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FTC orders ByteDance, Facebook, Snap and others to explain what they do with user data

The FTC is ordering the companies behind many of the largest social and video platforms to explain how they use the treasure troves of data they harvest from users. Amazon, TikTok owner ByteDance, Facebook, WhatsApp, Discord, Reddit, Snap, Twitter and YouTube were all sent the order, with a deadline set 45 days from now.
The FTC’s focus is on how these companies “collect, use, and present personal information, their advertising and user engagement practices, and how their practices affect children and teens.” Four of the FTC’s commissioners voted in favor of the order, with Commissioner Noah Joshua Phillips dissenting.
“ …

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Second federal judge rules against Trump administration’s TikTok ban

Another federal judge has issued a preliminary injunction against U.S. government restrictions that would have effectively banned TikTok from operating in the United States.
The ruling (embedded below) was made by U.S. District Court Judge Carl Nichols in a lawsuit filed by TikTok and ByteDance against President Donald Trump, Secretary of Commerce Wilbur Ross and the Commerce Department. Judge Nichols wrote the government “likely exceeded IEEPA’s [the International Emergency Economic Powers Act] express limitations as part of an agency action that was arbitrary and capricious.”
This is the second time a federal judge has issued an injunction …

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The FCC rejects ZTE’s petition to stop designating it a “national security threat”

The Federal Communications Commission has rejected ZTE’s petition to remove its designation as a “national security threat.” This means that American companies will continue to be barred from using the FCC’s $8.3 billion Universal Service Fund to buy equipment and services from ZTE .
The Universal Service Fund includes subsidies to build telecommunication infrastructure across the United States, especially for low-income or high-cost areas, rural telehealth services, and schools and libraries. The FCC issued an order on June 30 banning U.S. companies from using the fund to buy technology from Huawei and ZTE, claiming that both companies have close ties …

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Relativity Space raises $500 million as its sets sights on the industrialization of Mars

3D-printed rocket startup Relativity Space has closed $500 million in Series D funding (making official the earlier reported raise), the company announced today. This funding was led by Tiger Global Management, and included participation by a host of new investors including Fidelity Management & Research Company, Baillie Gifford, Iconiq Capital, General Catalist and more. This brings the company’s total raised so far to nearly $700 million, as the startup is poised to launch its first ever fully 3D-printed orbital rocket next year.

LA-based Relativity had a big 2020, completing work on a new 120,000 square-foot manufacturing facility in Long Beach. Its rocket construction technology, which is grounded in its development and use of the largest metal 3D printers in existence, suffered relatively few setbacks due to COVID-19-related shutdowns and work stoppages since it involves relatively few actual people on the factory floor managing the 3D printing process, which is handled in large part by autonomous robotic systems and software developed by the company.

Relativity also locked in a first official contract from the U.S. government this year, to launch a new experimental cryogenic fluid management system on behalf of client Lockheed Martin, as part of NASA’s suite of Tipping Point contracts to fund the development of new technologies for space exploration. It also put into service its third-generation Stargate 3D metal printers – the largest on Earth, as mentioned.

The company’s ambitions are big, so this new large funding round should provide it with fuel to grow even more aggressively in 2021. It’s got new planned initiatives underway, both terrestrial and space-related, but CEO and founder Tim Ellis specifically referred to Mars and sustainable operations on the red planet as one possible application of Relativity’s tech down the road.

In prior conversations, Ellis has alluded to the potential for Relativity’s printers when applied to other large-scale metal manufacturing – noting that the cost curve as it stands makes most sense for rocketry, but could apply to other industries easily as the technology matures. Whether on Mars or on Earth, large-scale 3D printing definitely has a promising future, and it looks like Relativity is well-positioned to take advantage.

We’ll be talking to Ellis at our forthcoming TC Sessions: Space event, so we’ll ask him more about this round and his company’s aspirations live there, too.

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Trump fires top US cybersecurity official Chris Krebs for debunking false election claims

Chris Krebs, one of the most senior cybersecurity officials in the U.S. government, has been fired.

