Intel

Intel's New Funding Came From Already-Awarded Grants. So What Happens Next? (techcrunch.com) 93

The U.S. government's 10% stake in Intel "is a mistake," writes the Washington Post's editorial board, calling Intel "an aging also-ran in critical markets" that "has spent recent years stumbling on execution and missing one strategic opportunity after another."

But TechCrunch points out that the U.S. government "does not appear to be committing new funds. Instead, it's simply making good on what Intel described as 'grants previously awarded, but not yet paid, to Intel.'" Specifically, the $8.9 billion is supposed to come from $5.7 billion awarded-but-not-paid to Intel under the Biden administration's CHIPS Act, as well as $3.2 billion also awarded by the Biden administration through the Secure Enclave program. In a post on his social network Truth Social, Trump wrote, "The United States paid nothing for these shares..." Trump has been critical of the CHIPS Act, calling it a "horrible, horrible thing" and calling on House Speaker Mike Johnson to "get rid" of it...

According to The New York Times, some bankers and lawyers believe the CHIPS Act may not allow the government to convert its grants to equity, opening this deal to potential legal challenges.

Reuters writes that the money "will not be enough for its contract-chipmaking business to flourish, analysts said. Intel still needs external customers for its cutting-edge 14A manufacturing process to go to production, says Summit Insights analyst Kinngai Chan, "to make its foundry arm economically viable." "We don't think any government investment will change the fate of its foundry arm if they cannot secure enough customers..."

Reuters has reported that Intel's current 18A process — less advanced than 14A — is facing problems with yield, the measure of how many chips printed are good enough to make available to customers. Large chip factories including TSMC swallow the cost of poor yields during the first iterations of the process when working with customers like Apple. For Intel, which reported net losses for six straight quarters, that's hard to do and still turn a profit. "If the yield is bad then new customers won't use Intel Foundry, so it really won't fix the technical aspect of the company," said Ryuta Makino, analyst at Gabelli Funds, which holds Intel stock.

Makino, who believes that Intel can ultimately produce chips at optimal yields, views the deal as a net negative for Intel compared with just receiving the funding under the CHIPS Act as originally promised under the Biden Administration. "This isn't free money," he said. The federal government will not take a seat on Intel's board and has agreed to vote with the company's board on matters that need shareholder approval, Intel said. But this voting agreement comes with "limited exceptions" and the government is getting Intel's shares at a 17.5% discount to their closing price on Friday. The stake will make the U.S. government Intel's biggest shareholder, though neither Trump nor Intel disclosed when the transaction would happen...

Some analysts say Intel could benefit from the government's support, including in building out factories. Intel has said it is investing more than $100 billion to expand its U.S. factories and expects to begin high-volume chip production later this year at its Arizona plant. "To have access to capital and a new partial owner that wants to see you succeed are both important," said Peter Tuz, president of Chase Investment Counsel.

Security

Amid Service Disruption, Colt Confirms 'Criminal Group' Accessed Their Data, As Ransomware Gang Threatens to Sell It (bleepingcomputer.com) 7

British telecommunications service provider Colt Telecom "has offices in over 30 countries across North America, Europe, and Asia, reports CPO magazine. "It manages nearly 1,000 data centers and roughly 75,000 km of fiber infrastructure."

But now "a cyber attack has caused widespread multi-day service disruption..." On August 14, 2025, the telecom giant said it had detected a cyber attack that began two days earlier, on August 12. Upon learning of the cyber intrusion, the telecommunications service provider responded by proactively taking some systems offline to contain the cyber attack. Although Colt Telecom's cyber incident response team was working around the clock to mitigate the impacts of the cyber attack, service disruption has persisted for days. However, the service disruption did not affect the company's core network infrastructure, suggesting that Colt customers could still access its network services... The company also did not provide a clear timeline for resolving the service disruption. A week after the apparent ransomware attack, Colt Online and the Voice API platform remained unavailable.
And now Colt Technology Services "confirms that customer documentation was stolen," reports the tech news site BleepingComputer: "A criminal group has accessed certain files from our systems that may contain information related to our customers and posted the document titles on the dark web," reads an updated security incident advisory on Colt's site.

"We understand that this is concerning for you."

"Customers are able to request a list of filenames posted on the dark web from the dedicated call centre."

As first spotted by cybersecurity expert Kevin Beaumont, Colt added the no-index HTML meta tag to the web page, making it so it won't be indexed by search engines.

