An anonymous reader quotes a report from Ars Technica: Europol has shut down one of the largest dark web pedophile networks in the world, prompting dozens of arrests worldwide and threatening that more are to follow. Launched in 2021, KidFlix allowed users to join for free to preview low-quality videos depicting child sex abuse materials (CSAM). To see higher-resolution videos, users had to earn credits by sending cryptocurrency payments, uploading CSAM, or "verifying video titles and descriptions and assigning categories to videos." Europol seized the servers and found a total of 91,000 unique videos depicting child abuse, "many of which were previously unknown to law enforcement," the agency said in a press release. KidFlix going dark was the result of the biggest child sexual exploitation operation in Europol's history, the agency said. Operation Stream, as it was dubbed, was supported by law enforcement in more than 35 countries, including the United States. Nearly 1,400 suspected consumers of CSAM have been identified among 1.8 million global KidFlix users, and 79 have been arrested so far. According to Europol, 39 child victims were protected as a result of the sting, and more than 3,000 devices were seized. Police identified suspects through payment data after seizing the server. Despite cryptocurrencies offering a veneer of anonymity, cops were apparently able to use sophisticated methods to trace transactions to bank details. And in some cases cops defeated user attempts to hide their identities -- such as a man who made payments using his mother's name in Spain, a local news outlet, Todo Alicante, reported. It likely helped that most suspects were already known offenders, Europol noted. Arrests spanned the globe, including 16 in Spain, where one computer scientist was found with an "abundant" amount of CSAM and payment receipts, Todo Alicante reported. Police also arrested a "serial" child abuser in the US, CBS News reported.

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Online scam operations across Southeast Asia are rapidly adapting to recent crackdowns, adopting AI and expanding globally despite the release of 7,000 trafficking victims from compounds along the Myanmar-Thailand border, experts say. These releases represent just a fraction of an estimated 100,000 people trapped in facilities run by criminal syndicates that rake in billions through investment schemes and romance scams targeting victims worldwide, CNN reports. "Billions of dollars are being invested in these kinds of businesses," said Kannavee Suebsang, a Thai lawmaker leading efforts to free those held in scam centers. "They will not stop." Crime groups are exploiting AI to write scamming scripts and using deepfakes to create personas, while networks have expanded to Africa, South Asia, and the Pacific region, according to the United Nations Office of Drugs and Crime. "This is a situation the region has never faced before," said John Wojcik, a UN organized crime analyst. "The evolving situation is trending towards something far more dangerous than scams alone."

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An anonymous reader quotes a report from The Guardian: Trevor Milton, the founder of electric vehicle start-up Nikola who was sentenced to prison last year, was pardoned by Donald Trump late on Thursday, the White House confirmed on Friday. The pardon of Milton, who was sentenced to four years in prison for exaggerating the potential of his technology, could wipe out hundreds of millions of dollars in restitution that prosecutors were seeking for defrauded investors. Milton and his wife donated more than $1.8 million to a Trump re-election campaign fund less than a month before the November election, according to the Federal Election Commission. At Milton's trial, prosecutors say a company video of a prototype truck appearing to be driven down a desert highway was actually a video of a non-functioning Nikola that had been rolled down a hill. Milton had not been incarcerated pending an appeal. Milton said late on Thursday on social media and via a press release that he had been pardoned by Trump. "I am incredibly grateful to President Trump for his courage in standing up for what is right and for granting me this sacred pardon of innocence," Milton said. Here's a timeline of notable events surrounding Nikola: June, 2016: Nikola Motor Receives Over 7,000 Preorders Worth Over $2.3 Billion For Its Electric Truck December, 2016: Nikola Motor Company Reveals Hydrogen Fuel Cell Truck With Range of 1,200 Miles February, 2020: Nikola Motors Unveils Hybrid Fuel-Cell Concept Truck With 600-Mile Range June, 2020: Nikola Founder Exaggerated the Capability of His Debut Truck September, 2020: Nikola Motors Accused of Massive Fraud, Ocean of Lies September, 2020: Nikola Admits Prototype Was Rolling Downhill In Promo Video September, 2020: Nikola Founder Trevor Milton Steps Down as Chairman in Battle With Short Seller October, 2020: Nikola Stock Falls 14 Percent After CEO Downplays Badger Truck Plans November, 2020: Nikola Stock Plunges As Company Cancels Badger Pickup Truck July, 2021: Nikola Founder Trevor Milton Indicted on Three Counts of Fraud December, 2021: EV Startup Nikola Agrees To $125 Million Settlement September, 2022: Nikola Founder Lied To Investors About Tech, Prosecutor Says in Fraud Trial December, 2023: Nikola Founder Trevor Milton Sentenced To 4 Years For Securities Fraud February 19, 2025: Nikola Files for Bankruptcy With Plans To Sell Assets, Wind Down

