United States

Trump Administration To Overhaul Lottery System For H-1B Visas (ft.com) 72

The Trump administration has announced it would replace the lottery programme used to grant H-1B visas for skilled foreign workers with a system that prioritises higher-paid individuals. From a report: The Department of Homeland Security said it would begin to implement a "weighted" selection process to give an advantage to higher-skilled and higher-paid applicants from February, according to a statement posted on its website. Matthew Tragesser, Citizenship and Immigration Services spokesperson, said: "The existing random selection process of H-1B registrations was exploited and abused by US employers who were primarily seeking to import foreign workers at lower wages than they would pay American workers."

The move is the latest in a broad crackdown on US immigration by President Donald Trump, who has dramatically stepped up deportations of immigrants and sent enforcement agents into cities across the country to carry out arrests. The change also follows moves earlier this year to curb the number of applicants for the H-1B visa, which is popular among technology and professional services companies, including charging an additional $100,000 fee.

Beryl Howell, a federal judge on the US District Court for the District of Columbia, late on Tuesday ruled the White House could move forward with the application charge after the US Chamber of Commerce had sued in October to block the six-figure fee.

The Courts

John Carreyou and Other Authors Bring New Lawsuit Against Six Major AI Companies 32

A group of authors led by John Carreyrou has filed a new lawsuit against Anthropic, Google, OpenAI, Meta, xAI, and Perplexity, accusing the AI firms of training models on pirated copies of their books. TechCrunch reports: If this sounds familiar, it's because another set of authors already filed a class action suit against Anthropic for these same acts of copyright infringement. In that case, the judge ruled that it was legal for Anthropic and similar AI companies to train on pirated copies of books, but that it was not legal to pirate the books in the first place.

While eligible writers can receive about $3,000 from the $1.5 billion Anthropic settlement, some authors were dissatisfied with that resolution -- it doesn't hold AI companies accountable for the actual act of using stolen books to train their models, which generate billions of dollars in revenue.
The plaintiffs in the new lawsuit say the proposed Anthropic settlement "seems to serve [the AI companies], not creators."

"LLM companies should not be able to so easily extinguish thousands upon thousands of high-value claims at bargain-basement rates, eliding what should be the true cost of their massive willful infringement."
The Courts

Judge Blocks Texas App Store Age Verification Law (theverge.com) 43

A federal judge blocked Texas' app store age-verification law, ruling it likely violates the First Amendment by forcing platforms to gate speech and collect data in an overly broad way. The law was set to go into effect on January 1, 2026. The Verge reports: In an order granting a preliminary injunction on the Texas App Store Accountability Act (SB 2420), Judge Robert Pitman wrote that the statute "is akin to a law that would require every bookstore to verify the age of every customer at the door and, for minors, require parental consent before the child or teen could enter and again when they try to purchase a book." Pitman has not yet ruled on the merits of the case, but his decision to grant the preliminary injunction means he believes its defenders are unlikely to prevail in court.

Pitman found that the highest level of scrutiny must be applied to evaluate the law under the First Amendment, which means the state must prove the law is "the least restrictive means of achieving a compelling state interest." The judge found this is not the case and that it wouldn't even survive intermediate scrutiny, because Texas has so far failed to prove that its goals are connected to its methods. Since Texas already has a law requiring age verification for porn sites, Pitman said that "only in the vast minority of applications would SB 2420 have a constitutional application to unprotected speech not addressed by other laws." Though Pitman acknowledged the importance of safeguarding kids online, he added, "the means to achieve that end must be consistent with the First Amendment. However compelling the policy concerns, and however widespread the agreement that the issue must be addressed, the Court remains bound by the rule of law."
"The Texas App Store Accountability Act is the first among a series of similar state laws to face a legal challenge, making the ruling especially significant, as Congress considers a version of the statute," notes The Verge. "The laws, versions of which also passed in Utah and Louisiana, aim to impose age verification standards at the app store level, making companies like Apple and Google responsible for transmitting signals about users' ages to app developers to block users from age-inappropriate experiences."

