An anonymous reader quotes a report from The Guardian: More than 1,000 scientists and postgraduate students were barred from working in the UK last year on national security grounds, amid a major government crackdown on research collaborations with China. Figures obtained by the Guardian reveal that a record 1,104 scientists and postgraduate students were rejected by Foreign Office vetting in 2022, up from 128 in 2020 and just 13 in 2016.

The sharp increase follows a hardening of the government's stance on scientific ties with China, with warnings from MI5 of a growing espionage threat, major research centers being quietly shut down and accusations by a government minister that China's leading genomics company had regularly sought to hack into the NHS's genetic database. Geopolitical tensions stepped up further this week, as the US, Australia and the UK announced a multi-decade, multibillion-dollar deal aimed at countering China's military expansion in the Indo-Pacific. China said the Aukus plan to build a combined fleet of elite nuclear-powered submarines was "a path of error and danger."

The Foreign Office declined to give a breakdown by nationality, but data supplied by leading universities including Oxford, Cambridge and Imperial College suggests that, at these institutions at least, Chinese academics account for a majority of those denied clearance. Some have welcomed the policy shift, with one security expert saying the number of academics being barred is "commensurate with the threat." But leading scientists say the scheme is leaving universities struggling to recruit the best talent from abroad. "A majority of applicants are thought to be scientists seeking to move to the UK to take up offers of research degrees or fellowships," adds the Guardian. "But the Guardian is also aware of researchers, including five Chinese scientists at Imperial college, who did not pass clearance despite having already held positions at UK universities for several years -- and who may have had to leave the UK as a result."

China's TikTok is considering separating from parent ByteDance to help address U.S. concerns about national security risks, Bloomberg News reported on Tuesday, citing people familiar with the matter. Reuters reports: A divestiture, which could result in a sale or initial public offering, is considered a last resort and will be pursued only if the company's existing proposal with U.S. national security officials does not get approved, Bloomberg reported. The short-form video app is undergoing a national security review by the Committee on Foreign Investment in the United States (CFIUS) and it agreed last year to implement a number of measures under the plan, nicknamed "Project Texas", in an attempt to placate hostile lawmakers.

CFIUS has stalled in its process, leaving TikTok unsure of whether its plans will be sufficient to continue operating in the country, according to the report. Members of CFIUS from the Justice Department have been unwilling to accept TikTok's proposal, it added. CFIUS, a powerful national security body, had in 2020 unanimously recommended that ByteDance divest TikTok because of fears that user data could be passed on to China's government.

India plans to force smartphone makers to allow removal of pre-installed apps and mandate screening of major operating system updates under proposed new security rules, according to two people and a government document seen by Reuters. From a report: The new rules, details of which have not been previously reported, could extend launch timelines in the world's No.2 smartphone market and lead to losses in business from pre-installed apps for players including Samsung, Xiaomi, Vivo, and Apple. India's IT ministry is considering these new rules amid concerns about spying and abuse of user data, said a senior government official, one of the two people, declining to be named as the information is not yet public. "Pre-installed apps can be a weak security point and we want to ensure no foreign nations, including China, are exploiting it. It's a matter of national security," the official added. India has ramped up scrutiny of Chinese businesses since a 2020 border clash between the neighbours, banning more than 300 Chinese apps, including TikTok. It has also intensified scrutiny of investments by Chinese firms.

A recent set of sweeping US laws have already kicked off a boom in proposals for new mining operations, minerals processing facilities, and battery plants, laying the foundation for domestic supply chains that could support rapid growth in electric vehicles and other clean technologies. From a report: That's by design. A stipulation in the Inflation Reduction Act (IRA), enacted last year, restricts EV tax credits to vehicles with batteries that contain a significant portion of minerals extracted or refined within the US, or from countries that have free-trade agreements with it. Manufacturing the batteries that power these vehicles requires significant amounts of finished materials such as cobalt, graphite, lithium, manganese, and nickel. Today these often come from other nations, particularly China.

