Policy

eu-accuses-meta-of-violating-content-rules-in-move-that-could-anger-trump

EU accuses Meta of violating content rules in move that could anger Trump

FTC Chairman Andrew Ferguson recently warned Meta and a dozen social media and technology companies that “censoring Americans to comply with a foreign power’s laws, demands, or expected demands” may violate US law. Ferguson’s letters said the EU’s Digital Services Act and other laws “incentivize tech companies to censor worldwide speech.”

Meta told media outlets that “we disagree with any suggestion that we have breached the DSA, and we continue to negotiate with the European Commission on these matters.” Meta also said it made changes to comply with the DSA.

“In the European Union, we have introduced changes to our content reporting options, appeals process, and data access tools since the DSA came into force and are confident that these solutions match what is required under the law in the EU,” Meta said.

TikTok, Meta accused of restricting data access

The EC also said it preliminarily found that both Meta and TikTok violated their DSA obligation to grant researchers adequate access to public data.

“The Commission’s preliminary findings show that Facebook, Instagram and TikTok may have put in place burdensome procedures and tools for researchers to request access to public data. This often leaves them with partial or unreliable data, impacting their ability to conduct research, such as whether users, including minors, are exposed to illegal or harmful content,” the announcement said.

The data-access requirement “is an essential transparency obligation under the DSA, as it provides public scrutiny into the potential impact of platforms on our physical and mental health,” the EC said.

In a statement provided to Ars, TikTok said it is committed to transparency and has made data available to nearly 1,000 research teams. TikTok said it may be impossible to comply with both the DSA and the General Data Protection Regulation (GDPR).

“We are reviewing the European Commission’s findings, but requirements to ease data safeguards place the DSA and GDPR in direct tension. If it is not possible to fully comply with both, we urge regulators to provide clarity on how these obligations should be reconciled,” TikTok said.

EU accuses Meta of violating content rules in move that could anger Trump Read More »

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Reddit sues to block Perplexity from scraping Google search results

“Unable to scrape Reddit directly, they mask their identities, hide their locations, and disguise their web scrapers to steal Reddit content from Google Search,” Lee said. “Perplexity is a willing customer of at least one of these scrapers, choosing to buy stolen data rather than enter into a lawful agreement with Reddit itself.”

On Reddit, Perplexity pushed back on Reddit’s claims that Perplexity ignored requests to license Reddit content.

“Untrue. Whenever anyone asks us about content licensing, we explain that Perplexity, as an application-layer company, does not train AI models on content,” Perplexity said. “Never has. So, it is impossible for us to sign a license agreement to do so.”

Reddit supposedly “insisted we pay anyway, despite lawfully accessing Reddit data,” Perplexity said. “Bowing to strong arm tactics just isn’t how we do business.”

Perplexity’s spokesperson, Jesse Dwyer, told Ars the company chose to post its statement on Reddit “to illustrate a simple point.”

“It is a public Reddit link accessible to anyone, yet by the logic of Reddit’s lawsuit, if you mention it or cite it in any way (which is your job as a reporter), they might just sue you,” Dwyer said.

But Reddit claimed that its business and reputation have been “damaged” by “misappropriation of Reddit data and circumvention of technological control measures.” Without a licensing deal ensuring that Perplexity and others are respecting Reddit policies, Reddit cannot control who has access to data, how they’re using data, and if data use conflicts with Reddit’s privacy policy and user agreement, the complaint said.

Further, Reddit’s worried that Perplexity’s workaround could catch on, potentially messing up Reddit’s other licensing deals. All the while, Reddit noted, it has to invest “significant resources” in anti-scraping technology, with Reddit ultimately suffering damages, including “lost profits and business opportunities, reputational harm, and loss of user trust.”

Reddit’s hoping the court will grant an injunction barring companies from scraping Reddit content from Google SERPs. It also wants companies blocked from both selling Reddit data and “developing or distributing any technology or product that is used for the unauthorized circumvention of technological control measures and scraping of Reddit data.”

If Reddit wins, companies could be required to pay substantial damages or to disgorge profits from the sale of Reddit content.

Advance Publications, which owns Ars Technica parent Condé Nast, is the largest shareholder in Reddit.

Reddit sues to block Perplexity from scraping Google search results Read More »

trump-eyes-government-control-of-quantum-computing-firms-with-intel-like-deals

Trump eyes government control of quantum computing firms with Intel-like deals

Donald Trump is eyeing taking equity stakes in quantum computing firms in exchange for federal funding, The Wall Street Journal reported.

