The Courts

Judge Allows Nationwide Class Action Against Anthropic Over Alleged Piracy of 7 Million Books For AI Training (reuters.com) 49

A California federal judge has ruled that three authors suing Anthropic for copyright infringement can represent writers nationwide whose books the AI startup allegedly pirated to train its Claude chatbot.

U.S. District Judge William Alsup said the authors can bring a class action on behalf of all U.S. writers whose works Anthropic allegedly downloaded from pirate libraries LibGen and PiLiMi to create a repository of millions of books in 2021 and 2022.

Alsup said Anthropic may have illegally downloaded as many as 7 million books from the pirate websites, which could make it liable for billions of dollars in damages if the authors' case succeeds.
Privacy

Chinese Authorities Are Using a New Tool To Hack Seized Phones and Extract Data (techcrunch.com) 40

An anonymous reader quotes a report from TechCrunch: Security researchers say Chinese authorities are using a new type of malware to extract data from seized phones, allowing them to obtain text messages -- including from chat apps such as Signal -- images, location histories, audio recordings, contacts, and more. In a report shared exclusively with TechCrunch, mobile cybersecurity company Lookout detailed the hacking tool called Massistant, which the company said was developed by Chinese tech giant Xiamen Meiya Pico.

Massistant, according to Lookout, is Android software used for the forensic extraction of data from mobile phones, meaning the authorities using it need to have physical access to those devices. While Lookout doesn't know for sure which Chinese police agencies are using the tool, its use is assumed widespread, which means Chinese residents, as well as travelers to China, should be aware of the tool's existence and the risks it poses. [...]

The good news ... is that Massistant leaves evidence of its compromise on the seized device, meaning users can potentially identify and delete the malware, either because the hacking tool appears as an app, or can be found and deleted using more sophisticated tools such as the Android Debug Bridge, a command line tool that lets a user connect to a device through their computer. The bad news is that at the time of installing Massistant, the damage is done, and authorities already have the person's data.
"It's a big concern. I think anybody who's traveling in the region needs to be aware that the device that they bring into the country could very well be confiscated and anything that's on it could be collected," said Kristina Balaam, a researcher at Lookout who analyzed the malware. "I think it's something everybody should be aware of if they're traveling in the region."
Crime

A Retro Gaming YouTuber Faces Possible Jail Time For Reviewing Gaming Handhelds (androidauthority.com) 40

An anonymous reader quotes a report from Android Authority: Italian YouTuber Once Were Nerd covers a variety of retro gaming topics, but his reviews of ANBERNIC devices appear to be the straw that broke the camel's back. According to the video [here], customs enforcement officers from the Guardia di Finanza showed up at his home and office on April 15 with a search warrant to investigate promotion of pirated copyrighted materials. They seized a variety of ANBERNIC, Powkiddy, and TrimUI gaming handhelds from his collection. In total, more than 30 consoles were taken. The creator, assuming he didn't do anything wrong, complied with demands, providing full transcripts of his conversations and chats with gaming handheld manufacturers. The officers also took his phone, promising to return it in a few days. It was returned two months later, on June 15.

According to the video, officials are not required to disclose what exactly the charges are or who has brought them until the initial investigation is complete under Italian law. At that point, the case is either dismissed or goes to trial. The complaint specifically mentions reproduction of copyrighted material from Nintendo and Sony, but the case may originate from the agency itself. However, in the meantime officials have the option to shut down his channel, even before proving any wrongdoing. This is a scary prospect for any creator who has spent years building a channel, and unlike YouTube copyright strikes, there's likely no remedy.

Currently, officials contest that his reviews of ANBERNIC devices like the RG Slide, which often, but not always, ship with microSD cards filled with copyrighted ROMs, are punishable under Article 171 ter of the Italian Copyright Law. This law, which was originally written in 1941, allows for a maximum punishment of 15,000 euros (or 30 million Italian Lira, since the law pre-dates the Euro) and three years of jail time.

AI

WeTransfer Backtracks on Terms Suggesting User Files Could Train AI Models After Backlash (theguardian.com) 10

WeTransfer has reversed controversial terms of service changes after users protested language suggesting uploaded files could be used to "improve machine learning models."

