A blockbuster prisoner exchange between the United States, Russia and Germany on Thursday included at least two prominent cybercriminals held by the U.S. on charges of financially motivated cybercrime and hacking to facilitate insider trading. Cyberscoop reports: The prisoners were part of a deal that freed 16 people from Russia, including Wall Street Journal reporter Evan Gershkovich and former U.S. Marine Paul Whelan. A White House spokesperson confirmed that as part of the deal, the U.S. released convicted Russian cybercriminals Roman Seleznev and Vladislav Klyushin.

Seleznev is a notorious Russian hacker known for running extensive cybercrime operations. He was involved in numerous cyberattacks, including credit card fraud, theft, and selling stolen credit card information on "Carder[dot]su," a cybercriminal forum ring. Seleznev conducted his criminal activities under the alias "Track2" and "nCux." He is the son of Valery Seleznev, a prominent member of the Russian Duma, the country's parliament. Seleznev was sentenced in 2017 to 27 years in prison for his involvement in a massive credit-card computer fraud scheme. Klyushin was extradited to the U.S. for his involvement in an elaborate hack-to-trade scheme that netted approximately $93 million through securities trades based on confidential corporate information stolen from U.S. computer networks. With insider knowledge of companies' financial performance, Klyushin and his co-conspirators predicted stock price movements and traded on stolen information. They used accounts in multiple countries, including Cyprus, Denmark, Portugal, Russia, and the U.S., misleading brokerage firms about their activities.

A U.S. judge has thrown out a Republican National Committee lawsuit accusing Alphabet's Google of intentionally misdirecting the political party's email messages to users' spam folders. From a report: U.S. District Judge Daniel Calabretta in Sacramento, California, on Wednesday dismissed the RNC's lawsuit for a second time, and said the organization would not be allowed to refile it. While expressing some sympathy for the RNC's allegations, he said it had not made an adequate case that Google violated California's unfair competition law.

The lawsuit alleged Google had intentionally or negligently sent RNC fundraising emails to Gmail users' spam folders and cost the group hundreds of thousands of dollars in potential donations. Google denied any wrongdoing.

Taco Bell's parent company, Yum! Brands, announced today that the fast-food chain will expand its Voice AI technology to "hundreds" of chains around the country by the end of the year. A global expansion of the service will follow. Fortune reports: Right now, more than 100 Taco Bell locations in 13 states rely on AI to take customer orders at the drive-thru. Company officials say that has resulted in improved order accuracy, shorter wait times, and higher profits. Human workers, the company says, will be freed up to focus on other tasks, ranging from interacting with guests who opt to order from the restaurant counter to preparing food. "Yum! Brands is integrating digital and technology into all aspects of our business with exciting new capabilities, and AI is a core piece of that strategy," said Lawrence Kim, chief innovation officer at Yum! Brands, in a statement. "With over two years of fine-tuning and testing the drive-thru Voice AI technology, we're confident in its effectiveness in optimizing operations and enhancing customer satisfaction."

An anonymous reader quotes a report from The Verge: The Senate passed the Kids Online Safety Act (KOSA) and the Children and Teens' Online Privacy Protection Act (also known as COPPA 2.0), the first major internet bills meant to protect children to reach that milestone in two decades. A legislative vehicle that included both KOSA and COPPA 2.0 passed 91-3. Senate Majority Leader Chuck Schumer (D-NY) called it "a momentous day" in a speech ahead of the vote, saying that "the Senate keeps its promise to every parent who's lost a child because of the risks of social media." He called for the House to pass the bills "as soon as they can."

KOSA is a landmark piece of legislation that a persistent group of parent advocates played a key role in pushing forward -- meeting with lawmakers, showing up at hearings with tech CEOs, and bringing along photos of their children, who, in many cases, died by suicide after experiencing cyberbullying or other harms from social media. These parents say that a bill like KOSA could have saved their own children from suffering and hope it will do the same for other children. The bill works by creating a duty of care for online platforms that are used by minors, requiring they take "reasonable" measures in how they design their products to mitigate a list of harms, including online bullying, sexual exploitation, drug promotion, and eating disorders. It specifies that the bill doesn't prevent platforms from letting minors search for any specific content or providing resources to mitigate any of the listed harms, "including evidence-informed information and clinical resources." The legislation faces significant opposition from digital rights, free speech, and LGBTQ+ advocates who fear it could lead to censorship and privacy issues. Critics argue that the duty of care may result in aggressive content filtering and mandatory age verification, potentially blocking important educational and lifesaving content.