This statement comes after the Warlock Group began selling on the Ramp cybercrime forum what they claim is 1 million documents stolen from Colt. The documents are being sold for $200,000 and allegedly contain financial information, network architecture data, and customer information... The Warlock Group (aka Storm-2603) is a ransomware gang attributed to Chinese threat actors who utilize the leaked LockBit Windows and Babuk VMware ESXi encryptors in attacks... Last month, Microsoft reported that the threat actors were exploiting a SharePoint vulnerability to breach corporate networks and deploy ransomware.

"Colt is not the only telecom firm that has been named by WarLock on its leak website in recent days," SecurityWeek points out. "The cybercriminals claim to have also stolen data from France-based Orange."

Thanks to long-time Slashdot reader Z00L00K for sharing the news.
Crime

Dev Gets 4 Years For Creating Kill Switch On Ex-Employer's Systems (bleepingcomputer.com) 113

Davis Lu, a former Eaton Corporation developer, has been sentenced to four years in prison for sabotaging his ex-employer's Windows network with malware and a custom kill switch that locked out thousands of employees once his account was disabled. The attack caused significant operational disruption and financial losses, with Lu also attempting to cover his tracks by deleting data and researching privilege escalation techniques. BleepingComputer reports: After a corporate restructuring and subsequent demotion in 2018, the DOJ says that Lu retaliated by embedding malicious code throughout the company's Windows production environment. The malicious code included an infinite Java thread loop designed to overwhelm servers and crash production systems. Lu also created a kill switch named "IsDLEnabledinAD" ("Is Davis Lu enabled in Active Directory") that would automatically lock all users out of their accounts if his account was disabled in Active Directory. When his employment was terminated on September 9, 2019, and his account disabled, the kill switch activated, causing thousands of users to be locked out of their systems.

"The defendant breached his employer's trust by using his access and technical knowledge to sabotage company networks, wreaking havoc and causing hundreds of thousands of dollars in losses for a U.S. company," said Acting Assistant Attorney General Matthew R. Galeotti. When he was instructed to return his laptop, Lu reportedly deleted encrypted data from his device. Investigators later discovered search queries on the device researching how to elevate privileges, hide processes, and quickly delete files. Lu was found guilty earlier this year of intentionally causing damage to protected computers. After his four-year sentence, Lu will also serve three years of supervised release following his prison term.

Software

Russia Orders State-Backed WhatsApp Rival Pre-Installed On Phones and Tablets (reuters.com) 29

Starting September 1st, Russia will require all smartphones and tablets sold in the country to come with MAX, a state-backed messaging app seen as a rival to WhatsApp and Telegram. Critics say the app could be used to track users. Reuters reports: The Russian government said in a statement that MAX, which will be integrated with government services, would be on a list of mandatory pre-installed apps on all "gadgets," including mobile phones and tablets, sold in Russia from September 1. State media says accusations from Kremlin critics that MAX is a spying app are false and that it has fewer permissions to access user data than rivals WhatsApp and Telegram. It will also be mandatory that from September 1, Russia's domestic app store, RuStore, which is pre-installed on all Android devices, will be pre-installed on Apple devices.

A Russian-language TV app called LIME HD TV, which allows people to watch state TV channels for free, will be pre-installed on all smart TVs sold in Russia from January 1, the government added. [...] MAX said this week that 18 million users had downloaded its app, parts of which are still in a testing phase. Russia's interior ministry said on Wednesday that MAX was safer than foreign rivals, but that it had arrested a suspect in the first fraud case using the new messenger.

Communications

T-Mobile Claimed Selling Location Data Without Consent is Legal - Judges Disagree (arstechnica.com) 23

A federal appeals court rejected T-Mobile's attempt to overturn $92 million in fines for selling customer location information to third-party firms. From a report: The Federal Communications Commission last year fined T-Mobile, AT&T, and Verizon, saying the carriers illegally shared access to customers' location information without consent and did not take reasonable measures to protect that sensitive data against unauthorized disclosure. The fines relate to sharing of real-time location data that was revealed in 2018, but it took years for the FCC to finalize the penalties.

