US court finds that border phone searches need a warrant

US court finds that border phone searches need a warrant

A federal district judge has ruled that authorities must obtain a warrant to search an American citizen’s cellphone at the US border, barring exigent circumstances.

It is the first court in the United States to do so, to the delight of the Electronic Frontier Foundation, which along with other advocacy groups has been fighting for years to narrow the scope of border searches. Under current law, US Customs and Border Protection (CBP) can search anyone within 100 miles of an American national line, which covers a lot of people.

“EFF is thrilled about this decision, given that we have been advocating for a warrant for border searches of electronic devices in the courts and Congress for nearly a decade,” said Sophia Cope, senior staff attorney, in a statement Tuesday.

Cope expressed hope that the US Second Circuit will adopt the lower New York court’s interpretation if the case – United States vs. Smith (1:22-cr-00352-JSR) – is appealed.

The suck zone

Under the Fourth Amendment of the US Constitution, people in America should be protected from unreasonable search and seizure – specifically, searches conducted by authorities without probable cause. But there’s a distance factor to be added in.

The CBP is afforded exceptional leeway to scrutinize the people and objects coming and going across the US border. The agency maintains [PDF] it can conduct warrantless searches at the border, an area that includes land border crossing points, seaports, and airports. And this border search exception, with some limitations requiring reasonable suspicion for invasive searches, has been supported by US courts.

The border however turns out to cover most of America in terms of population. Since 1953, the US Department of Justice has defined the border to be anywhere within 100 miles of the actual national limits.

According to the American Civil Liberties Union, about two-thirds of the people in the US live within 100 miles of a border. So in theory these 200 million border zone dwellers could have their phones seized and searched at any time by CBP agents without a warrant.

The issue came up last year in United States vs. Smith. CBP detained defendant Jatiek Smith upon his return to Newark airport in New Jersey from Jamaica, and forced the US citizen by threat of indefinite detention to surrender his cellphone and password – an act of coercion that in this instance, according to Judge Jed Rakoff of the Southern District of New York, does not violate the Fifth Amendment right against self-incrimination.

The agents reviewed the phone manually then imaged it without a warrant. Several weeks later, the government sought and obtained a search warrant. Smith sought to suppress the evidence gained from that search by claiming his rights were violated.

Judge Rakoff found Smith’s Fourth Amendment argument against the search compelling, in light of the US Supreme Court’s decision in Riley v. California (2014). In that case, the Supreme Court determined that police must get a warrant to search the cellphone of an arrested suspect. The Fourth Amendment protects against unreasonable searches and seizures.

“Copying and searching a traveler’s phone during a border crossing bears little resemblance to traditional physical border searches historically permitted without probable cause under the Fourth Amendment’s ‘border search exception,'” Judge Rakoff wrote in his opinion and order [PDF].

“Rather, such searches extend the government’s reach far beyond the person and luggage of the border-crosser – as if the fact of a border crossing somehow entitled the government to search that traveler’s home, car, and office. The border search exception does not extend so far.”

Crucially, the judge wrote:

If you’re wondering whether that applies to non-citizens, the ruling added as a footnote: “The court need not here address whether the same result would hold for a non-resident or non-citizen.”

The above was not enough to get Smith completely off the hook. Rakoff accepted that the CBP agents had acted in good faith – the agents believed they were authorized to conduct the search and later obtained a warrant – so he declined to suppress the evidence gathered from Smith’s phone on that basis.

We ought to point out that Smith has been accused of running a brutal gangland extortion ring, hence the Feds’ interest in him and the contents of his gadgets. According to prosecutors, Smith and others took over a Brooklyn-based company that cleans up fire-damaged properties, and then used that business “to extort other participants in the fire mitigation industry and to assert control over the industry using violence and threats of violence.”

Smith is also a convicted sex offender and drug dealer who has been in and out of prison.

