It’s one thing to steal from the government, but stealing from children is a whole lot worse. Sadly, that’s precisely what one New Mexico school district employee did. Kristy Stock was sentenced to 18 months in federal prison for her role in a scheme to steal and resell more than 3,000 iPods intended for Native American students.

A release issued by the Department of Justice details the charges against Stock of tax fraud and transportation of stolen goods. According to her plea agreement and court documents, the scheme began back in 2013 when she was in charge of a program for the Central Consolidated School District of New Mexico designed to provide devices to Native American students living on tribal reservations.

While overseeing the program, Stock was supposed to use federal grant money to buy iPods to distribute to students. However, thanks to help from other conspirators including her friend James Bender and Saurabh Chawla, the group ended up shipping the stolen iPods to Maryland where they were listed on eBay before being sold at a “substantial” markup.

Due to his own account having previously been suspended due to security concerns, Chawla was forced to use Bender’s eBay account to list the stolen devices for auction, with Bender serving as an intermediary. Later, between 2015 and 2018, Stock communicated directly with Chawla, providing info on the make, model, color and quantity of devices before agreeing on a price and putting them up for auction.

All told, Stock admitted that she made more than $800,000 from selling stolen iPods between 2013 and 2018. To make matters worse, Stock also filed fraudulent tax returns on the income, resulting in tax loss of around $270,000. That said, while Stock faces an 18-month prison sentence, she actually got off lighter than her co-conspirator Chawla, who was sentenced to 66 months after failing to pay more than $700,000 in taxes. Meanwhile, Bender was sentenced to just 366 days in prison.

So while Stock and her crew eventually got caught, the real lesson is that here is that crime doesn’t pay–especially if you’re stealing from children and then lying on your taxes about your ill-gotten income.

Nikola Tesla may have been pleased that both of his names were employed by electric car companies, but perhaps less so that Nikola sued Tesla, and vice-versa. Now, Nikola Corp. is reportedly dropping its $2 billion patent infringement lawsuit against Tesla Inc. as Nikola company founder Trevor Milton faces a criminal indictment on fraud charges, Bloomberg has reported. 

According to a filing in a San Francisco court, both companies have agreed to withdraw all claims and counter-claims against each other. Nikola accused Tesla of copying several patented designs for a windshield design, fuselage and side door. Tesla denied all the claims and countersued. 

Nikola unveiled the hydrogen-powered Nikola One semi-truck in 2016 with the promise of an 800-1,200 mile range with no pollution. However, it was accused by the SEC of deceiving investors, in one instance via a video that appeared to show the truck moving under power when it was simply rolling down a hill. CEO Trevor Milton was subsequently charged with two counts of securities fraud and one count of wire fraud by a federal grand jury. He has denied the claims.

A number of school districts in the US has canceled classes for today, December 17th, due to shooting and bomb threats supposedly circulating on TikTok and other social media channels. According to Bloomberg and The Verge, they include districts in Michigan, Washington, California, Texas, Minnesota and Missouri. The threats reportedly don't mention specific schools, but school authorities across the country are on alert and have opted to work with law enforcement and ensure students' safety. 

New Jersey Governor Phil Murphy tweeted that while "there are no known specific threats against New Jersey schools," authorities "will work closely with law enforcement to monitor the situation and remain prepared." In most cases, law enforcement agencies announced that they haven't found evidence that the threats are real and credible. A county sheriff in Missouri said that they don't think their schools are going to be attacked, but they want to be prepared just in case. 

While the source of the threats remain unclear, California's Gilroy Police Department determined that the post thought to involve Gilroy High School actually originated from outside of LA. Similarly, the Baltimore County Public Schools Twitter account posted that law enforcement agencies had discovered that the threats originated from Arizona and aren't credible.

In response to the situation, TikTok issued a statement stating that it's "working with law enforcement" to investigate the rumored threats. However, it denied any knowledge of the threats and said that it found no evidence that they originated or are spreading on the platform.

A UK appeals court has reversed a previous ruling that Wikileaks founder shouldn't be extradited to the US due to mental health concerns, the Associated Press has reported. The decision opens the door for Assange to be extradited to the US, where he'd face charges of espionage over Wikileaks' publication of government documents. 

Lower court Judge Vanessa Baraitser originally ruled that the US criminal justice system presented a risk to Assange's physical wellbeing. "The overall impression is of a depressed and sometimes despairing man, who is genuinely fearful about his future," the judge ruled in January. "For all of these reasons I find that Mr. Assange’s risk of committing suicide, if an extradition order were to be made, to be substantial."

In its appeal, however, the US government argued that Assange had no history of "serious and enduring mental illness" that would suggest any risk of self-harm. US lawyers also told British judges that if they extradited Assange, he could serve his US prison sentence in his home country of Australia. 

The High Court in London decided that those assurances were enough to guarantee Assange would be treated humanely. The final decision for his extradition is now in the hands of the UK home secretary, though Assange has the option of appealing. Assange's camp has argued that his work constitutes journalism and so his extradition would be a violation of press freedom.