Krebs served as the director of the Cybersecurity and Infrastructure Security Agency (CISA) since its founding in November 2018 until he was removed from his position on Tuesday. It’s not immediately clear who is currently heading the agency. A spokesperson for CISA did not immediately comment.

President Trump fired Krebs in a tweet late on Tuesday, citing a statement published by CISA last week, which found there was “no evidence that any voting system deleted or lost votes, changed votes, or was in any way compromised.” Trump, who has repeatedly made claims of voter fraud without providing evidence, alleged that CISA’s statement was “highly inaccurate.”

Shortly after, Twitter labeled Trump’s tweet for making a “disputed” claim about election fraud.

Reuters first reported the news of Krebs’ potential firing last week.

Krebs was appointed by President Trump to head the newly created cybersecurity agency in November 2018, just days after the conclusion of the midterm elections. He previously served as an undersecretary for CISA’s predecessor, the National Protection and Programs Directorate, and also held cybersecurity policy roles at Microsoft.

During his time in government, Krebs became one of the most vocal voices in election security, taking the lead during 2018 and in 2020, which largely escaped from disruptive cyberattacks, thanks to efforts to prepare for cyberattacks and misinformation that plagued the 2016 presidential election.

He was “one of the few people in this administration respected by everyone on both sides of the aisle,” said Sen. Mark Warner, a member of the Senate Intelligence Committee, in a tweet.

Krebs is the latest official to leave CISA in the past year. Brian Harrell, who oversaw infrastructure protection at the agency, resigned in August after less than a year on the job, and Jeanette Manfra left for a role at Google at the end of last year. Cyberscoop reported Thursday that Bryan Ware, CISA’s assistant director for cybersecurity, resigned for a position in the private sector.

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ByteDance asks federal appeals court to vacate U.S. order forcing it to sell TikTok

In a new filing, TikTok’s parent company ByteDance asked the federal appeals court to vacate the United States government order forcing it to sell the app’s American operations.

President Donald Trump issued an order in August requiring ByteDance to sell TikTok’s U.S. business by November 12, unless it was granted a 30-day extension by the Committee on Foreign Investment in the United States (CFIUS). In today’s filing (embedded below) with the federal appeals court in Washington D.C., ByteDance said it asked the CFIUS for an extension on November 6, but the order hasn’t been granted yet.

It added it remains committed to “reaching a negotiated mitigation solution with CFIUS satisfying its national security concerns” and will only file a motion to stay enforcement of the divestment order “if discussions reach an impasse.”

Security concerns about TikTok’s ownership by a Chinese company were at the center of the executive order Trump signed in August, banning transactions with Beijing-headquartered ByteDance.

The executive order claimed that TikTok posed a threat to national security, though ByteDance maintains that it does not. But in order to prevent the app, which has about 100 million users in the U.S., from being banned, ByteDance reached a deal in September to sell 20% of its stake in TikTok to Oracle and Walmart. With the Biden administration set to take office in January and ByteDance’s ongoing legal challenge against the divestment order, however, the future of the deal is now uncertain.

The new filing is part of a lawsuit TikTok filed against the Trump administration on September 18. It won an early victory when the court stopped the U.S. government’s ban from going into effect on its original deadline that month.

In a statement emailed to TechCrunch, a TikTok spokesperson said it has been working with the CFIUS for a year to address its national security concerns “even as we disagree with its assessment.”

Facing continual new requests and no clarity on whether our proposed solutions would be accepted, we requested the 30-day extension that is expressly permitted in the August 14 order,” the statement continued.

“Today, with the November 12 CFIUS deadline imminent and without an extension in hand, we have no choice but to file a petition in court to defend our rights and those of our more than 1,500 employees in the US.” 

TikTok asks U.S. federal appeals court to vacate U.S. divestment order by TechCrunch on Scribd

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Joe Biden wins the 2020 US presidential election

Following a tense week of vote tallying, Joe Biden won the state of Pennsylvania and vaulted ahead in the race to become the next president of the United States. Biden’s win in the critical state put him over the threshold of 270 electoral votes, cutting off all avenues for his opponent.

