CEO sold worthless crypto tokens and used proceeds for Hawaii condo, DOJ says

Man pleads guilty, DOJ said his crypto token “did not have any functionality.”

Illustration of cryptocurrency coins falling down, and a graph showing a declining value.

Enlarge (credit: Getty Images | Namthip Muanthongthae)

The CEO of a purported cryptocurrency investment company pleaded guilty for his role in a crypto fraud scheme that raised $21 million from investors, the Department of Justice said.

Michael Alan Stollery (aka "Michael Stollaire"), 54, was CEO and founder of the California-based Titanium Blockchain Infrastructure Services (TBIS). He pleaded guilty Friday to one count of securities fraud in US District Court for the Central District of California and faces up to 20 years in prison at his scheduled sentencing in November, according to a Department of Justice announcement Monday.

Stollery launched his fraudulent crypto offering in January 2018, according to the DOJ. The Securities and Exchange Commission previously sued Stollery and his company, and won a judgment that will return at least some of the money to defrauded investors.

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Hulu’s “unwritten policy” on political censorship sparks backlash

Democrats call on Hulu to stop blocking political ads ahead of midterm election.

Hulu’s “unwritten policy” on political censorship sparks backlash

Enlarge (credit: SOPA Images / Contributor | LightRocket)

Last year, Hulu raised its ad-supported subscriptions by a dollar, shortly after prompting subscribers to submit more feedback on ads. Since 2017, vocal members in the Hulu community have complained about seeing the same political ads “1,000 times,” with some claiming they were repeatedly served ads from Republicans that spread misinformation. After President Biden was elected in 2020, others complained about “Democratic propaganda.” Many suggested Hulu wasn’t the place for political ads, with one post pitching a new Hulu policy of “no political ads” getting more than 2,000 votes.

At least one subscriber in the forum claimed that regardless of content, Hulu was financially motivated to sell political ads, but this week Hulu has taken actions that seemingly respond to subscribers' longtime complaints—by blocking more political ads. Democrats have claimed that Hulu blocked political ads discussing key party issues like abortion rights, gun control, and climate change, sparking an entirely different backlash and a Twitter rally cry to #BoycottHulu.

“Hulu’s censorship of the truth is outrageous, offensive, and another step down a dangerous path for our country,” executive directors of the Democratic Senatorial Campaign Committee, Democratic Congressional Campaign Committee, and Democratic Governors Association told The Washington Post in a statement. “Voters have the right to know the facts about MAGA Republicans’ agenda on issues like abortion—and Hulu is doing a huge disservice to the American people by blocking voters from learning the truth about the GOP record or denying these issues from even being discussed.”

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HeHeStreams: Pirate IPTV Owner Admits Cybercrime, Forfeits $500K

The former operator of pirate IPTV service HeHeStreams has reached a plea agreement with the US government. After being indicted on several counts carrying sentences of up to 20 years each, Joshua Streit has admitted to a single cybercrime offense. In addition to a potential prison sentence, Streit will now forfeit $500K.

From: TF, for the latest news on copyright battles, piracy and more.

hackerThere are many options for those seeking a cheap pirate IPTV package but it’s rare for any single provider to offer consistently solid streams, in decent quality, and at a fair price. HeHeStreams was one of the few to exceed expectations.

With a focus on MLB, NBA, NFL, and NHL content, HeHeStreams built an enthusiastic customer base so when it disappeared last year following an investigation by the Alliance for Creativity (ACE) and Motion Picture Association (MPA), obvious replacements were in short supply.

The same couldn’t be said about the controversy that was about to engulf HeHeStream’s owner.

HeHeStreams Settled With Hollywood, But Not the US Govt.

Under pressure from the ACE anti-piracy coalition, HeHe’s owner Joshua Streit (aka Josh Brody) accepted an offer to settle his case and move on. That involved giving up his domain names to the MPA and shutting down his site. No cash settlement was mentioned publicly but it’s likely that ACE members received financial compensation.

In theory that should’ve ended Streit’s legal problems but that wasn’t how things panned out. More serious problems lay ahead and were directly connected to Streit’s skills and HeHe’s unique mode of operation.

Traditional IPTV suppliers provide access to pirate streams by rebroadcasting captured content from their own servers. It’s bandwidth-intensive, expensive, and prone to issues. HeHeStreams eliminated most of these additional costs by using techniques to connect customers to genuine streams, offered by the sports broadcasters themselves, directly from their own servers.

The upsides could be found in rock-solid streams, low server costs, and many happy customers. The downsides proved more complicated for Streit.

A Criminal Investigation Was Already Underway

There are two angles on what happened next, depending on the mood, tone and lighting. Ultimately, only one mattered.

According to the US government, Streit emailed an MLB (Major League Baseball) employee in March 2021 to explain that he’d previously disclosed a network vulnerability in their systems (i.e a way to get streaming content without paying for it) and was disappointed by the lack of gratitude.