Billions of dollars of investments in battery materials have been announced in North America since the IRA passed, according to BloombergNEF. The "domestic content requirements" helped spark or accelerate those plans, observers say. But it's still not clear which nations will qualify for providing the processed materials, and some allies have accused the US of providing unfair advantages to its own industries. Some experts also worry that the requirements, which become stricter over time, are so stringent they could have the unintended effect of actually slowing the shift to cleaner technologies. After all, it takes years to get new mines and plants running under the best of circumstances, and the permitting process for major projects in the US is notoriously slow. Adding to the potential delays, some communities are already pushing back on certain proposals, citing environmental impacts, indigenous land concerns, and other issues.

The New York Times magazine tells the story of an innocuous-seeming message on LinkedIn in 2017 from Qu Hui, the deputy director of the China-based Provincial Association for International Science and Technology Development.

Federal agents eventually obtained search warrants for two Gmail addresses the official was using, and "In what would prove to be a lucky break, the investigators found that each email address was the Apple ID used for an iPhone, linked to an iCloud account where data from the phones was periodically backed up. The agents were later able to obtain search warrants for the two iCloud accounts [that] opened a treasure trove." This included confirmation of what they had suspected all along: that Qu worked for Chinese intelligence. His real name was Xu Yanjun. He had worked at the Ministry of State Security since 2003, earning six promotions to become a deputy division director of the Sixth Bureau in the Jiangsu Province M.S.S. Like so many of us, he had taken pictures of important documents using his iPhone — his national ID card, pay stubs, his health insurance card, an application for vacation — which is how they ended up in his iCloud account. There, investigators also found an audio recording of a 2016 conversation with a professor at N.U.A.A. in which Xu had talked about his job in intelligence and the risks associated with traveling. "The leadership asks you to get the materials of the U.S. F-22 fighter aircraft," he told the professor. "You can't get it by sitting at home." The discovery of evidence of Xu's identity in an iCloud account makes for a kind of delicious reversal. The ubiquitous use of iPhones around the world — a result of America's technological prowess — was helping to fight back against a rival nation's efforts to steal technology.
Qu scheduled a meeting in Brussels with one American target — where he was arrested and extradited to America, becoming the first-ever Chinese intelligence official convicted on U.S. soil on charges of economic espionage. The prosecution contended that Xu had been systematically going after intellectual property at aerospace companies in the United States and Europe through cyberespionage and the use of human sources. It's not often that prosecutors find a one-stop shop for much of their evidence, but that's what Xu's iCloud account was — a repository of the spy's personal and professional life. That's because often Xu used his iPhone calendar as a diary, documenting not just the day's events but also his thoughts and feelings.... The messages in Xu's iCloud account enabled investigators to make another damning discovery. Xu had helped coordinate a cyberespionage campaign that targeted several aviation technology companies....

At the end of the trial, Xu was convicted of conspiring and attempting to commit economic espionage and theft of trade secrets.... According to Timothy Mangan, who led the prosecution, the evidence laid out during Xu's trial goes far beyond merely proving his guilt — it uncovers the systematic nature of China's vast economic espionage. The revelation of Xu's activities lifts the veil on how pervasive China's economic espionage is, according to the F.B.I. agent. If just one provincial officer can do what he did, the agent suggests, you can imagine how big the country's overall operations must be.
The article notes that the Chinese government "also offers financial incentives to help Chinese expats start their own businesses in China using trade secrets stolen from their American employers." It also cites a 2019 report from a congressional committee's security review that found "myriad ways in which Chinese companies, often backed by their government, help transfer strategic know-how from the United States to China." The maneuvers range from seemingly benign (acquiring American firms with access to key intellectual property) to notoriously coercive (compelling American companies to form joint ventures with Chinese firms and share trade secrets with them in return for access to the Chinese market) to outright theft. Cyberattacks have become an increasingly common tactic because they can't always be linked directly to the Chinese government. Over the past few years, however, federal agents and cybersecurity experts in the U.S. have identified the digital footprints left along the trails of these attacks — malware and I.P. addresses among them — and traced this evidence back to specific groups of hackers with proven ties to the Chinese government.
One 2020 indictment blamed five "computer hackers" in China for breaching more than 100 organizations.