Nonetheless, it’s reassuring to know the judiciary is warming to arguments that searching phones is different from searching luggage. ®

 

Instagram explains its recommendations and ‘shadowbanning’

Instagram explains its recommendations and ‘shadowbanning’

Instagram is, once again, trying how its recommendations work in an attempt to dispel “misconceptions” about how the app’s algorithm works and whether or not the company engages in “shadowbanning” of certain creators. In a new blog post from Instagram’s top exec Adam Mosseri, he offers one of the most detailed explanations to date on how the app ranks content in various parts of the app.

“Instagram doesn’t have a singular algorithm that oversees what people do and don’t see on the app,” Mosseri explains. Instead, he says, there are multiple algorithms and ranking systems underpinning different aspects of the app, like Explore, Reels, Stories and search. Each of these uses a variety of signals to determine how content is ranked for each user.

For example, the order of posts in your main feed is determined by your past activity, as well as previous interactions with the person who made each post. Likewise, Stories posts take into account viewing history as well as “closeness,” or “how likely you are to be connected as friends or family.” On the other hand, recommendations in Explore are largely based “posts you’ve liked, saved, shared and commented on in the past,” but are more likely to come from accounts you’ve never interacted with.

One of the more interesting sections of Mosseri’s blog post is titled “addressing shadowbanning.” Mosseri notes that there isn’t a universal definition for the word, but acknowledges that many creators “use the term to imply that a user’s account or content is limited or hidden without a clear explanation or justification.” And he says that the company is working to increase transparency around when creators’ content or accounts are blocked from the app’s recommendations.

Specifically, he calls out the app’s feature, which can alert users if one of their posts or their account is considered “ineligible” for recommendations. The feature also offers an appeals process. While it’s not the first time Instagram has addressed the issue, which has been the subject of much speculation and conspiracy theories over the years, there has been a notable shift in the way the company is talking about “shadowbanning.”

In a from two years ago, Mosseri wrote that “the truth is most of your followers won’t see what you share, because most look at less than half of their Feed.” Now, he says Instagram is working on increasing transparency in cases when a creator’s content isn’t widely distributed due to a policy violation. “If anything makes your content less visible, you should know about it and be able to appeal,” he wrote.

He added that Instagram is testing “new notifications to help creators understand when the reach of their reel may be limited due to a watermark” (the company has tried users from posting recycled TikToks to Reels for years).

While some creators may still find these explanations unsatisfying — and there are more than a few who fall into that camp, judging by on Mosseri’s own Instagram post — the new details underscore just how central algorithmic recommendations are becoming to Instagram. While the app re-introduced an optional , Mark Zuckerberg has said his goal is to transform Instagram and Facebook into a more focused on recommendations than posts from friends.

Instagram explains its recommendations and ‘shadowbanning’ | Engadget

Instagram explains its recommendations and ‘shadowbanning’ | Engadget

Instagram is, once again, trying how its recommendations work in an attempt to dispel “misconceptions” about how the app’s algorithm works and whether or not the company engages in “shadowbanning” of certain creators. In a new blog post from Instagram’s top exec Adam Mosseri, he offers one of the most detailed explanations to date on how the app ranks content in various parts of the app.

“Instagram doesn’t have a singular algorithm that oversees what people do and don’t see on the app,” Mosseri explains. Instead, he says, there are multiple algorithms and ranking systems underpinning different aspects of the app, like Explore, Reels, Stories and search. Each of these uses a variety of signals to determine how content is ranked for each user.

For example, the order of posts in your main feed is determined by your past activity, as well as previous interactions with the person who made each post. Likewise, Stories posts take into account viewing history as well as “closeness,” or “how likely you are to be connected as friends or family.” On the other hand, recommendations in Explore are largely based “posts you’ve liked, saved, shared and commented on in the past,” but are more likely to come from accounts you’ve never interacted with.

One of the more interesting sections of Mosseri’s blog post is titled “addressing shadowbanning.” Mosseri notes that there isn’t a universal definition for the word, but acknowledges that many creators “use the term to imply that a user’s account or content is limited or hidden without a clear explanation or justification.” And he says that the company is working to increase transparency around when creators’ content or accounts are blocked from the app’s recommendations.