The US government says that in a follow-up email, Streit complained to MLB that other vulnerabilities he’d disclosed hadn’t been given proper attention either. An MLB executive eventually telephoned Streit and informed him that the company operated no ‘bug bounty’ style programs.

According to the US government, Streit then indicated that financial compensation for his security work would be appropriate under the circumstances.

streit-bug bounty

Placed in a deliberately more favorable light for a moment, Streit’s approach to MLB could’ve been seen as an opportunity to stop operations like his from accessing MLB content from company servers. With the benefit of the doubt and weighed against much bigger savings, $150,000 might even sound like a good security consultancy opportunity.

In the cold light of day, Streit’s comment about being chased down on the basis of his “unauthorized access to systems” was to prove prophetic. Both MLB and the FBI framed Streit’s conduct as extortion.

US Government Indicts Joshua Streit

In October 21, the Department of Justice announced that Streit had been charged with several crimes, including one under a new law designed to reduce illegal streaming. The 30-year-old from Minnesota was charged as follows:

One count of knowingly accessing a protected computer in furtherance of a criminal act and for purposes of commercial advantage and private financial gain (max five years in prison). One count of knowingly accessing a protected computer in furtherance of fraud (max five years in prison), one count of wire fraud (20 years), and one count of sending interstate threats with the intent to extort (20 years).

A final count of illicit digital transmission, carrying a potential five-year sentence, was added for good measure. The details of that count weren’t made public but could’ve been a reference to the Protecting Lawful Streaming Act (PLSA) signed into law late 2020.

With such a lot on the line, Streit entered into negotiations with the government. The ins and outs of those talks aren’t for public consumption but we can reveal that a deal has been reached. It’s hard to imagine Streit being pleased with the outcome but when stuck between a rock and a hard place, something had to give.

Streit Enters Guilty Plea on a Single Count

Around June 13, 2022, Streit pleaded guilty to one count of ‘Computer Fraud – Unauthorized Access to Obtain Information From a Protected Computer’.

According to the charge, from around July 2017 to around July 2021, Streit intentionally accessed and attempted to access computers without authorization. As a result, he obtained information from protected computers, for the purposes of commercial advantage and private financial gain.

Specifically, Streit obtained unauthorized access to the online accounts of users of a website belonging to Major League Baseball and used that access to “conduct illegal streaming of sporting events” that he sold to others for a profit.

In advance of his sentencing on that single count, the matter of forfeiture has been settled.

$500,000 to Be Forfeited to the United States

In a consent preliminary order of forfeiture submitted to a New York district court, the single count against Streit is repeated alongside details of forfeiture pursuant to 18 U.S. Code § 1030(i).

The forfeiture relates to “any and all property, real or personal, constituting or derived from, any proceeds that such person obtained, directly or indirectly, as a result of the offense,” plus “any and all personal property that was used or intended to be used to commit or to facilitate the commission of the offense.”

According to the plea agreement reached with the US government, Streit will forfeit $500,000, an amount said to represent “the amount of proceeds traceable to the commission of the offense.”

streit-500k

Streit will also forfeit a small mountain of computer and electronics hardware seized from him in October 2021. The haul includes six Apple MacBook Pro devices, several Apple, Google, and Samsung-branded smartphones, tablets, hard drives, and other assorted storage media.

Potentially Lengthy Prison Sentence Ahead

The specific charge Streit faces relates to an offense under 18 U.S. Code § 1030 (Fraud and related activity in connection with computers) where information valued at more than $5,000 was obtained.

At least potentially he could face up to five years in prison. If he’d previously been convicted of a crime under § 1030, the sentence could reach ten years but we understand that’s not the case here.

Documents related to the charge and forfeiture can be found here (1,2, pdf)

From: TF, for the latest news on copyright battles, piracy and more.

Daily Deals (7-26-2022)

The HP Pavilion Aero 13 is a laptop that packs a lot of bang for the buck… and as I discovered when reviewing the notebook last year, it does it while also bucking the trend of Pavilion-branded laptops feeling cheap compared with HP’s Envy…

The HP Pavilion Aero 13 is a laptop that packs a lot of bang for the buck… and as I discovered when reviewing the notebook last year, it does it while also bucking the trend of Pavilion-branded laptops feeling cheap compared with HP’s Envy and Spectre lineups. The laptop has a list price of $750, […]

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Pixel 6a teardown shows off bendy, plastic back, soldered-in USB-C port

One improvement over the bigger model: The battery comes out via pull tab.

The Pixel 6a back is very flexible.

Enlarge / The Pixel 6a back is very flexible. (credit: PBK Review)

What's in the Pixel 6a? PBK Reviews has gotten ahold of the device and ripped it apart. It features fairly basic innards for a fairly basic phone.

The screen is glued on and has plastic reinforcement clips. Once that's heated up and pried off, you'll be greeted with a large graphite heat sink. Like the bigger Pixel 6s, the motherboard has the USB-C port soldered onto it, which will make repairs on the port more difficult than a plug-in solution.

