International law enforcement, led by the UK’s National Crime Agency, disrupted ransomware gang Lockbit's operation. The group behind notable hacks against aircraft manufacturer Boeing, chip giant Taiwan Semiconductor Manufacturing Company, sandwich chain Subway and thousands more had its site taken offline on Monday while authorities arrested major players behind the gang. "This site if now under the control of law enforcement," the website reads. According to malware repository Vx-underground, law enforcement took down at least 22 Lockbit-affiliated Tor sites.

"Through our close collaboration, we have hacked the hackers; taken control of their infrastructure, seized their source code, and obtained keys that will help victims decrypt their systems," National Crime Agency Director General, Graeme Biggar, said in a statement. “As of today, LockBit are locked out. We have damaged the capability and most notably, the credibility of a group that depended on secrecy and anonymity."

Lockbit admitted defeat, too. In a statement to Vx-underground, the group said "FBI pwned me." Operation Cronos, the name law enforcement used for their efforts, also resulted in the seizure of source code and other useful data related to Lockbit's operations. At the same time, authorities in Poland, Ukraine and the US arrested key members of the ransomware operation. There are sanctions out for two more Lockbit affiliates in Russia.

There's more good news for Lockbit victims, too: the operation obtained keys from Lockbit to create a decryption tool for victims to get their data back, according to US Attorney General Merrick Garland. The free decryptors can be found via the No More Ransom project. 

Since 2019 when Lockbit first entered the scene, it's squeezed victims for more than $120 million in ransomware payments, according to acting assistant AG Nicole Argentieri.

Xiaolang Zhang, the former Apple employee who pleaded guilty to stealing information about the development of the company's self-driving vehicle, has been sentenced to 120 days in prison followed by a three-year supervised release. Zhang was arrested back in 2018 at San Jose International Airport just as he was about to board a flight to China. He initially pleaded not guilty until he changed his tune in 2022 and admitted to stealing trade secrets. In addition to serving time behind bars, he also has to pay restitution amounting to $146,984, according to the court document of his sentencing first seen by 9to5Mac. Zhang originally faced up to 10 years in prison and a fine of $250,000.

The former Apple employee worked as a hardware engineer for the company's decade-old autonomous vehicle initiative codenamed Project Titan. Based on Apple's complaint, Zhang transferred a 25-page document containing engineering schematics of a circuit board for the company's self-driving vehicle to his wife's laptop via AirDrop. He also saved a copy of technical manuals that described Apple's prototype to that laptop, in addition to stealing circuit boards and a Linux server from the company's development labs. 

Zhang resigned from Apple following a paternity leave and a trip to China, telling the iPhonemaker that he was going to work in the country for XPeng Motors. That reportedly triggered an investigation, since XPeng is also working on autonomous driving technology, which revealed that Zhang was caught on CCTV taking hardware from Apple's labs and transferring files to his wife's computer. He's expected to surrender himself by June 19, after which he will be sent to a minimum-security facility as close as possible to his home in San Jose, California. 

Apple's self-driving vehicle has been in the works for a decade, but it has yet to launch a product consumers can buy. Bloomberg's Mark Gurman recently reported that the company changed its plans and is now developing an EV like Tesla's instead of a full-fledged autonomous vehicle. The long-awaited Apple Car is now projected to debut no earlier than 2028. 

Samsung chairman Jay Y. Lee's legal troubles may be in the rearview mirror as a Korean court acquitted him of stock manipulation and accounting fraud charges over a 2015 merger, The Financial Times has reported. The ruling allows Lee to continue leading Samsung, which saw a sharp decline in revenue last year. 

Seeking a five year jail term, prosecutors accused Lee of manipulating the share price of two Samsung subsidiaries to smooth the way for a merger that allowed him to consolidate his power. However, the Seoul Central District Court ruled that the prosecutors failed to prove that. "It is hard to say that Lee Jae-yong [aka Jay Y. Lee] . . . spearheaded the merger, and that the merger was done just for the sake of Lee’s succession," the judge stated in the ruling.

The verdict will allow Lee and Samsung to focus on its declining smartphone and memory chip businesses. Samsung recently lost its smartphone sales crown to Apple, and is now behind SK Hynix in the new and hot market of high-bandwidth memory (HBM) used by NVIDIA and others to create artificial intelligence (AI) models. 

The decision was heralded by business groups including the Korea Chamber of Commerce and Industry, but not everyone in the country agreed. "The ruling will free Lee of legal risks, but I am at a loss for words in terms of the country’s economic justice," Park Ju-geun, head of corporate thinktank Leaders Index, told the FT. "This goes totally against all previous court rulings on the merger."

Lee was originally sentenced to five years in prison in 2017 after being found guilty of bribing public officials over the same merger. He walked free after a year in detention, but the South Korean Supreme Court overturned that decision and ordered the case to be retried.