The bill may also face legal challenges from tech platforms citing First Amendment violations.

Amazon is responsible for hazardous products sold by third-party sellers on its platform under the federal safety law and bears legal responsibility for their recall, the U.S. consumer protection authority said on Tuesday. From a report: The Consumer Product Safety Commission (CPSC) said it has issued an order for the e-commerce giant to propose remediation plans to notify consumers about these products and to remove them from consumers' homes by encouraging returns or destruction. More than 400,000 products are subject to this order, the CPSC said, noting in particular faulty carbon monoxide detectors, hairdryers without electrocution protection, and children's sleepwear that violated flammability standards. The CPSC has determined that Amazon was a "distributor" of such defective products as they are listed on its website, even though they are sold by third-party sellers under the "Fulfilled by Amazon" program.

Microsoft is calling on Congress to pass a comprehensive law to crack down on images and audio created with AI -- known as deepfakes -- that aim to interfere in elections or maliciously target individuals. From a report: Noting that the tech sector and nonprofit groups have taken steps to address the problem, Microsoft President Brad Smith on Tuesday said, "It has become apparent that our laws will also need to evolve to combat deepfake fraud." He urged lawmakers to pass a "deepfake fraud statute to prevent cybercriminals from using this technology to steal from everyday Americans."

The company also is pushing for Congress to label AI-generated content as synthetic and for federal and state laws that penalize the creation and distribution of sexually exploitive deepfakes. The goal, Smith said, is to safeguard elections, thwart scams and protect women and children from online abuses. Congress is currently mulling several proposed bills that would regulate the distribution of deepfakes.

The Justice Department has ramped up the case to ban TikTok, saying in a court filing Friday that allowing the app to continue operating in its current state could result in voter manipulation in elections. From a report: The filing was made in response to a TikTok lawsuit attempting to block the government's ban. The Justice Department warned that the app's algorithm and parent company ByteDance's alleged ties to the Chinese government could be used for a "secret manipulation" campaign.

"Among other things, it would allow a foreign government to illicitly interfere with our political system and political discourse, including our elections...if, for example, the Chinese government were to determine that the outcome of a particular American election was sufficiently important to Chinese interests," the filing said. Under a law passed in April, TikTok has until January 2025 to find a new owner or it will be banned in the U.S. The company is suing to have that law overturned, saying it violates the company's First Amendment rights. The Justice Department disputed those claims. "The statute is aimed at national-security concerns unique to TikTok's connection to a hostile foreign power, not at any suppression of protected speech," officials wrote.

Former U.S. president Donald Trump spoke at Nashville's Bitcoin Conference on Saturday.

But he wasn't the only one there making headlines, according to a local newspaper called the Tennesseean: Republican Sens. Cynthia Lummis and Tim Scott pledged their resolute support for the cryptocurrency industry at Nashville's Bitcoin2024 conference Friday — moments before whistleblower and political dissident Edward Snowden warned attendees to be wary of politicians trying to win them over. "Cast a vote, but don't join a cult," Snowden said. "They are not our tribe. They are not your personality. They have their own interests, their own values, their own things that they're chasing. Try to get what you need from them, but don't give yourself to them."

Snowden didn't call out any politicians specifically, but the conference has drawn national attention for its robust lineup of legislators including former President Donald Trump, independent presidential nominee Robert F. Kennedy Jr, former presidential candidate Vivek Ramaswamy and a number of other senators. "Does this feel normal to you?" Snowden said. "When you look at the candidates, when you look at the dynamics, even the people on stage giving all the speeches, I'm not saying they're terrible at all, but it's a little unusual. The fact that they're here is a little unusual...."

Two key tenets of Bitcoin are transparency and decentralization, which means anyone can view all Bitcoin transactions on a public ledger. Snowden said this kind of metadata could be dangerous in the wrong hands, especially with artificial intelligence innovations making it easier to collect. "It is fantasy to imagine they're not doing this," he said.... He added that other countries like China or Russia could be collecting this same data. Snowden said he's afraid the collection of transaction data could happen across financial institutions and ultimately be used against the customers.
Also speaking was RFK Jr — who asked why Snowden hadn't already been pardoned, along with Julian Assange and Ross Ulbricht, when Donald Trump was president (as Kennedy promised to do). According to USA Today, Kennedy promised more than just creating a strategic reserve of Bitcoin worth more than half a trillion dollars: Kennedy also pledged to sign an executive order directing the IRS to treat Bitcoin as an eligible asset for 1031 Exchange into real property — making transactions unreportable and by extension nontaxable — which prompted a roar of approval from the crowd.
Though Trump's appearance also ended with a promise to have the government create a "strategic national bitcoin stockpile," NBC News notes that Trump "stopped short of offering many details." Immediately following Trump's remarks, Senator Cynthia Lummis, R-Wyo., said she would introduce a bill to create the reserve. However, the price of bitcoin fell slightly in the wake of Trump's remarks Saturday, perhaps reflecting crypto traders' unmet expectations for a more definitive commitment on the reserve idea from the presidential candidate...

