Joseph James O'Connor has pleaded guilty to playing a role in various cybercrime activities, including the July 2020 hack that took over hundreds of high-profile Twitter accounts. O'Connor, who's known by the name PlugwalkJoe online, was originally from Liverpool, but he was extradited from Spain to the US in April. If you'll recall, the perpetrators of the 2020 Twitter hack hijacked accounts owned by popular personalities, including Bill Gates, Barack Obama and Elon Musk, and promoted crypto scams under their names. In 2021, Graham Ivan Clark, the supposed teenage mastermind behind the breach, pleaded guilty in return for a three-year prison sentence.
According to the Justice Department, O'Connor communicated with his co-conspirators in that Twitter breach regarding purchasing unauthorized access to Twitter accounts. He allegedly purchased access to at least one Twitter account himself for $10,000. In addition, he was also apparently involved in the hack of a TikTok account with millions of followers, as well as a Snapchat account, via SIM swapping. In both cases, O'Connor and his co-conspirators stole sensitive personal information from the victims and then threatened to release them to the public. While the DOJ didn't identify victims in those cases, The Guardian says they were named in press reports as TikTok star Addison Rae and actor Bella Thorne.
From March 2019 until May 2019, O'Connor was also allegedly involved in the infiltration of a Manhattan-based crypto company to steal $794,000 worth of cryptocurrency. They used SIM swapping to target three of the company's executives and successfully pulled it off with one of them. Using the compromised executive's credentials, they were able to gain unauthorized access to the company's accounts and computer systems. They then laundered the stolen cryptocurrency by transferring them multiple times and using crypto exchanges.
O'Connor has pleaded guilty to a lengthy list of charges, including conspiracy to commit wire fraud and conspiracy to commit money laundering, both of which carry a maximum penalty of 20 years in prison. He is now scheduled for sentencing on June 23rd.
This article originally appeared on Engadget at https://www.engadget.com/uk-citizen-pleads-guilty-to-2020-twitter-hack-and-other-cybercrimes-102634567.html?src=rss
New York State may soon have its own legislation to prevent crypto scandals on par with FTX's downfall. Attorney General Letitia James has proposed a law, the CRPTO Act (Crypto Regulation, Protection, Transparency and Oversight), that's meant to thwart cryptocurrency fraud and protect investors. Whether or not it's the "strongest and most comprehensive" set of crypto regulations that James touts, it would theoretically prevent repeats of some high-profile incidents.
The CRPTO Act would bar conflicts of interest, such as owning multiple practices or marketplaces that trade for their own accounts. Companies would have to publicly report financial statements, including risk disclosures. There would be a host of investor safeguards, such as "know-your-customer" requirements, compensation for fraud victims and a ban on stablecoins (crypto coins whose value is tied to a safe asset) that aren't pegged directly to US currency or "high-quality" liquid assets.
The bill would let the Attorney General's office shut down lawbreakers and fine $10,000 per violation for individuals, and $100,000 per violation for companies. The office would also have the power to issue subpoenas and demand damages, penalties and restitution. The Department of Financial Services, meanwhile, would be ensured authority to license various crypto service providers.
James pointed to multiple real-world examples of alleged abuse the CRPTO act would potentially stop. Terraform Labs, for instance, promised a very high 20 percent interest rate to investors in one token on its marketplace if they bought the company's other token, supposedly hiding the assets' real value. Celsius, meanwhile, bought up its own token and created an artificial appearance of demand. That left investors "caught by surprise" when Celsius declared bankruptcy, according to the Attorney General.
The federal government is already cracking down on crypto fraud. The Securities Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) believe existing rules already cover numerous crypto-related activities, and in some cases have jockeyed to claim primary responsibility for regulating the technology. Politicians in the House and Senate are pushing for nationwide regulations. New York's efforts go one step further by tackling crypto-specific problems, though, and the state's role as a financial hub may effectively let it dictate policies guiding firms across the US.
This article originally appeared on Engadget at https://www.engadget.com/new-york-state-ag-proposes-broad-regulations-for-the-cryptocurrency-industry-162228624.html?src=rss
Apple is facing additional scrutiny over its alleged crackdown against pro-union retail workers. House Representatives Emanuel Cleaver and Sylvia Garcia have sent a letter to the National Labor Relations Board (NLRB) asking for an investigation into alleged labor abuses at Houston and Kansas City, Missouri stores. The politicians are concerned about claims Apple fired five Kansas City staff in retaliation for unionization efforts, and disciplined multiple Houston employees for attempting to organize.