The US government indicted Assange on 17 espionage charges along with one charge of computer misuse over Wikileaks' publication of leaked military and diplomatic documents. The maximum penalty is 175 years in prison, though US lawyers said "the longest sentence ever imposed for this offense is 63 months." Assange was denied bail for risk of flight and is being held at London’s high-security Belmarsh Prison.

A Canadian hacker named Gary Bowser (yes, like Mario's nemesis) has agreed to pay the company $10 million to settle a civil piracy lawsuit. Bowser, who was part of Switch hacking group Team Xecuter, was accused of being part of a "cybercriminal enterprise that hacked leading gaming consoles," as Eurogamer notes. Nintendo argued Bowser violated the company's copyright and it seems the hacks were not in another castle.

News of the settlement emerged several weeks after Bowser pleaded guilty to multiple federal hacking charges. He was fined $4.5 million in that case and faces up to 10 years in prison. Bowser, who was arrested in the Dominican Republic in October 2020 and deported to the US, admitted to having "developed, manufactured, marketed, and sold a variety of circumvention devices" that let people play ROMs on consoles. 

We reported on employees calling for Activision Blizzard boss Bobby Kotick’s resignation earlier this week in TMA, but pressure continues to mount. Alongside more than 800 Activision Blizzard employees and contractors that have signed a petition calling for CEO Bobby Kotick to be removed, there have been responses from both the head of PlayStation, Jim Ryan, and Microsoft’s Phil Spencer.

In a memo obtained by Bloomberg, Spencer reportedly said he and other leaders at Xbox are “disturbed and deeply troubled by the horrific events and actions” that reportedly took place at Activision Blizzard and that Microsoft was “evaluating all aspects” of their relationship with the game publisher.

-Mat Smith

Apple’s fully self-driving car ambitions reportedly still exist

The company may be narrowing its focus.

Bloomberg sources claim Apple is now shifting its attention to a fully self-driving car, not just a more conventional vehicle with semi-autonomous features. New project leader Kevin Lynch wants the very first model to drive itself, according to sources.

The company is reportedly speeding up its plans, too. Instead of a targeted launch in five to seven years, the sources said it was now aiming for 2025 — that’s just four years away.

Continue reading.

Sponsored by Ledger

Interested in crypto? The best way to get started is with Ledger.

Canadian police arrest teen for stealing $36.5 million in cryptocurrency

It's one of the biggest crypto thefts involving a single person.

Police in Canada say they recently arrested a teen who allegedly stole $46 million CAD (approximately $36.5 million) worth of cryptocurrency from a single individual in the US.

The owner of the currency was the victim of a SIM swap attack. Their cellphone number was hijacked and used to intercept two-factor authentication requests, thereby allowing access to their protected accounts. Some of the stolen money was used to purchase a “rare” online gaming username, which eventually allowed the Hamilton Police Service, as well as FBI and US Secret Service Electronic Crimes Task Force, to identify the account holder. Police seized approximately $7 million CAD ($5.5 million) in stolen cryptocurrency when they arrested the teen.

Continue reading.

Nike is building its metaverse inside of 'Roblox'

Yes, there’s a product showroom.

Roblox

Nike announced a partnership with Roblox to offer a free virtual playspace called Nikeland. In its current iteration, Nikeland includes minigames such as tag, dodgeball and the floor is lava that players can check out with their friends. Mobile integration allows you to use your phone to translate real-life movement into the game. In that way, you can do things like long jumps and fast sprints.

Why did Nike team-up with Roblox? Because it’s huge. With more than 200 million estimated monthly active users, it’s one of the most popular games among kids and teenagers.

Continue reading.

Google's second-gen Pixel Stand is available for pre-order

It has a fan?

Google

The new Pixel Stand is both bigger and more powerful than its predecessor — even if it didn’t make it in time for the Pixel 6 launch. It can charge the Pixel 6 Pro at up to 23W (21W for the regular Pixel 6) and has a fan to keep everything cool, but also presumably make noise while you charge. And while it will charge many Qi-compatible devices at up to 15W, Google phone owners receive some extra perks. You can use the Pixel 3 and newer models as makeshift Google Assistant smart speakers, display personal data like calendars while unlocked or turn your phone into a photo frame.

Continue reading. 

The biggest news stories you might have missed

Latest iOS update for iPhones 12 and 13 fixes dropped call issue

Engadget Deals: Google's Pixel 6 is up to $100 off right now

Engadget Deals: Apple's new 16-inch MacBook Pro is discounted by $100 at Amazon

The employee behind the #AppleToo protest is leaving the company

Subaru's Solterra EV has a 220-mile range and 360-degree safety camera

Cricut's Explore 3 is the perfect cutting machine for obsessive crafters

The US Department of Justice has charged two Iranian hackers for their involvement in a disinformation campaign that targeted American voters ahead of the 2020 presidential election. In October of last year, Seyyed Kazemi and Sajjad Kashian allegedly sent threatening emails to Democratic voters in Florida in which they threatened to physically hurt them if they did not vote for former President Donald Trump. When the incident first happened, the US Director of National Intelligence held a press conference to warn voters of the emails.

