Businesses

Feds Seized Robinhood CEO's Phone in GameStop Trading Halt Investigation (vice.com) 20

Robinhood, the stock trading app that was subject to a record fine Wednesday, announced it intends to go public Thursday. From a report: In its filing documents, the company admits that many of its customers are furious about how it handled January's GameStop stock bonanza and that it is currently subject of at least 49 class action lawsuits related to trading restrictions it placed on the stock in January. The company also said it is under investigation by a series of regulators, state attorneys general, the SEC, and the U.S. Department of Justice in proceedings associated with the trading restrictions; the company said its CEO Vladimir Tenev has also had his cell phone seized by federal attorneys.

In January, Robinhood restricted the purchase of GameStop, AMC, and other "meme" stocks because the app literally did not have enough money to comply with regulations that require a certain amount of liquidity from companies that allow for stock trading. This restriction correlated with a days-long dive in the stock prices of GameStop, which skyrocketed in January and February and led to widespread calls from lawmakers, traders, and Redditors on the WallStreetBets subreddit to investigate Robinhood. Those investigations are ongoing, according to Robinhood's S-1 filing with the SEC. In its filing, Robinhood states that the fallout from these restrictions still have the potential to be disastrous for the company. âoeWe have become aware of approximately 50 putative class actions ... relating to the Early 2021 Trading Restrictions."

Privacy

An Email Sent by One Medical Exposed Hundreds of Customers' Email Addresses (techcrunch.com) 24

Primary care company One Medical has apologized after it sent out an email that exposed hundreds of customers' email addresses. From a report: The email sent out by One Medical on Wednesday asked to "verify your email," but one email seen by TechCrunch had more than 980 email addresses copied on the email. The cause: One Medical did not use the blind carbon copy (bcc:) field to mass email its customers, which would have hidden their email addresses from each other. Several customers took to Twitter to complain, but also express sympathy for what was quickly chalked up to an obvious mistake. Some users reported varying numbers of email addresses on the email that they received.
AI

A Government Watchdog May Have Missed Clearview AI Use By Five Federal Agencies (buzzfeednews.com) 20

An anonymous reader quotes a report from BuzzFeed News: A government inquiry into federal agencies' deployment of facial recognition may have overlooked some organizations' use of popular biometric identification software Clearview AI, calling into question whether authorities can understand the extent to which the emerging technology has been used by taxpayer-funded entities. In a 92-page report published by the Government Accountability Office on Tuesday, five agencies -- the US Capitol Police, the US Probation Office, the Pentagon Force Protection Agency, Transportation Security Administration, and the Criminal Investigation Division at the Internal Revenue Service -- said they didn't use Clearview AI between April 2018 and March 2020. This, however, contradicts internal Clearview data previously reviewed by BuzzFeed News.

In April, BuzzFeed News revealed that those five agencies were among more than 1,800 US taxpayer-funded entities that had employees who tried or used Clearview AI, based on internal company data. As part of that story, BuzzFeed News published a searchable table disclosing all the federal, state, and city government organizations whose employees are listed in the data as having used the facial recognition software as of February 2020. While the GAO was tasked with "review[ing] federal law enforcement use of facial recognition technology," the discrepancies between the report, which was based on survey responses and BuzzFeed News' past reporting, suggest that even the US government may not be equipped to track how its own agencies access to surveillance tools like Clearview. The GAO report surveyed 42 federal agencies in total, 20 of which reported that they either owned their own facial recognition system or used one developed by a third party between April 2018 and March 2020. Ten federal agencies -- including Immigration and Customs Enforcement and Customs and Border Protection -- said they specifically used Clearview AI.

AI

Maine Passes the Strongest State Facial Recognition Ban Yet (theverge.com) 46

The state of Maine now has the most stringent laws regulating government use of facial recognition in the country. The Verge reports: The new law prohibits government use of facial recognition except in specifically outlined situations, with the most broad exception being if police have probable cause that an unidentified person in an image committed a serious crime, or for proactive fraud prevention. Since Maine police will not have access to facial recognition, they will be able to ask the FBI and Maine Bureau of Motor Vehicles (BMV) to run these searches.