In March, the Communications Works of America union (CWA) filed charges with the NLRB over the purported retaliation. The CWA believes Apple used thin pretexts to fire and intimidate employees, such as slightly late arrivals and even typos in timesheets. Some of the workers were reportedly forced to sign a release of claims against the company if they wanted a severance package. These practices are illegal, Cleaver and Garcia say.
The House members also pointed to the NLRB's January finding that Apple was violating labor rights with rules barring leaks and discussions of employment conditions. The representatives are worried about a "recurring pattern," according to the letter. In December, the board said Apple also broke the law by holding anti-union meetings in Atlanta.
We've asked Apple for comment. The company has previously argued that it can better care for retail staff without unions. At the same time, it has addressed concerns by raising pay, improving benefits and easing its scheduling rules.
The letter doesn't obligate the NLRB to respond, and there's no certainty that an investigation will lead to official action. Even so, it's notable that Apple's stance on retail labor has drawn Congress' attention. It won't be surprising if there's more interest from the federal government, whether or not the NLRB responds to the letter.
This article originally appeared on Engadget at https://www.engadget.com/house-lawmakers-ask-for-investigation-into-apple-store-labor-practices-195248699.html?src=rss
After more than three years of litigation, Apple has quietly dropped its lawsuit against Gerard Williams III, a former chip executive the company accused of poaching employees. After over a decade at the company, in 2019, Williams left Apple to co-found Nuvia, a chip design firm later acquired by Qualcomm in 2021. When the tech giant first sued Williams, it accused him of “secretly” starting Nuvia and recruiting talent for his startup while he was still an Apple employee. Williams disputed Apple’s claims and accused the company of spying on his text messages. The case was dismissed, mired in a lot of legalese and multiple court documents.
Apple requested to dismiss the suit against Williams earlier this week. The request does not state the company’s reason for dropping the case, but in March, Apple wanted the recusal of Judge Sunil Kulkarni, because its legal team added lawyers from a company that Judge Kulkarni had previously worked at. So, conflicts of interest, initiated by Apple recruiting more legal firepower. Apple and Qualcomm, Williams' current employer, did not immediately respond to Engadget's request for comment.
– Mat Smith
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On Saturday, a federal appeals court in Brazil lifted the country-wide ban on messaging app Telegram. Brazilian authorities wanted the app suspended after Telegram failed to hand over a full set of data on a pair of neo-Nazi groups on the app accused of inciting violence against schools. According to Reuters, judge Flávio Lucas ruled that a complete suspension of the messaging app was “unreasonable” given that thousands of people in Brazil rely on the platform. At the same time, he upheld the daily $200,000 fine on Telegram for failing to provide local authorities with the data they requested. This isn’t the first time Telegram has been briefly banned in Brazil. In 2022, the country’s highest court suspended the app for failing to freeze accounts accused of spreading disinformation ahead of the country’s recent presidential election. Similarly, that ban was lifted just days later.
On paper, the 2023 edition of Sony’s midrange headphones should continue the company’s reputation for solid headphones – and a viable alternative to the pricey flagship WH-1000XM5. The WH-CH720N has the same V1 chip as the M5, which powers both active noise cancellation (ANC) and overall sound quality. There’s also an updated design and a lower price ($130), following another early cut. The noise cancellation does a decent job, but it’s not the best, and you’ll have to make do without automatic pausing. Still, you’d be hard-pressed to find a better option at this price.
What, you don’t remember the 1995 PlayStation game?
After those sweet Super Mario Bros. Movie box office numbers, more companies want a piece. Streaming service Peacock is joining the video game adaptation wars with a live-action comedy based on the PS1-era vehicular warfare simulator Twisted Metal, and it just dropped the first trailer. The franchise arguably reached its pinnacle in 1996 with Twisted Metal 2, but when have clowns and car explosions not been cool?
Yes, the addictive hit game Vampire Survivors is getting the animated TV show treatment.. Developer Luca Galante said in a (hopefully) cheeky tone, “The most important thing in Vampire Survivors is the story.” (Note: There really isn’t much of one.) Media company Story Kitchen will partner with Galante (founder of developer poncle), to make the series.
The Razer Blade 16 is one of the most unique laptops we’ve ever seen. It can handle 4K gaming just as well as high-speed 1080p gameplay, thanks to a dual-mode screen. And it’s one of the fastest notebooks around, featuring Intel’s latest CPUs and NVIDIA’s newest GPUs. And notably, it can be configured with an RTX 4090. But it’s noticeably heavier than the Blade 15, and you’ll have to pay at least $3,300 to own one with the dual-mode display. It’s an additional cost that Razer devices didn’t need.