The three carriers appealed the rulings in three different courts, and the first major decision was handed down Friday. A three-judge panel at the US Court of Appeals for the District of Columbia Circuit ruled unanimously against T-Mobile and its subsidiary Sprint. "Every cell phone is a tracking device," the ruling begins. "To receive service, a cell phone must periodically connect with the nearest tower in a wireless carrier's network. Each time it does, it sends the carrier a record of the phone's location and, by extension, the location of the customer who owns it. Over time, this information becomes an exhaustive history of a customer's whereabouts and 'provides an intimate window into [that] person's life.'"

The Courts

Masimo Sues US Customs Over Apple Watch Blood Oxygen Workaround (9to5mac.com) 57

Last week, following a recent U.S. Customs ruling, Apple reintroduced blood oxygen monitoring to certain Apple Watch models in the U.S., sidestepping an ITC import ban stemming from its legal dispute with medical device maker Masimo. Today, Masimo fired back with a new lawsuit against the U.S. Customs and Border Protection. 9to5Mac reports: The company says US Customs and Border Protection (CBP) overstepped its authority and violated due process when it reversed its earlier decision on August 1 and allowed Apple to restore the feature. Moreover, Masimo says it found out about the decision when Apple publicly announced the return of the feature: "It has now come to light that CBP thereafter reversed itself without any meaningful justification, without any material change in circumstances, and without any notice to Masimo, let alone an opportunity for Masimo to be heard. CBP changed its position on Apple's watch-plus-iPhone redesign through an ex parte proceeding. Specifically, on August 1, 2025, CBP issued an 3 ex parte ruling permitting Apple to import devices that, when used with iPhones already in the United States, perform the same functionality that the ITC found to infringe Masimo's patents. Masimo only discovered this ruling on Thursday, August 14, 2025, when Apple publicly announced it would be reintroducing the pulse oximetry functionality through a software update."

The company is now asking the court for a temporary restraining order and preliminary injunction to block the CBP's decision, and reinstate the original ruling that "determined that Apple's redesigned watches could be imported only to the extent the infringing functionality was completely disabled." As reported by Bloomberg Law, Masimo says the following in its supporting brief: "Each passing day that this unlawful ruling remains in effect irreparably deprives Masimo of its right to be free from unfair trade practices and to preserve its competitive standing in the U.S. marketplace." Masimo further argues that CBP's move "effectively nullified" the ITC's exclusion order against Apple. Apple's appeal of that ban is still pending before the Federal Circuit.

Botnet

Oregon Man Accused of Operating One of Most Powerful Attack 'Botnets' Ever Seen (msn.com) 23

A 22-year-old Oregon man has been charged with operating one of the most powerful botnets ever recorded. The network, known as Rapper Bot, launched over 370,000 DDoS attacks worldwide, including against X, DeepSeek, U.S. tech firms, and even Defense Department systems. It was allegedly operated by Ethan Foltz of Eugene, Oregon. The Wall Street Journal reports: Foltz faces a maximum of 10 years in prison on a charge of abetting computer intrusions, the Justice Department said in a news release. Rapper Bot was made up of tens of thousands of hacked devices and was capable of flooding victims' websites with enough junk internet traffic to knock them offline, an attack known as a distributed denial of service, or DDoS.

In February, the networking company Nokia measured a Rapper Bot attack against a gaming platform at 6.5 trillion bits per second, well above the several hundred million bits a second of the average high-speed internet connection. "This would place Rapper Bot among the most powerful DDoS botnets to have ever existed," said a criminal complaint that the prosecutors filed Tuesday in a federal court in Alaska. Investigators said Rapper Bot's attacks were so powerful that they were able to overwhelm all but the most robust networks.

Foltz allegedly rented out Rapper Bot to paying customers, including gambling website operators who would use the network in extortion attempts, according to the complaint. The botnet was used to launch more than 370,000 attacks in 80 countries, including China, Japan and the U.S., prosecutors said. It launched its attacks from hacked routers, digital video recorders and cameras, not from computers. [...] "At its height, it mobilized tens of thousands of devices, many with no prior role in DDoS," said Jerome Meyer, a researcher with Nokia's Deepfield network-analysis division. "Taking it down removes a major source of the largest attacks we see."

The Courts

Passengers Sue Delta, United Over Windowless 'Window Seats' (courthousenews.com) 108

In a pair of class actions filed this week, passengers from each coast quibbled with United Airlines and Delta Air Lines' policies charging extra for window seats that are not actually beside windows, instead offering a view of a blank aircraft wall. From a report: "Delta indicated to the plaintiff and class members that the particular seats they chose had a 'window'; even though Delta knew full well they did not," the plaintiffs taking on Delta said in an 18-page complaint filed in federal court in New York, accusing the airline of false advertising and deceptive business practices.

