Caroline Ellison gets 2 years for covering up Sam Bankman-Fried’s FTX fraud

Caroline Ellison “deeply regrets” FTX lies, must now forfeit $11 billion.

Caroline Ellison, former chief executive officer of Alameda Research LLC, was sentenced Tuesday for helping Sam Bankman-Fried cover up FTX's fraudulent misuse of customer funds.

Enlarge / Caroline Ellison, former chief executive officer of Alameda Research LLC, was sentenced Tuesday for helping Sam Bankman-Fried cover up FTX's fraudulent misuse of customer funds. (credit: Bloomberg / Contributor | Bloomberg)

Caroline Ellison was sentenced Tuesday to 24 months for her role in covering up Sam Bankman-Fried's rampant fraud at FTX—which caused billions in customer losses.

Addressing the judge at sentencing, Ellison started out by explaining "how sorry I am" for concealing FTX's lies, Bloomberg reported live from the hearing.

"I participated in a criminal conspiracy that ultimately stole billions of dollars from people who entrusted their money with us," Ellison reportedly said while sniffling. "The human brain is truly bad at understanding big numbers," she added, and "not a day goes by" that she doesn't "think about all of the people I hurt.”

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“Anne Frank” Copyright Dispute Triggers VPN and Geoblocking Questions at EU’s Highest Court

The Dutch Supreme Court has requested guidance from the EU’s top court on geo-blocking, VPNs, and copyright in a case involving the online publication of Anne Frank’s manuscripts. The CJEU’s response has the potential to reshape the online content distribution landscape, impacting streaming platforms and other services that rely on geo-blocking. VPNs services will monitor the matter with great interest too.

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

anne frankThe Diary of Anne Frank is one of the best known literary works in history, written by a young girl hiding from the Nazis in Amsterdam during World War II.

Anne Frank died in 1945, but her legacy lives on though her words, which are a powerful testament to the resilience of the human spirit and a reminder of the horrors of the Holocaust.

Anne never saw her diary in printed form, as the first copies were published by her father Otto Frank in 1947. Since then, it’s been translated into more than 70 languages, selling more than 30 million copies around the world.

In 1963, Otto Frank established the “Anne Frank Fonds” in Switzerland and appointed it as his sole heir. This organization now owns the copyrights, over which it works hard to maintain control. According to the organization, the original print versions will remain protected for many decades.

The Anne Frank Copyright Battle

While early versions are presumably in the public domain in several countries, the original manuscripts are protected by copyright in the Netherlands until 2037. As a result, the copies published by the Dutch Anne Frank Stichting, are blocked for Dutch visitors.

“The scholarly edition of the Anne Frank manuscripts cannot be made available in all countries, due to copyright considerations,” is the message disallowed visitors get to see.

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This blocking effort is the result of a copyright battle. Ideally, Anne Frank Stichting would like to make the manuscripts available worldwide, but the Swiss ‘Fonds’ has not given permission for it to do so. And since some parts of the manuscript were first published in 1986, Dutch copyrights are still valid.

In theory, geo-blocking efforts could alleviate the copyright concerns but, for the Fonds, these measures are not sufficient. After pointing out that people can bypass the blocking efforts with a VPN, it took the matter to court.

Does Geo-blocking Protect Copyrights?

Around the world, publishers and streaming services use geo-blocking as the standard measure to enforce geographical licenses. This applies to the Anne Frank Stichting, as well as Netflix, BBC iPlayer, news sites, and gaming platforms.

The Anne Frank Fonds doesn’t dispute this, but argued in court that people can circumvent these restrictions with a VPN, suggesting that the manuscripts shouldn’t be published online at all.

The lower court dismissed this argument, stating the defendants had taken reasonable measures to prevent access from the Netherlands. The Fonds appealed, but the appeal was also dismissed, and the case is now before the Dutch Supreme Court.

The Fonds argues that the manuscript website is (in part) directed at a Dutch audience. Therefore, the defendants are making the manuscripts available in the Netherlands, regardless of the use of any blocking measures.

The defendants, in turn, argue that the use of state-of-the-art geo-blocking, along with additional measures like a user declaration, is sufficient to prevent a communication to the public in the Netherlands.

The defense relied on the opinion in the GO4YU case, which suggests that circumventing geo-blocking with a VPN does not constitute a communication to the public in the blocked territory, unless the blocking is intentionally ineffective.

VPN and Geo-Blocking Questions for EU Court

Before the Dutch Supreme Court goes ahead with the case, it has referred three key questions to the Court of Justice of the European Union (CJEU). It seeks clarification on how to interpret blocking and VPN use, in the context of Article 3(1) of the Copyright Directive.

Firstly, the Dutch Supreme Court asks the EU Court whether there can only be a “communication to the public” if a website is directed at that country. And if so, what does this ‘direction’ entail precisely.

The second question is whether there’s a “communication to the public” in a country where state-of-the-art geo-blocking measures, and potentially other restrictive measures are in place, yet may face circumvention with a VPN.