"The state can still appeal the ruling with the Fifth Circuit Court of Appeals, which has a history of reversing blocks on internet regulations."
EU

Europe's Public Institutions Are Quietly Ditching US Cloud Providers (theregister.com) 90

European public institutions are quietly migrating away from American cloud providers and office software, driven less by policy ambitions in Brussels than by the mundane legal reality that GDPR-mandated risk assessments keep flagging the US CLOUD Act as an unacceptable threat to citizen data.

Austria's Federal Ministry for Economy, Energy and Tourism moved 1,200 employees to the open-source platform Nextcloud in four months. Germany's Schleswig-Holstein has already transitioned 24,000 of its 30,000 civil servants to LibreOffice, Nextcloud and Thunderbird. The International Criminal Court in The Hague announced in November 2025 that it would replace Microsoft office software after chief prosecutor Karim Khan was temporarily locked out of his Outlook account.

Competition economist Cristina Caffarra estimates that 90% of Europe's digital infrastructure is now controlled by non-European companies. Forrester predicts no European enterprise will fully abandon US hyperscalers in 2026, but these targeted migrations for sensitive government applications are already underway.
United States

US Blocks All Offshore Wind Construction, Says Reason Is Classified (arstechnica.com) 134

An anonymous reader quotes a report from Ars Technica: On Monday, the US Department of the Interior announced that it was pausing the leases on all five offshore wind sites currently under construction in the US. The move comes despite the fact that these projects already have installed significant hardware in the water and on land; one of them is nearly complete. In what appears to be an attempt to avoid legal scrutiny, the Interior is blaming the decisions on a classified report from the Department of Defense.

The second Trump administration announced its animosity toward offshore wind power literally on day one, issuing an executive order on inauguration day that called for a temporary halt to issuing permits for new projects pending a re-evaluation. Earlier this month, however, a judge vacated that executive order, noting that the government has shown no indication that it was even attempting to start the re-evaluation it said was needed. But a number of projects have gone through the entire permitting process, and construction has started. Before today, the administration had attempted to stop these in an erratic, halting manner. Empire Wind, an 800 MW farm being built off New York, was stopped by the Department of the Interior, which alleged that it had been rushed through permitting. That hold was lifted following lobbying and negotiations by New York and the project developer Orsted, and the Department of the Interior never revealed why it changed its mind. When the Interior Department blocked a second Orsted project, Revolution Wind offshore of southern New England, the company took the government to court and won a ruling that let it continue construction.

Today's announcement targets those and three other projects. Interior says it is pausing the permits for all five, which are the only projects currently under construction. It claims that offshore wind creates "national security risks" that were revealed in a recent analysis performed by the Department of Defense, which apparently neglected to identify these issues during the evaluations it did while the projects were first permitted. What are these risks? The Interior Department is being extremely coy. It notes that offshore wind turbines can interfere with radar sensing, but that's been known for a while. In announcing the decision, Interior Secretary Doug Burgum also noted "the rapid evolution of the relevant adversary technologies." But the announcement says that the Defense Department analysis is classified, meaning nobody is likely to know what the actual reason is -- presuming one exists. The classification will also make it far more challenging to contest this decision in court.

Google

Google Sues SerpApi Over Scraping and Reselling Search Data (searchengineland.com) 37

An anonymous reader quotes a report from Search Engine Land: Google said today that it is suing SerpApi, accusing the company of bypassing security protections to scrape, harvest, and resell copyrighted content from Google Search results. The allegations: Google said SerpApi:

-Circumvented Google's security measures and industry-standard crawling controls.
-Ignored website directives that specify whether content can be accessed.
-Used cloaking, rotating bot identities, and large bot networks to scrape content at scale.
-Took licensed content from Search features, including images and real-time data, and resold it for profit.