Specifically, he calls out the app’s feature, which can alert users if one of their posts or their account is considered “ineligible” for recommendations. The feature also offers an appeals process. While it’s not the first time Instagram has addressed the issue, which has been the subject of much speculation and conspiracy theories over the years, there has been a notable shift in the way the company is talking about “shadowbanning.”

In a from two years ago, Mosseri wrote that “the truth is most of your followers won’t see what you share, because most look at less than half of their Feed.” Now, he says Instagram is working on increasing transparency in cases when a creator’s content isn’t widely distributed due to a policy violation. “If anything makes your content less visible, you should know about it and be able to appeal,” he wrote.

He added that Instagram is testing “new notifications to help creators understand when the reach of their reel may be limited due to a watermark” (the company has tried users from posting recycled TikToks to Reels for years).

While some creators may still find these explanations unsatisfying — and there are more than a few who fall into that camp, judging by on Mosseri’s own Instagram post — the new details underscore just how central algorithmic recommendations are becoming to Instagram. While the app re-introduced an optional , Mark Zuckerberg has said his goal is to transform Instagram and Facebook into a more focused on recommendations than posts from friends.

Firmware Backdoor Discovered in Gigabyte Motherboards, 250+ Models Affected

Firmware Backdoor Discovered in Gigabyte Motherboards, 250+ Models Affected

Cybersecurity firm Eclypsium has discovered a backdoor in Gigabyte’s firmware that puts 271 different motherboards at risk. These include models with Intel and AMD chipsets from the last several years, all the way up to today’s Z790 and X670 SKUs. The vulnerability resides in a small updater program that Gigabyte employs to ensure that the motherboard’s firmware is always current. Apparently, it’s doing so via an unsecured implementation.

Have you ever noticed that after a clean Windows installation, a program pops up offering to download the latest driver or firmware for you? Unfortunately, that little piece of code could provide a backdoor for criminals.

6 monitor and TV innovations remind us that trade shows still exist

6 monitor and TV innovations remind us that trade shows still exist

Enlarge / Samsung Display imagines its unfurling screen embodying future portable monitors.

No one knows what the future of tech shows holds. The pricey, flashy E3 show, for example, was declining for years before its last in-person show in 2019. Other trade shows are enduring notable decline in exhibitor numbers, in-show announcements, and attendee numbers.

This May, however, remained a time for tech trade shows. Computex started Tuesday, and The Society for Information Display (SID) held Display Week 2023 in Los Angeles last week.

As a tech reporter, the fun part of trade shows isn’t racking up steps or spotting slivers of time to eat and sleep. It’s checking out interesting products, features, and concepts that customers will soon see. It feels somewhat odd to say in this post-pandemic world, but May was actually an interesting time for trade show displays.

Here are six debuts that piqued my interest with what they do now and what they could mean for the future.

20 displays, one modular macropad

The MasterHUB is an upcoming Stream Deck competitor that's supposed to be much more customizable.
Enlarge / The MasterHUB is an upcoming Stream Deck competitor that’s supposed to be much more customizable.

Cooler Master is showing off the momma of macropads at Computex. The MasterHUB is a modular device it says it’ll start selling in “late November” with nine modules available. Cooler Master initially targeted video editors, photo editors, and streamers, but macropads have earned a spot on the desks of various types of power users, and the extensive variety the modules offer highlights macropads’ untapped potential.

‘But I thought this was an article about displays,’ you say? Well, there are 20 displays across all of the MasterHUB’s modules. Among them is an 8-inch,1280×800 touchscreen, as reported by sites like Tom’s Hardware. There are also two modules with smaller displays, plus another one with an ultrawide one. A fifth module has a 1.3-inch dial with its own screen. Cooler Master believes this IPS display can be used to show off your images (pictures from attendees show the dial displaying a pet).

For excessive control, there’s a module that adds 15 custom keys to your setup, and each key is illuminated with an IPS screen.

Cooler Master has big dreams for the macropad, but I’ve seen the company fall short of peripheral product releases before. When I reached out about future features, a spokesperson said the company doesn’t have more information yet.