Finally, if the EU Court concludes that blocking measures are not sufficient because they can be bypassed with a VPN, does this automatically mean that the publisher is violating copyright law?

Or, in the translated words of the court:

1. Must Article 3(1) of the Copyright Directive be interpreted in such a way that a publication of a work on the internet can only be regarded as a communication to the public in a certain country if the publication is directed to the public in that country? If so, which factors must be taken into account in this assessment?

2. Can there be a communication to the public in a certain country if, by means of (state-of-the-art) geo-blocking, it has been ensured that the website on which the work is published can only be accessed by the public in that country by circumventing the blocking measure with the help of a VPN or similar service? Is it relevant to what extent the relevant public in the blocked country is willing and able to gain access to the website in question via such a service? Does it make a difference to the answer to this question whether, in addition to the geo-blocking measure, other measures have been taken to hinder or discourage access to the website for the public in the blocked country?

3. If the possibility of circumventing the blocking measure means that the work published on the internet is communicated to the public in the blocked country within the meaning of Article 3(1) of the Copyright Directive, is that communication then made by the person who published the work on the internet, even though the intervention of the provider of the VPN or similar service in question is required for taking cognizance of that communication?

Far Reaching Consequences

On paper, the Anne Frank copyright battle is already controversial. However, this case could also have far-reaching consequences for many other sites and services that publish geographically-restricted content.

If state-of-the-art geo-blocking is not sufficient to alleviate copyright concerns, rightsholders can in theory go after publishers and platforms that use this technology. That applies to many large streaming services, and would make geographical licenses impossible to enforce.

Of course, most rights holders are already well aware of the geo-blocking weaknesses. They willingly accept this weakness in favor of geographical restrictions, which are often used to optimize profits.

That said, the ruling will also be important for VPN companies, many of which sell region unblocking as a feature. If the EU’s highest court decides that this is a key factor in copyright enforcement, that type of advertising could become problematic.

As for this specific situation, there’s a lot at stake as well. The manuscripts are important for research purposes, and broader access would help facilitate that. While opinions on copyright matters differ, everyone should strive to do good. Or as Anne Frank wrote:

“How noble and good everyone could be if, at the end of each day, they were to review their own behavior and weigh up the rights and wrongs. They would automatically try to do better at the start of each new day and, after a while, would certainly accomplish a great deal.”

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

Terminator’s Cameron joins AI company behind controversial image generator

Famed sci-fi director joins board of embattled Stability AI, creator of Stable Diffusion.

A photo of filmmaker James Cameron.

Enlarge / Filmmaker James Cameron. (credit: James Cameron / Stability AI)

On Tuesday, Stability AI announced that renowned filmmaker James Cameron—of Terminator and Skynet fame—has joined its board of directors. Stability is best known for its pioneering but highly controversial Stable Diffusion series of AI image-synthesis models, first launched in 2022, which can generate images based on text descriptions.

"I’ve spent my career seeking out emerging technologies that push the very boundaries of what’s possible, all in the service of telling incredible stories," said Cameron in a statement. "I was at the forefront of CGI over three decades ago, and I’ve stayed on the cutting edge since. Now, the intersection of generative AI and CGI image creation is the next wave."

Cameron is perhaps best known as the director behind blockbusters like Avatar, Titanic, and Aliens, but in AI circles, he may be most relevant for the co-creation of the character Skynet, a fictional AI system that triggers nuclear Armageddon and dominates humanity in the Terminator media franchise. Similar fears of AI taking over the world have since jumped into reality and recently sparked attempts to regulate existential risk from AI systems through measures like SB-1047 in California.

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FBI: After dad allegedly tried to shoot Trump, son arrested for child porn

“Hundreds” of files found on SD card, FBI agent says.

Picture of police lights.

Enlarge (credit: Alex Schmidt / Getty Images)

Oran Routh has had an eventful few weeks.

In August, he moved into a two-bed, two-bath rental unit on the second floor of a building in Greensboro, North Carolina.

On September 15, his father, Ryan Routh, was found in the bushes of the sixth hole of Trump International Golf Club with a scope and a rifle, apparently in a bid to assassinate Donald Trump, who was golfing that day.

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In the room where it happened: When NASA nearly gave Boeing all the crew funding

“In all my years of working with Boeing I never saw them sign up for additional work for free.”

But for a fateful meeting in the summer of 2014, Crew Dragon probably never would have happened.

Enlarge / But for a fateful meeting in the summer of 2014, Crew Dragon probably never would have happened. (credit: SpaceX)

This is an excerpt from Chapter 11 of the book REENTRY: SpaceX, Elon Musk and the Reusable Rockets that Launched a Second Space Age by our own Eric Berger. The book will be published on September 24, 2024. This excerpt describes a fateful meeting 10 years ago at NASA Headquarters in Washington, DC, where the space agency's leaders met to decide which companies should be awarded billions of dollars to launch astronauts into orbit.

