Justice Department Investigating TerraUSD Stablecoin Collapse

The U.S. Justice Department is probing last year’s collapse of the TerraUSD stablecoin, raising the possibility of criminal charges being filed against the stablecoin’s creator, Do Kwon, according to the Wall Street Journal, citing sources familiar with the matter. CoinDesk reports: The FBI and the Southern District of New York have interviewed former employees of Terraform Labs, the company behind TerraUSD, and sought to interview others, according to the Journal. Manhattan federal prosecutors are also examining chat-group discussions among prominent trading firms Jump Trading Group, Jane Street Group and failed FTX affiliate Alameda Research involving a potential bailout of TerraUSD, according to a separate report from Bloomberg, citing a person familiar with the matter.

Such a bailout never took place, but the investigation is seeking to determine whether the firms were involved in possible market manipulation. TerraUSD and its sister token, Luna, both eventually collapsed, setting off a series of high-profile failures of prominent crypto firms, including hedge fund Three Arrows capital, Voyager Digital and FTX. The Department of Justice previously alleged that an unnamed crypto firm — believed to be Jump — had bailed out TerraUSD once before, in an indictment against FTX founder Sam Bankman-Fried. In February, the SEC filed a civil fraud lawsuit against Kwon and Terraform Labs, accusing them of misleading investors about TerraUSD’s risks.

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US Regulators Bail Out SVB Customers, Who Can Access All Their Money Monday

Breaking news from CNN:

Treasury Secretary Janet Yellen on Sunday instructed the Federal Deposit Insurance Corporation to guarantee Silicon Valley Bank customers will have access to all of their money starting Monday.

By guaranteeing all deposits — even the uninsured money customers kept with the failed SVB bank — the government can ensure public confidence in America’s banking system, said Yellen, Federal Reserve Chair Jerome Powell and FDIC Chairman Martin J. Gruenberg in a joint statement….

The FDIC opened an auction Sunday for bids to acquire the bank, the Treasury Department said in a briefing with lawmakers in the California delegation, two sources familiar with the briefing told CNN…. Under Secretary for Domestic Finance Nellie Liang and Assistant Secretary for Legislative Affairs Jonathan Davidson led the briefing, during which they told members that the FDIC is prepared “to operate the institution” to ensure depositors can maintain payroll for their employees and that more operations will emerge in coming days, one of the sources said.

The treasury secretary’s statement clarified that “No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.”

We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer. Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.

Finally, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.

Meanwhile, congresswoman Nancy Pelosi said there are multiple potential buyers for SVB, and “What we would hope to see by tomorrow morning is for some other bank to buy the bank.” The UK arm of the bank has already received a bid from the Bank of London.

From the treasury secretary’s statement:

The U.S. banking system remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry.

Those reforms combined with today’s actions demonstrate our commitment to take the necessary steps to ensure that depositors’ savings remain safe.

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Meet Zig: the Modern Alternative to the C Programming Language

Systems-oriented developers already have programming languages like C, C++, Rust, and Go, notes InfoWorld.

But now, “we also have Zig, a newer language that seeks to absorb what’s best about these languages and offer comparable performance with a better, more reliable developer experience.”

Zig is a very active project. It was started by Andrew Kelley in 2015 and now seems to be reaching critical mass. Zig’s ambition is rather momentous in software history: to become the heir to C’s longstanding reign as both the go-to portable low-level language and as a standard to which other languages are compared….

Currently, Zig is being used to implement the Bun.js JavaScript runtime as an alternative to Node.js. Bun’s creator Jarred Sumner told me “Zig is sort of similar to writing C, but with better memory safety features in debug mode and modern features like defer (sort of similar to Go’s) and arbitrary code can be executed at compile-time via comptime. It has very few keywords so it’s a lot easier to learn than C++ or Rust.”

Zig differs from most other languages in its small feature footprint, which is the outcome of an explicit design goal: Only one obvious way to do things. Zig’s developers take this goal so much to heart that for a time, Zig had no for loop, which was deemed an unnecessary syntactic elaboration upon the already adequate while loop. Kevin Lynagh, coming from a Rust background, wrote, “The language is so small and consistent that after a few hours of study I was able to load enough of it into my head to just do my work.” Nathan Craddock, a C developer, echoed the sentiment. Programmers seem to really like the focused quality of Zig’s syntax.
While Zig is “approaching” production-ready status, the article notes its high degree of interoperability with C and C++, its unique error-handling system, and its elimination of a malloc keyword (leaving memory allocation to the standard library).