Additionally, Kazemi and Kashian allegedly attempted to break into 11 state voter registration and information websites. In one instance, the DOJ alleges they successfully downloaded the information of more than 100,000 state voters. They may have also carried out a disinformation campaign on Facebook that saw them contact, among other individuals, Republican senators and members of Congress. They claimed they were volunteers with Proud Boys and said they had evidence the Democratic Party planned to exploit security vulnerabilities in election systems to edit mail-in ballots.

Kazemi and Kashian’s efforts to sway the election culminated on November 4th when they allegedly attempted to hack the network of a US media company. They were unsuccessful because the FBI had warned the firm in time.

“This indictment details how two Iran-based actors waged a targeted, coordinated campaign to erode confidence in the integrity of the U.S. electoral system and to sow discord among Americans,” said Assistant Attorney General Matthew G. Olsen of the DOJ’s National Security Division in a statement. “The allegations illustrate how foreign disinformation campaigns operate and seek to influence the American public.”

US officials told The Washington Post they believe the two hackers are currently in Iran, suggesting they may not face authorities anytime soon. The DOJ also didn’t directly link their actions to the Iranian government.

Police in Canada say they recently arrested a teen who allegedly stole $46 million CAD (approximately $36.5 million) worth of cryptocurrency from a single individual in the US. According to authorities in Hamilton, Ontario, a city about one hour west of Toronto, the incident is the largest-ever cryptocurrency theft involving one person.

The owner of the currency was the victim of a SIM swap attack. Their cellphone number was hijacked and used to intercept two-factor authentication requests, thereby allowing access to their protected accounts. Some of the stolen money was used to purchase a “rare” online gaming username, which eventually allowed the Hamilton Police Service, as well as FBI and US Secret Service Electronic Crimes Task Force, to identify the account holder. Police seized approximately $7 million CAD ($5.5 million) in stolen cryptocurrency when they arrested the teen.

2021 has been a banner year for crypto thefts. In June, investors in South Africa lost nearly $3.6 billion in Bitcoin when the founders of one of the country’s largest cryptocurrency exchanges disappeared. That same month, police in the UK seized approximately $158 million in various digital currencies. At the time, it was the largest seizure of its kind in the country’s history.

A lack of technical knowledge may have just influenced an important court case. The New York Timesreports the defense for shooter Kyle Rittenhouse incorrectly claimed that an iPad's pinch-to-zoom function could modify footage of the incident, "creating what it thinks is there, not what necessarily is there." That sparked a debate between lawyers and Judge Schroeder, who maintained the burden was on the prosecution to show the imagery remained in its "virginal state," not on the defense to prove manipulation.

The judge may have accepted the argument. He denied the prosecution's request for an adjournment and instead called for a 15-minute recess, suggesting the team could find an expert to support their claim in that space of time. They didn't, and The Vergenoted that the trial resumed with the jury watching zoom-free video on a Windows PC connected to the courtroom TV.

As you might imagine, the defense's claim played fast and loose with the truth. Pinch-to-zoom on all devices may use algorithms, but only to scale the image — it doesn't change the content itself. This was an attempt to prevent the jury from getting a clearer view of the action, not a genuine challenge to the integrity of the video.

The court scene underscored a recurring problem with technical inexperience in criminal cases. When judges and law enforcement don't understand how technology works, they may set unrealistic expectations or even skew the outcome of a case. Police have repeatedly asked for Alexa recordings on the unfounded assumption that smart speakers are always recording, for instance. While it's not clear if the inaccurate pinch-to-zoom claim will significantly affect Rittenhouse's fate, it certainly didn't help jurors.

The Department of Justice has unsealed charges against a Ukrainian national over a ransomware attack against IT company Kaseya in July. Authorities in Poland arrested Yaroslav Vasinskyi last month and proceedings are underway to extradite him to the US. 

He has been charged with conspiracy to commit fraud and related activity in connection with computers, several counts of damage to protected computers and conspiracy to commit money laundering. If convicted on all charges, Vasinskyi faces a maximum sentence of 115 years in prison.

According to the indictment, Vasinskyi used a Kaseya product to distribute ransomware. As many as 1,500 businesses and organizations around the world were affected. REvil, the ransomware group Vasinskyi is linked to, originally demanded $70 million in exchange for unlocking victims' systems. Three weeks after the attack took place, Kaseya deployed a decryption key, which allowed its customers to regain access to their computers.

The DOJ also revealed it has seized $6.1 million in alleged ransom payments obtained by Russian national Yevgeniy Polyanin, another alleged member of REvil. Polyanin, who remains at large, has been accused of carrying out Sodinokibi/REvil ransomware attacks against several targets, including businesses and government departments in Texas, in August 2019. Polyanin faces similar charges to Vasinskyi. If convicted, Polyanin is looking at a maximum prison sentence of 145 years.

“Cybercrime is a serious threat to our country: to our personal safety, to the health of our economy, and to our national security,” Attorney General Merrick Garland said in a statement. “Our message today is clear. The United States, together with our allies, will do everything in our power to identify the perpetrators of ransomware attacks, to bring them to justice, and to recover the funds they have stolen from their victims.”