“Coupled with the API integration for wide software support and an SDK for user customization, the MasterHUB and MasterControl [Cooler Master software] become powerful tools for any tech enthusiast. The journey begins with the system environment in 2023, expanding to room environment support in 2024, and broadening to entire smart home automation by 2025,” Cooler Master’s announcement today said.

There are other non-screen modules, like one with scrolling wheels and another with dials. These input options make the MasterHUB stand out from other macropads aimed at creators, like the Elgato Stream Deck, or mechanical switch-based options, like Megalodon’s popular macropads. The Thunderbolt-connected base can hold two to six modules, depending on their sizes. Cooler Master is reportedly planning on making an even bigger base that can hold more modules.

The MasterHUB may end up a modular headache, though, if programming is complex or buggy. I’ve used Cooler Master’s frustrating peripherals software before, so it’s good to hear it’s working on a new app for this product.

Cooler Master will sell the MasterHUB as three premade kits (video editor, photo editor, and streamer) and will eventually sell lone modules.

WWDC 2023: What to expect and what you need to know

WWDC 2023: What to expect and what you need to know




Apple’s Worldwide Developer Conference for 2023 is fast approaching. Here’s what you can expect Apple to introduce during the week-long event.

The first week of June is a big date in a developer’s schedule, as it is when Apple holds its annual Worldwide Developer Conference. For 2023, the event will take place from June 5 and run until June 9.

While typically the venue for Apple’s main operating system announcements, WWDC has also become an event when Apple brings out occasional new products and services. For 2023’s event, the launches are expected to include one major platform introduction that has been rumored for years.

This is what you could look forward to during Apple’s week-long jamboree for developers.

How will WWDC 2023 be presented?

In the past, Apple held WWDC as a live in-person event, with developers from around the globe gathering to share knowledge and to be among the first to see Apple’s new software features.

Since the start of the COVID-19 pandemic, Apple has shifted to a virtual event format, with video streams of sessions provided to all those interested in the announcements. The sessions also provided developers with an opportunity to converse with Apple’s engineers and experts to find out more.

For 2023, Apple has expressed that the event will be following the same format as usual, complete with the keynote on the opening day and a State of the Union following after. On May 23, a schedule of the main events was released, with the Keynote set for 1 p.m. eastern on June 5, followed by a Platforms State of the Union at 4:30 p.m. eastern.

Though it won’t be a full in-person affair, Apple has said it will be holding a special all-day event for developers and students on June 5 at Apple Park. The event will include a chance for visitors to meet teams, celebrate apps in the Apple Design Awards ceremony, and evening activities.

Requests to take part in the open day closed on April 4.

The Apple Developer app for iOS and Apple TV will provide access to sessions, labs, and to view the main events. A YouTube stream is also planned for the Keynote.

Keynote Hardware

The keynote is the main event, news-wise, as it is when Apple will make most of its major announcements. This can potentially include hardware updates and even new products.

While only Apple itself knows what the announcements will be, here’s what we believe it will introduce during the conference.

Apple’s long-rumored first AR/VR headset

Of all of the major announcements expected to be made during WWDC, the mixed-reality headset is probably the biggest one. Rumored over multiple years, the headset is anticipated to be Apple’s first foray into AR and VR hardware.

Despite many rumors and leakers claiming the headset will make an appearance this year, it’s never guaranteed. During the pre-event rumors for WWDC 2022, the headset surfaced as a possibility, only to be left out of proceedings.

For the moment, the rumors have largely settled on a set of hardware and specifications that Apple will probably introduce. For a start, it could bear the name “Reality One” or “Reality Pro” in some format.

A spree of trademark applications that surfaced in mid-May point to a wide array of terms that Apple could use. The list also includes “xrOS,” “Reality OS,” “Reality Processor,” “realityproOS,” “realOS,” and “xrProOS,” with much of this extended list having potential for use for operating systems.

Appearing similar in structure to the Meta Quest, the headset will have a ski goggle-like design, with a thin main visor and flexible straps to the sides and top.

A render of a potential Apple headset [AppleInsider]

To save weight from pressing on the user’s face, rumors say Apple will use a separate battery pack that’s tethered to the unit. Connecting magnetically, that headset could provide up to two hours of power, before being swapped out for another.

