its 1-Click technology "was a significant step forward for online shoppers that required thousands of hours of effort." It's been noted that B&N first threw down the litigation gauntlet, slapping Amazon with a lawsuit over its marketing claim as "World's Largest Bookstore" just days before Amazon's IPO in May 1997.

USPTO continuity records show a 'child' patent of the original Method and System for Placing a Purchase Order Via a Communications Network patent finally expired due to non-payment of maintenance fees on 10/10/2022, more than 25 years after Amazon applied for its 1-Click patent on 9/22/1997.

Communications

Spam Texts Are Out of Control, Say All 51 Attorneys General (foxnews.com) 37

A proposal to force cellphone companies to block certain spam texts is gaining momentum. From a report: California Attorney General Rob Bonta has expressed his support for a proposal by the Federal Communications Commission (FCC) to put an end to illegal and malicious texts. By doing so, he joined attorneys general from the other 49 states and Washington D.C., who had all previously expressed their support of the proposal. In a letter signed by all 51 attorneys general to the FCC, supporting them in their hopes to require cellular providers to block illegal text messages from invalid or unused numbers, as well as blocking any phone numbers found on a "do not originate" list, numbers which have previously been proved to have been used for fraudulent activity.
Mars

NASA's InSight Mission Officially Over (nasa.gov) 17

"As a quick follow-up to yesterday's post about InSight's final photo, the InSight Lander's mission is now officially over after 2 failed communications attempts," writes Slashdot reader davidwr. From a NASA press release: NASA's InSight mission has ended after more than four years of collecting unique science on Mars. Mission controllers at the agency's Jet Propulsion Laboratory (JPL) in Southern California were unable to contact the lander after two consecutive attempts, leading them to conclude the spacecraft's solar-powered batteries have run out of energy -- a state engineers refer to as "dead bus."

"I watched the launch and landing of this mission, and while saying goodbye to a spacecraft is always sad, the fascinating science InSight conducted is cause for celebration," said Thomas Zurbuchen, associate administrator of NASA's Science Mission Directorate in Washington. "The seismic data alone from this Discovery Program mission offers tremendous insights not just into Mars but other rocky bodies, including Earth."
You can read more about the InSight Mars Lander at NASA's website.
Communications

Russian Arms Manufacturer Developing Tech To Hunt Starlink Dishes (pcmag.com) 129

schwit1 shares a report from PC Magazine with the caption, "More Russian vaporware?" From the report: A Russian arms manufacturer claims it can help the country's military detect and bombard Starlink satellite dishes, which have been crucial to the defense effort in Ukraine. Earlier this month, a mysterious company called Sestroretsk Arms Factory published a website that debuted the "Borshchevik" or "hogweed" system, which is designed to locate Starlink dishes at a distance of up to 10 kilometers (6.2 miles). The technology can supposedly pinpoint a Starlink dish within 5 to 60 meters (16 to 196 feet) of its actual location. In addition, it can be fitted on top of a moving vehicle, allowing it to detect Starlink activity across the front lines on a battlefield.

However, it's unclear how the Borshchevik system actually works or if it's even effective. News of the technology was posted on a Telegram channel called "Reverse Side of the Medal," which seems to be closely associated with the Russian military, including the paramilitary Wagner Group. The user behind the Reverse Side of the Medal channel said they plan on testing the Borshchevik system on the frontlines in Russia's ongoing war with Ukraine.

Mars

After a Long Struggle With Martian Dust, NASA's InSight Probe Has Gone Quiet (arstechnica.com) 54

NASA's InSight lander has probably phoned home for the last time from the planet Mars. From a report: The space agency said the spacecraft did not respond to communications from Earth on Sunday, December 18. The lack of communications came as the lander's power-generating capacity has been declining in recent months due to the accumulation of Martian dust on its solar panels. NASA said that it is "assumed" that InSight has reached the end of its operations but that it will continue to try to contact the lander in the coming days. Also on Monday, the InSight Twitter account shared a photo with a message saying this was probably the last photo it was sending from Mars. UPDATE 12/21/22: NASA's InSight Mission Officially Over
United States

Epic Games, Maker of 'Fortnite,' To Pay $520 Million To Resolve FTC Allegations (wsj.com) 24

Epic Games has agreed to pay $520 million to resolve Federal Trade Commission allegations that the "Fortnite" videogame developer violated online privacy protections for children and tricked players into making unintended purchases. From a report: The FTC said the agreement consisted of two record-breaking settlements that resolve a pair of civil complaints it was filing against Epic. One, filed in federal court, alleged the company violated the federal Children's Online Privacy Protection Act by collecting personal information from "Fortnite" players under the age of 13 without notifying their parents or obtaining verifiable parental consent.