What Google is saying. "Stealthy scrapers like SerpApi override [crawling] directives and give sites no choice at all," Google wrote, calling the alleged scraping "brazen" and "unlawful." Google said SerpApi's activity "increased dramatically over the past year." [...] If Google wins, reliable SERP data could become harder to get, more expensive, or both -- especially for teams that rely on tools powered by services like SerpApi. As AI already reduces clicks and transparency, Google now appears intent on making it even harder for brands to understand how Search works, how they appear in results, and how to measure success.

Cloud

Airbus Moving Critical Systems Away From AWS, Google, and Microsoft Citing Data Sovereignty Concerns (theregister.com) 63

Airbus is preparing to tender a major contract to move mission-critical systems like ERP, manufacturing, and aircraft design data onto a digitally sovereign European cloud, citing national security concerns and fears around U.S. extraterritorial laws like the CLOUD Act. "I need a sovereign cloud because part of the information is extremely sensitive from a national and European perspective," Catherine Jestin, Airbus's executive vice president of digital, told The Register. "We want to ensure this information remains under European control." The Register reports: The driver is access to new software. Vendors like SAP are developing innovations exclusively in the cloud, pushing customers toward platforms like S/4HANA. The request for proposals launches in early January, with a decision expected before summer. The contract -- understood to be worth more than 50 million euros -- will be long term (up to ten years), with price predictability over the period. [...] Jestin is waiting for European regulators to clarify whether Airbus would truly be "immune to extraterritorial laws" -- and whether services could be interrupted.

The concern isn't theoretical. Chief Prosecutor of the International Criminal Court (ICC) Karim Khan reportedly lost access to his Microsoft email after Trump sanctioned him for criticizing Israeli PM Benjamin Netanyahu, though Microsoft denies suspending ICC services. Beyond US complications, Jestin questions whether European cloud providers have sufficient scale. "If you asked me today if we'll find a solution, I'd say 80/20."

The Courts

Judge Hints Vizio TV Buyers May Have Rights To Source Code Licensed Under GPL (theregister.com) 38

A California judge signaled support for forcing Vizio to provide the full source code for its SmartCast TV software after finding a contractual obligation under the GPL. If upheld, the case could strengthen users' rights to modify GPL-licensed software embedded in consumer electronics. The Register reports: The legal complaint from the Software Freedom Conservancy (SFC) seeks access to the SmartCast source code so that Vizio customers can make changes and improvements to the platform, something that ought to be possible for code distributed under the GPL. On Thursday, California Superior Court Judge Sandy Leal issued a tentative ruling in advance of a hearing, indicating support for part of SFC's legal challenge. The tentative ruling is not a final decision, but it signals the judge's inclination to grant the SFC's motion for summary adjudication, at least in part.

"The tentative ruling [PDF] grants SFC's motion on the issue that a direct contract was made between SFC and Vizio when SFC's systems administrator, Paul Visscher, requested the source code to a TV that SFC has purchased," the SFC said in a blog post. "This contract obligated Vizio to provide SFC the complete and corresponding source code." [...]

Karen Sandler, executive director of the SFC, told The Register in an email that the hearing went well, though Vizio's legal counsel "stridently disagreed" with the legal analysis in the tentative ruling. "Judge Leal said she would take the matter 'under submission' which means she will think about it further," Sandler said. "After the Court went off the record, Leal's clerk specifically verified the Court reporter could provide an expedited transcript, so Leal will likely review the hearing transcript soon." Sandler expects Leal will examine the filings again before issuing her opinion, which is likely to be issued in the next few weeks.