At least five companies are weighing whether allowing the government to become a shareholder would be worth it to snag funding that the Trump administration has “earmarked for promising technology companies,” sources familiar with the potential deals told the WSJ.

IonQ, Rigetti Computing, and D-Wave Quantum are currently in talks with the government over potential funding agreements, with minimum awards of $10 million each, some sources said. Quantum Computing Inc. and Atom Computing are reportedly “considering similar arrangements,” as are other companies in the sector, which is viewed as critical for scientific advancements and next-generation technologies.

No deals have been completed yet, sources said, and terms could change as quantum-computing firms weigh the potential risks of government influence over their operations.

Quantum-computing exec called deals “exciting”

In August, Intel agreed to give the US a 10 percent stake in the company, then admitted to shareholders that “it is difficult to foresee all the potential consequences” of the unusual arrangement. If the deal goes through, the US would become Intel’s largest shareholder, the WSJ noted, potentially influencing major decisions that could prompt layoffs or restrict business in certain foreign markets.

“Among other things, there could be adverse reactions, immediately or over time, from investors, employees, customers, suppliers, other business or commercial partners, foreign governments, or competitors,” Intel wrote in a securities filing. “There may also be litigation related to the transaction or otherwise and increased public or political scrutiny with respect to the Company.”

But quantum computing companies that are closest to entering deals appear optimistic about possible government involvement.

Quantum Computing Inc. chief executive Yuping Huang told the WSJ that “the government’s potential equity stakes in companies in the industry are exciting.” The funding could be one of “the first significant signs of support for the sector from Washington,” the WSJ noted, potentially paving the way for breakthroughs such as Google’s recent demonstration of a quantum algorithm running 13,000 times faster than a supercomputer.

Trump eyes government control of quantum computing firms with Intel-like deals Read More »

spacex-disables-2,500-starlink-terminals-allegedly-used-by-asian-scam-centers

SpaceX disables 2,500 Starlink terminals allegedly used by Asian scam centers

The construction occurred despite a previous crackdown that resulted in the release of “around 7,000 people from a brutal call center-like system that runs on greed, human trafficking and violence,” the AFP wrote. “Freed workers from Asia, Africa and elsewhere showed AFP journalists the scars and bruises of beatings they said were inflicted by their bosses. They said they had been forced to work around the clock, trawling for victims for a plethora of phone and Internet scams.”

Another AFP article said “the border region fraud factories are typically run by Chinese criminal syndicates, analysts say, often overseen by Myanmar militias given tacit backing by the Myanmar junta in return for guaranteeing security.”

The Associated Press wrote that “Myanmar is notorious for hosting cyberscam operations responsible for bilking people all over the world. These usually involve gaining victims’ confidence online with romantic ploys and bogus investment pitches. The centers are infamous for recruiting workers from other countries under false pretenses, promising them legitimate jobs and then holding them captive and forcing them to carry out criminal activities.”

Senator urged Musk to take action

An October 2024 report by the United Nations Office on Drugs and Crime described the use of Starlink in fraud operations. About 80 “Starlink satellite dishes linked to cyber-enabled fraud operations” were seized between April and June 2024 in Myanmar and Thailand, the report said. Starlink is prohibited in both countries.

“Despite Starlink use being strictly monitored and, in some cases, restricted through geofencing, organized crime groups appear to have found ways around existing security protocols in order to access the remote high-speed Internet connectivity made possible by this portable technology,” the report said.

In July this year, US Sen. Maggie Hassan (D-NH) urged SpaceX CEO Elon Musk to prevent criminals from using Starlink for scam operations that target Americans.

“While SpaceX has stated that it investigates and deactivates Starlink devices in various contexts, it seemingly has not publicly acknowledged the use of Starlink for scams originating in Southeast Asia—or publicly discussed actions the company has taken in response,” Hassan wrote in a letter to Musk. “Scam networks in Myanmar, Thailand, Cambodia, and Laos, however, have apparently continued to use Starlink despite service rules permitting SpaceX to terminate access for fraudulent activity.”

Hassan is the top Democrat on the US Congress Joint Economic Committee, which is reportedly investigating the use of Starlink in the scam operations. Dreyer said last night that SpaceX is committed to “detecting and preventing misuse by bad actors.”