Walmart is using a chatbot from Pactum AI to automatically negotiate some of its supplier deals. The technology saves an average of three percent on contracts and is even preferable to the vendors. Walmart says three out of four suppliers prefer haggling with the AI over a human. Pactum's system simply asks Walmart to set its budget and requirements, such as discounts and payment terms. It compares a supplier's demands with trends, commodity values and competitors' costs. After that, the AI can strike a deal in a matter of days, rather than the weeks or months of conventional talks.
This article originally appeared on Engadget at https://www.engadget.com/the-morning-after-apple-drops-lawsuit-against-former-exec-who-accused-the-company-of-spying-111833313.html?src=rss
After more than three years of litigation, Apple has quietly dropped its lawsuit against Gerard Williams III, the former chip executive the company accused of poaching employees. Williams spent nearly a decade working for Apple, leading development on some of its most important chips – including the A7, the first 64-bit processor for mobile devices.
In 2019, Williams left Apple to co-found Nuvia, a chip design firm later acquired by Qualcomm in 2021. When the tech giant first sued Williams, it accused him of “secretly” starting Nuvia and recruiting talent for his startup while he was still an Apple employee. Williams disputed Apple’s claims and accused the company of spying on his text messages.
As reported by Bloomberg, Apple filed a request to dismiss the suit against Williams earlier this week. The document does not state the company’s reason for dropping the case. However, it does say Apple did so “with prejudice,” meaning it cannot file the same claim against Williams again. It also suggests the two sides came to a settlement. Apple did not immediately respond to Engadget’s comment request.
In the weeks leading up to Wednesday’s dismissal request, court documents show Apple sought the recusal of Judge Sunil Kulkarni. Around March 17th, 2023, the company added two lawyers from the legal firm Morrison and Foerster to the team litigating its case against Williams. On March 28th, Judge Sunil Kulkarni filed a brief disclosing that he had worked at Morrison and Foerster for approximately 13 years and had kept in contact “over the years” with Bryan Wilson and Ken Kuwayti, the two “MoFo” attorneys Apple hired on as counsel earlier in the month.
“I have occasional social interactions with them (e.g., bimonthly lunches, seeing them at parties of mutual friends, and so on),” Judge Kulkarni wrote. “I believe I have recused myself from past cases involving Mr. Wilson and/or Mr. Kuwayti, but solely as a prophylactic measure.” After learning of the involvement of his former colleagues, Judge Kulkarni held an “informal” meeting with the two sides where he said he was “leaning toward recusal” if Apple retained the counsel of either Wilson or Kuwayti. In that same meeting, Kulkarni says he told Apple and Williams his recusal from the case would likely mean a delay in the case going to trial. Before the meeting, the case was scheduled to go to trial on October 2nd, 2023.
In a brief filed on April 6th, Williams and his legal team came out strongly against the idea of Judge Kulkarni removing himself from the case, arguing Apple’s position on the subject “should not matter” and that the move had the potential to be “prejudicial” against the former exec.
“Given that this case has been pending for over three years – with a fast-approaching discovery deadline and trial date – and given the Court’s familiarity with the parties, the case history, and the applicable law, the Court’s recusal decision has the potential to be prejudicial and disruptive,” the brief states. It then argues it was Apple that introduced a potential conflict of interest to the case.
“Even if a conflict existed that might warrant recusal, the procedure imposed by the Court – allowing the party that introduced the ‘conflict’ and would theoretically stand to benefit from it – to decide whether to waive it is inconsistent with basic rules of fairness and due process,” the brief concludes. “Such a procedure would set a dangerous precedent for judge shopping in the middle of a case: any part, at any time, could recruit former colleagues of a sitting judge and then force his or her recusal.”
Putting together what happened after that point is more difficult. However, after the 6th, the court in Santa Clara held multiple hearings where no one from either side appeared. Apple then filed to dismiss the case on April 26th. Qualcomm, Williams' current employer, did not immediately respond to Engadget's request for comment.
This article originally appeared on Engadget at https://www.engadget.com/apple-drops-lawsuit-against-former-exec-who-accused-company-of-spying-211547595.html?src=rss
A former Apple employee who pled guilty to defrauding the company out of over $17 million has been sentenced to three years in prison and ordered to repay his ill-gotten gains. Dhirendra Prasad, who primarily worked as a buyer in Apple's Global Service Supply Chain department during his time at the company, admitted to charges of conspiracy to commit mail fraud and conspiracy to defraud the United States in November. As iMore notes, two charges of conspiracy to commit money laundering were dismissed during sentencing.