Half of Delta's fleet of nearly 1,000 aircraft comprises Boeing 737s, Boeing 757s and Airbus A321s -- all of which have at least one wall-adjacent seat with no window, according to the plaintiffs. It's where vertical air conditioning riser ducts are located, making putting a window there impossible, the competing Alaska Airlines explains on its website. But unlike Alaska and others, the plaintiffs complain, Delta advertises the seats as having a window, offering them as a "window seat" option on its seat map during checkout.

Security

Male-Oriented App 'TeaOnHer' Also Had Security Flaws That Could Leak Men's Driver's License Photos (techcrunch.com) 112

The women-only dating-advice app Tea "has been hit with 10 potential class action lawsuits in federal and state court," NBC News reported last week, "after a data breach led to the leak of thousands of selfies, ID photos and private conversations online." The suits could result in Tea having to pay tens of millions of dollars in damages to the plaintiffs, which could be catastrophic for the company, an expert told NBC News... One of the suits lists the right-wing online discussion board 4chan and the social platform X as defendants, alleging that they allowed bad actors to spread users' personal information.
But meanwhile, a new competing app for men called "TeaOnHer" has already been launched. And it was also found to have enormous security flaws, reports TechCrunch, that "exposed its users' personal information, including photos of their driver's licenses and other government-issued identity documents..." [W]hen we looked at the TeaOnHer's public internet records, it had no meaningful information other than a single subdomain, appserver.teaonher.com. When we opened this page in our browser, what loaded was the landing page for TeaOnHer's API (for the curious, we uploaded a copy here)... It was on this landing page that we found the exposed email address and plaintext password (which wasn't that far off from "password") for [TeaOnHer developer Xavier] Lampkin's account to access the TeaOnHer "admin panel"... This API landing page included an endpoint called /docs, which contained the API's auto-generated documentation (powered by a product called Swagger UI) that contained the full list of commands that can be performed on the API [including administrator commands to return user data]...

While it's not uncommon for developers to publish their API documentation, the problem here was that some API requests could be made without any authentication — no passwords or credentials were needed...

The records returned from TeaOnHer's server contained users' unique identifiers within the app (essentially a string of random letters and numbers), their public profile screen name, and self-reported age and location, along with their private email address. The records also included web address links containing photos of the users' driver's licenses and corresponding selfies. Worse, these photos of driver's licenses, government-issued IDs, and selfies were stored in an Amazon-hosted S3 cloud server set as publicly accessible to anyone with their web addresses. This public setting lets anyone with a link to someone's identity documents open the files from anywhere with no restrictions...

The bugs were so easy to find that it would be sheer luck if nobody malicious found them before we did. We asked, but Lampkin would not say if he has the technical ability, such as logs, to determine if anyone had used (or misused) the API at any time to gain access to users' verification documents, such as by scraping web addresses from the API. In the days since our report to Lampkin, the API landing page has been taken down, along with its documentation page, and it now displays only the state of the server that the TeaOnHer API is running on as "healthy."

The flaws were discovered while TeaOnHer was the #2 free app in the Apple App Store, the article points out. And while these flaws "appear to be resolved," the article notes a larger issue. "Shoddy coding and security flaws highlight the ongoing privacy risks inherent in requiring users to submit sensitive information to use apps and websites,"

And TeaOnHer also had another authentication issue. A female reporter at Cosmopolitan also noted Friday that TeaOnHer "lets you browse through profiles before your verifications are complete. So literally anyone (like myself) can read reviews..."
AI

Google's 'AI Overview' Pointed Him to a Customer Service Number. It Was a Scam (yahoo.com) 59

A real estate developer searched Google for a cruise ship company's customer service number, reports the Washington Post, calling the number in Google's AI Overview. "He chatted with a knowledgeable representative and provided his credit card details," the Post's reporter notes — but the next day he "saw fishy credit card charges and realized that he'd been fooled by an impostor for Royal Caribbean customer service."

And the Post's reporter found the same phone number "appearing to impersonate other cruise company hotlines and popping up in Google and ChatGPT" (including Disney and Carnival's Princess line): He'd encountered an apparent AI twist on a classic scam targeting travelers and others searching Google for customer help lines of airlines and other businesses... The rep knew the cost and pickup locations for Royal Caribbean shuttles in Venice. [And "had persuasive explanations" when questioned about paying certain fees and gratuities.] The rep offered to waive the shuttle fees...