SpaceX disables 2,500 Starlink terminals allegedly used by Asian scam centers Read More »

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Cards Against Humanity lawsuit forced SpaceX to vacate land on US/Mexico border

A year after suing SpaceX for “invading” a plot of land on the US/Mexico border, Cards Against Humanity says it has obtained a settlement and will provide supporters with a new pack of cards about Elon Musk.

The party-game company bought the land in 2017 in an attempt to stymie President Trump’s wall-building project, but alleged that SpaceX illegally took over the land and filled it with construction equipment and materials. A September 2024 lawsuit filed against SpaceX in Cameron County District Court in Texas sought up to $15 million to cover the cost of restoring the property and other damages.

Cards Against Humanity, which bought the property with donations from supporters, told Ars today that “we’ve been in negotiations with SpaceX for much of the last year. We held out for the best settlement we could get—almost until the trial was supposed to start—and unfortunately part of that negotiation was that we’re not allowed to discuss specific settlement terms. They did admit to trespassing during the discovery phase, which was very validating.”

A court document shows that SpaceX admitted it did not ask for or receive permission to use the property. SpaceX admitted that its “contractors cleared the lot and put down gravel,” parked vehicles on the property, and stored construction materials. An Associated Press article yesterday said that “Texas court records show a settlement was reached in the case last month, just weeks before a jury trial was scheduled to begin on Nov. 3.”

The game company said a victory at trial wouldn’t have resulted in a better outcome. “A trial would have cost more than what we were likely to win from SpaceX,” the company’s statement to Ars said. “Under Texas law, even if we had won at trial (and we would have, given their admission to trespassing), we likely wouldn’t have been able to recoup our legal fees. And SpaceX certainly seemed ready to dramatically outspend us on lawyers.”

“They packed up the space garbage”

The company also provided this update to donors:

Dear Horrible Friends,

Remember last year, when we sued Elon Musk for dumping space garbage all over your land, and then you signed up to collect your share of the proceeds? Also, remember how we warned you that we’d “probably only be able to get you like two dollars or most likely nothing”?

Well, Elon Musk’s team admitted on the record that they illegally trespassed on your land, and then they packed up the space garbage and fucked off. But when it comes to paying you all, he did the legal equivalent of throwing dust in our eyes and kicking us in the balls.

Instead of money, Cards Against Humanity said it will provide its “best, sexiest customers” with a comedic “mini-pack of exclusive cards all about Elon Musk” that can be obtained via this sign-up link. “P.S. Soon, the land will be returned to its natural state: no space garbage, and still completely free of pointless fucking border walls,” the company said.

Cards Against Humanity lawsuit forced SpaceX to vacate land on US/Mexico border Read More »

musk’s-$1-trillion-tesla-pay-plan-draws-some-protest-ahead-of-likely-approval

Musk’s $1 trillion Tesla pay plan draws some protest ahead of likely approval

Ann Lipton, a University of Colorado Law School professor, told the Financial Times that she expects shareholders to approve the latest pay package despite the ISS recommendation. “They recommended against it before and the shareholders voted in favor, and this time Elon Musk gets to vote…  and his brother gets to vote,” she said. “That wasn’t true last time. I strongly expect that all of these proposals are going to go Tesla’s way.”

Pay plan goals are vaguely defined, letter says

The Musk pay plan was also opposed in a letter signed by the American Federation of Teachers; state treasurers from Nevada, Massachusetts, and New Mexico; and comptrollers from New York City and Maryland.

“We believe the Board’s failure to ensure CEO Musk devotes full attention to Tesla, while making him the highest-paid CEO in history, shows how beholden it is to management,” the letter said. “The Board has permitted Mr. Musk to be over-committed for years, allowing him to continue as CEO while taking time-consuming leadership roles at his other companies, xAI/X, SpaceX, Neuralink, and Boring Company.”

The letter said the pay plan’s vehicle-delivery goal could be reached even if annual sales decrease and that the Full Self-Driving subscription goal is “carefully worded to not actually require that the service ever achieves full unsupervised self-driving.”

The letter said the goal of delivering 1 million AI robots or “bots” is so vague that “even if Tesla fails to develop a commercially successful robot, it could market devices developed and manufactured by other firms and still achieve this milestone.” The robotaxi goal similarly “does not require that Tesla has designed and developed the robotaxis in question, nor that their operation be profitable,” the letter said.

