Slash_Account_Dot shares a report: The FBI had a problem. In 2019 the agency was secretly running an encrypted phone company called Anom. Serious organized criminals were using the phones and Anom was gaining popularity. But even though Anom contained a backdoor -- a chunk of code that silently copied every message sent -- the FBI was unable to actually read Anom's messages. The FBI had not obtained legal approval to rummage through that treasure trove of intelligence.

[...] So the agency turned to what court records have described as a "third country," the first country being America and the second being Australia, which ran a beta test of the Anom surveillance operation. The third country allowed the FBI to overcome this legal hurdle. The country hosted the Anom interception server for the FBI, and then provided Anom's messages to American authorities every Monday, Wednesday, and Friday. That country "requested its participation be kept confidential," according to a document I previously obtained. The document said the third country was a European Union member but did not name the country itself. "The FBI is neither now nor in the future in a position to release the identity of the aforementioned third country," the document added. That country was Lithuania, 404 Media has learned from a source briefed on the operation but who did not work on it on the U.S. side.

An anonymous Slashdot reader shared this report from the New York Times: The collapse in cryptocurrency prices last year forced a procession of major firms into bankruptcy, triggering a government crackdown and erasing the savings of millions of inexperienced investors. But for a small group of corporate turnaround specialists, crypto's implosion has become a financial bonanza.

Lawyers, accountants, consultants, cryptocurrency analysts and other professionals have racked up more than $700 million in fees since last year from the bankruptcies of five major crypto firms, including the digital currency exchange FTX, according to a New York Times analysis of court records. That sum is likely to grow significantly as the cases unfold over the coming months. Large fees are common in corporate bankruptcies, which require complex and time-intensive legal work to untangle. But in the crypto world, the mounting fees have sparked widespread outrage because many of the people owed money are amateur traders who lost their personal savings, rather than corporations with the ability to weather a financial crisis. Every dollar in fees is deducted from the pool of funds that will be returned to creditors at the end of the bankruptcies.

The fees are "exorbitant and ridiculous," said Daniel Frishberg, a 19-year-old investor who lost about $3,000 when the crypto company Celsius Network filed for bankruptcy last year. "At every hearing, they have an army of people there, and most of them don't need to be there. You don't need 20 people taking notes."

"12 people account for the lion's share of anti-vaccination propaganda posted to three of the leading social media outlets," NPR reported in 2021, citing a study from a London-based group opposed to online hate and disinformation."

But this week Ars Technica reports that one of those 12 "lost a lawsuit attempting to force YouTube to provide access to videos that were removed from the platform after YouTube banned his channels." Joseph Mercola had tried to argue that YouTube owed him more than $75,000 in damages for breaching its own user contract and denying him access to his videos. However, in an order dismissing Mercola's complaint, U.S. magistrate judge Laurel Beeler wrote that according to the contract Mercola signed, YouTube was "under no obligation to host" Mercola's content after terminating his channel in 2021 "for violating YouTube's Community Guidelines by posting medical misinformation about COVID-19 and vaccines."

"The court found no breach because 'there is no provision in the Terms of Service that requires YouTube to maintain particular content' or be a 'storage site for users' content,'" Beeler wrote. Because Mercola's contract with YouTube was found to be enforceable and "YouTube had the discretion to take down content that harmed its users," Beeler said that Mercola did not plausibly plead claims for breach of contract or unjust enrichment.

Mercola's complaint was dismissed without leave to amend.
Thanks to ArchieBunker (Slashdot reader #96,909) for sharing the article.

The FTC's chief administrative law judge (ALJ) ruled that Intuit, the parent company of TurboTax, "deceived consumers" and "engaged in deceptive advertising" by advertising its "Free Edition" tax filing service as free when users ultimately had to pay. The Verge reports: The ruling (PDF) includes several pages of commercials and online ads where Intuit advertised its "Free Edition" software. While the name implies that the service is, well, free, people wound up having to pay to use it -- sparking a lawsuit from the FTC and a $141 million payout to affected users. Meanwhile, Intuit's actually no-cost Free File version, which it launched in partnership with the IRS, remained exceedingly difficult to find. In 2021, Intuit exited the program after the IRS stopped letting companies hide their free filing services from search engines.