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Federal authorities have broken up an international crime ring that stole thousands of iPhones from porches nationwide [non-paywalled link], arresting 13 people last month after a sophisticated operation that combined high-tech tools with old-fashioned bribery. The thieves created software to scrape FedEx tracking numbers and paid AT&T store employees to provide customer order details and delivery addresses, according to WSJ, which cites prosecutors. Armed with this information, runners intercepted packages at doorsteps moments after delivery. Demetrio Reyes Martinez, known online as "CookieNerd," developed code that circumvented FedEx limits on delivery-data requests, while AT&T employee Alejandro Then Castillo used his credentials to track hundreds of shipments and reportedly received up to $2,500 for recruiting other employees. Stolen devices were funneled through Wyckoff Wireless in Brooklyn, a store owned by Joel Suriel, who was already on supervised release from a previous wire-fraud conviction. The merchandise was then shipped overseas for sale and activation.

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A ransomware-as-a-service variant called "Medusa" has claimed over 300 victims in "critical infrastructure sectors" (including medical), according to an joint alert from CISA, the FBI, and the Multi-State Information Sharing Analysis Center. And that alert reminds us that Medusa is a globe-spanning operation that recruits third-party affiliates to plant ransomware and negotiate with victims, notes the Register. "Even organizations that have good ransomware recovery regimes, meaning they don't need to unscramble encrypted data as they have good backups and fall-back plans, may consider paying to prevent the release of their stolen data, given the unpleasant consequences that follow information leaks. Medusa actors also set a deadline for victims to pay ransoms and provide a countdown timer that makes it plain when stolen info will be sprayed across the internet. If victims cough up $10,000 in cryptocurrency, the crims push the deadline forward by 24 hours. The advisory reveals one Medusa actor has taken things a step further. "FBI investigations identified that after paying the ransom, one victim was contacted by a separate Medusa actor who claimed the negotiator had stolen the ransom amount already paid," the advisory states. That separate actor then "requested half of the payment be made again to provide the 'true decryptor'," the advisory states, describing this incident as "potentially indicating a triple extortion scheme." The security groups' advisory stresses that they "do not encourage paying ransoms as payment does not guarantee victim files will be recovered. Furthermore, payment may also embolden adversaries to target additional organizations..." (But "Regardless of whether you or your organization have decided to pay the ransom, FBI, CISA, and MS-ISAC urge you to promptly report ransomware incidents...) Besides updating software and operating systems, the alert makes these recommendations for organizations: Require VPNs (or jump hosts) for remote network access Block remote access from unknown/untrusted origins, and disable unused ports Segment networks to help prevent the spread of ransomware Use a networking monitoring tool to spot and investigate abnormal activity — including lateral movement (using endpoint detection and response tools). Log all network traffic, and monitor it for unauthorized scanning and access attempts. Create recovery plans with encrypted offline backups of sensitive/proprietary data and servers Require multifactor authentication, use strong (and long) passwords, and "consider not requiring frequently recurring password changes, as these can weaken security." (Also audit access control following the principle of least privilege, and watch for new and/or unrecognized accounts.) Disable command-line and scripting activities and permissions.