The letter faulted the board for letting Musk take “a leadership position at the US Department of Government Efficiency (DOGE), a role widely seen as having a negative impact on the Company’s performance and brand… In our view, the Board’s failure to limit Mr. Musk’s outside endeavors while rewarding him with unprecedented pay packages for only a part-time commitment strongly indicates a lack of true independence by management and jeopardizes long-term shareholder value.”

Musk’s $1 trillion Tesla pay plan draws some protest ahead of likely approval Read More »

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Big Tech sues Texas, says age-verification law is “broad censorship regime”

Texas minors also challenge law

The Texas App Store Accountability Act is similar to laws enacted by Utah and Louisiana. The Texas law is scheduled to take effect on January 1, 2026, while the Utah and Louisiana laws are set to be enforced starting in May and July, respectively.

The Texas law is also being challenged in a different lawsuit filed by a student advocacy group and two Texas minors.

“The First Amendment does not permit the government to require teenagers to get their parents’ permission before accessing information, except in discrete categories like obscenity,” attorney Ambika Kumar of Davis Wright Tremaine LLP said in an announcement of the lawsuit. “The Constitution also forbids restricting adults’ access to speech in the name of protecting children. This law imposes a system of prior restraint on protected expression that is presumptively unconstitutional.”

Davis Wright Tremaine LLP said the law “extends far beyond social media to mainstream educational, news, and creative applications, including Wikipedia, search apps, and internet browsers; messaging services like WhatsApp and Slack; content libraries like Audible, Kindle, Netflix, Spotify, and YouTube; educational platforms like Coursera, Codecademy, and Duolingo; news apps from The New York Times, The Wall Street Journal, ESPN, and The Atlantic; and publishing tools like Substack, Medium, and CapCut.”

Both lawsuits against Texas argue that the law is preempted by the Supreme Court’s 2011 decision in Brown v. Entertainment Merchants Association, which struck down a California law restricting the sale of violent video games to children. The Supreme Court said in Brown that a state’s power to protect children from harm “does not include a free-floating power to restrict the ideas to which children may be exposed.”

The tech industry has sued Texas over multiple laws related to content moderation. In 2022, the Supreme Court blocked a Texas law that prohibits large social media companies from moderating posts based on a user’s viewpoint. Litigation in that case is ongoing. In a separate case decided in June 2025, the Supreme Court upheld a Texas law that requires age verification on porn sites.

Big Tech sues Texas, says age-verification law is “broad censorship regime” Read More »

teen-sues-to-destroy-the-nudify-app-that-left-her-in-constant-fear

Teen sues to destroy the nudify app that left her in constant fear

A spokesperson told The Wall Street Journal that “nonconsensual pornography and the tools to create it are explicitly forbidden by Telegram’s terms of service and are removed whenever discovered.”

For the teen suing, the prime target remains ClothOff itself. Her lawyers think it’s possible that she can get the app and its affiliated sites blocked in the US, the WSJ reported, if ClothOff fails to respond and the court awards her default judgment.

But no matter the outcome of the litigation, the teen expects to be forever “haunted” by the fake nudes that a high school boy generated without facing any charges.

According to the WSJ, the teen girl sued the boy who she said made her want to drop out of school. Her complaint noted that she was informed that “the individuals responsible and other potential witnesses failed to cooperate with, speak to, or provide access to their electronic devices to law enforcement.”

The teen has felt “mortified and emotionally distraught, and she has experienced lasting consequences ever since,” her complaint said. She has no idea if ClothOff can continue to distribute the harmful images, and she has no clue how many teens may have posted them online. Because of these unknowns, she’s certain she’ll spend “the remainder of her life” monitoring “for the resurfacing of these images.”

“Knowing that the CSAM images of her will almost inevitably make their way onto the Internet and be retransmitted to others, such as pedophiles and traffickers, has produced a sense of hopelessness” and “a perpetual fear that her images can reappear at any time and be viewed by countless others, possibly even friends, family members, future partners, colleges, and employers, or the public at large,” her complaint said.

The teen’s lawsuit is the newest front in a wider attempt to crack down on AI-generated CSAM and NCII. It follows prior litigation filed by San Francisco City Attorney David Chiu last year that targeted ClothOff, among 16 popular apps used to “nudify” photos of mostly women and young girls.

About 45 states have criminalized fake nudes, the WSJ reported, and earlier this year, Donald Trump signed the Take It Down Act into law, which requires platforms to remove both real and AI-generated NCII within 48 hours of victims’ reports.