The file-sharing service, popular among creative professionals and used by 80 million users across 190 countries, clarified that user content had never been used to train AI models and removed all references to machine learning from its updated terms. Creative users including voice actors, filmmakers, and journalists had threatened to cancel subscriptions over the changes.
United Kingdom

Thousands of Afghans Secretly Moved To Britain After Data Leak (reuters.com) 76

The UK secretly relocated thousands of Afghans to the UK after their personal details were disclosed in one of the country's worst ever data breaches, putting them at risk of Taliban retaliation. The operation cost around $2.7 billion and remained under a court-imposed superinjunction until recently lifted. Reuters reports: The leak by the Ministry of Defence in early 2022, which led to data being published on Facebook the following year, and the secret relocation program, were subject to a so-called superinjunction preventing the media reporting what happened, which was lifted on Tuesday by a court. British defence minister John Healey apologised for the leak, which included details about members of parliament and senior military officers who supported applications to help Afghan soldiers who worked with the British military and their families relocate to the UK. "This serious data incident should never have happened," Healey told lawmakers in the House of Commons. It may have occurred three years ago under the previous government, but to all whose data was compromised I offer a sincere apology."

The incident ranks among the worst security breaches in modern British history because of the cost and risk posed to the lives of thousands of Afghans, some of whom fought alongside British forces until their chaotic withdrawal in 2021. Healey said about 4,500 Afghans and their family members have been relocated or were on their way to Britain under the previously secret scheme. But he added that no-one else from Afghanistan would be offered asylum because of the data leak, citing a government review which found little evidence of intent from the Taliban to seek retribution against former officials.

Crime

US Prosecutors Close Probe Into Polymarket Betting Website 19

U.S. prosecutors and the Commodity Futures Trading Commission (CFTC) have officially closed their investigations into Polymarket, the decentralized, blockchain-powered prediction market platform where users bet with real cryptocurrency on the outcomes of future events. "The DOJ was investigating Polymarket last year, reportedly for allowing U.S. users to place bets on the site despite Polymarket being required to block U.S. traders," reports CoinDesk.

The FBI raided Polymarket CEO Shayne Coplan's Manhattan apartment last November, seizing his phone and electronic devices. A source close to the matter told The New York Post it was politically motivated due to Polymarket's successful prediction of Trump's election win. It's "grand political theater at its worst," the source said. "They could have asked his lawyer for any of these things. Instead, they staged a so-called raid so they can leak it to the media and use it for obvious political reasons."
Piracy

Cloudflare Starts Blocking Pirate Sites For UK Users 36

An anonymous reader quotes a report from TorrentFreak: Internet service providers BT, Virgin Media, Sky, TalkTalk, EE, and Plusnet account for the majority of the UK's residential internet market and as a result, blocking injunctions previously obtained at the High Court often list these companies as respondents. These so-called "no fault' injunctions stopped being adversarial a long time ago; ISPs indicate in advance they won't contest a blocking order against various pirate sites, and typically that's good enough for the Court to issue an order with which they subsequently comply. For more than 15 years, this has led to blocking being carried out as close to users as possible, with ISPs' individual blocking measures doing the heavy lifting. A new wave of blocking targeting around 200 pirate site domains came into force yesterday but with the unexpected involvement of a significant new player.

In the latest wave of blocking that seems to have come into force yesterday, close to 200 pirate domains requested by the Motion Picture Association were added to one of the longest pirate site blocking lists in the world. The big change is the unexpected involvement of Cloudflare, which for some users attempting to access the domains added yesterday, displays the [Error 451 -- Unavailable for Legal Reasons] notice ... As stated in the notice, Error 451 is returned when a domain is blocked for legal reasons, in this case reasons specific to the UK. [...] In this case there's no indication of who requested the blocking order, or the authority that issued it. However, from experience we know that the request was made by the studios of the Motion Picture Association and for the same reason the High Court in London was the issuing authority. [...] The issue lies with dynamic injunctions; while a list of domains will appear in the original order (which may or may not be made available), when the MPA concludes that other domains that appear subsequently are linked to the same order, those can be blocked too, but the details are only rarely made public.