The headset is also long-rumored to use 4K OLED displays in front of each eye, with dozens of cameras and sensors working inside and out of the device. External sensors will track body movements and the environment, while eye tracking and facial expressions will also apparently be detected.

Apple is expected to use chips that will outperform the M1 chip in the device, with it able to run without needing a host device to handle rendering.

A deep integration with Apple’s existing hardware may also be on the way, with analysts offering that ecosystem integration could be a key to early adoption by consumers.

For developers, the introduction will give them the opportunity to know Apple’s plans and to be provided access to software development kits and tools for making headset-specific apps. However, it is thought the headset will be able to run many iPad apps with developers needing to make “minimal” modifications at most to get them working.

There is the belief that a new platform requires “killer apps” to make it a success, which is where presenting the tools to developers months in advance comes into play.

Despite Apple’s secrecy, the headset may have been seen by external eyes. In a tweet on May 14, Oculus founder Palmer Luckey said “The Apple headset is so good.”

While Apple may introduce a headset during the event, it may still be months before it actually goes on sale to the public. The lead time will give all interested parties time to get their apps and other software in place for the actual public release.

One possibility for an appearance at the event is “No Man’s Sky,” a game that has been expected to arrive on Apple Silicon since WWDC 2022, and teased at the end of May by the game’s developer. As a game that offers VR support, it seems likely that, if Apple does introduce the headset, it will use a title similar to that to demonstrate its gaming prowess.

Indeed, there have even been rumors of potential production issues that Apple has apparently braced itself for in advance. There is also the strong possibility of mass production of the headset starting in September.

Even so, a low production run is anticipated, with Apple focusing on developers for the first year. The initial annual production total is thought to be just 100,000 units.

Production issues wouldn’t be entirely unexpected, but with so many hands involved with the project, it seems to be less likely to occur. It was claimed that almost every top exec at Apple has worked on the headset in some fashion, and that’s a big enough crowd to not want any mistakes to occur.

New Macs and MacBooks

While the headset is likely to capture most of the attention at the event if it makes an appearance, Apple has been teased to introduce more hardware from its Mac slate.

A new Mac Pro is always a possibility.

A new Mac Pro is always a possibility.

The Mac Pro has been repeatedly rumored to launch with Apple Silicon sometime in 2023, potentially using a chip such as the M2 Ultra, complete with external GPU support and a smaller tower design. As the last Intel Mac available from the company, the model has been long overdue for the transition over to Apple Silicon.

One late May rumor pointed to Apple adding the Mac Studio, M2 MacBook Air, and M2 13-inch MacBook Pro to the list of devices accepted by its trade-in program on June 5. Such a change would make it easier for developers and consumers to buy newer updated versions of each, by sending in the current generation.

A Mac Studio refresh is overdue

A Mac Studio refresh is overdue

A last-minute rumor shared on May 31 suggests Apple is actively testing two high-end Mac models with M2 Max and M2 Ultra. They internally use the identifiers Mac 14,13 and Mac 14,14.

Some speculation suggests these could be the rumored Mac Pro, but it seems more likely to be a Mac Studio refresh. Rumors suggest this will be a packed event, with “several” Macs being announced.

Existing OS updates — iOS, iPadOS, macOS, watchOS, tvOS

As a developer-focused event, WWDC usually handles announcements when it comes to operating system changes. Apple often outlines what its major OS updates will be during the keynote address, months ahead of a release alongside its usual fall product lineup.

While the rumor mill prefers to share hardware stories and leaks rather than those pertaining to software, there are still some rumored alterations on the way.

iOS 17 and iPadOS 17

With iOS 16 being the current generation, it makes sense that Apple will go with iOS 17 for the inbound version.

Some rumors for the annual refresh put forward that the release would be more a quality-of-life and performance-improvement one, with it being light on major features. However that has seemingly changed, and that some “nice to have” features are instead on the way.

Among the changes can be an updated Control Center, redesigned to mark its tenth anniversary.