Thanks to Slashdot reader schwit1 for sharing the article.

An anonymous reader quotes a report from Gizmodo: A former TikTok employee turned whistleblower has reportedly met with multiple U.S. senators expressing concerns TikTok's plan to secure U.S. user data won't go far enough to stop possible Chinese espionage. The whistleblower told The Washington Post in an interview that the company's policy plan, dubbed Project Texas, doesn't go far enough and that properly ensuring U.S. data is secured from Chinese employees requires nothing short of a "complete re-engineering" of the way the app works. Those allegations come just days after another whistleblower raised concerns regarding TikTok's U.S. user controls. Combined, the comments could fan the flames for what looks like growing bipartisan support for a full-on nationwide TikTok ban.

The former TikTok employee turned whistleblower told the Post he worked at the company for around six months ending in early 2022 as a risk manager and head of a unit in TikTok's Safety Operations team. Part of that job, he claims, put him in charge of knowing which employees had access to certain tools and user data. He claims he was fired after speaking up about his data privacy concerns. Though he left TikTok prior to its finalization of the so-called Project Texas policy, he maintains he saw enough evidence to suggest the guardrails put in place to placate U.S. regulators fearful of Chinese employees viewing U.S. user data were insufficient. The whistleblower has reportedly already met with staffers from Iowa Sen. Chuck Grassley and Virginia Sen. Mark Warner's offices.

Specifically, the whistleblower shared a snippet of code with the Post which they say shows TikTok's code connecting with Toutiao, a Chinese news app also run by TikTok's parent company, ByteDance. The whistleblower alleges that connection could let Chinese employees intercept and potentially view U.S. user data. Gizmodo could not independently confirm those claims. The whistleblower, meanwhile reportedly did not advocate for an outright nationwide ban. Instead, he said the problems could be solved but would require further steps than what is included in the Project Texas proposal. Another alleged whistleblower came forward just days before the Post interview, alleging TikTok's access controls on U.S. data were "superficial" at best. "TikTok and ByteDance employees, he alleged, possess the ability to 'switch between Chinese and U.S. data with nothing more than the click of a button,'" reports Gizmodo.

The whistleblower alleged in a letter sent to ByteDance by Republican Missouri Rep. Josh Hawley: "I have seen first-hand China-based engineers flipping over to non-China datasets and creating scheduled tasks to backup, aggregate, and analyze data. TikTok and ByteDance are functionally the same company."

The U.S. government is not seeking to "decouple" from China, nor is it seeking "technological decoupling," but Washington "would like to see India achieve its aspirations to play a larger role in the electronics supply chain," U.S. Commerce Secretary Gina Raimondo said on Friday. From a report: On its part, the U.S. signed a memorandum of understanding with India on Friday to cooperate in the semiconductor sector. The semiconductor industries in both the nations are beginning to assess the resiliency and gaps in the supply chain network, said Raimondo, whose department is overseeing pouring of about $52 billion into the U.S. semiconductor industry. [...] But even as India and the U.S. tighten their tech ties, Washington is not looking to cut reliance on China, she insisted. "We see India as a trusted technology partner and we want to continue to deepen our technological relationship with India. But I also want to make it clear that the United States doesn't seek to decouple from China."