The FTC's ALJ determined that there is a "cognizant danger of a recurring violation" by Intuit and issued a cease-and-desist order that prohibits the company from "engaging in deceptive practices in the future." The ruling prevents Intuit from representing a product as free unless it actually is free for everyone to use and "clearly and conspicuously discloses any terms that would limit the offer." In a statement, Intuit called the FTC's investigation process "flawed and highly questionable," noting "Intuit already adheres to most of the advertising practices in the FTC's erroneous decision." The company adds that it has "been clear, fair, and transparent" with customers and remains "committed to free tax preparation."

An anonymous reader quotes a report from Wired: For years, some cybersecurity defenders and advocates have called for a kind of Geneva Convention for cyberwar, new international laws that would create clear consequences for anyone hacking civilian critical infrastructure, like power grids, banks, and hospitals. Now the lead prosecutor of the International Criminal Court at the Hague has made it clear that he intends to enforce those consequences -- no new Geneva Convention required. Instead, he has explicitly stated for the first time that the Hague will investigate and prosecute any hacking crimes that violate existing international law, just as it does for war crimes committed in the physical world.

In a little-noticed article released last month in the quarterly publication Foreign Policy Analytics, the International Criminal Court's lead prosecutor, Karim Khan, spelled out that new commitment: His office will investigate cybercrimes that potentially violate the Rome Statute, the treaty that defines the court's authority to prosecute illegal acts, including war crimes, crimes against humanity, and genocide. "Cyber warfare does not play out in the abstract. Rather, it can have a profound impact on people's lives," Khan writes. "Attempts to impact critical infrastructure such as medical facilities or control systems for power generation may result in immediate consequences for many, particularly the most vulnerable. Consequently, as part of its investigations, my Office will collect and review evidence of such conduct."

When WIRED reached out to the International Criminal Court, a spokesperson for the office of the prosecutor confirmed that this is now the office's official stance. "The Office considers that, in appropriate circumstances, conduct in cyberspace may potentially amount to war crimes, crimes against humanity, genocide, and/or the crime of aggression," the spokesperson writes, "and that such conduct may potentially be prosecuted before the Court where the case is sufficiently grave." Neither Khan's article nor his office's statement to WIRED mention Russia or Ukraine. But the new statement of the ICC prosecutor's intent to investigate and prosecute hacking crimes comes in the midst of growing international focus on Russia's cyberattacks targeting Ukraine both before and after its full-blown invasion of its neighbor in early 2022.

Ryan Salame, a top FTX executive who played a key role in the exchange's political fundraising operations, will forfeit $1.5 billion after pleading guilty on Thursday to federal criminal charges tied to the exchange. CoinDesk reports: Salame, who was co-CEO of FTX's Bahamas entity FTX Digital Markets, pleaded guilty to conspiracy to make unlawful contributions and defraud the Federal Election Commission and conspiracy to operate an unlicensed money transferring business. "I made political contributions in my name that were funded by transfers from an Alameda subsidiary," Salame told Judge Lewis Kaplan, who is also overseeing Bankman-Fried's trial, as he entered his guilty plea. The transfers were "categorized as loans," Salame said, but "it was understood that the would not be repaid." The donations, according to Salame, "were for the benefit of initiatives introduced by others but supported by Sam Bankman-Fried."

As part of his plea agreement with the government, Salame has been ordered to forfeit more than $1.5 billion dollars. He agreed to forfeit $6 million before his sentencing, expected in March of next year. To help cover this amount, Salame has already agreed to give the government a "2021 Porsche automobile" and multiple properties, including two Massachusetts homes and ownership of the East Rood Farm Corporation, an entity Salame owns. Additionally, Salame was ordered to pay more than $5.5 million in restitution to FTX debtors. According to a DOJ document (PDF), the $1.5 billion Salame will forfeit represents "property involved in" the unlicensed money transmitter charge.

Microsoft says it will defend buyers of its artificial intelligence products from copyright infringement lawsuits, an effort by the software giant to ease concerns customers might have about using its AI "Copilots" to generate content based on existing work. From a report: The Microsoft Copilot Copyright Commitment will protect customers as long as they've "used the guardrails and content filters we have built into our products" Hossein Nowbar, General Counsel, Corporate Legal Affairs and Corporate Secretary at Microsoft, said in a blog post Thursday. Microsoft also pledged to pay related fines or settlements and said it has taken steps to ensure its Copilots respect copyright.