Wallet was touted in April to have tweaks to the interface, while Find My could push more location-related features.

The Lock Screen may get more changes

The Lock Screen may get more changes

After iOS 16’s Lock Screen changes, more may be on the way, with adjustments to font size, emoji wallpaper, and preset sharing possibly inbound. Apple Music on the Lock Screen may have a simplified user interface, with less text and more graphics. There may even be a simpler grid view for picking out wallpaper.

For users of HomeKit, Apple may also offer a new interface to display essential information as if it’s a smart home display. Resembling the Apple Watch nightstand mode, an iPhone locked and placed horizontally could display calendar appointments, weather, notifications, and maybe even some smart home device controls.

AirPlay may also enjoy a bit of an upgrade, one that can make it easier to share content with other devices a user may have access to, but doesn’t own. This may make a spell at a hotel even better.

More of a background feature than anything, Apple has reportedly been working on laying the groundwork for enabling the sideloading of apps, in order to comply with inbound regulatory reforms around the world. However, there stands a chance that Apple won’t make the changes available everywhere, but instead only in markets where it is required.

For iPadOS 17, while it may share many feature changes with iOS 17, the big iPad-specific change could be Stage Manager upgrades. The list apparently includes support for webcams in external displays, streaming video and audio from and to multiple sources, and a resizable dock option for the external display.

One thing that Apple has confirmed for iOS 17 is that it will gain some new accessibility features. The list includes Assistive Access to help with navigating iOS and iPadOS itself, and a Point and Speak in Magnifier mode for helping visually impaired users read labels.

The headline accessibility changes are Live Speech and Personal Voice. The former will let users type out statements to be read aloud during phone calls and FaceTime, while the latter allows a user to turn 15 minutes of their voice into a personal voice mimicking their own.

watchOS 10

The milestone number of watchOS 10 could herald big changes, with an early April report claiming that the fairly static previous generations could be followed in 2023 by a “fairly extensive upgrade.”

These changes may include widgets that users could scroll through for information, rather than tapping to open the full apps. This interface will be “reminiscent” of the Siri watch face, but usable as an overlay.

Widget stacks may be borrowed from iOS and iPadOS for use in watchOS 10.

Widgets could arrive on the Apple Watch

Widgets could arrive on the Apple Watch

There is also the claim Apple is reconsidering how the Digital Crown works. While the press of the button brings up the home screen at present, it may be used to bring up the widget interface instead.

There has also been some rumors of a new home screen layout or grid that could use folders.

macOS 14 and tvOS 17

It would be remiss of Apple to not introduce both macOS 14 and tvOS 17 at WWDC, but at this time, there aren’t any real rumors or speculation to offer about what either operating system will offer.

What is expected is that there will be some feature parity with iOS 17 and iPadOS 17 at some level, so that apps and some features work across the ecosystem.

As usual, we’re also anticipating Craig Federighi to offer a joke about the “crack team” working on the new name for macOS 14. We have no idea what it could be, except it’ll be a location somewhere in California.

Pair of new high-end Macs allegedly being tested ahead of WWDC

Pair of new high-end Macs allegedly being tested ahead of WWDC

A Mac Studio update could be imminent



A last-minute rumor suggests Apple is testing the M2 Max and upcoming M2 Ultra processor in a pair of unannounced, high-end Macs before WWDC.

Just hours after rumors suggested “several” new Macs would launch at WWDC, more info has arrived to paint a clearer picture. If true, this Apple Event is set to be one of the most packed yet.

According to a report from Bloomberg‘s Mark Gurman, Apple is testing two unannounced high-end Macs with the M2 Max and M2 Ultra processors. The proximity of this rumor to WWDC suggests we could hear about the products and new processors during the event.

The report says Apple has labeled these two Mac models as Mac 14,13 and Mac 14,14. Since they use the M2 Max and M2 Ultra chipsets, they are considered high-end computers.

The M2 Max version being tested is identical to the chip found in the 16-inch MacBook Pro. It has a 12-core CPU, a 30-core GPU, and supports up to 96GB of RAM.