The House voted unanimously on Friday to declassify U.S. intelligence information about the origins of COVID-19, a sweeping show of bipartisan support near the third anniversary of the start of the deadly pandemic. From a report: The 419-0 vote was final approval of the bill, sending it to President Joe Biden's desk to be signed into law. Debate was brief and to the point: Americans have questions about how the deadly virus started and what can be done to prevent future outbreaks. "The American public deserves answers to every aspect of the COVID-19 pandemic," said Rep. Michael Turner, R-Ohio, the chairman of the House Intelligence Committee. That includes, he said, "how this virus was created and, specifically, whether it was a natural occurrence or was the result of a lab-related event."

Belgian federal government employees will no longer be allowed to use the Chinese-owned video app TikTok on their work phones, Belgian Prime Minister Alexander De Croo said on Friday. From a report: De Croo said the Belgian national security council had warned of the risks associated with the large amounts of data collected by TikTok, which is owned by Chinese firm ByteDance, and the fact that the company is required to cooperate with Chinese intelligence services. "That is the reality," the prime minister said in a statement. "That's why it is logical to forbid the use of TikTok on phones provided by the federal government. The safety of our information must prevail." The European Commission and the European Parliament last month banned TikTok from staff phones due to growing concerns about the company, and whether China's government could harvest users' data or advance its interests.

A week away from the March 16 launch of Baidu's ChatGPT equivalent, employees at China's biggest search-engine operator said they are racing to meet the deadline with the chatbot still struggling to perform some basic functions. From a report: To develop the artificial-intelligence-powered chatbot, dubbed Ernie Bot, hundreds of people have been working around the clock, people familiar with the project said. Other teams have been asked to lend their staff and their powerful computer chips, which Chinese companies can no longer buy because of U.S. sanctions, they said. The AI model that is the basis of the chatbot is still being trained with data ahead of the scheduled launch, a highly anticipated event in China's tech industry, some of the people said. Some employees said they haven't had sufficient time to build a well-functioning product. Baidu plans to roll out the product in stages, first opening it up for public testing to a restricted pool of users, people briefed about the plan said. Last month, Baidu said that it will embed Ernie Bot into its search engine first and will open it to the public in March.

Chinese artificial intelligence groups are skirting export controls to access high-end US chips through intermediaries, revealing potential loopholes in Washington's blockade of cutting-edge technology to the country. From a report: AI surveillance groups targeted by US sanctions have found ways to obtain restricted technology by using cloud providers and rental arrangements with third parties, as well as purchasing the chips through subsidiary companies in China. iFlytek, a state-backed voice recognition company blacklisted by Washington in 2019, has been renting access to Nvidia's A100 chips, which are critical in the race to develop groundbreaking AI applications and services, according to two staffers with direct knowledge of the matter.

Facial recognition group SenseTime, sanctioned at the same time as iFlytek, has used intermediaries to purchase banned components from the US, according to three senior employees familiar with the situation. Privately controlled cloud computing companies also provide access to high-end US chips. AI-Galaxy, a Shanghai-based cloud computing company founded by former employees from Nvidia and AliCloud, charges $10 for one-hour access to eight of its A100 Nvidia chips. The ability of Chinese AI groups to continue accessing Nvidia's crucial high-end chips and other cutting-edge technology underlines the challenge the US faces in enforcing its trade restrictions against Chinese companies.

An anonymous reader quotes a report from Politico: The Dutch government confirmed for the first time Wednesday it will impose new export controls on microchips manufacturing equipment, bowing to U.S. pressure to block the sale of some of its prized chips printing machines to China. The U.S. and the Netherlands reached an agreement to introduce new export restrictions on advanced chip technology to China at the end of January, but until now, the Dutch government hadn't commented publicly on it. The deal, which also included Japan, involves the only three countries that are home to manufacturers of advanced machines to print microchips. It is a U.S.-led initiative to choke off the supply of cutting-edge chips to China.

