JP Morgan Says Startup Founder Used Millions Of Fake Customers To Dupe It Into An Acquisition

JPMorgan Chase is suing the 30-year-old founder of Frank, a buzzy fintech startup it acquired for $175 million, for allegedly lying about its scale and success by creating an enormous list of fake users to entice the financial giant to buy it. Forbes: Frank, founded by former CEO Charlie Javice in 2016, offers software aimed at improving the student loan application process for young Americans seeking financial aid. Her lofty goals to build the startup into “an Amazon for higher education” won support from billionaire Marc Rowan, Frank’s lead investor according to Crunchbase, and prominent venture backers including Aleph, Chegg, Reach Capital, Gingerbread Capital and SWAT Equity Partners. The lawsuit, which was filed late last year in U.S. District Court in Delaware, claims that Javice pitched JP Morgan in 2021 on the “lie” that more than 4 million users had signed up to use Frank’s tools to apply for federal aid.

When JP Morgan asked for proof during due diligence, Javice allegedly created an enormous roster of “fake customers — a list of names, addresses, dates of birth, and other personal information for 4.265 million ‘students’ who did not actually exist.” In reality, according to the suit, Frank had fewer than 300,000 customer accounts at that time. […] Frank’s chief growth officer Olivier Amar is also named in the JP Morgan complaint. It alleges that Javice and Amar first asked a top engineer at Frank to create the fake customer list; when he refused, Javice approached “a data science professor at a New York City area college” to help. Using data from some individuals who’d already started using Frank, he created 4.265 million fake customer accounts — for which Javice paid him $18,000 — and had it validated by a third-party vendor at her direction, JP Morgan alleges. Amar, meanwhile, spent $105,000 buying a separate data set of 4.5 million students from the firm ASL Marketing, per the complaint.

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Many People Aren’t Sticking Around Mastodon

The number of active users on the Mastodon social network has dropped more than 30% since the peak and is continuing a slow decline, according to the latest data posted on its website. There were about 1.8 million active users in the first week of January, down from over 2.5 million in early December. The Guardian reports: Mastodon, an open-source network of largely independently hosted servers, has often been touted as an alternative to Twitter. And its growth appears connected to controversies at Twitter. But for many it doesn’t fulfill the role that Twitter did and experts say it may be too complicated to really replace it. […]

There were about 500,000 active Mastodon users before Elon Musk took control of Twitter at the end of October. By mid-November, that number climbed to almost 2 million active users. […] The surge in new Mastodon users continued throughout November, peaking at over 130,000 new users a day. The upticks often coincided with controversial decisions made by Elon Musk. Data from Google suggests there was also a surge in searches for Mastodon in April 2022, around the time Musk announced he had become Twitter’s largest shareholder.

“Twitter, in its most basic form is simple,” Meg Coffey, a social media strategist, said. “You can open up an app or open up a website, type some words, and you’re done. I mean, it was [a] basic SMS platform.” For many, Mastodon may have proved too hard to port over their communities and was just too complicated. Some may have gone back to Twitter, while others, said Coffey, may have dropped social media entirely. “Everybody went and signed up [on Mastodon] and realized how hard it was, and then got back on Twitter and were like, ‘Oh, that’s, that’s hard. Maybe we won’t go there,'” she said. “It’s like the people that said ‘I’m moving to Canada’ when Donald Trump was elected,” Coffey added. “They never actually moved to Canada.”

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MSI Intends ‘To Continue With Afterburner’ Overclocking App Despite Not Paying Its Russian Dev

Jacob Ridley writes via PC Gamer: MSI Afterburner is an app used the world over for graphics card monitoring, overclocking, and undervolting. It’s become pretty synonymous with general GPU tinkering, yet the app’s developer has suggested it might not have long left to live in a forum post earlier this month. MSI disagrees, telling us “we fully intend to continue with MSI Afterburner.” MSI Afterburner is developed by Alexey ‘Unwinder’ Nicolaychuk, a Russian national who has kept the overclocking app functioning over many years. Nicolaychuk is also responsible for the development of RivaTuner Statistics Server, which is part of the foundational software layer powering Afterburner. In a post on the Guru3D forums (via TechPowerUp), Nicolaychuk suggests that Afterburner’s development has been “semi-abandoned.” “…MSI afterburner project is probably dead,” Nicolaychuk says.

“War and politics are the reasons. I didn’t mention it in MSI Afterburner development news thread, but the project is semi abandoned by company during quite a long time already. Actually we’re approaching the one year mark since the day when MSI stopped performing their obligations under Afterburner license agreement due to ‘politic [sic] situation’.” Nicolaychuk says development of the app has continued over the past 11 months, but that may also be ending soon. “I tried to continue performing my obligations and worked on the project on my own during the last 11 months, but it resulted in nothing but disappointment; I have a feeling that I’m just beating a dead horse and waste energy on something that is no longer needed by company. “Anyway I’ll try to continue supporting it myself while I have some free time, but will probably need to drop it and switch to something else, allowing me to pay my bills.”