Shortly after his morning remarks, Bitcoin Magazine reported that a group of Democratic representatives and candidates had sent a letter to the Democratic National Committee urging party leaders to be more supportive of crypto...

On Saturday, the Financial Times reported [presidential candidate Kamala] Harris had approached top crypto companies seeking a "reset" of relations, citing unnamed sources.
Ironically, in the end one conference attendee ended up telling Bloomberg that "It doesn't really matter who the president is. I don't really care much about it, because Bitcoin will do its thing regardless."

As Comic-Con hits San Diego, "part of the big news in 2024 is that the con won't have a corresponding virtual or online event this year," according to Polygon, "for the first time since 2019."

But there's still some big scifi media news, according to CNET's Comic-Con coverage: Disney revealed a new Doctor Who addition to the franchise that will jump back to the 1970s with the Sea Devils, an ancient group of beings who arise from the sea. Made in partnership with the BBC, the series... will air on Disney Plus, where fans can currently stream season 14 of Doctor Who starring Ncuti Gatwa.
And there's also an upcoming Doctor Who Christmas special.

Meanwhile, Saturday night, USA Today ran a special article with late-breaking announcements about Marvel's Cinematic Universe: Marvel has already won Comic-Con, with a raucous screening of "Deadpool & Wolverine" followed by a high-tech drone show, and the box office, with the new movie on track to have one of the best openings of all time... Robert Downey Jr. returns to the MCU as Doctor Doom in Avengers: Doomsday. Kevin Feige says the Fantastic Four will be in the next two Avengers movies... And here comes the Fantastic Four [movie] a year from now. It starts filming Tuesday in the UK...
The article says Marvel's Fantastic Four presentation included "a Fantasti-Car that hovers across the stage — and that castmembers also appeared from the upcoming Thunderbolts* movie.

More geeky news:

• Amazon Prime showed a new four-minute trailer with clips from season two of its J.R.R. Tolkein prequel, "The Rings of Power". (And there was also a three-minute blooper reel for Season 4 of Prime's superhero-themed series, "The Boys".)

• Paramount+ showed a trailer for the Star Trek universe's first streaming movie, Section 31. There was also a trailer for season 5 of the animated comedy Star Trek: Lower Decks — plus a particularly strange clip from the fourth season of Star Trek: Strange New Worlds.

• Keanu Reeves accepted the Inkpot award for his contribution to the world of film and comics — partly because since 2021 Reeves has been co-authoring a Kickstarter-funded comic book called BRZRKR. (Netflix plans to adapt it into a movie.)

• Next February will see the release of Captain America: Brave New World, in which the Incredible Hulk may get some competition from Harrison Ford, who's been cast as the Red Hulk.

But things got a little too real Friday when a fire at a nearby steakhouse forced the evacuation of the immersive "Penguin Lounge" — which was promoting Max's new prequel series to 2022's movie The Batman.

On Wednesday, Judge Nina Morrison ruled that cellphone searches at the border are "nonroutine" and require probable cause and a warrant, likening them to more invasive searches due to their heavy privacy impact. As reported by Reason, this decision closes the loophole in the Fourth Amendment's protection against unreasonable searches and seizures, which Customs and Border Protection (CBP) agents have exploited. Courts have previously ruled that the government has the right to conduct routine warrantless searches for contraband at the border. From the report: Although the interests of stopping contraband are "undoubtedly served when the government searches the luggage or pockets of a person crossing the border carrying objects that can only be introduced to this country by being physically moved across its borders, the extent to which those interests are served when the government searches data stored on a person's cell phone is far less clear," the judge declared. Morrison noted that "reviewing the information in a person's cell phone is the best approximation government officials have for mindreading," so searching through cellphone data has an even heavier privacy impact than rummaging through physical possessions. Therefore, the court ruled, a cellphone search at the border requires both probable cause and a warrant. Morrison did not distinguish between scanning a phone's contents with special software and manually flipping through it.

