The DOJ accused Zhao of allowing criminal activity to flourish on the crypto exchange. “Binance turned a blind eye to its legal obligations in the pursuit of profit. Its willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform,” Treasury Secretary Janet Yellen said in November.

The government accused Binance of refusing to comply with American sanctions and failing to report suspicious transactions related to drugs and child sexual abuse materials. Prosecutors said in court that Zhao had told Binance employees it was “better to ask for forgiveness than permission” while bragging that if Binance had obeyed the law, it wouldn’t be “as big as we are today.”

Under the plea deal’s terms, Binance agreed to forfeit $2.5 billion and pay a $1.8 billion fine. Zhao personally paid $50 million as part of the settlement.

Although the charges differed, Zhao’s sentence is dramatically shorter than the 25 years fellow crypto figurehead Sam Bankman-Fried received in March. SBF, as he’s often known, was convicted on seven counts of fraud and conspiracy for his role at the helm of the crypto platform FTX.

Zhao played an integral role in Bankman-Fried’s downfall — and the crypto industry’s broader decline in the last 18 months. The Binance founder tweeted in November 2022 that his company would liquidate its holdings in FTX’s de facto token. He said “recent revelations that have came[sic] to light” while citing “ethical concerns” and “regulatory risks.” The posts not only crushed FTX but the crypto world at large. (They likely helped attract the government’s attention as well.) When FTX’s wells dried up following the platform’s rapid collapse, Zhao briefly agreed to buy the company but quickly backed out.

Prosecutors said Zhao’s crime carried a standard federal sentence of 12 to 18 months but argued for a three-year term, describing his crimes as being “on an unprecedented scale.” But Judge Richard A. Jones saw it differently, sentencing him to a measly one-twelfth of the government’s suggested term.

“This wasn’t a mistake — it wasn’t a regulatory oops,” Kevin Mosley, a DOJ lawyer, reportedly said in court on Tuesday. “Breaking U.S. law was not incidental to his plan to make as much money as possible. Violating the law was integral to that endeavor.”

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The US government is attempting to send a strong message about using cryptocurrency for illegal purposes. "These charges should serve as yet another warning to those who think they can turn to cryptocurrency to conceal their crimes and hide their identities, including cryptocurrency mixers: it does not matter how sophisticated your scheme is or how many attempts you have made to anonymize yourself, the Justice Department will find you and hold you accountable for your crimes," Attorney General Merrick B. Garland said in a statement.

If you're unfamiliar, a cryptocurrency mixer is a service that makes it harder to track funds from their origin to the new owner. Most blockchains, like Bitcoin and Ethereum, are visible, so a mixer helps individuals hide their money flow — whether it be for reasonable or illegal activities. Chainalysis, a cryptocurrency analysis firm, found that in 2022, crypto addresses known for unlawful activity used mixers in almost 10 percent of transactions.

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The DOJ began its investigation in 2020 when the department’s Immigrant and Employee Rights Section received complaints of employee discrimination. Kristen Clarke, Assistant Attorney General of the DOJ’s Civil Rights Division, said in a statement that the “investigation found that SpaceX failed to fairly consider or hire asylees and refugees because of their citizenship status” going on to say that this amounted to a “ban” regardless of their qualifications. This is a violation of federal law.

The investigation also found that “SpaceX recruiters and high-level officials took actions that actively discouraged” these people from seeking employment with the company.

The DOJ lawsuit seeks damages and back pay for “asylees and refugees who were deterred or denied employment at SpaceX.” It also seeks civil penalties and hiring policy changes from the company. The Immigrant and Employee Rights Section (IER) even alleges that SpaceX ignored a subpoena related to the suit in 2021, forcing the DOJ to request a judge order the company to comply with document requests.

The IER opened this probe in 2020 after claimant Fabian Hutter alleged discrimination after losing a spot at SpaceX when asked about his citizenship status during a job interview. It's requesting other alleged victims to come forward and contact the department, particularly if they were discouraged from applying to SpaceX due to citizenship concerns.

Is this the only Elon Musk-led company facing legal troubles regarding hiring practices and employee treatment? Of course not! The self-proclaimed “Technoking of Tesla” faced penalties when a federal court found that Musk made unlawful threats surrounding employee compensation and unions. There’s also a suit making its way through the New York courts that alleges Musk and Tesla fired workers “in retaliation for union activity.”