Crucially, the law plugs loopholes that police have used in the past to gain access to the technology, like informally asking other agencies or third parties to run backchannel searches for them. Logs of all facial recognition searches by the BMV must be created and are designated as public records. The only other state-wide facial recognition law was enacted by Washington in 2020, but many privacy advocates were dissatisfied with the specifics of the law. Maine's new law also gives citizens the ability to sue the state if they've been unlawfully targeted by facial recognition, which was notably absent from Washington's regulation. If facial recognition searches are performed illegally, they must be deleted and cannot be used as evidence.
In response to this new law, the ACLU said: "Maine is showing the rest of the country what it looks like when we the people are in control of our civil rights and civil liberties, not tech companies that stand to profit from widespread government use of face surveillance technology."
The Courts

Huawei CFO Says HSBC Emails Disprove Basis For US Extradition Claim (reuters.com) 48

AltMachine shares a report from Reuters: "Lawyers fighting the extradition of Huawei's chief financial officer to the United States on Tuesday presented internal emails from British bank HSBC that they said disproved U.S. claims that Huawei misled the bank," reports Reuters. "CFO Meng Wanzhou's legal team said the emails and documents submitted to a Canadian court showed at least two senior HSBC leaders were aware of connections between Huawei and its Iranian subsidiary, Skycom. Meng's lawyers are trying to add the documents to evidence. They are meant to counter U.S. charges that only junior employees of the British bank knew about the true nature of relationship between Huawei and Skycom. U.S. prosecutors have alleged that Meng misled HSBC about Huawei's business dealings in Iran and may have caused the bank to break U.S. sanctions."

Business dealings with Iran was not illegal under Canada laws as the sanction was not a UN resolution and had no legal basis internationally. The only way for the extradition to proceed would be to show Huawei misled HSBC which operates in the U.S. Amid intensifying US-China technology and economic rivalry, it is not the first time the U.S. law enforcement fabricating false accusation against Chinese or China-linked persons. Earlier in April, U.S. court trial reveals federal agents falsely accused a UT professor born in China of spying and three Congressmen are asking the Department of Justice Office of the Inspector General to "review whether the China Initiative puts untoward pressure on DOJ personnel to engage in racial or ethnic profiling." Federal agents falsely accused Hu of spying for China based solely on a Google search, testimony revealed. After Hu refused to work as a spy for the U.S. government, agents stalked and harassed him for more than two years, leading to the destruction of his reputation and internationally renowned career.

United States

Microsoft Exec: Targeting of Americans' Records 'Routine' (apnews.com) 38

Federal law enforcement agencies secretly seek the data of Microsoft customers thousands of times a year, according to congressional testimony Wednesday by a senior executive at the technology company. From a report: Tom Burt, Microsoft's corporate vice president for customer security and trust, told members of the House Judiciary Committee that federal law enforcement in recent years has been presenting the company with between 2,400 to 3,500 secrecy orders a year, or about seven to 10 a day. "Most shocking is just how routine secrecy orders have become when law enforcement targets an American's email, text messages or other sensitive data stored in the cloud," said Burt, describing the widespread clandestine surveillance as a major shift from historical norms.

The relationship between law enforcement and Big Tech has attracted fresh scrutiny in recent weeks with the revelation that Trump-era Justice Department prosecutors obtained as part of leak investigations phone records belonging not only to journalists but also to members of Congress and their staffers. Microsoft, for instance, was among the companies that turned over records under a court order, and because of a gag order, had to then wait more than two years before disclosing it.

The Internet

Ohio GOP Ends Attempt To Ban Municipal Broadband After Protest From Residents (arstechnica.com) 207

An anonymous reader quotes a report from Ars Technica: After coming close to imposing a near-total ban on municipal broadband networks, Ohio's Republican-controlled legislature has reportedly dropped the proposed law in final negotiations over the state budget. The final budget agreement "axed a proposal to limit local governments from offering broadband services," The Columbus Dispatch wrote. With a June 30 deadline looming, Ohio's House and Senate approved the budget and sent it to Gov. Mike DeWine for final approval on Monday night, the Dispatch wrote.

As we wrote earlier this month, the Ohio Senate approved a version of the budget containing an amendment (PDF) that would have forced existing municipal broadband services to shut down and prevented the formation of new public networks. The proposed law was reportedly "inserted without prior public discussion," and no state senator publicly sponsored the amendment. It was approved in a party-line vote as Democrats opposed the restrictions in municipal broadband. The House version did not contain the amendment, and it was dropped during negotiations between the House and Senate.