"We believe in standing behind our customers when they use our products," Nowbar said. "We are charging our commercial customers for our Copilots, and if their use creates legal issues, we should make this our problem rather than our customers' problem." Generative AI applications scoop up existing content such as art, articles and programming code and use it to generate new material that can simplify or automate a range of tasks. Microsoft is baking the technology, developed with partner OpenAI, into many of its biggest products, including Office and Windows, potentially putting customers in legal jeopardy.

schwit1 writes: The Justice Department has spent three years over two presidential administrations building the case that Google illegally abused its power over online search to throttle competition. To defend itself, Google has enlisted hundreds of employees and three powerful law firms and spent millions of dollars on legal fees and lobbyists. On Tuesday, a judge in U.S. District Court for the District of Columbia will begin considering their arguments at a trial that cuts to the heart of a long-simmering question: Did today's tech giants become dominant by breaking the law?

The case -- U.S. et al v. Google -- is the federal government's first monopoly trial of the modern internet era, as a generation of tech companies has come to wield immense influence over commerce, information, public discourse, entertainment and labor. The trial moves the antitrust battle against those companies to a new phase, shifting from challenging their mergers and acquisitions to more deeply examining the businesses that thrust them into power. Such a consequential case over tech power has not unfolded since the Justice Department took Microsoft to court in 1998 for antitrust violations.

Here's how the Washington Post tells the story of 34-year-old marketer (and former model) Madison Conradis, who discovered nude behind-the-scenes photos from 10 years earlier had leaked after a series of photographer web sites were breached: Now the photos along with her name and contact information were on 4chan, a lawless website that allows users to post anonymously about topics as varied as music and white supremacy... Facebook users registered under fake names such as "Joe Bummer" sent her direct messages demanding that she send new, explicit photos, or else they would further spread the already leaked photos. Some pictures landed in her father's Instagram messages, while marketing clients told her about the nude images that came their way. Madison was at a friend's party when she got a panicked call from the manager of a hotel restaurant where she had worked: The photos had made their way to his inbox. After two years, hoping a new Florida law against cyberharassment would finally end the torture, Madison walked into her local Melbourne police station and shared everything. But she was told that what she was experiencing was not criminal.

What Madison still did not know was that other women were in the clutches of the same man on the internet — and all faced similar reactions from their local authorities. Without help from the police, they would have to pursue justice on their own.
Some cybersleuthing revealed the four women all had one follower in common on Facebook: Christopher Buonocore. (They were his ex-girlfriend, his ex-fiance, his relative, and a childhood friend.) Eventually Madison's sister Christine — who had recently passed the bar exam — "prepared a 59-page document mapping the entire case with evidence and relevant statutes in each of the victims' jurisdictions. She sent the document to all the women involved, and each showed up at her respective law enforcement offices, dropped the packet in front of investigators and demanded a criminal investigation." The sheriff in Florida's Manatee County, Christine's locality, passed the case up to federal investigators. And in July 2019, the FBI took over on behalf of all six women on the basis of the evidence of interstate cyberstalking that Christine had compiled...

The U.S. attorney for the Middle District of Florida took action at the end of December 2020, but without a federal law criminalizing the nonconsensual distribution of intimate images, she charged Buonocore with six counts of cyberstalking instead, which can apply to some cases involving interstate communication done with the intent to kill, injure, intimidate, harass or surveil someone. He pleaded guilty to all counts the following January...

U.S. District Judge Thomas Barber sentenced Buonocore to 15 years in federal prison — almost four years more than the prosecutor had requested.

"Generally you may not carry a concealed firearm on your person in public," warns a California government web site, "unless you have a valid Carry Concealed Weapon (CCW) license." And a California appellate court associated justice writes that in the county where Apple is located, "the Santa Clara County Sheriff's Office rarely issued CCW licenses."

This has led to Thomas Moyer, Apple's head of global security, facing bribery charges, reports Reason's legal blog, the Volokh Conspiracy. According to the judge's statement (citing the case of the public defender)... ...the Santa Clara County undersheriff requested — and defendant Thomas Moyer made — a promise to donate iPads to the Santa Clara County Sheriff's Office in exchange for releasing concealed carry weapon licenses that the sheriff had signed. Consistent with the Ninth Circuit's interpretation of California law, federal law and the law in many states, we conclude that such a promise may constitute a bribe. We also conclude that the evidence presented to the grand jury was sufficient to raise a reasonable suspicion of such bribery. Accordingly, we reverse the trial court's order dismissing the bribery count against Moyer, reinstate that count, and remand for further proceedings.