Prasad joined Apple in 2008 and carried out his schemes between 2011 and 2018. According to the US Attorney's Office for the Northern District of California, he conspired with two vendors to conduct fraud against Apple by "taking kickbacks, stealing parts, inflating invoices and causing Apple to pay for items and services it never received." Prasad is said to have used his insider knowledge of Apple's fraud detection practices to avoid being caught for several years.
The government has already seized $5.5 million worth of assets from Prasad, who a judge ordered to pay an additional forfeiture money judgment of $8.1 million. On top of that sum and the $17.4 million Prasad has been told to give back to Apple, he was ordered to pay $1.9 million to the Internal Revenue Service — he conceded that he did not pay tax on the proceeds of his schemes. Following Prasad's time in prison, he will have to serve three years of supervised release.
This article originally appeared on Engadget at https://www.engadget.com/ex-apple-employee-sentenced-to-three-years-in-prison-after-17-million-fraud-scheme-160225741.html?src=rss
Telegram might soon disappear from Brazilian app stores after a federal court in the country has issued a temporary ban against the messaging service. Judge Wellington Lopes da Silva has ordered Google and Apple to remove the app from their stores and for mobile carriers to block access to it for failing to hand over complete user data from two neo-Nazi group chats. Telegram will also have to pay a fine worth almost $200,000 a day until it's able to give authorities data from the groups believed to have been used to incite attacks on schools in Brazil.
According to The New York Times, the group chats were found on the phone of a teenager accused of committing two school shootings in November, which left three dead and 13 people injured. Authorities said they saw murder tutorials, bomb-manufacturing instructions and violent videos in those group chats, in addition to Nazi content. Brazilian justice minister Flavio Dino said: "The so-called antisemitic movement is acting in these networks. And we know that this is at the base of violence against our children, our teens."
Judge da Silva explained that Telegram only handed over information on the administrator of a channel named the "Brazilian Anti-Semitic Movement." It failed to give authorities information on members of that group and any data from another channel called "Anti-Semitic Front." The service reportedly said that the groups had been deleted and that it couldn't recover any information, but that wasn't enough to justify not complying with the court's subpoena to the judge
The Brazilian Supreme Court previously banned Telegram for failing to freeze accounts spreading disinformation ahead of last year's presidential elections. However, the ban was reversed in just a couple of days, and Telegram blamed its noncompliance to lost emails.
This article originally appeared on Engadget at https://www.engadget.com/brazilian-court-bans-telegram-for-failing-to-hand-over-data-from-neo-nazi-groups-100853097.html?src=rss
On April 24th, 2023, reports circulated that Blizzard Entertainment was being sued by former Chinese publishing partner NetEase after servers shutdown in January when the two failed to reach a continuation agreement. However, a day later, it turns out that NetEase was in fact not suing the company — instead, as reported by PC Gamer, the suit is being brought by a single individual who is known to be a serial litigant with no history with NetEase. It appears the court documents listened NetEase erroneously; the company does not have anything to do with the lawsuit. Originally, MMO-focused gaming website Wowhead noticed the suit.
Since this story was originally published, those court documents have been re-published to reflect that the suits are coming from a Yang Jun; all mentions of NetEase have been removed.
“We haven’t received the lawsuit yet, but we are confident we aren’t in breach of any licensing agreements. The terms NetEase appears to be complaining about reflect standard industry practice and have been mutually-beneficial for years," an Activision rep wrote in a statement to Engadget prior to the discovery that NetEase was not involved in the lawsuit. "While this persistent campaign by one former partner is disappointing and puzzling, it’s important to note that we have enjoyed nearly two decades of positive experiences operating in China, and remain committed to serving players and protecting their interests.”
Blizzard and NetEase were successful partners for the past 14 years before negotiations broke down to renew the long-term licensing agreement. This led to a complete cessation of all Blizzard games and services in the region, including popular properties like World of Warcraft, Overwatch 2, Starcraft and Diablo III, among others. Millions of Chinese players lost access to their accounts and related data. Some started fresh with new accounts in other regions, but most (112 million people) opted for a refund.
The agreement did not end amicably, with reports of NetEase staffers tearing down the Blizzard offices and livestreaming the destruction of a World of Warcraft statue. NetEase's president of global investment and partnership, Simon Zhu, also seemed to call out a high-ranking Blizzard staffer as a “jerk” in a LinkedIn post. Despite the seeming animosity, though, the lawsuit does not come from NetEase.
Update, 4/24/23, 3:30PM ET: This story and its headline have been updated to indicate that this lawsuit hasn't been confirmed yet, as Activision itself nor Engadget has seen a copy of the lawsuit yet.
Update, 4/25/23, 11:30AM ET: A full statement provided by Activision has been added to the story.
Update, 4/25/23, 2:35PM ET: This story and its headline has been updated to reflect the recent development that NetEase was erroneously named in this lawsuit.