Lawmakers apparently relented to public pressure from supporters of municipal broadband and cities and towns that operate the networks. People and businesses from Fairlawn, where the city-run FairlawnGig network offers fiber Internet, played a significant role in the protests. FairlawnGig itself asked users to put pressure on lawmakers, and the subscribers did so in great numbers. "We had a real grassroots movement here in Fairlawn. We are thrilled our residents, subscribers, and businesses came together and helped us defeat this amendment," Fairlawn Service Director Ernie Staten said yesterday, according to an article by the Community Networks team at the Institute for Local Self-Reliance (ILSR). "We appreciate that the State of Ohio recognizes that municipal broadband has a place in this state and we hope to continue this great endeavor." Fairlawn subscribers sent more than 700 emails telling lawmakers, "Don't take this (municipal broadband) away!" Staten said.
The report notes that while Ohio's legislature isn't banning public networks, at least for now, it "is apparently not letting municipal networks apply for a new round of funding."

"While Staten celebrated the removal of the budget amendment, he called the victory 'bittersweet,' as municipalities and electric cooperatives in the state do not have access to the proposed $250 million broadband expansion grant program that will be established when, and if, Gov. Dewine signs the budget into law," the ILSR wrote. The outcome of that isn't certain yet. "We have been asking for a small definition change to add municipalities and electric coops, but unless they changed the language, I believe the House version stands," Staten told the ILSR.
Transportation

US Agency Orders Automated Vehicle Makers To Report Crashes (apnews.com) 49

The U.S. government's highway safety agency has ordered automakers to report any crashes involving fully autonomous vehicles or partially automated driver assist systems. The Associated Press reports: The move Tuesday by the National Highway Traffic Safety Administration indicates the agency is taking a tougher stance on automated vehicle safety than in the past. It has been reluctant to issue any regulations of the new technology for fear of hampering adoption of the potentially life-saving systems. The order requires vehicle and equipment manufacturers and companies that operate the vehicles to report crashes on public roads involving fully autonomous vehicles, or those in which driver assist systems were operating immediately before or during a crash.

"By mandating crash reporting, the agency will have access to critical data that will help quickly identify safety issues that could emerge in these automated systems," NHTSA Acting Administrator Steven Cliff said in a statement. The agency says it will look for potential safety defects, and the information could cause it to send out a crash investigation team or open a defect investigation. Companies have to report crashes involving fully autonomous or partially automated vehicles within one day of learning about them, if they involve a hospital-treated injury, a death, air bag deployment, pedestrians or bicyclists, or were serious enough for a vehicle to be towed away. Other crashes involving vehicles equipped with the systems involving injury or property damage have to be reported every month. The requirement does not apply to consumers who own vehicles or auto dealers. NHTSA says in a statement that the data can show if there are common patterns in crashes involving the systems.

The Internet

DoubleVPN Servers, Logs, and Account Info Seized By Law Enforcement (bleepingcomputer.com) 69

Law enforcement has seized the servers and customer logs for DoubleVPN, a double-encryption service commonly used by threat actors to evade detection while performing malicious activities. BleepingComputer reports: DoubleVPN is a Russian-based VPN service that double-encrypts data sent through their service. When using the service, requests are encrypted and transmitted to one VPN server, which sends it to another VPN server, which finally connects to the final destination. The doublevpn.com [archive.org] website was seized today by law enforcement, who stated that they gained access to the servers for DoubleVPN and took personal information, logs, and statistics for the service's customers.

"On 29th of June 2021, law enforcement took down DoubleVPN. Law enforcement gained access to the servers of DoubleVPN and seized personal information, logs and statistics kept by DoubleVPN about all of its customers. DoubleVPN's owners failed to provide the services they promised," says the now-seized doublevpn.com website. "International law enforcement continues to work collectively against facilitators of cybercrime, wherever and however it is committed. The investigation regarding customer data of this network will continue." Europol has confirmed to BleepingComputer that the seizure message is legitimate and that they will be providing more information about the operation tomorrow.