Government

FCC Chair Suggests Agency Isn't Independent, Word Cut From Mission Statement (axios.com) 110

FCC Chairman Brendan Carr said in his Wednesday Senate testimony that the agency he governs "is not an independent agency, formally speaking." Axios: During his testimony, the word "independent" was removed from the FCC's mission statement on its website. The extraordinary statement speaks to a broader trend of regulatory agencies losing power to the executive branch during the Trump era. Last week, the Supreme Court appeared poised to allow President Trump to fire members of the Federal Trade Commission during oral arguments over the issue.

Sen. Ben Ray LujÃn (D-N.M.) began the line of questioning, citing the FCC's website, which said the agency was independent as of Wednesday morning. By Wednesday afternoon, the FCC's mission statement no longer said it was independent. Chairman Carr would not respond directly to questions about whether he believed the president was his boss. He would not answer whether it's appropriate if the president were to pressure him to go after media companies. He suggested the president has the power to fire him and other FCC commissioners.

Google

Google Sues Alleged Chinese Scam Group Behind Massive US Text Message Phishing Ring (nbcnews.com) 20

Google is suing a Chinese-speaking cybercriminal group it says is responsible for a massive wave of scam text messages sent to Americans this year, according to a legal complaint filed Tuesday. From a report: The group, known as Darcula, sells software that allows users to send phishing text messages en masse, impersonating organizations like the IRS or the U.S. Postal Service in scams. The lawsuit is designed to give Google legal standing so U.S. courts will allow it to seize websites the group uses, hampering their operations, a spokesperson said.

Darcula is possibly the most prominent name in an emerging, loosely affiliated cybercrime world that creates and sells hacking programs for aspiring scammers to use. Darcula's signature program, called Magic Cat, provides an easy-to-use, intuitive way for cybercriminals without advanced hacking skills to quickly spam millions of phone numbers with links to fake websites impersonating businesses like YouTube's premium service, then steal the credit card numbers victims put in.

Television

Texas Sues TV Makers For Taking Screenshots of What People Watch (bleepingcomputer.com) 80

mprindle writes: The Texas Attorney General sued five major television manufacturers, accusing them of illegally collecting their users' data by secretly recording what they watch using Automated Content Recognition (ACR) technology.

The lawsuits target Sony, Samsung, LG, and China-based companies Hisense and TCL Technology Group Corporation. Attorney General Ken Paxton's office also highlighted "serious concerns" about the two Chinese companies being required to follow China's National Security Law, which could give the Chinese government access to U.S. consumers' data.

According to complaints filed this Monday in Texas state courts, the TV makers can allegedly use ACR technology to capture screenshots of television displays every 500 milliseconds, monitor the users' viewing activity in real time, and send this information back to the companies' servers without the users' knowledge or consent.

Verizon

Verizon Refused To Unlock Man's iPhone, So He Sued the Carrier and Won (arstechnica.com) 46

A Kansas man who sued Verizon in small claims court after the carrier refused to unlock his iPhone has won his case, scoring a small but meaningful victory against a company that retroactively applied a policy change to deny his unlock request.

Patrick Roach bought a discounted iPhone 16e from Verizon's Straight Talk brand in February 2025, intending to pay for one month of service before switching the device to US Mobile. Under FCC rules dating back to a 2019 waiver, Verizon must unlock phones 60 days after activation on its network. Verizon refused to unlock the phone, citing a new policy implemented on April 1, 2025 requiring "60 days of paid active service."

Roach had purchased his device over a month before that policy took effect. Magistrate Judge Elizabeth Henry ruled in October 2025 that applying the changed terms to Roach's earlier purchase violated the Kansas Consumer Protection Act. The court ordered Verizon to refund Roach's $410.40 purchase price plus court costs. Roach had previously rejected a $600 settlement offer because it would have required him to sign a non-disclosure agreement. He estimated spending about 20 hours on the lawsuit but said "it wasn't about" the money.
Robotics

Roomba Maker 'iRobot' Files for Bankruptcy After 35 Years (msn.com) 100

Roomba manufacturer iRobot filed for bankruptcy today, reports Bloomberg.