In the early 2010s, NASA's Commercial Crew competition boiled down to three players: Boeing, SpaceX, and a Colorado-based company building a spaceplane, Sierra Nevada Corporation. Each had its own advantages. Boeing was the blue blood, with decades of spaceflight experience. SpaceX had already built a capsule, Dragon. And some NASA insiders nostalgically loved Sierra Nevada's Dream Chaser space plane, which mimicked the shuttle's winged design.

This competition neared a climax in 2014 as NASA prepared to winnow the field to one company, or at most two, to move from the design phase into actual development. In May of that year Musk revealed his Crew Dragon spacecraft to the world with a characteristically showy event at the company’s headquarters in Hawthorne. As lights flashed and a smoke machine vented, Musk quite literally raised a curtain on a black-and-white capsule. He was most proud to reveal how Dragon would land. Never before had a spacecraft come back from orbit under anything but parachutes or gliding on wings. Not so with the new Dragon. It had powerful thrusters, called SuperDracos, that would allow it to land under its own power.

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Calif. Gov. vetoes attempt to require new privacy option in browsers and OSes

Gavin Newsom said he opposes mandate on mobile operating system developers.

A closeup photo of California Governor Gavin Newsom's face

Enlarge / California Governor Gavin Newsom at a press conference in San Francisco on September 19, 2024. (credit: Getty Images | Anadolu )

California Gov. Gavin Newsom vetoed a bill that would have required makers of web browsers and mobile operating systems to let consumers send opt-out preference signals that could limit businesses' use of personal information.

The bill approved by the State Legislature last month would have required an opt-out signal "that communicates the consumer's choice to opt out of the sale and sharing of the consumer's personal information or to limit the use of the consumer's sensitive personal information." It would have made it illegal for a business to offer a web browser or mobile operating system without a setting that lets consumers "send an opt-out preference signal to businesses with which the consumer interacts."

In a veto message sent to the Legislature Friday, Newsom said he would not sign the bill. Newsom wrote that he shares the "desire to enhance consumer privacy," noting that he previously signed a bill "requir[ing] the California Privacy Protection Agency to establish an accessible deletion mechanism allowing consumers to request that data brokers delete all of their personal information."

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Radiation should be able to deflect asteroids as large as 4 km across

Researchers blast silica with an intense X-ray burst, watch it evaporate.

Image of a large, circular chamber covered filled with a lot of mechanical equipment, all of which is lit by blue internal glows and covered with massive, branching trails of lightning.

Enlarge / Sandia National Labs' Z machine in action. (credit: Randy Montoya)

The old joke about the dinosaurs going extinct because they didn't have a space program may be overselling the need for one. It turns out you can probably divert some of the more threatening asteroids with nothing more than the products of a nuclear weapons program. But it doesn't work the way you probably think it does.

Obviously, nuclear weapons are great at destroying things, so why not asteroids? That won't work because a lot of the damage that nukes generate comes from the blast wave as it propagates through the atmosphere. And the environment around asteroids is notably short on atmosphere, so blast waves won't happen. But you can still use a nuclear weapon's radiation to vaporize part of the asteroid's surface, creating a very temporary, very hot atmosphere on one side of the asteroid. This should create enough pressure to deflect the asteroid's orbit, potentially causing it to fly safely past Earth.

But will it work? Some scientists at Sandia National Lab have decided to tackle a very cool question with one of the cooler bits of hardware on Earth: the Z machine, which can create a pulse of X-rays bright enough to vaporize rock. They estimate that a nuclear weapon can probably impart enough force to deflect asteroids as large as 4 kilometers across.

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NASA is ready to start buying Vulcan rockets from United Launch Alliance

The second test flight of the Vulcan rocket is scheduled for liftoff on October 4.

The first stage of ULA's second Vulcan rocket was raised onto its launch platform August 11 at Cape Canaveral Space Force Station, Florida.

Enlarge / The first stage of ULA's second Vulcan rocket was raised onto its launch platform August 11 at Cape Canaveral Space Force Station, Florida. (credit: United Launch Alliance)

United Launch Alliance is free to compete for NASA contracts with its new Vulcan rocket after a successful test flight earlier this year, ending a period where SpaceX was the only company competing for rights to launch the agency's large science missions.

For several years, ULA was unable to bid for NASA launch contracts after the company sold all of its remaining Atlas V rockets to other customers, primarily for Amazon's Project Kuiper Internet network. ULA could not submit its new Vulcan rocket, which will replace the Atlas V, for NASA to consider in future launch contracts until the Vulcan completed at least one successful flight, according to Tim Dunn, senior launch director at NASA's Launch Services Program.

The Vulcan rocket's first certification flight on January 8, called Cert-1, was nearly flawless, demonstrating the launcher's methane-fueled BE-4 engines built by Blue Origin and an uprated twin-engine Centaur upper stage. A second test flight, known as Cert-2, is scheduled to lift off no earlier than October 4 from Cape Canaveral Space Force Station, Florida. Assuming the upcoming launch is as successful as the first one, the US Space Force aims to launch its first mission on a Vulcan rocket by the end of the year.

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