"Given the technological developments and geopolitical context, the government has concluded that it is necessary for the (inter)national security to expand the existing export controls on specific manufacturing equipment for semiconductors," Foreign Trade Minister Liesje Schreinemacher wrote in a letter to Dutch lawmakers published Wednesday evening. The Dutch government wants to prevent Dutch technology from being used in military systems or weapons of mass destruction, Schreinemacher wrote — echoing the U.S. reasoning when it imposed its own export controls in October. The Netherlands also wants to avoid losing its pole position in producing cutting-edge chip manufacturing tools: Schreinemacher said the government wants to uphold "Dutch technological leadership." While China is not explicitly named in Schreinemacher's letter, the new policy is targeted at Chinese efforts to overtake the U.S. and others like Taiwan, South Korea, Japan and leading European countries in the global microchips supply chain.

The new export restrictions deal a blow to ASML, the global leader in producing advanced microchips printing machines based in Veldhoven, in southern Netherlands. In the letter, Schreinemacher said the new export control measures include the most advanced deep ultraviolet (DUV) machines, which are part of ASML's advanced chips printers portfolio. The Dutch firm, which is the highest-valued tech company in Europe, already did not receive export licenses for selling its most advanced machines using extreme ultraviolet light (EUV) technology to China since 2019. ASML in a statement confirmed it will now "need to apply for export licenses for shipment of the most advanced immersion DUV systems," but it noted it has not yet received more details about what "most advanced" means.

China's government could use TikTok to control data on millions of American users, FBI Director Christopher Wray told a U.S. Senate hearing on Wednesday, saying the Chinese-owned video app "screams" of security concerns. Reuters reports: Wray told a Senate Intelligence Committee hearing on worldwide threats to U.S. security that the Chinese government could also use TikTok to control software on millions of devices and drive narratives to divide Americans over Taiwan or other issues. "Yes, and I would make the point on that last one, in particular, that we're not sure that we would see many of the outward signs of it happening if it was happening," Wray said of concerns China could feed misinformation to users. "This is a tool that is ultimately within the control of the Chinese government - and it, to me, it screams out with national security concerns," Wray said. Yesterday, the White House said it backed a bill in Congress to give the Biden administration new powers to ban TikTok and other foreign technologies that could pose security threats.

An anonymous reader quotes a report from the Associated Press: In the past month, bed and breakfast owner Chen Yu-lin had to tell his guests he couldn't provide them with the internet. Others living on Matsu, one of Taiwan's outlying islands closer to neighboring China, had to struggle with paying electricity bills, making a doctor's appointment or receiving a package. For connecting to the outside world, Matsu's 14,000 residents rely on two submarine internet cables leading to Taiwan's main island. The National Communications Commission, citing the island's telecom service, blamed two Chinese ships for cutting the cables. It said a Chinese fishing vessel is suspected of severing the first cable some 50 kilometers (31 miles) out at sea. Six days later, on Feb. 8, a Chinese cargo ship cut the second, NCC said.

Taiwan's government stopped short of calling it a deliberate act on the part of Beijing, and there was no direct evidence to show the Chinese ships were responsible. The islanders in the meantime were forced to hook up to a limited internet via microwave radio transmission, a more mature technology, as backup. It means one could wait hours to send a text. Calls would drop, and videos were unwatchable. "A lot of tourists would cancel their booking because there's no internet. Nowadays, the internet plays a very large role in people's lives," said Chen, who lives in Beigan, one of Matsu's main residential islands.

Apart from disrupting lives, the loss of the internet cables, seemingly innocuous, has huge implications for national security. As the full-scale invasion of Ukraine has shown, Russia has made taking out internet infrastructure one of the key parts of its strategy. Some experts suspect China may have cut the cables deliberately as part of its harassment of the self-ruled island it considers part of its territory, to be reunited by force if necessary. The cables had been cut a total of 27 times in the past five years, but it was unclear which country the vessels hailed from, based on data from Chunghwa Telecom.

An anonymous reader quotes a report from Reuters: The White House said Tuesday it backs a bill in Congress to give the Biden administration new powers to ban Chinese-owned video app TikTok and other foreign technologies that could pose security threats. White House National Security Advisor Jake Sullivan said the bipartisan bill sponsored by a dozen senators "would strengthen our ability to address discrete risks posed by individual transactions, and systemic risks posed by certain classes of transactions involving countries of concern in sensitive technology sectors."