Here's how a scam like this typically works: Bad guys write on online review sites, message boards and other websites claiming that a number they control belongs to a company's customer service center. When you search Google, its technology looks for clues to relevant and credible information, including online advice. If scammer-controlled numbers are repeated as truth often enough online, Google may suggest them to people searching for a business.

Google is a patsy for scammers — and we're the ultimate victims. Google's AI Overviews and OpenAI's ChatGPT may use similar clues as Google's search engine to spit out information gleaned from the web. That makes them new AI patsies for the old impostor number scams.

"I've seen so many versions of similar trickery targeting Google users that I largely blame the company for not doing enough to safeguard its essential gateway to information," the reporter concludes, (adding "So did two experts in Google's inner workings.") The Post is now advising its reader to "be suspicious of phone numbers in Google results or in chatbots."

Reached for comment, a Google spokesman told the Post they'd "taken action" on several impostor numbers identified by the reporter. That spokesman also said Google continues to "work on broader improvements" to "address rarer queries like these." OpenAI said that many of the webpages that ChatGPT referenced with the bogus cruise number appear to have been removed, and that it can take time for its information to update "after abusive content is removed at the source."
Meanwhile, the man with the bogus charges has now canceled his credit card, the Post reports, with the charges being reversed. Reflecting on his experience, he tells the Post's readers "I can't believe that I fell for it. Be careful."
Transportation

$81M 'Trade Secrets' Verdict Against Boeing Was Overturned - and Then Reinstated (reuters.com) 10

14 months ago a jury ruled against Boeing, awarding $81 million in damages to failed electric airplane startup Zunum. "Zunum alleged that Boeing, while ostensibly investing seed money to get the startup off the ground, stole Zunum's technology and actively undermined its attempts to build a business," the Seattle Times reported at the time.

But two months later that verdict was overturned, Reuters reports, with U.S. District Judge James Robart deciding that Zunum "did not adequately identify its secrets or show that they derived their value from being kept secret."

And then three days ago a U.S. appeals court reinstated the original $81 million award, reversing that district judge's decision and "rejecting his finding that the information Boeing allegedly stole was not entitled to trade-secret protection." [T]he district court erred in concluding that "Zunum failed to identify any of its alleged trade secrets with sufficient particularity"... Here, the court rejected Zunum's repeated attempts to introduce comprehensive trade secret definitions into evidence and instead provided the jury with a court-created exhibit enumerating Zunum's alleged trade secrets with a short description of each. Zunum's witnesses identified the trade secrets by number, provided a basic explanation of each, and used exhibits and demonstratives to exemplify information comprising specific trade secrets.
"internal Boeing communications introduced at trial suggesting that Boeing intended to modify its own in-house designs, methods, and strategies to incorporate information from certain Zunum trade secrets..." according to the new ruling. "Under the parties' agreement, Boeing was not permitted to use Zunum's confidential information for any reason other than to manage its investment in Zunum."

Reuters adds that "A spokesperson for Boeing declined to comment on the appeals court's decision"

One final note: The appeals court also ordered the case to be assigned to a new judge after Robart revealed that his wife had acquired Boeing stock through a retirement savings account during the litigation.
Judge Robart had called that an "error". (And judicial ethics experts interviewed by Business Insider in 2024 "characterized Robart's trades and delayed disclosure to the parties as a minor issue," they reported Thursday.)

But Thursday's ruling notes that the delayed disclosure "taken together with the district court's consistent rulings in Boeing's favor during and after trial, could give an objective observer reason to question the district judge's impartiality in further proceedings."
AI

Duolingo's Stock Down 38%, Plummets After OpenAI's GPT-5 Language App-Building Demo (yahoo.com) 93

Duolingo's stock peaked at $529.05 on May 16th. Three months later, it's down 38% — with that drop starting shortly after backlash to the CEO's promise to make it an "AI-first" company.

Yet "The backlash against Duolingo going 'AI-first' didn't even matter," TechCrunch wrote August 7th, noting Duolingo's stock price surged almost 30% overnight. That surge vanished within two days — and instead of a 30% surge, Duolingo now shows a 5% drop over the last eight days.