The M2 Ultra allegedly has a 24-core CPU, a 60-core GPU, and up to 192GB of RAM. Essentially, double the M2 Max.

A likely rumor

Mark Gurman has a strong history of accurate leaks, indicating his sources and his interpretations are usually close, if not spot on. This rumor coincides with many other rumors pointing to the inevitable M2 Ultra release, so we graded it a “Likely.”

A Mac Studio refresh is overdue

A Mac Studio refresh is overdue

Apple’s Mac Studio is the only Mac that runs an “Ultra” processor, the M1 Ultra, currently. Apple hasn’t announced this high-end chipset and could reveal it during WWDC or soon after for a summer release.

Trade-ins allegedly start for the original Mac Studio on Monday — further driving speculation of a refresh.

The WWDC keynote will be shown on Monday, June 5. All will be revealed, and if no high-end Macs appear there, they could still arrive soon after.

Wall Street Firms To Take On Binance, Coinbase, Other Crypto-Native Exchanges – Slashdot

Wall Street Firms To Take On Binance, Coinbase, Other Crypto-Native Exchanges – Slashdot

An anonymous reader quotes a report from CryptoSlate: Traditional financial firms, including Standard Chartered, Nomura, and Charles Schwab, are busy building or funding new crypto exchange and custody platforms, FT reported on May 31. These well-known Wall Street firms are betting that fund managers are still interested in trading crypto even after last year’s market downturn and the string of crypto scandals. The FTX bankruptcy and Terra ecosystem implosion, among others, highlighted the risk of investing through largely unregulated exchanges. But legacy firms believe asset managers prefer dealing with established players over crypto-native exchanges like Binance.

Gautam Chhugani, Senior Analyst of Global Digital Assets at Bernstein, told FT: “The large, pedigreed, traditional institutional investors definitely prefer dealing with counterparties who they know have been in existence for years and have been regulated in the traditional sense.” In a survey of 250 asset managers published by EY-Parthenon earlier this month, half of the respondents said they would consider switching from a crypto-native group to a traditional-backed company if they offered the same services. Additionally, 90% of respondents trusted traditional financial groups to act as custodians for their crypto assets.

The collapse of crypto firms last year and the disclosures on alleged malpractices eroded the trust of crypto investors. Traditional financial firms are banking on their finance industry expertise, long-standing reputations, and lack of regulatory scrutiny to attract clients. The new wave of legacy-backed crypto platforms will compete with Coinbase and Binance, which also host institutional clients. But traditional finance firms will compete by building more transparent operations — particularly in separating exchanges from asset custody to avoid conflict of interest and reduce risk. The report notes that BNY Mellon and Fidelity already operate separate crypto custody divisions. Meanwhile, the Nasdaq is waiting for regulators to greenlight its service.

FTC fines Amazon $25M for violating children’s privacy with Alexa

FTC fines Amazon $25M for violating children’s privacy with Alexa

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Some mildly bad news for the Bezos money machine: Amazon is being slapped with a $25 million fine over its practices for handling children’s data through its Alexa voice-activated assistant and Echo devices. That sounds like a lot to those of us that aren’t mega conglomerates or their leadership, but it’s about two days worth of income for Amazon based on its recent sales performance.

The Federal Trade Commission (FTC) and the Department of Justice (DOJ) today announced they have jointly filed a complaint against Amazon, saying the company “prevented parents from exercising their deletion rights under the COPPA Rule, kept sensitive voice and geolocation data for years, and used it for its own purposes, while putting data at risk of harm from unnecessary access.

“Today’s settlement on Amazon Alexa should set off alarms for parents across the country — and is a warning for every AI company sprinting to acquire more and more data.”

FTC Commissioner Alvaro M. Bedoya

The child privacy laws Amazon is accused of breaking

COPPA, which stands for the Children’s Online Privacy Protection Act, refers to a 1998 law passed by the U.S Congress, which states that “operators of commercial websites and online services (including mobile apps and IoT devices, such as smart toys)” that reach children under age 13 must post clear privacy policies, provide direct notice to parents, and allow parents to delete the information and prevent further collection.

