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Judge Sends FTX Founder Sam Bankman-Fried To Jail, Says Crypto Mogul Tampered With Witnesses

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NEW YORK — Sam Bankman-Fried, the founder of FTX, was placed behind bars after a judge revoked his bail on Friday. The judge reasoned that Bankman-Fried had frequently attempted to sway witnesses against him.

Bankman-Fried bowed his head as Judge Lewis A. Kaplan went into great detail about why he thought the Californian had repeatedly exceeded the terms of his $250 million bail package to the point where Kaplan could no longer guarantee the community’s safety, including the safety of the prosecution’s witnesses, without the 31-year-old being imprisoned.

Bankman-Fried removed his tie and suit jacket once the session was concluded, giving his watch and other personal items to his attorneys. His hands were shackled in front of him, and there was the ringing of handcuffs. U.S. marshals then escorted him out of the courtroom.

It was a dramatic fall for a man who, according to the prosecution, presented himself to Congress as “a saviour of the cryptocurrency industry” and paid celebrities like Larry David, Tom Brady, and Stephen Curry to promote his ventures.

To influence cryptocurrency regulation in Washington, according to the prosecution, Bankman-Fried stole billions of dollars in FTX customer deposits to fund his businesses and speculative venture investments, make charitable contributions, and spend tens of millions of dollars on illegal campaign donations to Democrats and Republicans.

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Sam Bankman-Fried, the founder of FTX, was placed behind bars after a judge revoked his bail on Friday.

Kaplan stated that there was reason to believe Bankman-Fried had attempted to “tamper with witnesses at least twice” since his detention in December, most recently by revealing to a reporter the private diaries of a key witness against him and in January when he communicated with the general counsel of FTX using an encrypted message.

The court stated that after considering all the evidence, he concluded that Bankman-Fried had likely attempted to persuade both prospective trial witnesses “and quite likely others whose names we don’t even know” to “back off, to have them hedge their cooperation with the government.”

The judge’s signature on the detention order stated that Kaplan had reason to think Bankman-Fried had tried witness tampering, a criminal offense.

The defense team for Bankman-Fried maintained that their client had no malicious intent and shouldn’t go to prison for attempting to shield his reputation from a steady stream of negative press.

To file an instant appeal, Mark Cohen’s attorney urged the judge to suspend the detention order; Kaplan denied the motion. Defense attorneys submitted a notice of appeal in less than an hour.

Bankman-Fried was detained for the night at the Metropolitan Detention Centre in Brooklyn, which has previously held convicted sex offenders R. Kelly and Ghislaine Maxwell and “pharma bro” pharmaceutical magnate Martin Shkreli.

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Sam Bankman-Fried, the founder of FTX, was placed behind bars after a judge revoked his bail on Friday.

Since his December extradition from the Bahamas on charges that he deceived investors in his enterprises and illegally misappropriated millions of dollars worth of bitcoin from users using his FTX exchange, Bankman-Fried had been under house arrest at his parent’s residence in Palo Alto, California.

His bail terms tightly constrained his internet and phone usage.

The judge remarked that despite the severe regulations, he nevertheless managed to get in touch with a prominent FTX attorney in January and express his desire to “reconnect and see if there is a way for us to have a constructive relationship, use each other as resources when possible, or at least vet things with each other.”

When questioned about the contact during a hearing in February, Kaplan said it “suggests to me that maybe he has committed or attempted to commit a federal felony while on release.”

Kaplan stated on Friday that he was dismissing the defense’s assertions that the communication was innocent.

Instead, he claimed, it appears to be a request for the FTX general counsel “to get together with Bankman-Fried” so that their memories “are on the same page.”

Attorneys for Bankman-Fried were taken aback two weeks ago when prosecutors demanded that he be imprisoned because he had broken the law by revealing to The New York Times the private writings of Caroline Ellison, his ex-girlfriend and the former CEO of Alameda Research, a cryptocurrency trading hedge fund that was one of his companies.

He allegedly shared profound ideas about her career and love relationship with Bankman-Fried to damage her image and sway potential jurors who might be called for his October trial.

bankman-fried

Sam Bankman-Fried, the founder of FTX, was placed behind bars after a judge revoked his bail on Friday.