Teen sues to destroy the nudify app that left her in constant fear Read More »

sony-tells-scotus-that-people-accused-of-piracy-aren’t-“innocent-grandmothers”

Sony tells SCOTUS that people accused of piracy aren’t “innocent grandmothers”

Record labels Sony, Warner, and Universal yesterday asked the Supreme Court to help it boot pirates off the Internet.

Sony and the other labels filed their brief in Cox Communications v. Sony Music Entertainment, a case involving the cable Internet service provider that rebuffed labels’ demands for mass terminations of broadband subscribers accused of repeat copyright infringement. The Supreme Court’s eventual decision in the case may determine whether Internet service providers must terminate the accounts of alleged pirates in order to avoid massive financial liability.

Cox has argued that copyright-infringement notices—which are generated by bots and flag users based on their IP addresses—sent by record labels are unreliable. Cox said ISPs can’t verify whether the notices are accurate and that terminating an account would punish every user in a household where only one person may have illegally downloaded copyrighted files.

Record labels urged the Supreme Court to reject this argument.

“While Cox waxes poetic about the centrality of Internet access to modern life, it neglects to mention that it had no qualms about terminating 619,711 subscribers for nonpayment over the same period that it terminated just 32 for serial copyright abuse,” the labels’ brief said. “And while Cox stokes fears of innocent grandmothers and hospitals being tossed off the Internet for someone else’s infringement, Cox put on zero evidence that any subscriber here fit that bill. By its own admission, the subscribers here were ‘habitual offenders’ Cox chose to retain because, unlike the vast multitude cut off for late payment, they contributed to Cox’s bottom line.”

Record labels were referring to a portion of Cox’s brief that said, “Grandma will be thrown off the Internet because Junior illegally downloaded a few songs on a visit.”

Too much torrenting, record labels say

The record labels’ brief complained about torrents providing Internet users with easy access to pirated material:

Today, most infringement occurs on peer-to-peer file-sharing protocols like BitTorrent, which enable viral uploading and downloading of pirated music faster than ever, leaving behind no fingerprints beyond a ten-digit IP address that only an ISP can tie to the user. Unlike earlier methods of infringement—e.g., bootleg CD manufacturers—peer-to-peer file-sharing protocols lack a central hub that law enforcement can shutter. And unlike earlier methods, peer-to-peer protocols are not constrained by the need to create physical copies; BitTorrent enables tens of thousands of people to trade pirated music simultaneously.

Record labels said that Cox used a “13-strike policy” that let subscribers repeatedly download pirated material before facing any consequences. The case is based on “claims to works infringed by subscribers who generated at least three infringement notices across 2013 and 2014, for a total of 10,017 copyrighted works,” the brief said.

Sony tells SCOTUS that people accused of piracy aren’t “innocent grandmothers” Read More »

openai-thinks-elon-musk-funded-its-biggest-critics—who-also-hate-musk

OpenAI thinks Elon Musk funded its biggest critics—who also hate Musk

“We are not in any way supported by or funded by Elon Musk and have a history of campaigning against him and his interests,” Ruby-Sachs told NBC News.

Another nonprofit watchdog targeted by OpenAI was The Midas Project, which strives to make sure AI benefits everyone. Notably, Musk’s lawsuit accused OpenAI of abandoning its mission to benefit humanity in pursuit of immense profits.

But the founder of The Midas Project, Tyler Johnston, was shocked to see his group portrayed as coordinating with Musk. He posted on X to clarify that Musk had nothing to do with the group’s “OpenAI Files,” which comprehensively document areas of concern with any plan to shift away from nonprofit governance.

His post came after OpenAI’s chief strategy officer, Jason Kwon, wrote that “several organizations, some of them suddenly newly formed like the Midas Project, joined in and ran campaigns” backing Musk’s “opposition to OpenAI’s restructure.”

“What are you talking about?” Johnston wrote. “We were formed 19 months ago. We’ve never spoken with or taken funding from Musk and [his] ilk, which we would have been happy to tell you if you asked a single time. In fact, we’ve said he runs xAI so horridly it makes OpenAI ‘saintly in comparison.’”

OpenAI acting like a “cutthroat” corporation?

Johnston complained that OpenAI’s subpoena had already hurt the Midas Project, as insurers had denied coverage based on news coverage. He accused OpenAI of not just trying to silence critics but possibly shut them down.

“If you wanted to constrain an org’s speech, intimidation would be one strategy, but making them uninsurable is another, and maybe that’s what’s happened to us with this subpoena,” Johnston suggested.