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August, 2023: Thousands of Crypto Scammers are Enslaved by Human-Trafficking Gangsters, Says Bloomberg Reporter. ("They'd lure young people from across Southeast Asia...with the promise of well-paying jobs in customer service or online gambling.") February, 2025: A coordinated response begins by Thai, Chinese and Myanmar authorities, which includes cutting power, internet, and fuel supplies to the scam centers. Today: The Associated Press reports that thousands of the people liberated from locked compounds in Myanmar now "have found themselves trapped once again, this time in overcrowded facilities with no medical care, limited food and no idea when they'll be sent home." Thousands of sick, exhausted and terrified young men and women, from countries all over the world squat in rows, packed shoulder to shoulder, surgical masks covering their mouths and eyes. Their nightmare was supposed to be over... The armed groups who are holding the survivors, as well as Thai officials across the border, say they are awaiting action from the detainees' home governments. It's one of the largest potential rescues of forced laborers in modern history, but advocates say the first major effort to crack down on the cyber scam industry has turned into a growing humanitarian crisis... An unconfirmed list provided by authorities in Myanmar says they're holding citizens from 29 countries including Philippines, Kenya and the Czech Republic. Authorities in Thailand say they cannot allow foreigners to cross the border from Myanmar unless they can be sent home immediately, leaving many to wait for help from embassies that has been long in coming. China sent a chartered flight Thursday to the tiny Mae Sot airport to pick up a group of its citizens, but few other governments have matched that. There are roughly 130 Ethiopians waiting in a Thai military base, stuck for want of a $600 plane ticket. Dozens of Indonesians were bused out one morning last week, pushing suitcases and carrying plastic bags with their meager possessions as they headed to Bangkok for a flight home... The recent abrupt halt to U.S. foreign aid funding has made it even harder to get help to released scam center workers... It's not clear how much of an effect these releases will have on the criminal groups that run the scam centers. February marked the third time the Thais have cut internet or electricity to towns across the river. Each time, the compounds have managed to work around the cuts. Large compounds have access to diesel-powered generators, as well as access to internet provider Starlink, experts working with law enforcement say. The article also points out that "The people released are just a small fraction of what could be 300,000 people working in similar scam operations across the region, according to an estimate from the United States Institute of Peace. Human rights groups and analysts add that the networks that run these illegal scams will continue to operate unless much broader action is taken against them..." "The United Nations Office on Drugs and Crimes estimates that between $18 billion and $37 billion was lost in Asia alone in 2023, with minimal government action against the criminal industry's spread."

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Sam Bankman-Fried — one of the largest donors to the Democratic Party — "was convicted of fraud, sentenced to 25 years in prison and mostly went silent," reports the Wall Street Journal. "Until recently..." Now, from behind bars at the Metropolitan Detention Center in Brooklyn, Bankman-Fried is orchestrating an extraordinary public-relations blitz that looks very much like a campaign to make the most audacious trade of his career: support for President Trump's agenda in return for a presidential pardon... There is little downside to Bankman-Fried's long-shot effort to secure a pardon. As the appeal that he filed last year works its way through the courts, Bankman-Fried, 33, is staring down a prison sentence that could extend until his 50s... The crowning touch of his campaign came on Thursday, when Bankman-Fried gave a jailhouse interview to "The Tucker Carlson Show," which was released on social-media channels including X and YouTube. Appearing on video in a brown jumpsuit, he criticized Washington bureaucrats and crypto regulators — and suggested that he went to prison out of political retribution... [Carlson's title for the interview? "Sam Bankman-Fried on Life in Prison With Diddy, and How Democrats Stole His Money and Betrayed Him."] The interview hadn't been approved by the Federal Bureau of Prisons, according to a person familiar with the matter. Bankman-Fried spoke with Carlson through a link that is typically used by inmates to communicate with their lawyers, the person said. After the interview, Bankman-Fried was placed in solitary confinement, but he was out by Friday afternoon, according to a person familiar with the matter... Bankman-Fried is trying to highlight in media appearances and in any interaction with Trump's team that FTX customers are set to be made whole with interest through the bankruptcy proceedings — at least in dollar terms. Many of those creditors remain furious that they missed out on bitcoin's rally since November 2022. Bankman-Fried "wants to set the record straight on his political beliefs, which he believes have been misconstrued," according to the article. "While he has given heavily to Democrats, he has also donated to Republican causes, including the contribution of millions to a group supporting Senator Mitch McConnell." But the New York Times, citing "people with knowledge" of his pardon-seeking efforts, reported that "So far, the push does not appear to have gained traction."

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An anonymous reader quotes a report from the New York Times: As investigators struggled for weeks to find who might have committed the brutal stabbings of four University of Idaho students in the fall of 2022, they were focused on a key piece of evidence: DNA on a knife sheath that was found at the scene of the crime. At first they tried checking the DNA with law enforcement databases, but that did not provide a hit. They turned next to the more expansive DNA profiles available in some consumer databases in which users had consented to law enforcement possibly using their information, but that also did not lead to answers. F.B.I. investigators then went a step further, according to newly released testimony, comparing the DNA profile from the knife sheath with two databases that law enforcement officials are not supposed to tap: GEDmatch and MyHeritage. It was a decision that appears to have violated key parameters of a Justice Department policy that calls for investigators to operate only in DNA databases "that provide explicit notice to their service users and the public that law enforcement may use their service sites." It also seems to have produced results: Days after the F.B.I.'s investigative genetic genealogy team began working with the DNA profiles, it landed on someone who had not been on anyone's radar:Bryan Kohberger, a Ph.D. student in criminology who has now been charged with the murders. The case has shown both the promise and the unregulated power of genetic technology in an era in which millions of people willingly contribute their DNA profiles to recreational databases, often to hunt for relatives. In the past, law enforcement officials would need to find a direct match between DNA at the crime scene and that of a specific suspect. Now, investigators can use consumer DNA data to build family trees that can zero in on a person of interest -- within certain policy limits.