That lawsuit also accused the company of illegally enabling real-time voice and text chat communications for children and teens in the game by default. Further, the FTC said Epic put those users at risk by connecting them with strangers, and as a result, some were "bullied, threatened, harassed and exposed to dangerous and psychologically traumatizing issues such as suicide." Epic will pay a $275 million civil penalty for the alleged COPPA violations, the FTC said, the largest assessed in the commission's enforcement of the privacy law. Epic didn't admit or deny the FTC's allegations as part of the settlements. The commission also said the company agreed to pay $245 million in consumer refunds to resolve the second complaint, which was filed in administrative court. It is the FTC's largest settlement that bars the use of so-called dark patterns, tactics that trap customers into paying for goods and services and create obstacles to canceling. The agency alleged that Epic deployed a variety of tactics to drive unintended purchases of virtual perks such as outfits and dance moves in "Fortnite," including the use of counterintuitive, inconsistent and confusing button configurations. "These tactics led to hundreds of millions of dollars in unauthorized charges for consumers," it said.

United States

Tech Groups Ask Supreme Court To Review Texas Social Media Law 115

Trade groups that represent Meta and Alphabet's Google said they asked the US Supreme Court to overturn a Texas law that would sharply restrict the editorial discretion of social media companies. From a report: The appeal by NetChoice and the Computer & Communications Industry Association contends the Texas law violates the First Amendment by forcing social media companies to disseminate what they see as harmful speech and putting platforms at risk of being overrun by spam and bullying. The law "would wreak havoc by requiring transformational change to websites' operations," the groups argued. The New Orleans-based 5th US Circuit Court of Appeals upheld the law in September but left the measure on hold to allow time for an appeal to the Supreme Court.

The Texas law bars social media platforms with more than 50 million users from discriminating on the basis of viewpoint. Texas Governor Greg Abbott and other Republicans say the law is needed to protect conservative voices from being silenced. The appeal adds a new layer to a Supreme Court term that could reshape the legal rules for online content. The justices are already considering opening social media companies to lawsuits over the targeted recommendations they make to users.
Bitcoin

FTX's Inner Circle Had a Secret Chat Group Called 'Wirefraud' (afr.com) 46

An anonymous reader quotes a report from the Australian Financial Review: Members of the inner circle of power at collapsed cryptocurrency exchange FTX formed a chat group called "Wirefraud" and were using it to send secret information about operations in the lead up to the company's spectacular failure. On Monday (Tuesday AEDT) Mr Bankman-Fried denied being part of the chat saying, "If this is true then I wasn't a member of that inner circle (I'm quite sure it's just false; I have never heard of such a group). The news of the chat group heightens concerns about the prospect of wrongdoing by Mr Bankman-Fried and his colleagues. Last week, Mr Bankman-Fried said he no longer had access to many of his own private communications. He was scheduled to testify virtually before the House Financial Services Committee on the 13th, but was arrested by the Royal Bahamas Police Force the day before. That said, Forbes published a transcript of SBF's planned testimony, where he at no point admits fraudulent behavior and does not address the (multi-)billion dollar loans that helped contribute to the collapse.

Most recently, we learned that FTX's chief engineer made a secret change to the cryptocurrency exchange's software that allowed FTX to use client money.
Patents

Apple Satellite Plans May Extend Beyond Emergencies, Suggests New Patent (9to5mac.com) 28

A new patent granted to Apple suggests the company could use satellite communications for more than just getting help in an emergency. 9to5Mac reports: Emergency SOS via Satellite was one of the headline features of September's Apple event -- so much so that the Far Out event name referenced it. The service launched in the US and Canada last month, and was yesterday extended to the UK, France, Germany, and Ireland. More countries will follow. A patent granted on the same day the service expanded to more countries suggests that Apple satellite plans may extend beyond text, and beyond emergency use.