Robinhood announced it has purchased more than 55 million shares of the firm previously held by former FTX CEO Sam Bankman-Fried, which were seized in January by the U.S. Department of Justice as part of the criminal case against FTX and its executives. CoinTelegraph reports: The purchase had been expected. Robinhood's board of directors announced the approval of the deal in the company's Q4 2022 report, and an Aug. 30 SEC filing said the U.S. District Court for the Southern District of New York had approved the purchase "free and clear of any claims, interests, liens and encumbrances." Robinhood made the repurchase agreement with the U.S. Marshals Service. "We are happy to have completed the purchase of these shares and look forward to executing on our growth plans on behalf of our customers and shareholders," said Robinhood chief financial officer Jason Warnick.

An anonymous reader quotes a report from the Associated Press: A federal judge on Thursday temporarily blocked Arkansas from enforcing a new law that would have required parental consent for minors to create new social media accounts, preventing the state from becoming the first to impose such a restriction. U.S. District Judge Timothy L. Brooks granted a preliminary injunction that NetChoice -- a tech industry trade group whose members include TikTok, Facebook parent Meta, and X, formerly known as Twitter -- had requested against the law. The measure, which Republican Gov. Sarah Huckabee Sanders signed into law in April, was set to take effect Friday.

In a 50-page ruling, Brooks said NetChoice was likely to succeed in its challenge to the Arkansas law's constitutionality and questioned the effectiveness of the restrictions. "Age-gating social media platforms for adults and minors does not appear to be an effective approach when, in reality, it is the content on particular platforms that is driving the state's true concerns," wrote Brooks, who was appointed to the bench by former President Barack Obama. NetChoice argued the requirement violated the constitutional rights of users and arbitrarily singled out types of speech that would be restricted.

Arkansas' restrictions would have only applied to social media platforms that generate more than $100 million in annual revenue. It also wouldn't have applied to certain platforms, including LinkedIn, Google and YouTube. Brooks' ruling said the the exemptions nullified the state's intent for imposing the restrictions, and said the law also didn't adequately define which platforms they would apply to. As an example, he cited confusion over whether the social media platform Snapchat would be subject to the age-verification requirement. Social media companies that knowingly violate the age verification requirement would have faced a $2,500 fine for each violation under the now-blocked law. The law also prohibited social media companies and third-party vendors from retaining users' identifying information after they've been granted access to the social media site. In a statement on X, Sanders wrote: "Big Tech companies put our kids' lives at risk. They push an addictive product that is shown to increase depression, loneliness, and anxiety and puts our kids in human traffickers' crosshairs. Today's court decision delaying this needed protection is disappointing but I'm confident the Attorney General will vigorously defend the law and protect our children."

An anonymous reader quotes a report from Ars Technica: The day before a Texas antiporn law that requires age verification to access adult websites was set to take effect, the state's attorney general, Angela Colmenero, has been at least temporarily blocked from enforcing the law. US District Judge David Alan Ezra granted a preliminary injunction temporarily blocking enforcement after the Free Speech Coalition (FSC) joined adult performers and sites like Pornhub in a lawsuit opposing the law. Today, they convinced Ezra that Texas' law violates the First Amendment and would have "a chilling effect on legally-protected speech," FSC said in a press release.

"This is a huge and important victory against the rising tide of censorship online," Alison Boden, FSC's executive director, said. "From the beginning, we have argued that the Texas law, and those like it, are both dangerous and unconstitutional. We're pleased that the court agreed with our view that [the law's] true purpose is not to protect young people, but to prevent Texans from enjoying First Amendment protected expression. The state's defense of the law was not based in science or technology, but ideology and politics." Now, Texas will have to wait until this lawsuit is litigated to enforce the law. [...] According to FSC, in addition to free speech concerns, the law needed to be blocked because it would have exposed consumers to "significant privacy risks" by forcing adult-website visitors to show digital IDs. A spokesperson for Pornhub's parent company Aylo told Ars: "We are pleased with the court's decision today, which reaffirms our position that the age verification law implemented in Texas is unconstitutional. We have publicly supported mandatory age verification of viewers of adult content for years, but any method of age verification must preserve user privacy and safety."