Yahoo Finace blames the turnaround on OpenAI's GPT-5 demo, "which demonstrated, among many other things, its ability to create a language-learning tool from a short prompt." OpenAI researcher Yann Dubois asked the model to create an app to help his partner learn French. And in a few minutes GPT-5 churned out several iterations, with flashcards, a progress tracker, and even a simple snake-style game with a French twist, a mouse and cheese variation to learn new vocab....

[Duolingo's] corporate lawyers, of course, did warn against this in its annual 10-K, albeit in boilerplate language. Tucked into the risk factors section, Duolingo notes, "It is possible that a new product could gain rapid scale at the expense of existing brands through harnessing a new technology (such as generative AI)." Consider this another warning to anyone making software. [The article adds later that "Rapid development and fierce competition can leave firms suddenly behind — perceived as under threat, inferior, or obsolete — from every iteration of OpenAI's models and from the moves of other influential AI players..."]

There's also irony in the wild swings. Part of Duolingo's successful quarter stemmed from the business's efficient use of AI. Gross margins, the company said, outperformed management expectations due to lower AI costs. And AI conversational features have become part of the company's learning tools, helping achieve double-digit subscriber growth... But the enthusiasm for AI, which led to the initial stock bump this week, also led to the clawback. AI giveth and taketh away.

Meanwhile, this week a blog announced it was "able to activate a long-rumored Practice feature" hidden in Google Translate, notes PC Magazine, with the blogger even sharing a screen recording of "AI-led features within Translate" showing its ability to create personalized lessons. "Google's take on Duolingo is effectively ready for release," the Android Authority blog concluded. "Furthermore, the fact that a Telegram user spotted this in their app suggests that Google is already testing this in a limited fashion."

Duolingo's CEO revisited the backlash to his original "AI-first" promise today in a new interview today with the New York Times, emphasizing his hope that AI would only reduce the company's use of contractors. "We've never laid off any full-time employees. We don't plan to...." But: In the next five years, people's jobs will probably change. We're seeing it with many of our engineers. They may not be doing some rote tasks anymore. What will probably happen is that one person will be able to accomplish more, rather than having fewer people.

NYT: How are you managing that transition for employees?

Every Friday morning, we have this thing: It's a bad acronym, f-r-A-I-days. I don't know how to pronounce it. Those mornings, we let each team experiment on how to get more efficient to use A.I.

Yesterday there was also a new announcement from attorneys at Pomerantz LLP, which calls itself "the oldest law firm in the world dedicated to representing the rights of defrauded investors."

The firm announced it was investigating "whether Duolingo and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices."
Intel

Former Intel Engineer Sentenced for Stealing Trade Secrets for Microsoft (tomshardware.com) 38

After leaving a nearly 10-year position as a product marketing engineer at Intel, Varun Gupta was charged with possessing trade secrets. He was facing a maximum sentence of 10 years in prison, a $250,000 fine and three years of supervised release, according to Oregon's U.S. Attorney's Office.

Portland's KGW reports: While still employed at Intel, Varun Gupta downloaded about 4,000 files, which included trade secrets and proprietary materials, from his work computer to personal portable hard drives, according to the U.S. Attorney's Office for the District of Oregon. While working for Microsoft, between February and July 2020, Gupta accessed and used information during ongoing negotiations with Intel regarding chip purchases, according to a sentencing memo. Some of the information containing trade secrets included a PowerPoint presentation that referenced Intel's pricing strategy with another major customer, according to the U.S. Attorney's Office for the District of Oregon in a sentencing memo.

Intel raised concerns in 2020, and Microsoft and Intel launched a joint investigation, the sentencing memo says. Intel filed a civil lawsuit in February 2021 that resulted in Gupta being ordered to pay $40,000.

Tom's Hardware summarizes the trial: Oregon Live reports that the prosecutor, Assistant U.S. Attorney William Narus, sought an eight-month prison term for Gupta. Narus spoke about Gupta's purposeful and repeated access to secret documents. Eight months of federal imprisonment was sought as Gupta repetitively abused his cache of secret documents, according to the prosecutor.

For the defense, attorney David Angeli described Gupta's actions as a "serious error in judgment." Mitigating circumstances, such as Gupta's permanent loss of high-level employment opportunities in the industry, and that he had already paid $40,000 to settle a civil suit brought by Intel, were highlighted.