This article originally appeared on Engadget at https://www.engadget.com/china-court-documents-incorrectly-showed-activision-was-being-sued-by-former-partner-netease-183534200.html?src=rss
An appeals court has issued a ruling in the long-running antitrust tussle between Apple and Epic Games. As Bloombergreports, the US Ninth Circuit Court of Appeals upheld a lower court ruling, which rejected most of Epic's claims that Apple violated federal competition law by prohibiting alternative app stores on its devices. The three-judge panel also upheld a part of the original ruling that was in Epic's favor.
“There is a lively and important debate about the role played in our economy and democracy by online transaction platforms with market power,” the panel wrote in the decision. “Our job as a federal court of appeals, however, is not to resolve that debate — nor could we even attempt to do so. Instead, in this decision, we faithfully applied existing precedent to the facts.”
The ruling maintains the status quo, unless further appeals move the case to a higher court. One added wrinkle is the fact that Epic may now be on the hook for Apple's legal fees, as Axios' Stephen Totillo pointed out.
“Today’s decision reaffirms Apple’s resounding victory in this case, with nine of ten claims having been decided in Apple’s favor. For the second time in two years, a federal court has ruled that Apple abides by antitrust laws at the state and federal levels," Apple told Engadget in a statement. "The App Store continues to promote competition, drive innovation, and expand opportunity, and we’re proud of its profound contributions to both users and developers around the world. We respectfully disagree with the court’s ruling on the one remaining claim under state law and are considering further review.”
In the original 2021 ruling, US District Judge Yvonne Gonzalez Rogers determined that although Apple prevented users from being able to pay less for apps or in-app purchases, it wasn't running the App Store like a monopoly. Still, Rogers told Apple to let developers direct users to alternative payment systems, which would have enabled them to bypass the 15 to 30 percent cut Apple typically takes from in-app purchases.
Apple won a last-gasp delay on the implementation of those changes. However, in 2022, it started allowing the makers of certain apps to redirect users to their own websites for payments and to fully manage their accounts.
Engadget has contacted Epic for comment. The company has made similar antitrust claims in a lawsuit against Google and that case is set to go to trial in November.
Epic kickstarted its battles against Apple and Google when it offered Fortnite mobile players a cheaper way to pay for in-game currency that bypassed the iOS and Android payment systems. Apple and Google removed Fortnite from their app stores, and Epic responded withlawsuits against both companies.
Regardless of the ultimate outcome in both cases, Apple and Google may support third-party app stores on iOS and Android anyway. Regulators in other markets have scrutinized both companies' app store practices. As a result of new European Union laws in particular, Apple is reportedly preparing to allow third-party marketplaces on the iPhone as soon as next year. If and when it does, Epic's own mobile app store is ready to go, according to CEO Tim Sweeney. Microsoft is preparing its own mobile app store too.
This article originally appeared on Engadget at https://www.engadget.com/apple-wins-appeals-court-ruling-against-epic-games-191331514.html?src=rss
The Supreme Court will soon hear two cases that could decide whether or not government figures can block their critics on social networks. The court has agreed to tackle appeals from California and Michigan residents who claim officials violated First Amendment free speech rights by blocking them on social media in response to critical commentary.
In California, Christopher and Kimberly Garnier believe Poway Unified School District members Michelle O'Connor-Ratcliff and TJ Zane unfairly blocked them on Facebook and Twitter for writing hundreds of critical comments on talking points like school budgets and race. Michigan's Kevin Lindke, meanwhile, says City Manager James Freed violated his rights by blocking him on Facebook over criticism regarding the pandemic.
The cases have had different outcomes so far. A federal judge sided with the Garniers in 2021, and an appeals court upheld the decision noting that O'Connor-Ratcliff and Zane both used their social accounts in an official role. However, the federal judge in the other case ruled for Freed in 2021, who won an appeal in 2022. Freed wasn't acting as City Manager when he blocked Lindke, the judges found.
Cases like this took the spotlight in 2019, when then-President Trump and Rep. Alexandria Ocasio-Cortez both faced accusations they violated free speech rights by banning critics. To date, courts have typically ruled based on whether or not officials are using their accounts for business. Even a personal account used for official activity amounts to a public space where criticism must be allowed, a federal appeals court found when hearing Trump's case. These issues haven't reached the Supreme Court until now. The legal body's decisions could settle the question and force officials to allow critics so long as the posts don't amount to harassment or threats.
This article originally appeared on Engadget at https://www.engadget.com/supreme-court-will-decide-if-government-officials-can-block-social-media-critics-155717504.html?src=rss