Biden prevailed by flipping key states that went to Trump in 2016, including Wisconsin, Michigan and Pennsylvania. Trump again won in Florida and Ohio, but in the end was unable to chart a path to an electoral victory. Biden also leads by millions in the popular vote, with a record number of votes cast this year, many through the mail.

As his vice president, Kamala Harris will make history in myriad ways, becoming the first woman — and the first woman of color — to occupy the office. Harris, a California senator and the state’s former attorney general, built a career in the tech industry’s front yard.

Shattered barriers aside, this year’s election will likely go down in infamy for many in the U.S. The race was the strangest in recent years, characterized by rising storms of misinformation, fears over the fate of scaled-up vote-by-mail systems and a deadly virus that’s claimed well over 230,000 American lives. Biden’s campaign was forced to adapt to drive-up rallies and digital campaigning instead of relying on door-knocking and face-to-face interaction to mobilize the vote.

The circumstances of the election also created the perfect ecosystem for misinformation — a situation made worse by President Trump’s false claim of victory early Wednesday morning and ongoing claims of Democratic voter fraud. Trump appears to be in no mood to concede the election, but in the end the vote is what it is and Joe Biden will take office on January 20, 2021.

While a sitting president rejecting that unwritten democratic norm would be alarming, Trump’s decision will have little bearing on the ultimate political outcome. Whatever the coming days hold, the U.S. is entering into a new and unprecedented phase of uncertainty in which misinformation abounds and political tensions and fears of politically-motivated violence are running high.

The former vice president’s win brings a four year run of Trumpism to an abrupt end, though its effects will still reverberate throughout American politics, likely for decades. It also ushers in a new era in which Joe Biden plans to draw on the influence of an unlikely coalition of Democrats from across the political spectrum. The Senate still hangs in the balance with two tight races in Georgia headed to January runoffs.

Biden has laid out plans for sweeping climate action, and a healthcare extension that would cover more Americans and provide an opt-in Medicare-like public option. But his ability to enact most of those grand plans would hinge on a Democratic Senate. While either party was likely to continue pursuing more aggressive regulation for the technology industry, we’ll be watching closely for signals of what’s to come for tech policy.

But even without the Senate, the president-elect may be capable of making a swift and critical impact where it’s most needed: the coronavirus pandemic. In the continued absence of a national plan to fight the virus and a White House that downplays its deadliness and discourages mask-wearing, COVID-19 is raging out of control in states across the country, signaling a very deadly winter just around the corner.

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DOJ says it seized over $1 billion in bitcoin from the Silk Road drugs marketplace

Two days ago, about $1 billion worth of bitcoin that had sat dormant since the seizure of the Silk Road marketplace in 2013, one of the biggest underground drug websites on the dark web, suddenly changed hands.

Who took it? Mystery over. It was the U.S. government.

In a statement Thursday, the Justice Department confirmed it had seized the 70,000 bitcoins generated in revenue from drug sales on the Silk Web marketplace from a hacker, known as “Individual X,” who moved the cryptocurrency from Silk Road into a wallet the hacker controlled.

The filing said that the identity of Individual X “is known to the government.”

At the time of the seizure on Tuesday, the bitcoin was worth more than $1 billion.

“Silk Road was the most notorious online criminal marketplace of its day. The successful prosecution of Silk Road’s founder in 2015 left open a billion-dollar question. Where did the money go? Today’s forfeiture complaint answers this open question at least in part,” said U.S. Attorney David Anderson in remarks.

“$1 billion of these criminal proceeds are now in the United States’ possession,” he said.

Silk Road was for a time the “most sophisticated and extensive criminal marketplace on the Internet,” per the Justice Department statement. In 2013, its founder and administrator Ross Ulbricht was arrested and the site seized. Ulbricht was convicted in 2015 and sentenced to two life terms and an additional 40 years, for his role in the operation. Prosecutors said the site had close to 13,000 listings for drugs and other illegal services, and generated millions of bitcoin.

The Justice Department said Thursday that the seized bitcoin would be subject to forfeiture proceedings.

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