Google

Inside Neeva, the Ad-Free, Privacy-First Search Engine From ex-Googlers (fastcompany.com) 70

Sridhar Ramaswamy and Vivek Raghunathan helped turn Google into an ad giant. Now they're starting over with a service whose only customers are its users. From a report: A new search engine? One that people have to pay to use? At first blush, it may seem like a textbook example of a startup idea destined never to get anywhere. By definition, any new search engine competes with Google, whose 90 percent-plus market share leaves little oxygen for other players. And we've been accustomed to getting our search for free since well before there was a Google -- which might make paying for it sound like being expected to purchase a phone book. But Neeva is indeed a new search engine, officially launching today, that carries a subscription fee.

Though it's extremely similar to Google in many respects -- with a few twists of its own -- it dumps the web giant's venerable ad-based business model in the interest of avoiding distractions, privacy quandaries, and other compromises. It's free for three months -- long enough for users to grow accustomed to it without obligation -- and $4.95 a month thereafter. Apps for iPhones and iPads, and browser extensions for Chrome, Firefox, Safari, Edge, and Brave, are part of the deal. Neeva may have a certain whiff of improbability about it, but its cofounders, Sridhar Ramaswamy and Vivek Raghunathan, are the furthest thing from naifs. Two long-time Google executives with more than a quarter-century of experience at the web giant between them, they have an insider's understanding of how it operates. Moreover, about 30 percent of the roughly 60-person staff they've assembled at Neeva consists of ex-Googlers, including Hall-of-Famers such as Udi Manber (a former head of Google search) and Darin Fisher (one of the inventors of Chrome). They've also secured $77.5 million in funding, including investments from venture-capital titans Greylock and Sequoia.

Facebook

Facebook Rises After Lawsuit Dismissal, Hits $1 Trillion Value (cnbc.com) 49

Facebook shares posted their biggest intraday gain in two months after it won a dismissal of two antitrust cases, pushing its market value above $1 trillion for the first time. The social-media giant jumped as much as 4.4%, the most since April 29 after a judge granted Facebook's request to dismiss the complaints filed last year by the U.S. Federal Trade Commission and state attorneys general. Reader phalse phace writes: A federal court on Monday dismissed the Federal Trade Commission's antitrust complaint against Facebook, dealing a major setback for the agency's complaint that could have resulted in Facebook divesting Instagram and WhatsApp.

"Although the Court does not agree with all of Facebook's contentions here, it ultimately concurs that the agency's complaint is legally insufficient and must therefore be dismissed," reads the filing from U.S. District Court for the District of Columbia. "The FTC has failed to plead enough facts to plausibly establish a necessary element of all of its Section 2 claims -- namely, that Facebook has monopoly power in the market for Personal Social Networking (PSN) Services." The court dismissed the complaint, not the case, meaning the FTC could file its complaint once again.

The Courts

Netflix Loses First Court Case Over Network Usage Fee (kedglobal.com) 87

Global streaming giant Netflix lost a South Korean court case on Friday, in the world's first ruling over a dispute about whether over-the-top service providers should pay internet service companies for network usage. From a report: In April 2020, Netflix filed a complaint against SK Broadband, rejecting the Korean internet provider's demand that the streaming platform pay for network use in South Korea. The legal action has drawn attention because it marks the world's first legal conflict between an OTT platform and a broadband company. South Korea is one of the world's fast-growing OTT markets, where Netflix posted triple-digit earnings growth in 2020 from the year previous. On June 25, the Seoul Central District Court rejected the case brought forth by Netflix, while dismissing Netflix's claim that the OTT platform has no obligation to negotiate with SK Broadband over the network use charges. "It needs to be determined by negotiations between the parties involved whether or not some fees will be paid, or whether they enter an agreement in accordance with the principle of freedom of contract," the court ruling reads.
Privacy

Abu Dhabi Starts Using Facial Covid Scanners at Malls and Airports (bloomberg.com) 51

Abu Dhabi will use facial scanners to detect coronavirus infections at malls and airports starting Monday, after a trial of 20,000 people showed "a high degree of effectiveness." From a report: The technology can detect infections by measuring electromagnetic waves, which change when the RNA particles of the virus are present in the body, state-run WAM reported. The results showed 93.5 per cent sensitivity, reflecting the accuracy of identifying those infected. The scanner was developed by EDE Research Institute Abu Dhabi, a unit of International Holding. The United Arab Emirates, of which Abu Dhabi is part, has one of the world's highest vaccination rates, but daily new cases have continued to hover around 2,000 since March.
Privacy