After 35 years, iRobot reached a "restructuring support agrement that will hand control of the consumer robot maker to Shenzhen PICEA Robotics Co, its main supplier and lender, and Santrum Hong Kong Compny." Under the restructuring, vacuum cleaner maker Shenzhen PICEA will receive the entire equity stake in the reorganised company... The plan will allow the debtor to remain as a going concern and continue to meet its commitments to employees and make timely payments in full to vendors and other creditors for amounts owed throughout the court-supervised process, according to an iRobot statement... he company warned of potential bankruptcy in December after years of declining earnings.
Roomba says it's sold over 50 million robots, the article points out, but earnings "began to decline since 2021 due to supply chain headwinds and increased competition.

"A hoped-for by acquisition by Amazon.com in 2023 collapsed over regulatory concerns."
United States

Repeal Section 230 and Its Platform Protections, Urges New Bipartisan US Bill (eff.org) 168

U.S. Senator Sheldon Whitehouse said Friday he was moving to file a bipartisan bill to repeal Section 230 of America's Communications Decency Act.

"The law prevents most civil suits against users or services that are based on what others say," explains an EFF blog post. "Experts argue that a repeal of Section 230 could kill free speech on the internet," writes LiveMint — though America's last two presidents both supported a repeal: During his first presidency, U.S. President Donald Trump called to repeal the law and signed an executive order attempting to curb some of its protections, though it was challenged in court. Subsequently, former President Joe Biden also voiced his opinion against the law.
An EFF blog post explains the case for Section 230: Congress passed this bipartisan legislation because it recognized that promoting more user speech online outweighed potential harms. When harmful speech takes place, it's the speaker that should be held responsible, not the service that hosts the speech... Without Section 230, the Internet is different. In Canada and Australia, courts have allowed operators of online discussion groups to be punished for things their users have said. That has reduced the amount of user speech online, particularly on controversial subjects. In non-democratic countries, governments can directly censor the internet, controlling the speech of platforms and users. If the law makes us liable for the speech of others, the biggest platforms would likely become locked-down and heavily censored. The next great websites and apps won't even get started, because they'll face overwhelming legal risk to host users' speech.
But "I strongly believe that Section 230 has long outlived its use," Senator Whitehouse said this week, saying Section 230 "a real vessel for evil that needs to come to an end." "The laws that Section 230 protect these big platforms from are very often laws that go back to the common law of England, that we inherited when this country was initially founded. I mean, these are long-lasting, well-tested, important legal constraints that have — they've met the test of time, not by the year or by the decade, but by the century.

"And yet because of this crazy Section 230, these ancient and highly respected doctrines just don't reach these people. And it really makes no sense, that if you're an internet platform you get treated one way; you do the exact same thing and you're a publisher, you get treated a completely different way.

"And so I think that the time has come.... It really makes no sense... [Testimony before the committee] shows how alone and stranded people are when they don't have the chance to even get justice. It's bad enough to have to live through the tragedy... But to be told by a law of Congress, you can't get justice because of the platform — not because the law is wrong, not because the rule is wrong, not because this is anything new — simply because the wrong type of entity created this harm."

Power

Trump Ban on Wind Energy Permits 'Unlawful', Court Rules (bbc.com) 139

A January order blocking wind energy projects in America has now been vacated by a U.S. judge and declared unlawful, reports the Associated Press: [Judge Saris of the U.S. district court for the district of Massachusetts] ruled in favor of a coalition of state attorneys general from 17 states and Washington DC, led by Letitia James, New York's attorney general, that challenged President Trump's day one order that paused leasing and permitting for wind energy projects... The coalition that opposed Trump's order argued that Trump does not have the authority to halt project permitting, and that doing so jeopardizes the states' economies, energy mix, public health and climate goals.

The coalition includes Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, New York, Oregon, Rhode Island, Washington state and Washington DC. They say they have invested hundreds of millions of dollars collectively to develop wind energy and even more on upgrading transmission lines to bring wind energy to the electrical grid...