"The only solution that makes the Internet safer, preserves user privacy, and stands to prevent children from accessing age-inappropriate content is performing age verification at the device level," Aylo's spokesperson said. "We are pleased that the court recognizes the severity of compelled speech and its presence in this law that Texas has implemented. We are proud to fight for our industry and the performers that use it to legally earn a living, and we are glad to see the court recognize that this law is unconstitutional and would have required adult entertainers to falsely imply that their content poses health risks."

A similar age verification initiative in Australia was halted yesterday, citing concerns around privacy and security of the technology.

The US Copyright Office is opening a public comment period around AI and copyright issues beginning August 30th as the agency figures out how to approach the subject. From a report: As announced [PDF] in the Federal Register, the agency wants to answer three main questions: how AI models should use copyrighted data in training; whether AI-generated material can be copyrighted even without a human involved; and how copyright liability would work with AI. It also wants comments around AI possibly violating publicity rights but noted these are not technically copyright issues. The Copyright Office said if AI does mimic voices, likenesses, or art styles, it may impact state-mandated rules around publicity and unfair competition laws. Written comments are due on October 18th, and replies must be submitted to the Copyright Office by November 15th.

The copyright status of AI training data and the output of generative AI tools has become a hot topic for politicians, artists, authors, and even civil rights groups, making it a potential testing ground for coming AI regulation. The Copyright Office says that "over the past several years, the Office has begun to receive applications to register works containing AI-generated material." It may use the comments to inform how it decides to grant copyright in the future. The Copyright Office was involved in a lawsuit last year after it refused to grant Stephen Thaler rights to an image created by an AI platform. Earlier this month, a Washington, DC, court sided with the US Copyright Office in the case, stating copyright has never been handed to any work without a human involved.

Timothy Geigner writes via Techdirt: Paramount has gone after fan-made works playing off of the franchise for years and years. Even Paramount's release of guidelines by which fans could create fan films served mostly as a giant middle finger to the fandom, so stringent were the rules. This apparently represents the owners of Star Trek's IP being completely deaf to the history of Star Trek and the internet and what the fans have meant to the franchise. And this all continued into the present day.

Recently, a fan-made project called Wolf 359 Project suffered a DMCA takedown from Paramount. If you're a Next Generation fan, that name will likely sound familiar: "The Battle of Wolf 359 hearkens to a classic The Next Generation two-episode event called 'The Best of Both Worlds.' Captain Picard is assimilated by the Borg, and before the Enterprise crew rescues him, the relentless Borg forces fight a battle that kills 11,000 people. Star Trek: Picard Season 3 dealt with this, specifically through the character of Captain Liam Shaw. It was the first time someone described the Starfleet experience during one of the costliest battles in Star Trek history. Star Trek fans are never one to let a good idea go to waste, and The Wolf 359 Project is a fan-written oral history of the battle. The 'book' ran over 500 pages long, and its authors were giving it away for free. However, Paramount issued a Digital Millennium Copyright Act strike against it."

So here's what this essentially is: fans who love TNG filling in the gaps of the original story they love with the unexplored rest of the universe of people who would have been impacted by that storyline. That's important for two reasons. First and foremost, this doesn't take anything away from Paramount's Star Trek production, and in fact does the opposite. The project doesn't replace the original episodes, but rather builds upon them. In other words, this project could only possibly serve to draw more interest to Paramount's product, since the book isn't going to make much sense to anyone who hasn't seen the original episodes. Second, this is a work being done for free, given away for free, all by fans that are doing what Star Trek fans have always done: create. [...] ]

An anonymous reader quotes a report from the Associated Press: A Saudi court has sentenced a man to death over his posts on X, formerly known as Twitter, and his activity on YouTube, the latest in a widening crackdown on dissent in the kingdom that has drawn international criticism. The judgement against Mohammed bin Nasser al-Ghamdi, seen Wednesday by The Associated Press, comes against the backdrop of doctoral student Salma al-Shehab and others facing decades-long prison sentences over their comments online. The sentences appear part of Crown Prince Mohammed bin Salman's wider effort to stamp out any defiance in the kingdom as he pursues massive building projects and other diplomatic deals to raise his profile globally.