DuckDuckGo Beats Bing to Become #2 Mobile Search Engine in US, Canada, Australia (spreadprivacy.com) 91

There are some big announcements on DuckDuckGo's blog at SpreadPrivacy.com:
  • "Our apps have been downloaded more than 50 million times over the last 12 months, more than all prior years combined...
  • "Spurred by the increase in DuckDuckGo app usage, over the last 12 months our monthly search traffic increased 55% and we grew to become the #2 search engine on mobile in many countries including in the U.S., Canada, Australia, and the Netherlands. (StatCounter/Wikipedia)."
  • "We don't track our users so we can't say for sure how many we have, but based on market share estimates, download numbers, and national surveys, we believe there are between 70-100 million DuckDuckGo users."
  • "We're excited to start rolling out additional privacy features to our all-in-one privacy bundle. In a few weeks, DuckDuckGo Email Protection will be available in beta which will give users more privacy without having to get a new inbox. Later this summer, app tracker blocking will be available in beta for Android devices, allowing users to block app trackers and providing more transparency on what's happening behind the scenes on their device. Before the end of the year, we also plan to release a brand-new desktop version of our existing mobile app which people can use as a primary browser."

They're now pulling in over $100 million a year in revenue, "giving us the financial resources to continue growing rapidly," and at the end of 2020 they also landed a "mainly secondary investment" of over $100 million from a long list of investors (which included Tim Berners-Lee as well as Freada Kapor Klein and Mitch Kapor).

One thing they're doing with their money is spreading the word about online privacy — by purchasing billboard, radio, and TV ads in 175 different markets across the U.S., with more marketing blitzes now planned soon for Europe and other countries around the world.


Electronic Frontier Foundation

'Golden Age of Surveillance', as Police Make 112,000 Data Requests in 6 Months (newportri.com) 98

"When U.S. law enforcement officials need to cast a wide net for information, they're increasingly turning to the vast digital ponds of personal data created by Big Tech companies via the devices and online services that have hooked billions of people around the world," reports the Associated Press: Data compiled by four of the biggest tech companies shows that law enforcement requests for user information — phone calls, emails, texts, photos, shopping histories, driving routes and more — have more than tripled in the U.S. since 2015. Police are also increasingly savvy about covering their tracks so as not to alert suspects of their interest... In just the first half of 2020 — the most recent data available — Apple, Google, Facebook and Microsoft together fielded more than 112,000 data requests from local, state and federal officials. The companies agreed to hand over some data in 85% of those cases. Facebook, including its Instagram service, accounted for the largest number of disclosures.

Consider Newport, a coastal city of 24,000 residents that attracts a flood of summer tourists. Fewer than 100 officers patrol the city — but they make multiple requests a week for online data from tech companies. That's because most crimes — from larceny and financial scams to a recent fatal house party stabbing at a vacation rental booked online — can be at least partly traced on the internet. Tech providers, especially social media platforms, offer a "treasure trove of information" that can help solve them, said Lt. Robert Salter, a supervising police detective in Newport.

"Everything happens on Facebook," Salter said. "The amount of information you can get from people's conversations online — it's insane."

As ordinary people have become increasingly dependent on Big Tech services to help manage their lives, American law enforcement officials have grown far more savvy about technology than they were five or six years ago, said Cindy Cohn, executive director of the Electronic Frontier Foundation, a digital rights group. That's created what Cohn calls "the golden age of government surveillance." Not only has it become far easier for police to trace the online trails left by suspects, they can also frequently hide their requests by obtaining gag orders from judges and magistrates. Those orders block Big Tech companies from notifying the target of a subpoena or warrant of law enforcement's interest in their information — contrary to the companies' stated policies...

Nearly all big tech companies — from Amazon to rental sites like Airbnb, ride-hailing services like Uber and Lyft and service providers like Verizon — now have teams to respond...

Cohn says American law is still premised on the outdated idea that valuable data is stored at home — and can thus be protected by precluding home searches without a warrant. At the very least, Cohn suggests more tech companies should be using encryption technology to protect data access without the user's key.