Other nonprofits, like the San Francisco Foundation (SFF) and Encode, accused OpenAI of using subpoenas to potentially block or slow down legal interventions. Judith Bell, SFF’s chief impact officer, told NBC News that her nonprofit’s subpoena came after spearheading a petition to California’s attorney general to block OpenAI’s restructuring. And Encode’s general counsel, Nathan Calvin, was subpoenaed after sponsoring a California safety regulation meant to make it easier to monitor risks of frontier AI.

OpenAI thinks Elon Musk funded its biggest critics—who also hate Musk Read More »

isps-angry-about-california-law-that-lets-renters-opt-out-of-forced-payments

ISPs angry about California law that lets renters opt out of forced payments

Rejecting opposition from the cable and real estate industries, California Gov. Gavin Newsom signed a bill that aims to increase broadband competition in apartment buildings.

The new law taking effect on January 1 says landlords must let tenants “opt out of paying for any subscription from a third-party Internet service provider, such as through a bulk-billing arrangement, to provide service for wired Internet, cellular, or satellite service that is offered in connection with the tenancy.” It was approved by the state Assembly in a 75–0 vote in April, and by the Senate in a 30–7 vote last month.

“This is kind of like a first step in trying to give this industry an opportunity to just treat people fairly,” Assemblymember Rhodesia Ransom, a Democratic lawmaker who authored the bill, told Ars last month. “It’s not super restrictive. We are not banning bulk billing. We’re not even limiting how much money the people can make. What we’re saying here with this bill is that if a tenant wants to opt out of the arrangement, they should be allowed to opt out.”

Ransom said lobby groups for Internet providers and real estate companies were “working really hard” to defeat the bill. The California Broadband & Video Association, which represents cable companies, called it “an anti-affordability bill masked as consumer protection.”

Complaining that property owners would have “to provide a refund to tenants who decline the Internet service provided through the building’s contract with a specific Internet service provider,” the cable group said the law “undermines the basis of the cost savings and will lead to bulk billing being phased out.”

State law fills gap in federal rules

Ransom argued that the bill would boost competition and said that “some of our support came from some of the smaller Internet service providers.”

ISPs angry about California law that lets renters opt out of forced payments Read More »

feds-seize-$15-billion-from-alleged-forced-labor-scam-built-on-“human-suffering”

Feds seize $15 billion from alleged forced labor scam built on “human suffering”

Federal prosecutors have seized $15 billion from the alleged kingpin of an operation that used imprisoned laborers to trick unsuspecting people into making investments in phony funds, often after spending months faking romantic relationships with the victims.

Such “pig butchering” scams have operated for years. They typically work when members of the operation initiate conversations with people on social media and then spend months messaging them. Often, the scammers pose as attractive individuals who feign romantic interest for the victim.

Forced labor, phone farms, and human suffering

Eventually, conversations turn to phony investment funds with the end goal of convincing the victim to transfer large amounts of bitcoin. In many cases, the scammers are trafficked and held against their will in compounds surrounded by fences and barbed wire.

On Tuesday, federal prosecutors unsealed an indictment against Chen Zhi, the founder and chairman of a multinational business conglomerate based in Cambodia. It alleged that Zhi led such a forced-labor scam operation, which, with the help of unnamed co-conspirators, netted billions of dollars from victims.

“The defendant CHEN ZHI and his co-conspirators designed the compounds to maximize profits and personally ensured that they had the necessary infrastructure to reach as many victims as possible,” prosecutors wrote in the court document, filed in US District Court for the Eastern District of New York. The indictment continued:

For example, in or about 2018, Co-Conspirator-1 was involved in procuring millions of mobile telephone numbers and account passwords from an illicit online marketplace. In or about 2019, Co-Conspirator-3 helped oversee construction of the Golden Fortune compound. CHEN himself maintained documents describing and depicting “phone farms,” automated call centers used to facilitate cryptocurrency investment fraud and other cybercrimes, including the below image:

Credit: Justice Department

Prosecutors said Zhi is the founder and chairman of Prince Group, a Cambodian corporate conglomerate that ostensibly operated dozens of legitimate business entities in more than 30 countries. In secret, however, Zhi and top executives built Prince Group into one of Asia’s largest transnational criminal organizations. Zhi’s whereabouts are unknown.

Feds seize $15 billion from alleged forced labor scam built on “human suffering” Read More »