Another big suit alleged a racist work environment at Tesla, which was recently settled for just over $3 million. Employees recently sued Twitter/X after Musk-led mass layoffs. The list goes on and on for the man who used to repeatedly state that he simply wants to save the world. Nowadays, he spends most of his time issuing controversial posts on X and being investigated for building literal glass houses using Tesla company funds.

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The DOJ’s complaint accuses eBay of selling, offering for sale or causing the sale of over 343,000 aftermarket “defeat devices,” which bypass vehicle emission controls. The devices, familiar to many from Volkswagen’s “Dieselgate” scandal, allow vehicles to cheat emissions tests, making them appear up to par on EPA standards when they aren’t — all in the name of a little performance boost.

“Aftermarket defeat devices significantly increase pollution emissions – including carbon monoxide, nitrogen oxides, particulate matter and nonmethane hydrocarbons – that harm public health and impede efforts by the EPA, states, Tribes and local agencies to plan for and attain air quality standards,” the DOJ wrote today.

The complaint says eBay also unlawfully distributed or sold at least 23,000 pesticide products that were unregistered, misbranded or restricted-use. The DOJ says the EPA issued a “stop sale” order in 2020 (amended in 2021), after which eBay continued to violate it. “Examples include a high toxicity insecticide banned in the United States, restricted use pesticides that only certified applicators may apply and products fraudulently claiming to protect users against the SARS-CoV-2 virus,” the DOJ wrote.

The filing adds that eBay distributed over 5,600 products violating the TSCA Methylene Chloride Rule, a banned (potentially deadly) chemical used in paint and coating removers.

In a statement, eBay said it blocks and removes more than 99.9% of listings for products cited by the DOJ. “And eBay has partnered closely with law enforcement, including the DOJ, for over two decades on identifying emerging risks and assisting with prevention and enforcement,” the online retailer wrote. “The Government’s actions are entirely unprecedented and eBay intends to vigorously defend itself.”

The DOJ asserted that EPA standards will be enforced. “Our nation’s environmental laws protect public health and the environment by prohibiting the unlawful sale of defeat devices; unregistered, misbranded and restricted use pesticides; and unsafe products containing toxic chemicals such as methylene chloride,” said David M. Uhlmann from the EPA’s Office of Enforcement and Compliance Assurance. “The complaint filed today demonstrates that EPA will hold online retailers responsible for the unlawful sale of products on their websites that can harm consumers and the environment.”

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According to Reutersand Consumer Reports, Tesla vehicles didn't hit Environmental Protection Agency (EPA) range estimates in road tests. The EPA tests vehicle ranges on rollers in a lab. The New York Times points out that all EVs have a lower range in colder temperatures, but even in warm weather, a Tesla Model Y ran out of juice at least 50 miles below its claimed range in Consumer Reports' tests.

Tesla, which has been penalized in other countries for failing to disclose that its EVs have shorter ranges in low temperatures, reportedly formed a special team that sought to quash complaints about the distance its cars can travel on a single charge. The team is said to have told customers who flagged such issues with their EVs that EPA range figures were merely predictions and that the range would be reduced due to battery degradation.

As the Times notes, when the term "related parties” is used in a regulatory filing, it often refers to senior management, company directors or major shareholders. Earlier this year, it was reported that Tesla opened an internal investigation to determine whether CEO Elon Musk dipped into company coffers to help fund a glass house he was building. The US Attorney's Office for the Southern District of New York and SEC are said to have asked the company for information related to the house and other personal benefits afforded to Musk.

In its filing, Tesla noted that the National Highway Traffic Safety Administration, the National Transportation Safety Board, the SEC and other local, state, federal and international regulators have also sought information from the company related to a variety of investigations and inquiries. Tesla does not have a PR department that can be reached for comment.

"To our knowledge, no government agency in any ongoing investigation has concluded that any wrongdoing occurred," Tesla said in its SEC filing. "We cannot predict the outcome or impact of any ongoing matters. Should the government decide to pursue an enforcement action, there exists the possibility of a material adverse impact on our business, results of operation, prospects, cash flows, financial position or brand."