While Lee was sentenced with two-and-a-half years of prison time in early 2021 in that retrial, he was paroled half a year later in a development that civic groups had described as another example of the justice system being lenient towards the country's elite. (Korea's former president Park Geun-hye also went to jail for her role in the same affair.) 

In 2022, Lee was given a pardon by South Korean President Yoon Suk Yeol, ostensibly so he could help the country overcome its economic crisis. Ironically, Yoon is the country's former chief prosecutor and oversaw the original convictions of Lee and Park. 

New Yorkers can say goodbye — for now — to the robot the New York Police Department (NYPD) used to patrol the Times Square subway station. The Knightscope K5, which is a 400-pound machine that looks like it could be R2-D2's massive sibling, was one of Mayor Eric Adams' high-tech experiments for New York City. It was deployed in a pilot last year ostensibly to help keep commuters safe, but it had no actual capabilities that could be useful in situations that had to be addressed on site. "The K5 Knightscope has completed its pilot in the NYC subway system," a spokesperson for the department told The New York Times. 

The K5 has cameras that can record video and a button that people can press to get in touch with a live agent. It patrolled the station from midnight until 6AM throughout its trial run that lasted for two months, though "patrolled" might be a generous way of putting it. The machine has no arms and can't go up or down the stairs. Commuters told The Times that it usually has a couple of cops with it and that it almost always seemed to be plugged in. 

New York leased the K5 for around $9 an hour during its trial phase that ended in December. "This is below minimum wage," Adams said when he announced the robot's deployment at the Times Square station. "No bathroom breaks, no meal breaks." At the time, privacy advocates had been concerned that the machine could eventually be equipped with facial recognition and other surveillance tools. They no longer have to worry about the K5 being used for surveillance in NYC, unless, of course, city officials decide to keep on leasing it for other purposes. A Knightscope spokesperson told The Times that the company is "not authorized to speak about certain clients," which presumably includes the NYC government. 

It looks like Ring is reversing course on its police-friendly stance regarding data sharing, according to reporting from Bloomberg. Amazon told the publication that Ring’s home doorbell unit would stop acquiescing to warrantless police requests for footage from users’ video doorbells and surveillance cameras. This practice has long been derided by privacy advocacy groups, like the Electronic Frontier Foundation. Senator Ed Markey even launched a probe into the policy back in 2022.

Additionally, Ring will disable its Request For Assistance tool next week, which is a program that allows law enforcement to ask users for footage on a voluntary basis, according to an official blog post. From now on, police and fire departments will have to seek a warrant to request footage from users, though Amazon could provide footage without a warrant if the agency can prove its essential for an ongoing emergency. 

As a matter of fact, the entire Neighbors app, which is where the Request For Assistance feature lives, is undergoing an overhaul to shift its focus from crime and safety to more of a community hub, according to Ring spokesperson Yassi Yarger. To that end, the Neighbors app is getting a new highlight reel feature for users to peruse the most popular video captures of the week. Ring hasn't given a reason given for this sudden shift in priorities. Crime is down nationwide, sure, but it's not like we live in a Star Trek utopia. The company has been diversifying its portfolio lately, adding new products to the lineup, which could be one reason. 

Ring has been cozying up with law enforcement since inception, as the company always stated its primary reason to exist was to improve public safety. “Our mission to reduce crime in neighborhoods has been at the core of everything we do at Ring,” founding chief Jamie Siminoff said when Amazon bought the company for $839 million back in 2018.

Of course, we don’t exactly know if Amazon and Ring will stick by this decision, or if they’ll start quietly allowing law enforcement to nab videos six or eight months down the line. However, this is becoming something of a trend in the tech industry. Google just changed its location history feature on Maps to stop police from nabbing data on everyone in the vicinity of a crime. Law enforcement had been relying on the feature for years.

The US attorney's office in Massachusetts says eBay will pay a $3 million penalty to resolve criminal charges following a harassment campaign conducted by several former executives. Several ex-employees targeted a couple who wrote a newsletter that was critical of the company.

The Justice Department charged eBay with two counts of stalking through interstate travel, two counts of stalking through electronic communications services, one count of witness tampering and one count of obstruction of justice. The $3 million fine was the statutory maximum for the felonies. As part of a deferred prosecution agreement with authorities, eBay also needs to improve its compliance program and retain an independent corporate compliance monitor for three years.

The US attorney's office says eBay "admitted to a detailed recitation of all the relevant facts about its conduct." In August 2019, the company's former senior director of safety and security Jim Baugh and six others carried out a harassment campaign against Ina and David Steiner of Massachusetts. The couple wrote about litigation involving eBay and higher-ups at the company were said to have been frustrated about the negative coverage.