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Luigi Mangione faces first-degree murder charges. On Valentine's Day he posted his first public comments online, reports People magazine, with Mangione saying he's grateful for the support he's receiving: Earlier this week, Mangione accepted $297,000 in donations to cover his legal bills from the December 4 Legal Committee, which is stewarding a fundraiser on GiveSendGo for his legal defense, according to a post shared by the group. (A source with knowledge of the situation confirmed to PEOPLE that the post was genuine.) The committee — named after the death date of Thompson — said the donations were offered by over 10,000 individual supporters. Mangione's lead attorney, Karen Friedman Agnifilo, told the committee that Mangione "very much appreciates the outpouring of support...." His federal murder charges could land him the death penalty, and he also faces state murder charges that accuse him of committing an act of terrorism.

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The U.S. released Russian cybercriminal Alexander Vinnik, who pleaded guilty to conspiracy to commit money laundering through his cryptocurrency exchange BTC-e, as part of a prisoner swap that freed American schoolteacher Marc Fogel from Russian custody. The Guardian reports: Vinnik, who arrived in Moscow on a flight from Turkey on Tuesday after having been released from custody in California, is accused of owning and operating one of the largest cryptocurrency exchanges in the world, BTC-e, which prosecutors allege facilitated the transfer of billions of dollars in transactions for criminals worldwide. In May 2024, Vinnik pleaded guilty to conspiracy to launder billions of dollars through BTC-e. He was first arrested in Greece in 2017 at the request of the United States after he was charged by a US jury in a 21-count indictment. The charges against him included money laundering, conspiracy to commit money laundering, operating an unlicensed money service business and engaging in unlawful monetary transactions, among others. Vinnik was first extradited to France from Greece, where he received a five-year prison sentence for money laundering. He was then sent back to Greece and extradited to the United States in 2022 to face US charges. The justice department described BTC-e, which was active from around 2011 to 2017, as a "significant cybercrime and online money laundering entity that allowed its users to trade in bitcoin with high levels of anonymity and developed a customer base heavily reliant on criminal activity." Prosecutors say that BTC-e processed over $9 bn worth of transactions and served over 1 million users globally, including numerous customers in the US. US prosecutors said that the exchange was one of the "primary ways by which cyber criminals around the world transferred, laundered, and stored the criminal proceeds of their illegal activities" and accused Vinnik of operating the company with the intent to "promote" unlawful activities. Prosecutors said that he was responsible for more than $120m in losses. Vinnik, who is a nonviolent offender, is forfeiting tens of millions of dollars in assets in the exchange, according to the New York Times.

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Convicted Theranos founder, Elizabeth Holmes, had her first interview since being reported to prison in 2023, telling People magazine that she is still working on "research and inventions" in the healthcare space. Here's an excerpt from the article: Scheduled for release on April 3, 2032, Holmes says she hopes to travel with her family and to fight for reform of criminal justice system. She recently drafted an American Freedom Act bill -- a seven-page handwritten document -- to bolster the presumption of innocence and change criminal procedure. "This will be my life's work," says Holmes, adding that she is speaking out now as part of her mission to advocate on behalf of incarcerated persons and those ripped away from their children. And, despite her global reputation as a biotech con artist who put lives at risk, she says she's continuing to write patents for new inventions and plans to resume her career in healthcare technology after her release. "There is not a day I have not continued to work on my research and inventions," she says. "I remain completely committed to my dream of making affordable healthcare solutions available to everyone." For now, however, she is sustained by weekend visits from her family, when she can cuddle Invicta, watch William gather acorns in the prison yard and hold Evans's hand and briefly hug and kiss. (Conjugal visits are not allowed.) "It kills me to put my family through pain the way I do," she says. "But when I look back on my life, and these angels that have come into it, I can get through anything. It makes me want to fight for all of it."