From information obtained independently, one candidate is an original order obtained in December 2022 which requested blocking of domains with well known pirate brands including 123movies, fmovies, soap2day, hurawatch, sflix, and onionplay. This leads directly to another unusual issue. The notice linked from Cloudflare doesn't directly concern Cloudflare. The studios sent the notice to Google after Google agreed to voluntarily remove those domains from its search indexes, if it was provided with a copy of relevant court orders. Notices like these were supplied and the domains were deindexed, and the practice has continued ever since. That raises questions about the nature of Cloudflare's involvement here and why it links to the order sent to Google; notices sent to Cloudflare are usually submitted to Lumen by Cloudflare itself. That doesn't appear to be the case here.
"Domains blocked by Sky, BPI and others, don't appear to be affected," notes TorrentFreak. "All relate to sites targeted by the MPA, and the majority if not all trigger malware warnings of a very serious kind, either immediately upon visiting the sites, or shortly after."

"At least in the short term, if Cloudflare is blocking a domain in the UK, moving on is strongly advised."
AI

Hugging Face Is Hosting 5,000 Nonconsensual AI Models of Real People (404media.co) 33

An anonymous reader shares a report: Hugging Face, a company with a multi-billion dollar valuation and one of the most commonly used platforms for sharing AI tools and resources, is hosting over 5,000 AI image generation models that are designed to recreate the likeness of real people. These models were all previously hosted on Civitai, an AI model sharing platform 404 Media reporting has shown was used for creating nonconsensual pornography, until Civitai banned them due to pressure from payment processors.

Users downloaded the models from Civitai and reuploaded them to Hugging Face as part of a concerted community effort to archive the models after Civitai announced in May it will ban them. In that announcement, Civitai said it will give the people who originally uploaded them "a short period of time" before they were removed. Civitai users began organizing an archiving effort on Discord earlier in May after Civitai indicated it had to make content policy changes due to pressure from payment processors, and the effort kicked into high gear when Civitai announced the new "real people" model policy.

Government

US Defense Department Awards Contracts To Google, xAI 24

The U.S. Department of Defense has awarded contracts worth up to $200 million each to OpenAI, Google, Anthropic, and xAI to scale adoption of advanced AI. "The contracts will enable the DoD to develop agentic AI workflows and use them to address critical national security challenges," reports Reuters, citing the department's Chief Digital and Artificial Intelligence Office. From the report: Separately on Monday, xAI announced a suite of its products called "Grok for Government", making its advanced AI models -- including its latest flagship Grok 4 -- available to federal, local, state and national security customers. The Pentagon announced last month that OpenAI was awarded a $200 million contract, saying the ChatGPT maker would "develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains."

The contracts announced on Monday deepen the ties between companies leading the AI race and U.S. government operations, while addressing concerns around the need for competitive contracts for AI use in federal agencies.
"The adoption of AI is transforming the (DoD's) ability to support our warfighters and maintain strategic advantage over our adversaries," Chief Digital and AI Officer Doug Matty said.
Crime

MoonPay Executives May Have Sent $250,000 To Nigerian Scammer, DoJ Filing Suggests (theblock.co) 9

A Department of Justice filing aiming to recover fraudulently obtained cryptocurrency may have inadvertently revealed the scam's victims as the CEO and CFO of crypto payment firm MoonPay. From a report: The filing, which aims to seize around $40,350 in USDT frozen by Tether, reveals that two victims sent $250,300 in USDT to a person posing as Steve Witkoff, co-chair of the President Trump's inaugural committee.

However, records obtained from Binance revealed that the wallet that received the funds was registered to Ehiremen Aigbokhan, a man based in Lagos, Nigeria. The victims are identified in the filing only as "Ivan" and "Mouna." However, as outlet NOTUS noticed, Crypto payment firm Moonpay's CEO is Ivan Soto-Wright and its CFO is Mouna Ammari Siala. Furthermore, a wallet involved in the $250,300 transaction is listed by Etherscan as a MoonPay wallet.

Businesses

Some Amazon Warehouses are Losing Hundreds of Workers After Changes in Legal Status (seattletimes.com) 235

At an Amazon warehouse that employs 3,700 people, hundreds of workers recently lost their job, reports the New York Times.