Patently Apple spotted it: "Satellite communications data conveyed by transceivers #28 and antenna radiators #30 may include media data (e.g., streaming video, television data, satellite radio data, etc.), voice data (e.g., telephone voice data), internet data, and/or any other desired data." Apple has currently committed $450M to support the satellite communications feature, a reasonably sizeable amount of money even by Apple standards for a service that will be of use to a tiny fraction of iPhone owners. But if it's the start of something more, then the investment could look rather modest.

Microsoft

Microsoft Targets Internet Expansion in Africa, Longer-Term Cloud Adoption (reuters.com) 8

Microsoft aims to secure internet access for 100 million more people in Africa by 2025, teaming up with a satellite provider and setting the stage for longer-term cloud adoption, its President Brad Smith said. From a report: The software maker has long pushed to bring more people online, playing the role of facilitator among telecoms and electricity providers, governments and non-profits. Since 2017, it helped widen connectivity for 50 million people, including nearly 10 million in Africa, under its so-called Airband initiative.

Now, Microsoft is tapping satellite technology for the program for the first time, aiming to reach remote areas that have had little connectivity. In news pegged to the U.S.-Africa Leaders Summit, Microsoft said Wednesday it is working with Viasat to expand access in Nigeria, the Democratic Republic of the Congo and other countries globally. Smith said the effort was "building a new market for access to the internet, for the use of the cloud, for the power of AI, the ability to harness data. All of these things connect with our business."

Privacy

FBI's Vetted Info Sharing Network 'InfraGard' Hacked (krebsonsecurity.com) 21

An anonymous reader quotes a report from KrebsOnSecurity: On Dec. 10, 2022, the relatively new cybercrime forum Breached featured a bombshell new sales thread: The user database for InfraGard, including names and contact information for tens of thousands of InfraGard members. The FBI's InfraGard program is supposed to be a vetted Who's Who of key people in private sector roles involving both cyber and physical security at companies that manage most of the nation's critical infrastructures -- including drinking water and power utilities, communications and financial services firms, transportation and manufacturing companies, healthcare providers, and nuclear energy firms. "InfraGard connects critical infrastructure owners, operators, and stakeholders with the FBI to provide education, networking, and information-sharing on security threats and risks," the FBI's InfraGard fact sheet reads.

KrebsOnSecurity contacted the seller of the InfraGard database, a Breached forum member who uses the handle "USDoD" and whose avatar is the seal of the U.S. Department of Defense. USDoD said they gained access to the FBI's InfraGard system by applying for a new account using the name, Social Security Number, date of birth and other personal details of a chief executive officer at a company that was highly likely to be granted InfraGard membership. The CEO in question -- currently the head of a major U.S. financial corporation that has a direct impact on the creditworthiness of most Americans -- did not respond to requests for comment. USDoD told KrebsOnSecurity their phony application was submitted in November in the CEO's name, and that the application included a contact email address that they controlled -- but also the CEO's real mobile phone number. "When you register they said that to be approved can take at least three months," USDoD said. "I wasn't expected to be approve[d]." But USDoD said that in early December, their email address in the name of the CEO received a reply saying the application had been approved. While the FBI's InfraGard system requires multi-factor authentication by default, users can choose between receiving a one-time code via SMS or email. "If it was only the phone I will be in [a] bad situation," USDoD said. "Because I used the person['s] phone that I'm impersonating."

USDoD said the InfraGard user data was made easily available via an Application Programming Interface (API) that is built into several key components of the website that help InfraGard members connect and communicate with each other. USDoD said after their InfraGard membership was approved, they asked a friend to code a script in Python to query that API and retrieve all available InfraGard user data. "InfraGard is a social media intelligence hub for high profile persons," USDoD said. "They even got [a] forum to discuss things." USDoD acknowledged that their $50,000 asking price for the InfraGard database may be a tad high, given that it is a fairly basic list of people who are already very security-conscious. Also, only about half of the user accounts contain an email address, and most of the other database fields -- like Social Security Number and Date of Birth -- are completely empty. [...] While the data exposed by the infiltration at InfraGard may be minimal, the user data might not have been the true end game for the intruders. USDoD said they were hoping the imposter account would last long enough for them to finish sending direct messages as the CEO to other executives using the InfraGuard messaging portal.