U.S. District Judge Amy Baggio concluded the court hearing by delivering a balance between the above adversarial positions. Baggio decided that Gupta should face a two-year probationary sentence [and pay a $34,472 fine — before heading back to France]... The ex-tech exec and his family have started afresh in La Belle France, with eyes on a completely new career in the wine industry. According to the report, Gupta is now studying for a qualification in vineyard management, while aiming to work as a technical director in the business.

Data Storage

Seagate 'Spins Up' a Raid on a Counterfeit Hard Drive Workshop (tomshardware.com) 47

An anonymous reader shared this report from Tom's Hardware: According to German news outlet Heise, notable progress has been made regarding the counterfeit Seagate hard drive case. Just like something out of an action movie, security teams from Seagate's Singapore and Malaysian offices, in conjunction with local Malaysian authorities, conducted a raid on a warehouse in May that was engaged in cooking up counterfeit Seagate hard drives, situated outside Kuala Lumpur.

During the raid, authorities reportedly uncovered approximately 700 counterfeit Seagate hard drives, with SMART values that had been reset to facilitate their sale as new... However, Seagate-branded drives were not the only items involved, as authorities also discovered drives from Kioxia and Western Digital. Seagate suspects that the used hard drives originated from China during the Chia [cryptocurrency] boom. Following the cryptocurrency's downfall, numerous miners sold these used drives to workshops where many were illicitly repurposed to appear new. This bust may represent only the tip of the iceberg, as Heise estimates that at least one million of these Chia drives are circulating, although the exact number that have been recycled remains uncertain.

The clandestine workshop, likely one of many establishments in operation, reportedly employed six workers. Their responsibilities included resetting the hard drives' SMART values, cleaning, relabeling, and repackaging them for distribution and sale via local e-commerce platforms.

Piracy

'Yubin Archive' Pirate Library Operator Arrested, Illegal Study Materials Group Canceled For 330K Members (torrentfreak.com) 36

South Korean authorities have arrested the operator of Yubin Archive, a Telegram-based "pirate library" that grew to over 330,000 members by sharing textbooks, workbooks, lectures, and exam prep materials under the banner of "eliminating educational inequality." TorrentFreak reports: An official statement confirming the operator's arrest was published locally on August 12. The timeline suggests the arrest probably took place on or around August 9. The following notice appeared on Yubin Archive on August 11. "The Ministry of Culture and Sports' Copyright Crime Science Investigation Team used digital science investigation (forensics) and various investigation methods to identify the core operator, conduct simultaneous search and seizure at their homes, and fully secure the Telegram criminal activities," the Ministry's statement reads. "Investigations into accomplices who participated in the operation are also underway."

While copyright infringement at scale is almost always a crime, regardless of content type or claimed good intention, having a Robin Hood character in the mix risks dilution of key anti-piracy messaging. No surprise then that much is being made of the existence of a 'minority room' within Yubin Archive, access to which was only permitted upon payment of a fee. "The core operator of the 'Yubin Archive', who was arrested, was found to have created a separate paid sharing channel (also known as a minority channel) while promoting the illegal sharing of learning materials as a noble act to eliminate educational inequality," the Ministry notes. "In addition, the illegal sharing channel was a criminal act that could instill incorrect copyright awareness in most users, including teenagers. The Ministry of Culture and Sports is committed to continuing its efforts to track and strictly respond to illegal activities that abuse anonymous channels such as Telegram, to protect the rights of creators."

Privacy

Proton Begins Shifting Infrastructure Outside of Switzerland Ahead of Surveillance Legislation (techradar.com) 26

Proton has begun relocating infrastructure outside Switzerland ahead of proposed surveillance legislation requiring VPNs and messaging services with over 5,000 users to identify customers and retain data for six months.

The company's AI chatbot Lumo became the first product hosted on German servers rather than Swiss infrastructure. CEO Andy Yen confirmed the decision and a spokesperson told TechRadar that the company isn't fully exiting Switzerland.

In a blog post about the launch of Lumo last month, Proton's Head of Anti-Abuse and Account Security, Eamonn Maguire, explained that the company had decided to invest outside Switzerland for fear of the looming legal changes. He wrote: "Because of legal uncertainty around Swiss government proposals to introduce mass surveillance -- proposals that have been outlawed in the EU -- Proton is moving most of its physical infrastructure out of Switzerland. Lumo will be the first product to move."