"They are among thousands of foreign workers across the country who have been swept up in a quiet purge, pushed out of jobs in places where their labor was in high demand and at times won high praise." While raids to nab workers in the country without legal permission in fields and Home Depot parking lots have grabbed attention, the job dismissals at the Amazon warehouse are part of the Trump administration's effort to thin the ranks of immigrants who had legal authorization to work... Such dismissals are happening at many of Amazon's more than 1,000 facilities around the country, including in Massachusetts and the warehouse in Staten Island that fills orders for millions of New Yorkers. At one fulfillment center in Florida, hundreds were let go, a person familiar with the site said... "We're supporting employees impacted by the government's recent changes in immigration policy," Richard Rocha, an Amazon spokesperson, said in a statement. The company has pointed workers to various resources, including outside free or low-cost legal services...

The dismissals came with remarkable speed. On May 30, the Supreme Court granted temporary approval for the Trump administration to revoke a program known as "humanitarian parole," which had allowed more than 500,000 migrants feeling political turmoil in Cuba, Haiti, Nicaragua and Venezuela to quickly get work permits if they had a fiscal sponsor... On June 12, the Department of Homeland Security said it had begun notifying enrollees that the program was ending, saying the immigrants had been poorly vetted and undercut American workers...

On June 22, Amazon told managers around the country in an email, which was obtained by The New York Times, that it had "received the first list from D.H.S. identifying impacted Amazon employees" from the parole program, as well as "some employees outside of this specific program whose work authorization is similarly affected." Amazon let the managers know that the next day, the affected workers would receive push notifications in the employee app about the change. Unless the workers could provide alternate work authorization documents in the next five days, they would be suspended without pay and ultimately dismissed.

Nintendo

Nintendo Banned Switch 2 Owner For Playing a Used Switch 1 Game They Bought Online (tomshardware.com) 84

"A Nintendo Switch 2 user reportedly got his brand-new console banned by Nintendo after buying used Switch 1 games and patching them on his console," reports Tom's Hardware: According to Reddit user dmanthey, they purchased four used titles off the Facebook marketplace, inserted them into the Switch 2, and had them all updated. When they turned on their handhelds the following day, they received a message saying that they were restricted from Nintendo's online services and that they couldn't even download the games they had already bought...

[T]hey were able to prove their innocence by pulling up the Facebook Marketplace listing for their games and sending the photos of their purchased cartridges. According to the Redditor, the process was painless and fast, and it was "so much easier than getting support from Microsoft or Sony...." Other users warned, though, that this isn't always a guaranteed resolution.

Nintendo is known for being protective of its intellectual property and delivers harsh penalties to anyone caught violating it. We've already had several reports of users getting banned for using Mig Flash, even on their own ROMs. And while it's not true that getting banned turns your Switch 2 into a brick, it will still prevent you from accessing the company's online services, which severely restricts its features and usability.

"Nintendo attaches unique codes to its Switch game cartridges to prevent piracy," notes Engadget. "However, bad actors can copy games onto a third-party device, like the MIG Flash, and then resell the physical game card. Once Nintendo detects two instances of its unique code being online at the same time, it will ban any accounts using it..." This anti-piracy policy isn't new — Nintendo has long had a reputation for fiercely combating any type of piracy — but it has become relevant again thanks to the recently released Switch 2, which offers backwards compatibility with original Switch titles. The company even recently amended its user agreement to allow itself the power to brick a Nintendo Switch that's caught running pirated games or mods.
The Internet

FCC Chair Accused of 'Political Theater' to Please Net Neutrality's Foes (freepress.net) 35

The advocacy group Free Press on Friday blasted America's Federal Communications Commission chief "for an order that rips net neutrality rules off the books, without any time for public comment, following an unfavorable court ruling," reports the nonprofit progressive news site Common Dreams: A panel from the U.S. Court of Appeals for the 6th Circuit ruled in January that broadband is an "information service" instead of a "telecommunications service" under federal law, and the FCC did not have the authority to prohibit internet service providers (ISPs) from creating online "fast lanes" and blocking or throttling web content... FCC Chair Brendan Carr said in a Friday statement that as part of his "Delete, Delete, Delete" initiative, "we're continuing to clean house at the FCC, working to identify and eliminate rules that no longer serve a purpose, have been on our books for decades, and have no place in the current Code of Federal Regulations...."