And in a victory for journalists, the judge specifically acknowledged the First Amendment implications of cellphone searches too. She cited reporting by The Intercept and VICE about CPB searching journalists' cellphones "based on these journalists' ongoing coverage of politically sensitive issues" and warned that those phone searches could put confidential sources at risk. Wednesday's ruling adds to a stream of cases restricting the feds' ability to search travelers' electronics. The 4th and 9th Circuits, which cover the mid-Atlantic and Western states, have ruled that border police need at least "reasonable suspicion" of a crime to search cellphones. Last year, a judge in the Southern District of New York also ruled (PDF) that the government "may not copy and search an American citizen's cell phone at the border without a warrant absent exigent circumstances."

Internet service providers are pushing back against the Biden administration's requirement for low-cost options even as they are attempting to secure funds from a $42.45 billion government broadband initiative. The Broadband Equity, Access, and Deployment program, established by law to expand internet access, mandates that recipients offer affordable plans to eligible low-income subscribers, a stipulation the providers argue infringes on legal prohibitions against rate regulation. ISPs claim that the proposed $30 monthly rate for low-cost plans is economically unfeasible, especially in hard-to-reach rural areas, potentially undermining the program's goals by discouraging provider participation.

Open AI models that allow developers to customize them with few restrictions are more likely to promote competition, FTC Chair Lina Khan said, weighing in on a key debate within the industry. From a report: "There's tremendous potential for open-weight models to promote competition," Khan said Thursday in San Francisco at startup incubator Y Combinator. "Open-weight models can liberate startups from the arbitrary whims of closed developers and cloud gatekeepers."

"Open-weight" models disclose what an AI model picked up and was tweaked on during its training process. That allows developers to better customize them and makes them more accessible to smaller companies and researchers. But critics have warned that open models carry an increased risk of abuse and could potentially allow companies from geopolitical rivals like China to piggyback off the technology. Khan's comments come as the Biden administration is considering guidance on the use and safety of open-weight models.

More students are getting high scores on Advanced Placement tests, long seen as a gateway to elite college admissions as well as a way to earn college credit during high school. From a report: Changes by the tests' maker in recent years have shifted scores upward. That has led to hundreds of thousands of additional students getting what's considered a passing score -- 3 or above on the 1-to-5 scale -- on exams in popular courses including AP U.S. History and AP U.S. Government.

The nonprofit behind the tests, College Board, says it updated the scoring by replacing its panel of experts with a large-scale data analysis to better reflect the skills students learn in the courses. Some skeptical teachers, test-prep companies and college administrators see the recent changes as another form of grade inflation, and a way to boost the organization's business by making AP courses seem more attractive.

"It is hard to argue with the premise of AP, that students who are talented and academically accomplished can get a head start on college," said Jon Boeckenstedt, the vice provost of enrollment at Oregon State University. "But I think it's a business move." The number of students cheering their higher AP scores could rise again next year. The College Board said it is still recalibrating several other subjects, including its most popular course, AP English Language, which attracts more than half a million test takers.

Yesterday, the Energy Information Agency (EIA) released electricity generation numbers for the first five months of 2024, revealing that solar power generation increased by 25% compared to the same period last year. Ars Technica's John Timmer reports: The EIA breaks down solar production according to the size of the plant. Large grid-scale facilities have their production tracked, giving the EIA hard numbers. For smaller installations, like rooftop solar on residential and commercial buildings, the agency has to estimate the amount produced, since the hardware often resides behind the metering equipment, so only shows up via lower-than-expected consumption.

In terms of utility-scale production, the first five months of 2024 saw it rise by 29 percent compared to the same period in the year prior. Small-scale solar was "only" up by 18 percent, with the combined number rising by 25.3 percent. Most other generating sources were largely flat, year over year. This includes coal, nuclear, and hydroelectric, all of which changed by 2 percent or less. Wind was up by 4 percent, while natural gas rose by 5 percent. Because natural gas is the largest single source of energy on the grid, however, its 5 percent rise represents a lot of electrons -- slightly more than the total increase in wind and solar.

Overall, energy use was up by about 4 percent compared to the same period in 2023. This could simply be a matter of changing weather conditions that required more heating or cooling. But there have been several trends that should increase electricity usage: the rise of bitcoin mining, growth of data centers, and the electrification of appliances and transport. So far, that hasn't shown up in the actual electricity usage in the US, which has stayed largely flat for decades. It could be possible that 2024 is the year where usage starts going up again. Since the findings are based on data from before some of the most productive months of the year for solar power, solar production for the year as a whole could increase by much more than 25%. Overall, the EIA predicts solar production could rise by as much as 42% in 2024.