But Newport supervising police detective Lt. Robert Salter supplied his own answer for people worried about how police officers are requesting more and more data. "Don't commit crimes and don't use your computer and phones to do it."
Robotics

Do Security Robots Reduce Crime? (nbcnews.com) 50

Westland Real Estate Group patrols its 1,000-unit apartment complex in Las Vegas with "a conical, bulky, artificial intelligence-powered robot" standing just over 5 feet tall, according to NBC News. Manufactured by Knightscope, the robot is equipped with four internal cameras capturing a constant 360-degree view, and can also scan and record license plates (as well as the MAC addresses of cellphones). But is it doing any good? As more government agencies and private sector companies resort to robots to help fight crime, the verdict is out about how effective they are in actually reducing it. Knightscope, which experts say is the dominant player in this market, has cited little public evidence that its robots have reduced crime as the company deploys them everywhere from a Georgia shopping mall to an Arizona development to a Nevada casino. Knightscope's clients also don't know how much these security robots help. "Are we seeing dramatic changes since we deployed the robot in January?" Dena Lerner, the Westland spokesperson said. "No. But I do believe it is a great tool to keep a community as large as this, to keep it safer, to keep it controlled."

For its part, Knightscope maintains on its website that the robots "predict and prevent crime," without much evidence that they do so. Experts say this is a bold claim. "It would be difficult to introduce a single thing and it causes crime to go down," said Ryan Calo, a law professor at the University of Washington, comparing the Knightscope robots to a "roving scarecrow." Additionally, the company does not provide specific, detailed examples of crimes that have been thwarted due to the robots.

The robots are expensive — they're rented out at about $70,000-$80,000 a year — but growth has stalled for the two years since 2018, and over four years Knightscope's total clients actually dropped from 30 to just 23. (Expenses have now risen — partly because the company is now doubling its marketing budget.)

There's also a thermal scanning feature, but Andrew Ferguson, a law professor at American University, still called these robots an "expensive version of security theater." And NBC News adds that KnightScope's been involved "in both tragic and comical episodes." In 2016, a K5 roaming around Stanford Shopping Center in Palo Alto, California, hit a 16-month-old toddler, bruising his leg and running over his foot. The company apologized, calling it a "freakish accident," and invited the family to visit the company's nearby headquarters in Mountain View, which the family declined. The following year, another K5 robot slipped on steps adjacent to a fountain at the Washington Harbour development in Washington, D.C., falling into the water. In October 2019, a Huntington Park woman, Cogo Guebara, told NBC News that she tried reporting a fistfight by pressing an emergency alert button on the HP RoboCop itself, but to no avail. She learned later the emergency button was not yet connected to the police department itself... [The northern California city] Hayward dispatched its robot in a city parking garage in 2018. The following year, a man attacked and knocked over the robot. Despite having clear video and photographic evidence of the alleged crime, no one was arrested, according to Adam Kostrzak, the city's chief information officer.
The city didn't renew its contract "due to the financial impact of Covid-19 in early 2020," the city's CIO tells NBC News. But the city had already spent over $137,000 on the robot over two years.
The Courts

Texas Court Rules Teens Can Sue Facebook For Its Alleged Role in Their Sex Trafficking (houstonchronicle.com) 97

The Houston Chronicle reports: The Texas Supreme Court ruled Friday in a Houston case that Facebook is not a "lawless no-man's-land" and can be held liable for the conduct of pimps who use its technology to recruit and prey on children.

The ruling came in a trio of Houston civil actions involving teenage trafficking victims who met their abusive pimps through Facebook's messaging functions. They sued the California-based social media juggernaut for negligence and product liability, saying that Facebook failed to warn about or attempt to prevent sex trafficking from taking place on its internet platforms. The suits also alleged that Facebook benefited from the sexual exploitation of trafficking victims. The justices said trafficking victims can move forward with lawsuits on the grounds that Facebook violated a provision of the Texas Civil Practice and Remedies Code passed in 2009.