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Alan W. Filion, an 18-year-old from Lancaster, Calif., was sentenced to four years in prison for making nearly 400 false bomb threats and threats of violence (source may be paywalled; alternative source) to religious institutions, schools, universities and homes across the country. The New York Times reports: The threatening calls Mr. Filion made would often cause large deployments of police officers to a targeted location, the Justice Department said in a news release. In some cases, officers would enter people's homes with their weapons drawn and detain those inside. In January 2023, Mr. Filion wrote on social media that his swats had often led the police to "drag the victim and their families out of the house cuff them and search the house for dead bodies." Investigators linked Mr. Filion to over 375 swatting calls made in several states, including one that he made to the police in Sanford, Fla., saying that he would commit a mass shooting at the Masjid Al Hayy Mosque. During the call, he played audio of gunfire in the background. Mr. Filion was arrested in California in January 2024, and was then extradited to Florida to face state charges for making that threat. Mr. Filion began swatting for recreation in August 2022 before making it into a business, the Justice Department said. The teenager became a "serial swatter" and would make social media posts about his "swatting-for-a-fee" services, according to prosecutors. In addition to pleading guilty to the false threat against the mosque in Florida, Mr. Filion pleaded guilty in three other swatting cases: a mass shooting threat to a public school in Washington State in October 2022; a bomb threat call to a historically Black college or university in Florida in May 2023; and a July 2023 call in which he claimed to be a federal law enforcement officer in Texas and told dispatchers that he had killed his mother and would kill any responding officers.

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The tech startup "purported to make smart home and business products," writes America's Justice Department — products that were "meant to stop package theft, prevent weather damage to packages, and make it easier for emergency responders and delivery services to find homes and businesses." Royce Newcomb "developed prototypes of his products and received local and national media attention for them. For example, Time Magazine included his eLiT Address Box & Security System, which used mobile networks to pinpoint home and business locations, on its Best Inventions of 2021 list." But then he told investors he'd also received a grant by the National Science Foundation — one of "several false representations to his investors to deceive and cheat them out of their money... Newcomb used the money to pay for gambling, a Mercedes and Jaguar, and a mansion." He also used the money to pay for refunds to other investors who wanted out, and to pay for new, unrelated projects without the investors' authorization. During this period, Newcomb also received a fraudulent COVID-19 loan for more than $70,000 from the Small Business Administration and fraudulent loans for more than $190,000 from private lenders. He lied about Strategic Innovations having hundreds of thousands and even millions in revenue to get these loans. Newcomb was previously convicted federally in 2011 for running a real estate fraud scheme in Sacramento. He was sentenced to more than five years in prison for that offense, and he was on federal supervised release for that offense when he committed the offenses charged in this case... Newcomb faces maximum statutory penalties of 20 years in prison and a $250,000 fine for the wire fraud charge, and 10 years in prison and a $250,000 fine for the money laundering charge... This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. SFGate writes that "Despite receiving significant funding, his startup, Strategic Innovations, never made a dime or released any products to market, according to legal documents." The owner of a California tech startup has pleaded guilty to stealing over $4 million from investors, private lenders and the U.S. government in order to live a luxurious lifestyle, the United States Attorney's Office announced Monday... When investors asked about product delays and when they'd be paid back, Newcomb made excuses and provided conflicting info, telling them that there were supply chain issues or software problems, according to the indictment. In reality, federal prosecutors said, he was using the money to travel and continue to make these lavish personal expenses.

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Senator Josh Hawley has introduced a bill that would criminalize the import, export, and collaboration on AI technology with China. What this means is that "someone who knowingly downloads a Chinese developed AI model like the now immensely popular DeepSeek could face up to 20 years in jail, a million dollar fine, or both, should such a law pass," reports 404 Media. From the report: Hawley introduced the legislation, titled the Decoupling America's Artificial Intelligence Capabilities from China Act, on Wednesday of last year. "Every dollar and gig of data that flows into Chinese AI are dollars and data that will ultimately be used against the United States," Senator Hawley said in a statement. "America cannot afford to empower our greatest adversary at the expense of our own strength. Ensuring American economic superiority means cutting China off from American ingenuity and halting the subsidization of CCP innovation." Hawley's statement explicitly says that he introduced the legislation because of the release of DeepSeek, an advanced AI model that's competitive with its American counterparts, and which its developers claimed was made for a fraction of the cost and without access to as many and as advanced of chips, though these claims are unverified. Hawley's statement called DeepSeek "a data-harvesting, low-cost AI model that sparked international concern and sent American technology stocks plummeting." Hawley's statement says the goal of the bill is to "prohibit the import from or export to China of artificial intelligence technology, "prohibit American companies from conducting AI research in China or in cooperation with Chinese companies," and "Prohibit U.S. companies from investing money in Chinese AI development."

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