According to court documents, the charges levied against al-Ghamdi include "betraying his religion," "disturbing the security of society," "conspiring against the government" and "impugning the kingdom and the crown prince" -- all for his activity online that involved re-sharing critics' posts. Saudi officials offered no reason for why they specifically targeted al-Ghamdi, a retired school teacher living in the city of Mecca. However, his brother, Saeed bin Nasser al-Ghamdi, is a well-known critic of the Saudi government living in the United Kingdom. "This false ruling aims to spite me personally after failed attempts by the investigators to have me return to the country," the brother tweeted last Thursday. Saudi Arabia has used arrests of family members in the past as a means to pressure those abroad into returning home, activists and those targeted in the past say. [...]

Saudi Arabia is one of the world's top executioners, behind only China and Iran in 2022, according to Amnesty International. The number of people Saudi Arabia executed last year -- 196 inmates -- was the highest recorded by Amnesty in 30 years. In one day alone last March, the kingdom executed 81 people, the largest known mass execution carried out in the kingdom in its modern history. However, al-Ghamdi's case appears to be the first in the current crackdown to level the death penalty against someone for their online behavior.

An anonymous reader quotes a report from NPR: The Environmental Protection Agency removed federal protections for a majority of the country's wetlands on Tuesday to comply with a recent U.S. Supreme Court ruling. The EPA and Department of the Army announced a final rule amending the definition of protected "waters of the United States" in light of the decision in Sackett v. EPA in May, which narrowed the scope of the Clean Water Act and the agency's power to regulate waterways and wetlands. A 2006 Supreme Court decision determined that wetlands would be protected if they had a "significant nexus" to major waterways. This year's court decision undid that standard. The EPA's new rule "removes the significant nexus test from consideration when identifying tributaries and other waters as federally protected," the agency said.

In May, Justice Samuel Alito said the navigable U.S. waters regulated by the EPA under the Clean Water Act do not include many previously regulated wetlands. Writing the court's decision, he said the law includes only streams, oceans, rivers and lakes, and wetlands with a "continuous surface connection to those bodies." The EPA said the rule will take effect immediately. "The agencies are issuing this amendment to the 2023 rule expeditiously -- three months after the Supreme Court decision -- to provide clarity and a path forward consistent with the ruling," the agency said. As a result of the rule change, protections for many waterways and wetlands will now fall to states.

OpenAI has responded to a pair of nearly identical class-action lawsuits from book authors -- including Sarah Silverman, Paul Tremblay, Mona Awad, Chris Golden, and Richard Kadrey -- who earlier this summer alleged that ChatGPT was illegally trained on pirated copies of their books. From a report: In OpenAI's motion to dismiss (filed in both lawsuits), the company asked a US district court in California to toss all but one claim alleging direct copyright infringement, which OpenAI hopes to defeat at "a later stage of the case." The authors' other claims -- alleging vicarious copyright infringement, violation of the Digital Millennium Copyright Act (DMCA), unfair competition, negligence, and unjust enrichment -- need to be "trimmed" from the lawsuits "so that these cases do not proceed to discovery and beyond with legally infirm theories of liability," OpenAI argued.

OpenAI claimed that the authors "misconceive the scope of copyright, failing to take into account the limitations and exceptions (including fair use) that properly leave room for innovations like the large language models now at the forefront of artificial intelligence." According to OpenAI, even if the authors' books were a "tiny part" of ChatGPT's massive dataset, "the use of copyrighted materials by innovators in transformative ways does not violate copyright." Unlike plagiarists who seek to directly profit off distributing copyrighted materials, OpenAI argued that its goal was "to teach its models to derive the rules underlying human language" in order to do things like help people "save time at work," "make daily life easier," or simply entertain themselves by typing prompts into ChatGPT.

The purpose of copyright law, OpenAI argued is "to promote the Progress of Science and useful Arts" by protecting the way authors express ideas, but "not the underlying idea itself, facts embodied within the author's articulated message, or other building blocks of creative," which are arguably the elements of authors' works that would be useful to ChatGPT's training model. Citing a notable copyright case involving Google Books, OpenAI reminded the court that "while an author may register a copyright in her book, the 'statistical information' pertaining to 'word frequencies, syntactic patterns, and thematic markers' in that book are beyond the scope of copyright protection."