Facebook lawyers argued the company was shielded from liability under Section 230 of the federal Communications Decency Act, which states that what users say or write online is not akin to a publisher conveying the same message. Essentially, they said, Facebook is immune to these types of lawsuits. The majority wrote, "We do not understand Section 230 to 'create a lawless no-man's-land on the Internet' in which states are powerless to impose liability on websites that knowingly or intentionally participate in the evil of online human trafficking... Holding internet platforms accountable for the words or actions of their users is one thing, and the federal precedent uniformly dictates that Section 230 does not allow it," the opinion said. "Holding internet platforms accountable for their own misdeeds is quite another thing. This is particularly the case for human trafficking."

The justices explained that Congress recently amended Section 230 to add the possibility of civil liability for websites that violate state and federal human-trafficking laws. They said under the amended law states may protect residents from internet companies that knowingly or intentionally participate in human trafficking through their action or inaction..... Annie McAdams, a lead attorney for the plaintiffs, said it was a groundbreaking decision. This is the first case to beat Facebook on its argument that it had immunity under Section 230, she said.

Bitcoin

Regulators Crack Down on Crypto Exchange Binance in UK, Japan, Germany, and Ontario, Canada (wsj.com) 41

The Wall Street Journal reports: Authorities in the U.K. and Japan took aim at affiliates of Binance Holdings Ltd., the world's largest cryptocurrency exchange network, in the latest regulatory crackdown on the wildly popular trade in bitcoin and other digital assets. The U.K. Financial Conduct Authority, the country's lead financial regulator, told consumers Saturday that Binance's local unit wasn't permitted to conduct operations related to regulated financial activities...

Binance Markets Ltd., the company's U.K. arm, applied to be registered with the Financial Conduct Authority and withdrew its application on May 17. "A significantly high number of cryptoasset businesses are not meeting the required standards" under money-laundering regulations, said a spokesperson for the FCA in an email. "Of the firms we've assessed to date, over 90% have withdrawn applications following our intervention."

Japan's financial watchdog issued a statement on June 25, saying that Binance isn't registered to do business in the country...

As of April, Binance operated the largest cryptocurrency exchange in the world by trading volume, allowing tens of billions of dollars of trades to pass through its networks, according to data provider CryptoCompare. It was founded in 2017 and initially based in China, later moving offices to Japan and Malta. It recently said it is a decentralized organization with no headquarters... The FCA move doesn't ban customers from using Binance completely; U.K. customers can continue to use Binance's non-U.K. operations for activities the FCA doesn't directly regulate, such as buying and selling direct holdings in bitcoin.

The Financial Times called the move "one of the most significant moves any global regulator has made against Binance" and "a sign of how regulators are cracking down on the cryptocurrency industry over concerns relating to its potential role in illicit activities such as money laundering and fraud, and over often weak consumer protection." But more countries are also taking action, Reuters reports: Last month, Bloomberg reported that officials from the U.S. Justice Department and Internal Revenue Service who probe money laundering and tax offences had sought information from individuals with insight into Binance's business. In April, Germany's financial regulator BaFin warned the exchange risked being fined for offering digital tokens without an investor prospectus.
And CoinDesk adds: Binance is no longer open for business in Canada's most populous province, apparently choosing to close shop rather than meet the fate of other cryptocurrency exchanges that have had actions filed against them for allegedly failing to comply with Ontario securities laws.
Government

On the Deaths of Two Unvaccinated Florida IT Workers (msn.com) 339

I sometimes talk about "the family of geeks" — how our shared experiences can bring us together.

But if that's true, there's been a death in the family.... Manatee County Administrator Scott Hopes, who is also an epidemiologist, said six unvaccinated employees, including five in the IT department, tested positive for the virus within a two-week period.

The two IT employees who died last week were identified in local media and obituaries as Mary Knight, 58, and Alphonso Cox, 53.

Hopes said that the one IT employee, 23, exposed to the virus who was vaccinated did not get infected. "This particular outbreak demonstrates the effectiveness, I believe, with the vaccine," he said to reporters Monday. "All of the cases were non-vaccinated. They were unvaccinated." He added in a news release, "Individual employees in the IT Department who were known to be fully vaccinated and who were in close proximity of those who were infected did not contract COVID-19."