The U.S. Department of Commerce is ignoring Kaspersky's latest proposal to address cybersecurity concerns, despite the Russian firm's efforts to prove its products are free from Kremlin influence. Kaspersky's new framework includes localizing data processing in the U.S. and allowing third-party reviews. However, the Commerce Department hasn't responded to the security firm, which was recently banned by the U.S. Kaspersky told The Register it's pursuing legal options.

Minnesota has become the second state to pass what it's calling a "Jetsons law," establishing rules for cars that can take to the sky. New Hampshire was the first to enact a "Jetsons" law. From a report: The new road rules in Minnesota address "roadable aircraft," which is basically any aircraft that can take off and land at an airfield but is also designed to be operated on a public highway. The law will let owners of these vehicles register them as cars and trucks, but they won't have to obtain a license plate. The tail number will suffice instead.

As for operation, flying cars won't be allowed to take off or land on public roadways, Minnesota officials declared (an exception is made in the case of emergency). Those shenanigans are restricted to airports. While the idea of a Jetsons-like sky full of flying cars is still firmly rooted in the world of science fiction, the concept of flying cars isn't quite as distant as it might seem (though it has some high-profile skeptics). United Airlines, two years ago, made a $10 million bet on the technology, putting down a deposit for 200 four-passenger flying taxis from Archer Aviation, a San Francisco-based startup working on the aircraft/auto hybrid.

A U.S. appeals court has ruled that the Federal Communications Commission's Universal Service Fund, which collects fees on phone bills to support telecom network expansion and affordability programs, is unconstitutional, potentially upending the $8 billion-a-year system.

The 5th Circuit Court's 9-7 decision, which creates a circuit split with previous rulings in the 6th and 11th circuits, found that the combination of Congress's delegation to the FCC and the FCC's subsequent delegation to a private entity violates the Constitution's Legislative Vesting Clause. FCC Chairwoman Jessica Rosenworcel criticized the ruling as "misguided and wrong," vowing to pursue all available avenues for review.

Southwest Airlines announced Thursday that it will get rid of open seating in a sweeping change from its decades-long practice. Instead, it will begin assigning seats and offer premium seating with extra leg room. From a report: Southwest CEO Bob Jordan said, "Our implementation of assigned and premium seating is part of an ongoing and comprehensive upgrade to the Customer Experience, one that research shows Customers overwhelmingly prefer."

The low-fare airline has had a tradition of open seating for more than 50 years. Customers taking longer flights preferred assigned seats, according to Southwest. Airlines can also charge more for assigned and premium seating, enabling them to boost profits.

A little-known spyware maker based in Minnesota has been hacked, TechCrunch reports, revealing thousands of devices around the world under its stealthy remote surveillance. From the report: A person with knowledge of the breach provided TechCrunch with a cache of files taken from the company's servers containing detailed device activity logs from the phones, tablets, and computers that Spytech monitors, with some of the files dated as recently as early June.

TechCrunch verified the data as authentic in part by analyzing some of the exfiltrated device activity logs that pertain to the company's chief executive, who installed the spyware on one of his own devices. The data shows that Spytech's spyware -- Realtime-Spy and SpyAgent, among others -- has been used to compromise more than 10,000 devices since the earliest-dated leaked records from 2013, including Android devices, Chromebooks, Macs, and Windows PCs worldwide. Spytech is the latest spyware maker in recent years to have itself been compromised, and the fourth spyware maker known to have been hacked this year alone, according to TechCrunch's running tally.

The US is warning homegrown tech startups and venture capital firms that some foreign investments may be fronts for hostile nations seeking data and technology for their governments or to undermine American businesses. From a report: Several US intelligence agencies are spotlighting the concern in a joint bulletin Wednesday to small businesses, trade associations and others associated with the venture capital community, according to the National Counterintelligence and Security Center. "Unfortunately our adversaries continue to exploit early-stage investments in US startups to take their sensitive data," said Michael Casey, director of the NCSC. "These actions threaten US economic and national security and can directly lead to the failure of these companies."

Washington has ramped up scrutiny of investments related to countries it considers adversaries, most notably China, as advanced technologies with breakthrough commercial potential, such as artificial intelligence, can also be used to enhance military or espionage capabilities. [...] Small tech companies and venture capitalists "are not in a position to assess the national security implications of their investments," said Mark Montgomery, former executive director of the Cyberspace Solarium Commission, which was assigned to develop a US cybersecurity strategy. "There are way too many examples where what appears to be, at best, potentially only dual-use or non-military-use technology is quickly twisted and used as a national security tool."