Responding in a lengthy statement, Free Press vice president of policy and general counsel Matt Wood said that "the FCC's so-called deletion today is little more than political grandstanding. It's true that the rules in question were first stayed by the 6th Circuit and then struck down by that appellate court — in a poorly reasoned opinion. So today's bookkeeping maneuver changes very little in reality... There's no need to delete currently inoperative rules, much less to announce it in a summer Friday order. The only reason to do that is to score points with broadband monopolies and their lobbyists, who've fought against essential and popular safeguards for the past two decades straight...."

Wood noted that "the appeals process for this case has not even concluded yet, as Free Press and allies sought and got more time to consider our options at the Supreme Court. Today's FCC order doesn't impact either our ability to press the case there or our strategic considerations about whether to do so," he added. "It's little more than a premature housekeeping step..."

Space

Please Don't Cut Funds For Space Traffic Control, Industry Begs Congress (theregister.com) 52

Major space industry players -- including SpaceX, Boeing, and Blue Origin -- are urging Congress to maintain funding for the TraCSS space traffic coordination program, warning that eliminating it would endanger satellite safety and potentially drive companies abroad. Under the proposed FY 2026 budget, the Office of Space Commerce's funding would be cut from $65 million to just $10 million. "That $55M cut is accomplished by eliminating the Traffic Coordination System for Space (TraCSS) program," reports The Register. From the report: "One of OSC's most important functions is to provide space traffic coordination support to US satellite operators, similar to the Federal Aviation Administration's role in air traffic control," stated letters from space companies including SpaceX, Boeing, Blue Origin, and others. The letters argue that safe space operations "in an increasingly congested space domain" are critical for modern services like broadband satellite internet and weather forecasting, but that's not all. "Likewise, a safe space operating environment is vital for continuity of national security space missions such as early warning of missile attacks on deployed US military forces," the letters added.

Industry trade groups sent the letters to the Democratic and Republican leadership of the House and Senate budget subcommittees for Commerce, Justice, Science, and Related Agencies, claiming to represent more than 450 US companies in the space, satellite, and defense sectors. The letters argue for the retention of the OSC's FY 2025 budget of $65 million, as well as keeping control of space traffic coordination within the purview of the Department of Commerce, under which the OSC is nested, and not the Department of Defense, where it was previously managed. "Successive administrations have recognized on a bipartisan basis that space traffic coordination is a global, commercial-facing function best managed by a civilian agency," the companies explained. "Keeping space traffic coordination within the Department of Commerce preserves military resources for core defense missions and prevents the conflation of space safety with military control."

In the budget request document, the government explained the Commerce Department was unable to complete "a government owned and operated public-facing database and traffic coordination system" in a timely manner. The private sector, meanwhile, "has proven they have the capability and the business model to provide civil operators" with the necessary space tracking data. But according to the OSC, TraCSS would have been ready for operations by January 2026, raising the question of why the government would kill the program so late in the game.

Crime

Russian Basketball Player Arrested For Alleged Role In Ransomware Attacks (lemonde.fr) 4

joshuark writes: A Russian basketball player, Daniil Kasatkin, was arrested on June 21 in France at the request of the United States as he allegedly is part of a network of hackers. Daniil Kasatkin, aged 26, is accused by the United States of negotiating the payment of ransoms to this hacker network, which he denies. He has been studied in the United States, and is the subject of a U.S. arrest warrant for "conspiracy to commit computer fraud" and "computer fraud conspiracy."

His lawyer alleges that Kasatkin is not guilty of these crimes and that they are instead linked to a second-hand computer that he purchased. "He bought a second-hand computer. He did absolutely nothing. He's stunned," his lawyer, Freric Belot, told the media. "He's useless with computers and can't even install an application. He didn't touch anything on the computer: it was either hacked, or the hacker sold it to him to act under the cover of another person."
The report notes that Kasatkin briefly played NCAA basketball at Penn State before returning to Russia in 2019. He also appeared in 172 games with MBA-MAI before he left the team.
Crime

Russian Basketball Player Arrested in France Over Alleged Ransomware Ties (therecord.media) 4

A Russian professional basketball player has been arrested in France at the request of the United States, which reportedly accused him of being involved in a ransomware group that allegedly targeted hundreds of American companies and federal institutions. From a report: Daniil Kasatkin, 26, was detained in June at Paris's Charles de Gaulle Airport shortly after arriving in the country with his fiancee, according to local media reports. He is currently being held in extradition custody, with a U.S. warrant reportedly issued against him. Kasatkin previously studied and played basketball in the U.S., at Penn State University.