But even with the outbreak, masks will remain optional for staffers returning this week, with unvaccinated workers being "encouraged but not required, to follow covid-19 prevention measures...." Manatee County, located in southwest Florida, has fully vaccinated 43 percent of its eligible population. The Manatee Board of County Commissioners repealed coronavirus safety requirements last month and strongly recommended that people visiting the County Administration Building "use their best judgment" to protect themselves from a potential spread of the virus...

When the second employee died Thursday, the decision was made to shut down the building the next day so it could be disinfected. "When you have that many cases, and you have a 40 percent fatality rate, you have to worry," Hopes said to Florida Politics. "I would prefer not to have any more employee funerals." Yet the county announced over the weekend that "face masks will be optional for the public and employees inside the facility...."

Funerals and celebration-of-life events for Knight and Cox are scheduled to take place later this week.

Thanks to Slashdot reader luis_a_espinal (a Florida-based software engineer) for sharing the story. Country administrator Hopes is concerned, reports the Sarasota Herald-Tribune, because "Of the first five cases, all were sick enough to be hospitalized or died. That's not the normal COVID variant that we saw last year." And yet... As officials work to control the outbreak, questions have been raised about how far the county can go to keep employees safe — including whether it can inquire about employees' vaccination status, since the recent victims so far have not been fully vaccinated... "We are allowed to ask," Hopes said. "But they don't have to tell us, and whatever their response is, we are not to ask any further." Manatee County School District General Counsel Mitch Teitelbaum said the school district had the same understanding of privacy laws...

[The county-owned seaport] Port Manatee had reported three new cases of COVID-19 on Monday, spurring fears that the virus was continuing to spread among the county's workforce. On Tuesday, port spokeswoman Virginia Zimmerman said the three cases had been an "aberration" and that there are not any additional cases to report. Zimmerman said the port does not inquire about employees' vaccination status, and that the port "encourages, but does not require, staff to be vaccinated."

While the county scrambles to mitigate the spread of the virus, Hopes said many county employees are grieving the loss of their coworkers.

"These weren't just colleagues," Hopes said. "These people have basically lived at work together for 20 years, and this happened quickly."

China

US Bans Import of Solar Panels From Chinese Company Accused of Forced Labor (msn.com) 190

The Washington Post reports that this week the U.S. government "banned the import of solar panels and other goods made with materials produced by a Chinese company that it accused of using forced laborers from China's Xinjiang region, a move likely to complicate the U.S. push toward clean energy." U.S. Customs and Border Protection issued a withhold release order Thursday barring silicon-based products from the company, Hoshine Silicon, which operates from plants in Xinjiang that have been connected to coercive state labor programs targeting Uyghurs and other minorities, as The Post reported on Thursday.

The order could have widespread impact on the solar industry, which is dominated by Chinese suppliers that source materials from Hoshine, the world's largest producer of metallurgical-grade silicon, a key raw material in solar panels. "Almost the complete solar industry is affected by Hoshine," said Johannes Bernreuter, a research analyst in Germany who studies the solar supply chain... By banning only Hoshine imports, CBP stopped short of targeting Xinjiang producers of another key solar ingredient, polysilicon. Those producers have also been connected to coercive labor programs targeting Uyghurs. In a note to investors, Height Securities described the ban "as a substantive but measured first shot across the bow" by the Biden administration, "which needs solar industry support" as it tries to balance rooting out forced labor in U.S. supply chains and an environmental agenda...

[I]ndustry experts said enforcement could be a challenge given the complexity of the solar supply chain and Hoshine's dominance in the industry. Hoshine has produced metallurgical-grade silicon for at least eight of the world's largest polysilicon makers, according to the company's public statements and annual reports. Analysts say that together these firms account for nearly all of the world's supply of solar-grade polysilicon. The move could also undermine U.S. hopes of cooperating with China on climate change, one of few areas of potential collaboration between the two countries increasingly at loggerheads over human rights and investigating the origin of the covid-19 pandemic... Industry experts say it would be safer for U.S. agents to assume all silicon products entering the United States from China contain at least some material sourced from Hoshine, whose metallurgical-grade silicon is used in a wide range of consumer products, including electronics, cars, chemicals and sealants...

The import ban was the most prominent of several measures the Biden administration took Thursday against China's solar-product suppliers. The Commerce Department also added several Chinese polysilicon producers to an export black list, which bars U.S. entities from exporting technology or other goods to the firms without first obtaining a government license.

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