“For now, the Zig team appears to be taking its time with the 1.0 release, which may drop in 2025 or later — but none of that stops us from building all sorts of things with the language today.”

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The Daring Ruse That Exposed China’s Campaign To Steal American Secrets

The New York Times magazine tells the story of an innocuous-seeming message on LinkedIn in 2017 from Qu Hui, the deputy director of the China-based Provincial Association for International Science and Technology Development.

Federal agents eventually obtained search warrants for two Gmail addresses the official was using, and “In what would prove to be a lucky break, the investigators found that each email address was the Apple ID used for an iPhone, linked to an iCloud account where data from the phones was periodically backed up. The agents were later able to obtain search warrants for the two iCloud accounts [that] opened a treasure trove.”

This included confirmation of what they had suspected all along: that Qu worked for Chinese intelligence. His real name was Xu Yanjun. He had worked at the Ministry of State Security since 2003, earning six promotions to become a deputy division director of the Sixth Bureau in the Jiangsu Province M.S.S. Like so many of us, he had taken pictures of important documents using his iPhone — his national ID card, pay stubs, his health insurance card, an application for vacation — which is how they ended up in his iCloud account. There, investigators also found an audio recording of a 2016 conversation with a professor at N.U.A.A. in which Xu had talked about his job in intelligence and the risks associated with traveling. “The leadership asks you to get the materials of the U.S. F-22 fighter aircraft,” he told the professor. “You can’t get it by sitting at home.” The discovery of evidence of Xu’s identity in an iCloud account makes for a kind of delicious reversal. The ubiquitous use of iPhones around the world — a result of America’s technological prowess — was helping to fight back against a rival nation’s efforts to steal technology.
Qu scheduled a meeting in Brussels with one American target — where he was arrested and extradited to America, becoming the first-ever Chinese intelligence official convicted on U.S. soil on charges of economic espionage.

The prosecution contended that Xu had been systematically going after intellectual property at aerospace companies in the United States and Europe through cyberespionage and the use of human sources. It’s not often that prosecutors find a one-stop shop for much of their evidence, but that’s what Xu’s iCloud account was — a repository of the spy’s personal and professional life. That’s because often Xu used his iPhone calendar as a diary, documenting not just the day’s events but also his thoughts and feelings…. The messages in Xu’s iCloud account enabled investigators to make another damning discovery. Xu had helped coordinate a cyberespionage campaign that targeted several aviation technology companies….

At the end of the trial, Xu was convicted of conspiring and attempting to commit economic espionage and theft of trade secrets…. According to Timothy Mangan, who led the prosecution, the evidence laid out during Xu’s trial goes far beyond merely proving his guilt — it uncovers the systematic nature of China’s vast economic espionage. The revelation of Xu’s activities lifts the veil on how pervasive China’s economic espionage is, according to the F.B.I. agent. If just one provincial officer can do what he did, the agent suggests, you can imagine how big the country’s overall operations must be.
The article notes that the Chinese government “also offers financial incentives to help Chinese expats start their own businesses in China using trade secrets stolen from their American employers.” It also cites a 2019 report from a congressional committee’s security review that found “myriad ways in which Chinese companies, often backed by their government, help transfer strategic know-how from the United States to China.”
The maneuvers range from seemingly benign (acquiring American firms with access to key intellectual property) to notoriously coercive (compelling American companies to form joint ventures with Chinese firms and share trade secrets with them in return for access to the Chinese market) to outright theft. Cyberattacks have become an increasingly common tactic because they can’t always be linked directly to the Chinese government. Over the past few years, however, federal agents and cybersecurity experts in the U.S. have identified the digital footprints left along the trails of these attacks — malware and I.P. addresses among them — and traced this evidence back to specific groups of hackers with proven ties to the Chinese government.
One 2020 indictment blamed five “computer hackers” in China for breaching more than 100 organizations.

Thanks to Slashdot reader schwit1 for sharing the article.

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