The unnamed ransomware network Kasatkin is suspected of being part of is believed to have targeted nearly 900 entities between 2020 and 2022. Local media, citing court proceedings in Paris, reported that Kasatkin allegedly helped negotiate ransom payments, though the extent of the damage caused by the attacks has not been disclosed.

Security

Qantas Confirms Data Breach Impacts 5.7 Million Customers (bleepingcomputer.com) 4

Qantas has confirmed that 5.7 million customers have been impacted by a recent data breach through a third-party platform used by its contact center. The breach, attributed to the Scattered Spider threat group, exposed various personal details but did not include passwords, financial, or passport data. BleepingComputer reports: In a new update today, Qantas has confirmed that the threat actors stole data for approximately 5.7 million customers, with varying types of data exposed in the breach:

4 million customer records are limited to name, email address and Qantas Frequent Flyer details. Of this:
- 1.2 million customer records contained name and email address.
- 2.8 million customer records contained name, email address and Qantas Frequent Flyer number. The majority of these also had tier included. A smaller subset of these had points balance and status credits included.

Of the remaining 1.7 million customers, their records included a combination of some of the data fields above and one or more of the following:
- Address - 1.3 million. This is a combination of residential addresses and business addresses including hotels for misplaced baggage delivery.
- Date of birth - 1.1 million
- Phone number (mobile, landline and/or business) - 900,000
- Gender - 400,000. This is separate to other gender identifiers like name and salutation.
- Meal preferences - 10,000

The Courts

German Court Rules Meta Tracking Tech Violates EU Privacy Laws (therecord.media) 14

An anonymous reader quotes a report from The Record: A German court has ruled that Meta must pay $5,900 to a German Facebook user who sued the platform for embedding tracking technology in third-party websites -- a ruling that could open the door to large fines down the road over data privacy violations relating to pixels and similar tools. The Regional Court of Leipzig in Germany ruled Friday that Meta tracking pixels and software development kits embedded in countless websites and apps collect users' data without their consent and violate the continent's General Data Protection Regulation (GDPR).

The ruling in favor of the plaintiff sets a precedent which the court acknowledged will allow countless other users to sue without "explicitly demonstrating individual damages," according to a Leipzig Regional Court press release. "Every user is individually identifiable to Meta at all times as soon as they visit the third-party websites or use an app, even if they have not logged in via the Instagram and Facebook account," the press release said.
"This may very well be one of the most substantial rulings coming out of Europe this year," said Ronni K. Gothard Christiansen, the CEO of AesirX, a consultancy which helps businesses comply with data privacy laws. "$5,900 in damages for one visitor adds up quickly if you have tens of thousands of visitors, or even millions."
The Courts

Judge Throws Out Lawsuit Accusing Apple of Taking Bribes To Avoid Competing With Visa and Mastercard (reuters.com) 10

A federal judge has dismissed an antitrust lawsuit that accused Apple, Visa and Mastercard of conspiring to suppress competition in the payments network market and inflate merchant transaction fees.

U.S. District Judge David Dugan in Illinois ruled that merchants failed to provide sufficient evidence supporting claims that Apple illegally declined to launch a competing payment network to rival Visa and Mastercard.

The lawsuit, filed by beverage retailer Mirage Wine & Spirits and other businesses representing thousands of merchants, alleged the payment networks paid Apple hundreds of millions of dollars annually to avoid competition. Dugan found the plaintiffs offered only "a slew of circumstantial allegations" but permitted them to amend their complaint.
Privacy

Swedish Bodyguards Reveal Prime Minister's Location on Fitness App (politico.eu) 18

Swedish security service members who shared details of their running and cycling routes on fitness app Strava have been accused of revealing details of the prime minister's location, including his private address. Politico: According to Swedish daily Dagens Nyheter, on at least 35 occasions bodyguards uploaded their workouts to the training app and revealed information linked to Prime Minister Ulf Kristersson, including where he goes running, details of overnight trips abroad, and the location of his private home, which is supposed to be secret.

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