Baugh and his co-conspirators harassed the couple by, among other things, sending them a fetal pig, a funeral wreath and live spiders and cockroaches. According to prosecutors, three of the former eBay employees traveled to the Steiners' home in the aim of planting a GPS tracking device on their car. The campaign also involved sending harassing messages via Twitter (now X).

Baugh and several others were convicted and sent to prison. One other has admitted to their part in the campaign but has yet to be sentenced.

In a victim impact statement published on their website, the Steiners wrote that "eBay's actions against us had a damaging and permanent impact on us — emotionally, psychologically, physically, reputationally, and financially — and we strongly pushed federal prosecutors for further indictments to deter corporate executives and board members from creating a culture where stalking and harassment is tolerated or encouraged."

The pair and Steiner Associates, the publisher of their EcommerceBytes newsletter, have filed a civil lawsuit against eBay and the former employees. A trial has been scheduled for March next year.

Donald Trump’s former “fixer,” Michael Cohen, used Google Bard to cite made-up legal cases that ended up in a federal court. The New York Times reported Friday that Cohen admitted in unsealed court papers that he passed on documents referencing bogus cases to his lawyer, who then relayed them to a federal judge. Cohen reportedly wrote in the sworn declaration he hadn’t stayed on top of “emerging trends (and related risks) in legal technology.”

Cohen’s legal team filed the paperwork in a motion asking for an early end to court supervision from his 2018 campaign finance case, for which he served three years in prison. After Cohen’s attorney, David M. Schwartz, presented the legal documents to the federal court, Judge Jesse M. Furman of the Federal District Court said he was having trouble finding the three decisions cited by Schwartz (via Cohen).

Judge Furman told Schwartz that if he couldn’t provide documentation of the cases, the attorney needed to provide “a thorough explanation of how the motion came to cite cases that do not exist and what role, if any, Mr. Cohen played in drafting or reviewing the motion before it was filed.” Schwartz must also explain why he shouldn’t be sanctioned “for citing nonexistent cases to the court.” Cohen is a former lawyer who was disbarred after pleading guilty to multiple felonies.

Enter Bard. Cohen said he didn’t realize the AI bot “was a generative text service that, like ChatGPT, could show citations and descriptions that looked real but actually were not.” Cohen also blamed his lawyer, saying he didn’t realize Schwartz “would drop the cases into his submission wholesale without even confirming that they existed.”

Although lawyers using AI chatbots to cite hallucinated cases makes for easy comedy, this flub could have profound implications for a critical case with potential political ramifications. Cohen is expected to be the star witness in the Manhattan criminal case against Trump for allegedly falsifying business records. The Bard flub gives Trump’s lawyers new ammunition to discredit the onetime fixer.

Cohen joins the company of ChatGPT Lawyer Steven Schwartz, who cited made-up cases (sourced through OpenAI’s chatbot) in a civil case earlier this year. He was allegedly joined by the attorney for Fugees rapper Pras Michel. In October, the artist accused his lawyer of using an AI program he may have had a financial stake in to produce his closing arguments.

A London judge has sentenced the teenage hacker who infiltrated Rockstar Games, leaking Grand Theft Auto VI footage, to an indefinite hospitalization, as reported by The BBC. The 18-year-old, Arion Kurtaj, breached Rockstar’s servers from a Travelodge hotel while under police custody, using only an Amazon Fire TV Stick, smartphone, keyboard and mouse. (He was promptly re-arrested.) Kurtaj was a central member of the Lasus$ international hacking group.

Doctors declared Kurtaj unfit to stand trial because he has acute autism. Following the judgment, the jury was instructed to determine if he committed the alleged crimes, not whether he had criminal intent. Following a mental health assessment suggesting he “continued to express the intent to return to cybercrime,” the judge decided he remained too high a risk to the public. The court also heard accounts of Kurtaj’s allegedly violent behavior while in custody, including reports of injury and property damage.

Despite Rockstar's claim that the hack cost it $5 million and thousands of hours of staff time, Kurtaj’s attorneys argued the success of the GTA 6 trailer, which racked up 128 million views in its first four days, meant his hack didn’t cause serious harm.

A second Lapsus$ member was found guilty in the same trial, but the 17-year-old’s name wasn’t made public because they’re a minor. The unnamed hacker was accused of working with Kurtaj and other Lapsus$ members to infiltrate Nvidia and phone company BT/EE, stealing data and demanding a $4 million ransom. The minor was sentenced to an 18-month youth rehabilitation order under “intense supervision,” including a ban on VPN use.

The two accomplices are the first Lapsus$ members to be convicted. Authorities believe other “digital bandits” in the group (suspected to be primarily teenagers in the UK and Brazil) are still at large. It isn’t clear what kind of payoff the hackers got from the ransom requests, if any, as none of the affected companies have admitted to ponying up.