Facebook

Meta Kills Facebook Connectivity After Nearly a Decade (lightreading.com) 10

After almost a decade of running the operation, Meta has shut down Facebook Connectivity. From a report: Meta, formerly Facebook, confirmed to Light Reading it would fold what is now called Meta Connectivity into two other groups within the company: "Infrastructure" and "Central Products." The moves make sense considering Meta's "Infrastructure" team handles the company's work in areas such as subsea cabling. The action will not affect Meta's participation in the Telecom Infra Project (TIP), which it helped to found in 2016. That group continues to develop open and disaggregated standards for various telecom technologies.
China

After US Sanctions, Huawei Seeks New Revenue By Licensing Its 5G Patents to Rival (cnbc.com) 15

CNBC reports: Chinese technology giant Huawei said Friday it will license its 5G technology to rival handset maker Oppo as it looks to unlock a new revenue stream after its smartphone business was crushed by U.S. sanctions....

Huawei has a massive portfolio of over 100,000 patents globally. It is one of the top patent holders in 5G technology, which is next-generation ultra-fast mobile internet seen as key to underpinning future industries such as artificial intelligence and autonomous cars.... The company previously stated that it expected to earn revenue of $1.2 billion to $1.3 billion from licensing its intellectual property between 2019 to 2021. Huawei said that it met its intellectual property revenue expectations for 2021, but did not provide a figure.

The Almighty Buck

Inside the Frantic Texts Exchanged by Crypto Executives as FTX Collapsed (msn.com) 36

The day before FTX filed for bankruptcy, founder Sam Bankman-Fried received an "alarmed" text message from Binance CEO Changpeng Zhao, reports the New York Times: Mr. Zhao was concerned that Mr. Bankman-Fried was orchestrating crypto trades that could send the industry into a meltdown. "Stop now, don't cause more damage," Mr. Zhao wrote in a group chat with Mr. Bankman-Fried and other crypto executives on Nov. 10. "The more damage you do now, the more jail time." FTX and its sister hedge fund, Alameda Research, had just collapsed after a run on deposits exposed an $8 billion hole in the exchange's accounts. The implosion unleashed a crypto crisis, as firms with ties to FTX teetered on the brink of bankruptcy, calling the future of the entire industry into question.

The series of about a dozen group texts between Mr. Zhao and Mr. Bankman-Fried on Nov. 10, which were obtained by The New York Times, show that key crypto leaders feared that the situation could get even worse. And their frantic communications offer a rare glimpse into the unusual way business is conducted behind the scenes in the industry, with at least three top officials from rival companies exchanging messages in a group chat on the encrypted messaging app Signal. The texts also show that industry leaders were acutely aware that the actions of a single firm or fluctuations in the value of one virtual currency could destabilize the whole industry. The exchanges became increasingly tense as Mr. Bankman-Fried and Mr. Zhao traded barbs.

Earlier that week, Mr. Zhao had agreed to buy FTX and save the exchange, before backing out of the deal. In the Nov. 10 texts, he appeared certain that FTX would not survive, and concerned that it could bring the rest of the industry down with it.... In the Nov. 10 texts, Mr. Zhao specifically accused Mr. Bankman-Fried of using his hedge fund to drive down the price of Tether, a so-called stablecoin whose price is designed to remain at $1. According to messages seen by The Times and people familiar with the matter, the group chat included several other prominent crypto executives, including Jesse Powell, a founder of the crypto exchange Kraken, and Paolo Ardoino, the chief technology officer of Tether, the company that issues the stablecoin of the same name.

Tether is a linchpin of crypto trading worldwide, commonly used by digital asset enthusiasts to conduct transactions. Industry insiders have long feared that if Tether's price fell, it would cause a domino effect that might bring the industry to its knees. (Tether ultimately did not end up losing its $1 peg.)

30-year-old Bankman-Fried told the Times that Mr. Zhao's claims were "absurd.... Trades of that size would not make a material impact on Tether's pricing, and to my knowledge neither myself nor Alameda has ever attempted to intentionally depeg Tether or any other stablecoins... I have made a number of mistakes over the past year but this is not one of them."

A spokeswoman for Tether told the Times they'd "demonstrated its resilience to attacks," adding that FTX's actions "don't reflect the ethos and commitment of an entire industry."

Slashdot Top Deals