"We look forward to continue working with both Democrats and Republicans on this bill, and urge Congress to act quickly to send it to the President's desk," he said. The bill in question is called the "Restricting the Emergence of Security Threats that Risk Information and Communications Technology (RESTRICT) Act."

The bill, introduced by Sen. Mark Warner (D-Va.) and Sen. John Thune (R-SD), doesn't single out TikTok to be banned. "Instead, Warner avoids making his bill all about TikTok," reports Ars Technica. "His office told Reuters that the RESTRICT Act will 'comprehensively address the ongoing threat posed by technology from foreign adversaries,' citing TikTok as an example of tech that could be assessed as a threat."

"[T]he RESTRICT Act is superior to the DATA Act because it provides a legal framework for the US to review all 'foreign technology coming into America,' not just from China, but also from Russia, North Korea, Iran, Venezuela, and Cuba. It's designed to give the US 'a systemic approach to make sure we can ban or prohibit' emerging technology threats 'when necessary.'"

Intel has completed development of its Intel 18A (1.8nm-class) and Intel 20A (2nm-class) fabrication processes that will be used to make the company's own products, as well as chips for clients of its Intel Foundry Services (IFS) division, reports UDN. From a report: Wang Rui, president and chairman of Intel China, said at an event that the company had finalized the development of its Intel 18A (18 angstroms-class) and Intel 20A (20 angstroms-class) fabrication processes. This does not mean that the production nodes are ready to be used for commercial manufacturing, but rather that Intel has determined all specifications, materials, requirements, and performance targets for both technologies.

Intel's 20A fabrication technology will rely on gate-all-around RibbonFET transistors and will use backside power delivery. Shrinking metal pitches, introducing all-new transistor structure and adding backside power delivery at the same time is a risky move, but it is expected that 20A will allow Intel to leapfrog the company's competitors -- TSMC and Samsung Foundry. Intel plans to start using this node in the first half of 2024. Intel's 18A manufacturing process will further refine the company's RibbonFET and PowerVia technologies, as well as shrink transistor sizes. Development of this node is apparently going so well that Intel pulled in its introduction from 2025 to the second half of 2024. Intel originally planned to use ASML's Twinscan EXE scanners with a 0.55 numerical aperture (NA) optics for its 1.8 angstroms node, but because it decided to start using the technology sooner, it will have to rely on extensive use of existing Twinscan NXE scanners with 0.33 NA optics, as well as EUV double patterning.

A bipartisan group of 12 U.S. senators will introduce legislation on Tuesday that would give Commerce Secretary Gina Raimondo new powers to ban Chinese-owned video app TikTok and other foreign-based technologies if they pose national security threats, Senator Mark Warner said. From a report: "I think it is a national security threat," Warner said on CNBC, adding that the bill would give Raimondo "the ability to do a series of mitigation up to and including banning" TikTok and other technologies that pose national security risks. Warner said it would apply to foreign technologies from six nations -- China, Russia, North Korea, Iran, Venezuela and Cuba. The group, led by Warner and Republican Senator John Thune, includes Democrats Tammy Baldwin, Joe Manchin, Michael Bennett, Kirsten Gillibrand and Martin Heinrich along with Republicans Deb Fischer, Jerry Moran, Dan Sullivan, Susan Collins and Mitt Romney, Warner's office said. TikTok, the ByteDance-owned app used by more than 100 million Americans, has come under increasing fire over fears user data could end up in the hands of the Chinese government, undermining Western security interests. TikTok Chief Executive Shou Zi Chew is due to appear before Congress on March 23.