Development of the RivaTuner Statistics Server — software is pivotal to many of the functions of Afterburner — is materially separate from Afterburner and will continue, Nicolaychuk notes. Nicolaychuk suggests the issue comes down to Russia’s invasion of Ukraine, and we’ve since confirmed with MSI that this is the case. MSI has stated to PC Gamer that the payments were halted due to the ongoing war in Ukraine, saying: “payments had been put on hold due to the RU/UA war and the economic regulations that entailed.” […] On this being the end for Afterburner, MSI disagrees. “We fully intend to continue with MSI Afterburner,” MSI tells PC Gamer. “MSI have been working on a solution and expect it to be resolved soon.”

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Successful Strike at University of California Sparks Organizing Surge Among US Academic Workers

An anonymous reader shares this report from the Los Angeles Times:
The University of California strike is over, culminating last month in significant improvements in wages and working conditions after 48,000 teaching assistants, tutors, researchers and postdoctoral scholars walked off their jobs in the nation’s largest labor action of academic workers. But the effects of the historic strike still reverberate across the nation, helping energize an unprecedented surge of union activism among academic workers that could reshape the teaching and research enterprise of American higher education.

In 2022 alone, graduate students representing 30,000 peers at nearly a dozen institutions filed documents with the National Labor Relations Board for a union election. They include USC, Northwestern, Yale, Johns Hopkins, the University of Chicago, Boston University and the Massachusetts Institute of Technology. Caltech plans to officially kick off its organizing campaign this month, and other academic researchers are working to form unions at the University of Alaska, Western Washington University, the National Institutes of Health and such influential think tanks as the Brookings Institution and Urban Institute.

A confluence of several factors has propelled the burst of labor activism: disaffection with rising inflation, unaffordable housing, limited healthcare, growing student debt, university treatment of academic workers during the pandemic, and a more union-friendly Biden administration. But students and labor experts also point to the influence of the UC strike, which drew national attention by marshaling four UAW bargaining units on all 10 campuses and the Lawrence Berkeley National Laboratory to pull off a massive walkout that shut down classes, suspended research, roiled finals and upended grading — ultimately winning some of the largest wage gains ever secured by academic workers.

In the article there’s examples of stipends recently increasing at other universities, either as a result of student strikes or the need “to remain competitive” in attracting top talent.

A Cornell senior lecturer/director of labor education research also cites some interesting statistics from a 2021 Gallup poll: 77% of people between the ages of 18 and 34 support unions — the largest level of support among all age demographics.

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Cryonics Company Charges a Monthly Subscription Fee (Plus Your Life Insurance Payout)

“To date, about 500 people have been put in cryogenic stasis after legal death,” writes a Bloomberg Opinion technology columnist, “with the majority of them in the U.S.

“But a few thousand more, including Emil Kendziorra, are on waiting lists, wearing bracelets or necklaces with instructions for emergency responders. ”

Kendziorra, 36, runs Berlin-based Tomorrow Biostasis GmbH, one of the first cryonics businesses in Europe to join a market dominated by American firms organizations like The Alcor Life Extension Foundation and The Cryonics Institute. The former cancer doctor has several hundred people on his firm’s waiting list. They skew to their late 30s, male and tend to work in technology. Patients can choose to have their entire body preserved and held upside down in a four-person dewars, a thermos-like aluminum vat filled with liquid nitrogen, or just preserve their brain, which is cheaper.

Kendziorra says cryopreservation overall has become less expensive over the past few decades on an inflation-adjusted basis, a claim that he bases on historic prices published by his peers, who he says are making a collective effort to bring down costs. That could be critical to shifting cryonics from a fringe pursuit to something a little more mainstream, especially since it is no longer just for billionaires like PayPal Inc. co-founder Peter Thiel (who has reportedly signed up with Alcor). Kendziorra, for instance, has made cryonics just another monthly subscription by capitalizing on insurance, he told me during a Twitter Spaces discussion on cryonics last month. His customers pay a 25-euro ($26.54) monthly fee to Tomorrow Biostasis, and they also make the company the beneficiary of a minimum 100,000-euro life insurance payout upon their legal death. Kendziorra says that covers the full cost of cryonics including the biggest outlay: maintenance over the next century or so.

All told, most of his customers are paying about 50 euros a month for both the company’s subscription fee and the life insurance policy for the option of a long sleep at death. Of course, most companies don’t survive for more than a century, so Tomorrow Biostasis also partners with a non-profit group in Switzerland to carry out the storage of customers on its behalf…. The domain itself is largely funded by wealthy individuals including CEOs of tech companies, angel investors and scientists, Kendziorra says, adding that for them to invest in his own firm, their primary motivation shouldn’t be “monetary” but rather to help further the field.

The mechanics all sound sensible, but that still leaves the question of whether cryonics will work, medically speaking. Doctors and scientists have used words like quackery, pseudoscience and outright fraud to describe the field. Clive Cohen, a neuroscientist from Kings College London, has called it a “hopeless aspiration that reveals an appalling ignorance of biology.” The Association of Cryobiology has compared it to turning a hamburger back into a cow.

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