Trevor Milton, the disgraced founder of Nikola, was just sentenced to four years in prison on three counts of fraud. 

In October 2022, a jury found Milton guilty of one count of securities fraud and two counts of wire fraud. Milton faced up to 60 years in prison. Prosecutors asked the judge for an 11-year prison sentence and a $5 million fine, according to The New York Times, while the defense argued for probation. 

After announcing the sentence at a federal court hearing in New York City, U.S. District Judge Edgar Ramos spoke directly to Milton. "As difficult as it may be for you or your family to hear, I believe the jury got it right," Ramos said, as transcribed Reuters.

Milton addressed the court before sentencing was handed down, saying "I did not intend to harm anyone and I did not commit those crimes levied against me." He also spoke at length about his rural upbringing and recited biblical verse. 

Prosecutors claimed that Milton pumped up the value of the company's stock by lying to investors about "nearly all aspects" of Nikola's business. Among other things, Milton claimed his company had a fully functional electric truck. The company released a video that made it appear as though a Nikola One prototype was able to move by itself. However, an indictment alleged that the truck was actually rolling down a hill and that Milton was involved in the video's creation.

In addition, Milton was accused of lying about Nikola having billions of dollars worth of pre-order reservations and that it was producing hydrogen fuel at four times less than market rates. Prosecutors also said Milton falsely claimed Nikola had developed "game-changing" battery tech.

Nikola is still in business and it plans to resume deliveries of its battery electric truck in early 2024 following a recall over battery issues that cost around $61.8 million to resolve. In the nine months to September 30, Nikola produced 96 trucks and shipped 79.

The company's stock price has dropped by 99 percent since 2020 and investors are said to have lost more than $660 million. Milton sold around $100 million of his Nikola stock in 2020 and spent most of that on luxury goods such as a plane and real estate, according to the Times. It's likely that Milton will appeal this conviction, as he's already asked Ramos for a new trial following the jury's guilty verdict.

Binance CEO Changpeng Zhao is set to plead guilty to federal money laundering charges and step down from his position at the company he founded. Zhao and the cryptocurrency exchange have reached a plea deal with the government, which conducted a multi-year investigation into the company, CNBC reports. As part of the settlement, Binance will forfeit $2.5 billion and pay a $1.8 billion fine. Zhao is slated to personally pay $50 million.

Zhao will be prohibited from having any involvement with Binance for three years. As part of the plea deal, Zhao will plead guilty later on Tuesday to violating and causing a financial institution to violate the Bank Secrecy Act, according to Reuters.

Binance, Zhao and others were accused of failing to institute an effective anti-money laundering program. According to the Justice Department, they willfully violated economic sanctions “in a deliberate and calculated effort to profit from the US market without implementing controls required by US law." Court documents state that the lack of anti-money laundering measures led to Binance facilitating almost $900 million in financial transactions in violation of sanctions against Iran between 2018 and 2022.

In a statement, Zhao confirmed he is stepping down as CEO, with the company's former global head of regional markets Richard Teng taking over the top job. "Today, I stepped down as CEO of Binance," Zhao wrote on X. "Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself." 

Zhao now plans to take a break before perhaps getting more involved in investing. However, "I can’t see myself being a CEO driving a startup again. I am content being an one-shot (lucky) entrepreneur."

The settlement resolves criminal charges related to breaching sanctions regulations, conspiracy and conducting an unlicensed money transmitter business. Meanwhile, former compliance chief Samuel Lim will reportedly face charges as part of the deal.

This is a major settlement between the company and agencies such as the Commodity Futures Trading Commission (CFTC) and the Treasury Department. The CFTC charged Binance, Zhao and Lim with violating its rules, as well as the Commodity Exchange Act, earlier this year.

“Binance turned a blind eye to its legal obligations in the pursuit of profit. Its willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform,” Treasury Secretary Janet Yellen said in a statement. “Today’s historic penalties and monitorship to ensure compliance with US law and regulations mark a milestone for the virtual currency industry. Any institution, wherever located, that wants to reap the benefits of the US financial system must also play by the rules that keep us all safe from terrorists, foreign adversaries, and crime, or face the consequences.”

Binance will remain in operation, albeit under stricter rules. It will need to ensure it abides by anti-money laundering regulations by beefing up its compliance program. The company will also have to appoint an independent compliance monitor.

In June, the Securities and Exchange Commission sued Binance and Zhao, alleging that they helped US traders bypass restrictions and violated securities laws by, among other things, mishandling funds. The SEC also claimed that (in similar allegations to those laid against rival exchange FTX) Binance commingled billions of dollars of customer money with the company's own funds. The SEC charges were not resolved in this settlement.