Germany's government is planning on forbidding telecoms operators from using certain components from Chinese companies Huawei and ZTE in their 5G networks, German paper Zeit Online reported on Monday. Reuters reports: The ban could include components already built into the networks, requiring operators to remove and replace them, Zeit Online wrote, citing government sources. The government, which is now in the midst of a broader re-evaluation of its relationship with top trade partner China, did not immediately reply to a request for comment. A source, however, confirmed the report to Reuters.

Critics of Huawei and ZTE say that their close links to China's security services mean that embedding them in the ubiquitous mobile networks of the future could give Chinese spies and even saboteurs access to swathes of essential infrastructure. Huawei, ZTE and the Chinese government reject these claims, saying that they are motivated by a protectionist desire to support non-Chinese rivals.

Zeit Online said the government's cybersecurity agency and interior ministry had for months been checking if there were components in the growing 5G networks that could put German security at risk. The survey had not officially been ended, but the result was already clear, the paper said, citing government sources. The government would ban operators from using certain controlling elements from Huawei and ZTE in 5G networks.

Reuters writes: Binance, one of the world's largest cryptocurrency exchanges, developed a plan to avoid the threat of prosecution by U.S. authorities as it started an American entity in 2019, the Wall Street Journal reported on Sunday.
The Wall Street Journal reports: Any lawsuit from U.S. regulators would be like "nuclear fall out" for Binance's business and its officers, a Binance executive warned colleagues in a 2019 private chat. Worried about the threat of prosecution, Binance set out on a plan to neutralize U.S. authorities, according to messages and documents from 2018 to 2020 reviewed by The Wall Street Journal as well as interviews with former employees.

The strategy centered on building a bare-bones American platform, Binance.US, that would license Binance's technology and brand but otherwise appear to be wholly independent of Binance.com. It would shield from U.S. regulators' scrutiny the larger Binance.com exchange, which would exclude U.S. users. But Binance and Binance.US have been much more intertwined than the companies have disclosed, mixing staff and finances and sharing an affiliated entity that bought and sold cryptocurrencies, according to the interviews and the messages and documents reviewed by the Journal. Binance developers in China maintained the software code supporting Binance.US users' digital wallets, potentially giving Binance access to U.S. customer data.

If U.S. regulators conclude that these links mean Binance has control over a U.S. company, they could claim the power to police Binance's entire business, which, to many investors, has been a black box since the start. This would also put Binance's billionaire founder and chief executive, Changpeng Zhao, and his finances under closer scrutiny.... Developers in Shanghai maintained key software functions at Binance.US at least through the summer of 2021, the Journal has reported. The Shanghai developers' contracts were with Binance, not with the U.S. platform, according to a person familiar with the agreements.

In late 2018, the companies behind the most widely traded cryptocurrency were struggling to maintain their access to the global banking system. Some of their backers turned to shadowy intermediaries, falsified documents and shell companies to get back in, documents show. WSJ: One of those intermediaries, a major tether trader in China, was trying to "circumvent the banking system by providing fake sales invoices and contracts for each deposit and withdrawal," Stephen Moore, one of the owners of Tether Holdings, said in an email viewed by The Wall Street Journal. Mr. Moore said it was too risky to continue using the fake sales invoices and contracts, which he had signed, and recommended they abandon the efforts to open the accounts, the emails show. "I would not want to argue any of the above in a potential fraud/money laundering case," he wrote.

Tether runs tether, the $71 billion stablecoin that is the most widely traded cryptocurrency, and a sister company runs Bitfinex, one of the world's largest crypto exchanges. Losing access to the banking system was "an existential threat" to their business, the companies said in a lawsuit. A cache of emails and documents reviewed by the Journal show a long-running effort to stay connected to the financial system. The companies often hid their identities behind other businesses or individuals. Using third parties occasionally caused problems, including hundreds of millions of dollars of seized assets and connections to a designated terrorist organization. Tether has been under investigation by the U.S. Justice Department, according to a person familiar with the matter. The investigation has been overseen by the Manhattan U.S. attorney's office.