The back is plastic and comes off just like the front, with some glue and plastic clips to defeat. Once you pry the back off the frame, it's super bendy. There's also a suspiciously large cutout in the Pixel 6a frame that PBK Reviews says was at one point meant for wireless charging, but the phone never shipped with that feature.

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How big is the risk that someone will hack an EV charging network?

EV chargers are on the spectrum of the Internet of Things, and that means risk.

There are many good reasons why an EV charger should be networked, but it does come with vulnerabilities.

Enlarge / There are many good reasons why an EV charger should be networked, but it does come with vulnerabilities. (credit: Aurich Lawson | Getty Images)

The Infrastructure Investment and Jobs Act, as passed by Congress last November, authorizes $7.5 billion to help meet US President Joe Biden's goal of installing 500,000 stations by 2030. Biden aims to have EVs represent half of all new vehicles being sold in the US by 2030. But as the number of stations increases, the number of vulnerabilities does as well.

For the past several years, hackers have been busy aiming their attacks at electrical system vulnerabilities. In the case of charging stations, some of these soft spots are located inside the stations; some are located inside the equipment that controls connections between the grid and the station; and still, others are inside assets that sit on the grid side of the relationship, and these are mostly owned by utilities. Europe-based wind power companies (Deutsche Windtechnik AG, Enercon GmbH, and Nordex SE) have suffered attacks focused on stopping the flow of electrons, identity theft attacks, and stolen payments. In most cases, the results can be service disruptions affecting customers and revenue reductions for the providers of electrons and/or asset owners.

Hackers perpetually seek out ways to use any and all system vulnerabilities to their maximum advantage. This is a problem for the consumer, just as it is for commercial enterprises. Added to the stresses created by several types of hacker disruptions—physical destruction; electronic jamming; creating a "Denial of Service"—are concerns about weak control systems. From his perch at PlugInAmerica.org, Ron Freund worries that the existing supervisory control and data acquisition hardware is primate.

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Meta Quest 2 VR headset price jumps $100 to $399, gets zero new features

Bucks usual trend of 2-year-old hardware dropping in price, blames “rising costs.”

This week for Meta and its Quest 2 VR system, it's all about the Benjamins. One Benjamin more, to be specific.

Enlarge / This week for Meta and its Quest 2 VR system, it's all about the Benjamins. One Benjamin more, to be specific. (credit: Aurich Lawson | Getty Images | Meta)

Many categories in consumer tech have seen substantial jumps in cost over the past two years due to a strained supply chain, chip shortages, and other economic factors. But honestly, we didn't see this one coming.

Starting "in August," the Meta Quest 2 virtual reality system (formerly known as Oculus Quest 2) will receive a substantial change in MSRP, jumping from a base model cost of $299 to $399. That version includes 128GB of onboard storage, while the pricier Quest 2 headset with 256GB will jump from $399 to $499.

A $30 game for $100, then

Meta's Tuesday announcement struggles to clarify exactly why the hardware is jumping $100 across the board (33 percent for the base model, 25 percent for the higher-capacity version). Should you take the announcement at face value, its flat declaration might sound logical: "The costs to make and ship our products have been on the rise."

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F(x)tec Pro1-X smartphone with a physical keyboard begins shipping (a few years late)

The F(x)tec Pro1-X is a smartphone with mid-range specs that manages to stand out in a market that’s probably oversaturated thanks to a few distinctive features. It’s one of the only modern smartphones with a slide-out keyboard for thumb t…

The F(x)tec Pro1-X is a smartphone with mid-range specs that manages to stand out in a market that’s probably oversaturated thanks to a few distinctive features. It’s one of the only modern smartphones with a slide-out keyboard for thumb typing on physical keys. And it’s designed to support multiple operating systems including Android 11, Ubuntu […]

The post F(x)tec Pro1-X smartphone with a physical keyboard begins shipping (a few years late) appeared first on Liliputing.

2022 Audi Q4 e-tron: The electric crossover has been worth the wait

It’s Audi’s first luxury take on the MEB electric vehicle platform.

A white Audi Q4 e-tron Sportback

Enlarge / The Audi Q4 e-tron is available in two body styles—this is the Sportback variant. (credit: Audi)

LOS ANGELES, CALIF.—When Dieselgate made headlines in 2014, it fundamentally changed how Volkswagen Group and its associated sub-brands, from Volkswagen to Lamborghini, had to think about cars. Diesel got a big black mark, and electric vehicles got a much-needed bump in the race for a more sustainable way to meet the ever-growing demand for personal transportation.

The scandal accelerated Volkswagen’s push to go completely electric by 2033 and encouraged investment in a US network of EV chargers (which still leave a lot to be desired), but the rollout of the EVs themselves has been slow, to say the least.

Audi, one of the VW Group’s luxury automakers, has been slowly rolling out a suite of new EVs that began with the e-tron SUV, the e-tron Sportback, and the e-tron GT sport tourer and most recently includes the Q4 e-tron in both typical crossover and Sportback form. The Q4 e-tron was announced in February of 2021 and was originally slated to make its stateside debut in mid- to late-2021.

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