The proposed amendments to Switzerland's Ordinance on the Surveillance of Correspondence by Post and Telecommunications would also mandate decryption capabilities for providers holding encryption keys. Proton is developing additional facilities in Norway.
Government

Trump Administration Considers Stake In Intel (cnbc.com) 101

Intel's stock jumped 7% after reports that the Trump administration is considering taking a stake in the struggling chipmaker to support U.S.-based manufacturing. CNBC reports: Intel is the only U.S. company with the capability to manufacture the fastest chips on U.S. shores, although rivals including Taiwan Semiconductor Manufacturing Company and Samsung also have U.S. factories. President Donald Trump has called for more chips and high technology to be manufactured in the U.S. The government's stake would help fund factories that Intel is currently building in Ohio, according to the report.
Piracy

Impoverished Streaming Services Are Driving Viewers Back to Piracy (theguardian.com) 137

Rising subscription costs, shrinking content libraries, and regional restrictions are pushing viewers back toward piracy. Once seen as nearly dead, piracy has resurged through illicit streaming platforms as the fractured, ad-laden streaming market struggles to deliver convenience and value. The Guardian reports: According to London-based piracy monitoring and content-protection firm MUSO, unlicensed streaming is the predominant source of TV and film piracy, accounting for 96% in 2023 (PDF). Piracy reached a low in 2020, with 130bn website visits. But by 2024 that number had risen to 216bn (PDF). In Sweden, 25% of people surveyed (PDF) reported pirating in 2024, a trend mostly driven by those aged 15 to 24. Piracy is back, just sailing under a different flag.

"Piracy is not a pricing issue," Gabe Newell, the co-founder of Valve, the company behind the world's largest PC gaming platform, Steam, observed in 2011. "It's a service issue." Today, the crisis in streaming makes this clearer than ever. With titles scattered, prices on the rise, and bitrates throttled depending on your browser, it is little wonder some viewers are raising the jolly roger again. Studios carve out fiefdoms, build walls and levy tolls for those who wish to visit. The result is artificial scarcity in a digital world that promised abundance.

Whether piracy today is rebellion or resignation is almost irrelevant; the sails are hoisted either way. As the streaming landscape fractures into feudal territories, more viewers are turning to the high seas. The Medici understood the value linked to access. [The 2016 historical drama series tells of the rise of the powerful Florentine banking dynasty, and with it, the story of the Renaissance.] A client could travel from Rome to London and still draw on their credit, thanks to a network built on trust and interoperability. If today's studios want to survive the storm, they may need to rediscover that truth.

The Courts

Apple Returns Blood Oxygen Monitoring to the Latest Apple Watches (techcrunch.com) 23

Apple has reintroduced blood oxygen monitoring to certain Apple Watch models in the U.S. by shifting the feature's calculations to the paired iPhone, sidestepping an ITC import ban stemming from its legal dispute with medical device maker Masimo. TechCrunch reports: Blood oxygen data will be measured and calculated on the user's paired iPhone, and results can be viewed in the Respiratory section of the Health app. This means users won't be able to view the data on their Apple Watch, as they'll need to do so on their iPhone. Apple says the update announced today is enabled by a recent U.S. Customs ruling, which means that the tech giant is allowed to import Apple Watches with the redesigned Blood Oxygen feature.

The change doesn't affect previously sold models with the original version of the feature or units bought outside the U.S. The redesigned feature only applies to Apple Watches that were sold after the ITC import ban took effect in early 2024. These users can access the redesigned Blood Oxygen feature through an iPhone and Apple Watch software update coming on Thursday.

Privacy

Data Brokers Are Hiding Their Opt-Out Pages From Google Search (wired.com) 29

Data brokers are required by California law to provide ways for consumers to request their data be deleted. But good luck finding them. From a report: More than 30 of the companies, which collect and sell consumers' personal information, hid their deletion instructions from Google, according to a review by The Markup and CalMatters of hundreds of broker websites. This creates one more obstacle for consumers who want to delete their data.

Many of the pages containing the instructions, listed in an official state registry, use code to tell search engines to remove the page entirely from search results. Popular tools like Google and Bing respect the code by excluding pages when responding to users. Data brokers nationwide must register in California under the state's Consumer Privacy Act, which allows Californians to request that their information be removed, that it not be sold, or that they get access to it. After reviewing the websites of all 499 data brokers registered with the state, we found 35 had code to stop certain pages from showing up in searches.

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