The judge stated on Friday that the excerpts of Bankman-Fried’s communications with Ellison were the kinds of things that a person in a relationship “would be very unlikely to share with anybody, lest The New York Times, except to hurt, discredit, and frighten the subject of the material,” according to the judge.

Ellison entered a guilty plea in December to charges that could have resulted in a 110-year prison sentence. She consented to give testimony against Bankman-Fried as part of a settlement that might result in a less severe punishment.

Bankman-Fried’s attorneys contended that since the article portrayed Ellison in a favorable light, he most likely failed in his attempt to defend his reputation. Furthermore, they claimed that the prosecution overstated Bankman-Fried’s involvement in the paper.

They said the prosecution attempted to convict their client by presenting evidence that was “innuendo, speculation, and scant facts.”

Since the prosecution requested detention, Kaplan had imposed a gag order prohibiting trial participants—including Bankman-Fried—from making public statements.

In a letter to the judge, David McCraw, an attorney for the Times, noted the First Amendment repercussions of any general gag order and the public’s interest in Ellison and her bitcoin trading business.

According to McCraw, Ellison admitted to playing a crucial part in a scheme that defrauded investors of billions of dollars and went unnoticed.

“It is not surprising that the public wants to know more about who she is and what she did, and that news organisations would seek to provide the public with timely, pertinent, and fairly reported information about her, as The Times did in its story,” McCraw stated.

SOURCE – (AP)

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Sony Is Once Again Facing A Potential Security Breach, This Time By A Ransomware Group

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Once more, Sony faces the possibility of a security breach, this time from a ransomware group alleging to have compromised PlayStation systems. On Sunday, the group LAPSUS$ proclaimed the alleged hack on their dark website. This could have significant implications for PlayStation users, although details remain scant.

According to the ransomware group, they have compromised all Sony systems and seized valuable information, including game source code and firmware. As “proof,” they have provided screen captures of what appears to be an internal login page, PowerPoint presentation, and file directory.

However, according to cybersecurity specialists, this information could be more convincing. Cyber Security Connect stated, “None of it appears to be particularly compelling information.” They suspect that LAPSUS$ may have exaggerated the scope of their breach.

Based on the limited data available, it is extremely difficult to determine the scope or integrity of the hackers’ claims. PlayStation’s online services do not appear to have been impacted so far, with no word if user data is at risk.

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Sony Is Once Again Facing A Potential Security Breach, This Time By A Ransomware Group.

Not for the first time have Sony’s systems been targeted. In 2011, the PlayStation Network was compromised, exposing the personal information of 77 million users. Sony ultimately locked down PSN for nearly a month to improve security.

In 2014, North Korea launched a devastating cyberattack against Sony Pictures in retaliation for the film The Interview. The release of terabytes of sensitive data, including scripts for upcoming films and employees’ personal and medical information. Time will tell if Sony can once again recover its systems from a significant cyberattack. However, PlayStation users may need to prepare for potential consequences.

If LAPSUS$’s claims are accurate, this breach could have comparable repercussions. There is a possibility that sensitive source code and intellectual property could be compromised. There is also the possibility of significant PlayStation Network service disruptions. As with any hack, we recommend that users alter any passwords used on any PlayStation service to avoid problems with other online accounts.

CGMagazine has sought out Sony for comment, but at the time of publication, the company has neither confirmed nor denied the breach’s scope; we will update the article if the situation changes.

SOURCE – (cgmagonline)

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Amazon Is Investing Up To $4 Billion In AI Startup Anthropic In Growing Tech Battle

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Amazon is investing up to $4 billion in artificial intelligence startup Anthropic and acquiring a minority stake in the company, the two companies announced on Monday.

The investment underscores how Big Tech companies are pouring money into AI as they race to capitalize on the opportunities that the latest iteration of the technology is set to fuel.

According to Amazon and Anthropic, the agreement is part of a larger collaboration to develop so-called foundation models, which are the basis for the generative AI systems that have garnered worldwide attention.

Foundation models, also known as large language models, are trained on vast online information pools, such as blog posts, digital books, scientific articles, and pop songs, to generate text, images, and videos that resemble human labor.

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Amazon Is Investing Up To $4 Billion In AI Startup Anthropic In Growing Tech Battle.

Under the terms of the agreement, Anthropic will use Amazon as its primary cloud computing service and train and deploy its generative AI systems using Amazon’s custom processors.