The U.S. Court of Appeals for the D.C. Circuit has paved the way for bitcoin exchange-traded funds. From a report: On Tuesday, the court sided with Grayscale in a lawsuit against the Securities and Exchange Commission which had denied the company's application to convert the Grayscale Bitcoin Trust to an ETF. The decision could impact other companies that want to create bitcoin ETFs, like BlackRock and Fidelity. A spot bitcoin ETF would be traded through a traditional stock exchange, although the bitcoin would be held by a brokerage, and would allow investors to gain exposure to the world's biggest cryptocurrency without having to own the coin themselves. Many crypto bulls believe that approval of a spot bitcoin ETF will lead to more mainstream institutional adoption.

Bitcoin, ether and other major cap crypto coins surged on the news, and Coinbase, which is listed as the custodian partner in multiple spot bitcoin ETF applications, was up more than 14% on Tuesday. "The Commission failed to adequately explain why it approved the listing of two bitcoin futures ETPs but not Grayscale's proposed bitcoin ETP," the court said, referring to exchange-traded products. "In the absence of a coherent explanation, this unlike regulatory treatment of like products is unlawful." Grayscale Investments, which manages the world's biggest crypto fund, initiated its lawsuit against the SEC in June 2022 after the agency rejected its application to turn its flagship bitcoin fund, better known by its ticker GBTC, into an ETF. The company decided to pursue the ETF, which would be backed by bitcoin rather than bitcoin derivatives, after the SEC approved ProShares' futures-based bitcoin ETF in October 2021.

An anonymous reader quotes a report from Motherboard: Cities across the country are suing Kia and Hyundai for failing to install basic anti-theft technology, with a subsequent massive surge of stolen cars burdening police departments, according to lawsuits filed in recent months. Since the beginning of the year, Seattle, Baltimore, Cleveland, New York, Chicago, St. Louis, and Columbus have all sued Kia and Hyundai, which are owned by the same parent company, for selling cars without engine immobilizers, a technology that has served as a major contributor to the plummeting rate of stolen vehicles in the U.S. As the rest of the industry adopted immobilizers, Kia and Hyundai didn't, with only 26 percent of their cars including them in 2015, compared to 96 percent for other manufacturers.

Without the immobilizers, the cars are trivially easy to steal, requiring just a USB cable. A viral Youtube and Tiktok trend instructed people how to steal the cars. Kia and Hyundai cars manufactured without the immobilizers between 2015 and 2020, especially lower-end models like the Accent, Rio, and Sportage, are especially vulnerable. A lawsuit filed by dozens of insurance companies against Kia and Hyundai allege the lack of immobilizers violated federal regulations. The surge in Kia and Hyundai thefts in cities around the country has been staggering and it shows no sign of abating. In a lawsuit filed last week, the City of Chicago said that in 2022, more than 8,800 Kia and Hyundai vehicles were stolen in the city, which accounts for 41 percent of all of Chicago's car thefts, despite Kia and Hyundai making up just seven percent of the city's vehicles. In a press release announcing the lawsuit, the city said it is getting even worse in 2023, with Kias and Hyundais making up more than half of all stolen cars in the city this year. Chicago is hardly alone. [...]

In statements to Motherboard, Kia spokesperson James Bell said the lawsuits filed by cities against the company are "without merit" and that the National Highway Traffic Safety Administration determined it did not violate any regulations or safety standards. In June, NHTSA's acting associate director of enforcement Cem Hatipoglu responded to 18 state attorneys general that asked for a recall of the cars by saying, "At this time, NHTSA has not determined that this issue constitutes either a safety defect or noncompliance requiring a recall." A NHTSA spokesperson told Motherboard the agency has been meeting with Kia and Hyundai about the issue but wouldn't say if it agreed with Kia's interpretation. Hyundai spokesperson Ira Gabriel similarly said that all its vehicles are "fully compliant with federal anti-theft requirements." Hyundai and Kia owners can get steering wheel locks from their local police departments or through dedicated websites. Both companies also offer a free software patch that they say removes the threat of theft, which requires visiting a dealer. Bell of Kia says the company has distributed more than 190,000 wheel locks and that 650,000 vehicles have gotten the software update, out of three million total. Both companies now include immobilizers on all their new cars.