“Amazon’s behavior in retaining children’s voice recordings indefinitely and ignoring parents’ requests for deletion contravenes COPPA and prioritizes profit over privacy,” argued Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “COPPA unequivocally prohibits companies from indefinitely storing children’s data without just cause, especially not for algorithm training purposes.”

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A warning to the AI industry

One of the FTC Commissioners, Alvaro M. Bedoya, also took the opportunity to tweet out a direct cautionary note to the fast-growing AI industry and any companies using machine learning: “Today’s settlement on Amazon Alexa should set off alarms for parents across the country — and is a warning for every AI company sprinting to acquire more and more data.”

In response to these charges, a proposed federal court order has been issued, pending approval, mandating that Amazon delete inactive child accounts, certain voice recordings, and geolocation data, and prohibit the company from using such data to train its algorithms.

Where Amazon went wrong

Despite Amazon’s repeated assurances to users about the ability to delete voice and geolocation data collected by its Alexa voice assistant service, the complaint alleges that the company reneged on these promises by retaining and leveraging the data for improving its Alexa algorithm.

Amazon, a leading global retailer, amasses extensive user data, including geolocation and voice recordings. It defends its data handling practices by claiming its Alexa service and Echo devices are designed with user privacy in mind, including parental controls for deleting geolocation data and voice recordings.

The complaint reveals that even when parents requested the deletion of their children’s voice recordings, Amazon failed to completely erase the transcripts from its databases, undermining the COPPA Rule that requires parental consent for the collection of children’s data, among other measures.

The FTC also filed a complaint today against Amazon’s home security subsidiary, Ring, over allegations that it jeopardized its customers’ privacy by allowing any employee or contractor to access private videos, and for failing to establish basic privacy and security measures.

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New Desktop Macs With M2 Ultra and M2 Max Chips Could See WWDC Debut

New Desktop Macs With M2 Ultra and M2 Max Chips Could See WWDC Debut

Apple is testing two desktop Macs that are equipped with M2 Max and ‌M2‌ Ultra chips, according to Bloomberg‘s Mark Gurman. The ‌M2‌ Max chip first came out in January with the launch of the 2023 14-inch and 16-inch MacBook Pro models, but the ‌M2‌ Ultra chip is new and would succeed the M1 Ultra chip that Apple uses in the Mac Studio.


Gurman does not know which specific Macs will feature the chips, but the machines are labeled as “Mac 14,13” and “Mac 14,14” internally. Previous rumors have suggested that the revamped Apple silicon Mac Pro could include the ‌M2‌ Ultra chip, the ‌Mac Pro‌ that Apple is developing is labeled as “14,8” internally, so the desktop machines in testing now are likely something else, perhaps new versions of the ‌Mac Studio‌. Apple is also working on new iMacs, but these are expected to feature M3 chips.

Back in April, Gurman said that there were updated ‌Mac Studio‌ machines planned for a future launch, but he also said that it was unlikely that Apple would release a version of the ‌Mac Studio‌ with an ‌M2‌ Ultra chip because it would be as powerful as the future ‌Mac Pro‌, giving customers little reason to opt for a ‌Mac Pro‌.

The first machine that Apple has been testing includes an ‌M2‌ Max chip with eight high-performance cores, four efficiency cores, a 30-core GPU, and 96GB RAM. The chip is the same as the chip that’s in the ‌M2‌ Max version of the 16-inch MacBook Pro.

The second machine has an ‌M2‌ Ultra chip with a 24-core CPU (16 high-performance cores and 8 efficiency cores) and a 60-core GPU, though prior information suggests that ‌M2‌ Ultra chips could feature up to a 76-core GPU. Different configurations feature 64GB, 128GB, and 192GB RAM.

Apple is testing these new Macs just ahead of WWDC, and Gurman says that he expects multiple Macs to be introduced at the event. One of those will be the 15-inch MacBook Air, but we don’t know which other Macs might appear. Gurman stops short of suggesting these new Macs with ‌M2‌ Max and ‌M2‌ Ultra chips will be introduced at WWDC, but it seems like a distinct possibility.