Wind is the United States' largest source of renewable energy, providing about 10% of the electricity generated in the nation, according to the American Clean Power Association.

But the BBC quotes Timothy Fox, managing director at the Washington, DC-based research firm ClearView Energy Partners, as saying he doesn't expect the ruling to reinvigorate the industry: "It's more symbolic than substantive," he said. "All the court is saying is ... you need to go back to work and consider these applications. What does that really mean?" he said. Officials could still deny permits or bog applications down in lengthy reviews, he noted.
The Courts

Ukrainians Sue US Chip Firms For Powering Russian Drones, Missiles (arstechnica.com) 118

An anonymous reader quotes a report from Ars Technica: Dozens of Ukrainian civilians filed a series of lawsuits in Texas this week, accusing some of the biggest US chip firms of negligently failing to track chips that evaded export curbs. Those chips were ultimately used to power Russian and Iranian weapon systems, causing wrongful deaths last year. Their complaints alleged that for years, Texas Instruments (TI), AMD, and Intel have ignored public reporting, government warnings, and shareholder pressure to do more to track final destinations of chips and shut down shady distribution channels diverting chips to sanctioned actors in Russia and Iran.

Putting profits over human lives, tech firms continued using "high-risk" channels, Ukrainian civilians' legal team alleged in a press statement, without ever strengthening controls. All that intermediaries who placed bulk online orders had to do to satisfy chip firms was check a box confirming that the shipment wouldn't be sent to sanctioned countries, lead attorney Mikal Watts told reporters at a press conference on Wednesday, according to the Kyiv Independent. "There are export lists," Watts said. "We know exactly what requires a license and what doesn't. And companies know who they're selling to. But instead, they rely on a checkbox that says, 'I'm not shipping to Putin.' That's it. No enforcement. No accountability." [...]

Damages sought include funeral expenses and medical costs, as well as "exemplary damages" that are "intended to punish especially wrongful conduct and to deter similar conduct in the future." For plaintiffs, the latter is the point of the litigation, which they hope will cut off key supply chains to keep US tech out of weapon systems deployed against innocent civilians. "They want to send a clear message that American companies must take responsibility when their technologies are weaponized and used to commit harm across the globe," the press statement said. "Corporations must be held accountable when its unlawful decisions made in the name of profit directly cause the death of innocents and widespread human suffering." For chip firms, the litigation could get costly if more civilians join, with the threat of a loss potentially forcing changes that could squash supply chains currently working to evade sanctions. "We want to make this process so expensive and painful that companies are forced to act," Watts said. "That is our contribution to stopping the war against civilians."

United States

'Apple Tax is Dead in the USA' (arstechnica.com) 100

The Ninth Circuit Court of Appeals has almost entirely upheld a scathing April ruling that found Apple in willful violation of a 2021 injunction meant to open up iOS App Store payments in its long-running legal battle against Epic Games. A three-judge panel affirmed that Apple's 27% fee for developers using outside payment options had a "prohibitive effect" and that the company's design restrictions on external payment links were overly broad.

The appeals court also agreed that Apple acted in "bad faith" by rejecting viable, compliant alternatives in internal discussions. One divergence from the lower court: the appeals court ruled that Apple should still be able to charge a "reasonable fee" based on its actual costs to ensure user security and privacy, rather than charging nothing at all. What qualifies as "reasonable" remains to be determined.