Anthropic, based in San Francisco, was founded by former employees of OpenAI, the creator of the ChatGPT AI chatbot that made a global impact with its ability to generate responses that resembled human responses.

Anthropic has released Claude, its own ChatGPT competitor. The most recent version, available in the United States and the United Kingdom, can “sophisticated dialogue, creative content generation, complex reasoning, and detailed instruction,” according to the company.

Amazon is racing to catch up to competitors such as Microsoft, which invested $1 billion in OpenAI in 2019 and another multibillion-dollar investment at the beginning of the year.

Amazon has been releasing new services to keep up with the AI arms race, such as an update to its popular assistant Alexa that enables users to have more human-like conversations and AI-generated summaries of consumer product reviews.

SOURCE – (AP)

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Photo Giant Getty Took A Leading AI Image-Maker To Court. Now It’s Also Embracing The Technology

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Anyone seeking a gorgeous photograph of a desert landscape will find various options in the Getty Images stock photography collection.

But suppose you’re searching for a wide-angle image of a “hot pink plastic saguaro cactus with large, protruding arms, surrounded by sand, in a landscape at dawn.” According to Getty Images, you can now request that its AI-powered image generator create one on the spot.

The Seattle-based company employs a two-pronged strategy to address the threat and opportunity of artificial intelligence to its business. First, it filed a lawsuit against a prominent provider of AI-generated images earlier this year for what it claimed was a “stunning” violation of Getty’s image collection.

But on Monday, it joined the small but expanding market of AI image creators with a new service that enables its customers to create novel images trained on Getty’s vast library of human-made photographs.

According to Getty Images CEO Craig Peters, the distinction is that this new service is “commercially viable” for business clients and “wasn’t trained on the open internet with stolen imagery.”

He compared this to some pioneers in AI-generated imagery, such as OpenAI’s DALL-E, Midjourney, and Stability AI, the creator of Stable Diffusion.

“We have issues with those services, how they were built, what they were built upon, how they respect creator rights or not, and how they actually feed into deepfakes and other things like that,” Peters said in an interview.

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Anyone seeking a gorgeous photograph of a desert landscape will find various options in the Getty Images stock photography collection.

In a lawsuit filed early this year in a Delaware federal court, Getty alleged that London-based Stability AI copied without permission more than 12 million photographs from its collection, along with captions and metadata, “as part of its efforts to build a competing business.”

Getty asserted in its lawsuit that it is entitled to damages of up to $150,000 per infringed work, which could reach $1.8 trillion. Stability seeks dismissal or transfer of the case but has not formally responded to the underlying allegations. Similar to the situation in the United Kingdom, a court conflict is still brewing.

Peters stated that the new service, dubbed Generative AI by Getty Images, resulted from a long-standing partnership with California-based tech company and chipmaker Nvidia, which predated the legal challenges against Stability AI. It is based on Edify, an AI model created by Picasso, a division of Nvidia’s generative AI division.

It promises “full indemnification for commercial use” and is intended to eliminate the intellectual property risks that have made businesses hesitant to use generative AI tools.

Getty contributors will also be compensated for having their images included in the training set, which will be incorporated into their royalty obligations so that the company is “actually sharing the revenue with them over time rather than paying a one-time fee or not paying that,” according to Peters.

getty

Anyone seeking a gorgeous photograph of a desert landscape will find various options in the Getty Images stock photography collection.

Getty will compete with rivals such as Shutterstock, which has partnered with OpenAI’s DALL-E, and software company Adobe, which has developed its own AI image-generator Firefly, for brands seeking marketing materials and other creative imagery. It is unlikely to appeal to those seeking photojournalism or editorial content, where Getty competes with news organizations such as The Associated Press.

Peters stated that the new model cannot produce politically damaging “deepfake” images because it automatically blocks requests containing images of recognizable persons and brands. As an illustration, he entered “President Joe Biden on a surfboard” as a demonstration to an AP reporter, but the tool rejected the request.

“The positive news about this generative engine is that it cannot cause the Pentagon to be attacked. “It cannot generate the pope wearing Balenciaga,” he said, referring to a widely shared fake image of Pope Francis wearing a fashionable puffer jacket generated by artificial intelligence.

Peters added that AI-generated content will not be added to Getty Images’ content libraries, reserved for “real people in real places doing real things.”

SOURCE – (AP)

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