Epic CEO Tim Sweeney told reporters he believes those fees should be "super super minor," on the order of "tens or hundreds of dollars" every time an iOS app update goes through Apple for review. "The Apple Tax is dead in the USA," he wrote on social media. Sweeney also alleged that a widespread "fear of retaliation" has kept many developers paying Apple's default 30% fees, claiming the company can effectively "ghost" apps by delaying reviews or burying them in search results.
Crime

Hollywood Director Found Guilty of Blowing $11 Million Netflix Budget on Crypto and Ferraris (decrypt.co) 43

Carl Rinsch, the director behind the 2013 Keanu Reeves film "47 Ronin," has been found guilty of defrauding Netflix out of $11 million that was meant to fund a science fiction series called "Conquest," which the streaming company ultimately cancelled in 2021 after Rinsch failed to meet any production milestones. A jury in the Southern District of New York convicted the 48-year-old on seven charges: one count each of wire fraud and money laundering, and five counts of transacting in illicitly obtained property.

Prosecutors alleged that Rinsch funneled the $11 million through multiple bank accounts into a personal brokerage account, lost more than half of it on securities within two months, and then began speculating on cryptocurrency. Court records show he also spent $2.4 million on a Ferrari and five Rolls Royces, $3.3 million on furniture and antiques, and $387,000 on a Swiss watch. Netflix has written off $55 million in total and has not recovered any funds. Rinsch faces up to 90 years in prison and is scheduled for sentencing on April 17, 2026.
Australia

Reddit Launches High Court Challenge To Australia's Under-16s Social Media Ban (theguardian.com) 54

An anonymous reader quotes a report from the Guardian: Reddit has filed a challenge against Australia's under-16s social media ban in the high court, lodging its case two days after implementing age restrictions on its website. The company said in a Reddit post on Friday that while it agreed with protecting people under 16, the law "has the unfortunate effect of forcing intrusive and potentially insecure verification processes on adults as well as minors, isolating teens from the ability to engage in age-appropriate community experiences."

Reddit said there was an "illogical patchwork" of platforms included in the ban. "As the Australian Human Rights Commission put it, 'There are less restrictive alternatives available that could achieve the aim of protecting children and young people from online harms, but without having such a significant negative impact on other human rights.'" Reddit argued it was a forum primarily for adults without the traditional social media features the government has "taken issue with."

Reddit was challenging the law on the grounds it infringed on the implied freedom of political communication. It was also seeking to challenge whether Reddit could be considered an age-restricted social media platform under the legislation. It said it was not seeking to challenge the law to avoid compliance, and had implemented age-assurance measures since Wednesday. The company said the vast majority of Redditors were adults, and advertising wasn't targeted to children under 18. The Apple app store age rating for Reddit is 17+. "Despite the best intentions, this law is missing the mark on actually protecting young people online," Reddit said. "So, while we will comply with this law, we have a responsibility to share our perspective and see that it is reviewed by the courts."

Crime

TerraUSD Creator Do Kwon Sentenced To 15 Years Over $40 Billion Crypto Collapse 30

An anonymous reader quotes a report from Reuters: Do Kwon, the South Korean cryptocurrency entrepreneur behind two digital currencies that lost an estimated $40 billion in 2022, was sentenced in New York federal court on Thursday to 15 years in prison for fraud and conspiracy. Kwon, 34, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, previously pleaded guilty and admitted to misleading investors about a coin that was supposed to maintain a steady price during periods of crypto market volatility.

Kwon was one of several cryptocurrency moguls to face federal charges after a slump in digital token prices in 2022 prompted the collapse of a number of companies. [...] Kwon was accused of misleading investors in 2021 about TerraUSD, a so-called stablecoin designed to maintain a value of $1. Prosecutors alleged that when TerraUSD slipped below its $1 peg in May 2021, Kwon told investors a computer algorithm known as "Terra Protocol" had restored the coin's value. Instead, Kwon arranged for a high-frequency trading firm to secretly buy millions of dollars of the token to artificially prop up its price, according to charging documents.
"I made false and misleading statements about why it regained its peg by failing to disclose a trading firm's role in restoring that peg," Kwon said in court. "What I did was wrong."

He also faces charges in South Korea, and under his plea deal, prosecutors won't oppose his transfer abroad after he serves half of his U.S. sentence.

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