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Raghavan, who was testifying as part of the DOJ’s ongoing antitrust suit against the company, said Google’s search advertising made $146.4 billion in revenue in 2021, which puts the $26 billion it paid for default status in perspective. The executive clarified that default status was the most costly part of what it pays to acquire traffic.

Raghavan didn’t mention how much of the $26.3 billion went to Apple. But CNBC reports that an estimate from private wealth management firm Bernstein ballparked that Google could pay Apple up to $19 billion this year for the default privilege.

A slide shown in court revealed that, in 2014, Google brought in $47 billion in search revenue while paying $7.1 billion for default status. Raghavan testified that Google’s overall default search engine payments nearly quadrupled from 2014 to 2021, while its search advertising revenue (roughly) tripled.

Google objected to making the figures public, arguing it would hurt its ability to negotiate future contracts. Judge Amit Mehta, overseeing the case, disagreed.

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At the heart of the issue is a federal program administered by the Department of Labor and the Department of Homeland Security called the Permanent Labor Certification Program (PERM). PERM allows US employers to file for foreign workers on visas to become permanent US residents. As part of the PERM process, employers are required to prominently advertise open positions so that anyone can apply to them regardless of citizenship status.

The DOJ said that Apple violated these rules by not advertising PERM positions on their recruiting website, and also made it harder for people to apply by requiring mailed-in paper applications, something that it did not do for regular, non-PERM positions. As a result, a DOJ investigation found that Apple received few or no applications for these positions from US citizens or permanent residents who do not require work visas.

As part of the settlement, Apple will pay $6.75 million in civil penalties and set up a $18.25 million fund to pay back eligible discrimination victims, the DOJ’s statement said.

Apple disagreed with the DOJ’s characterization. “Apple proudly employs more than 90,000 people in the United States and continues to invest nationwide, creating millions of jobs,” a company spokesperson told CNBC. “When we realized we had unintentionally not been following the DOJ standard, we agreed to a settlement addressing their concerns. We have implemented a robust remediation plan to comply with the requirements of various government agencies as we continue to hire American workers and grow in the US”

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The number shed more light on the relationship between two of the world’s largest tech companies, which has come under antitrust scrutiny in the last few years. The DOJ has accused Google of using its vast resources to maintain market dominance by paying companies like Apple, whose iPhone, iPad, and Mac devices have billions of users collectively, to be the default search engine on Safari. In 2021, Google reportedly paid Apple “around $18 billion” to be the default search engine on Safari, a New York Times report revealed. Whether that $18 billion is on top of Apple’s 36 percent cut is unclear — on November 15th, Business Insider reported that it was included in the 36 percent of search revenue and not a separate fee, but that hasn’t been confirmed yet by any Google executives under oath.

Last week, Google and Apple had raised objections making details of their arrangement public, Bloomberg noted. Google said that making more details public “would unreasonably undermine Google’s competitive standing in relation to both competitors and other counterparties” in a court filing.

It’s not clear how much ad revenue Google generates from Safari, but it’s safe to assume that 36 percent of that number would likely be tens of billions of dollars. In 2022, Google’s total revenue was $279.8 billion, and a majority of it came from advertising.

Google and Apple did not respond to Engadget’s request for comment.

Update, November 15, 2023, 4:10PM ET: This story and its sub-headline has been updated to note that it’s not clear if Apple’s 36 percent cut of search revenues is on top of the $18 billion that Google reportedly pays the company to be the default search engine in the Safari browser. The sub-headline originally stated that the $18 billion was in addition to the 36 percent cut.

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The FBI says it developed a decryption tool, which it has used to help over 500 Blackcat victims recover their data —saving more than $68 million in ransom payments. The agency adds that it has “gained visibility into the Blackcat ransomware group’s computer network” and seized several of its websites.

“With a decryption tool provided by the FBI to hundreds of ransomware victims worldwide, businesses and schools were able to reopen, and health care and emergency services were able to come back online,” Monaco wrote. “We will continue to prioritize disruptions and place victims at the center of our strategy to dismantle the ecosystem fueling cybercrime.”

Blackcat’s developers create and update the ransomware software, which “affiliates” deploy in attacks on high-value targets; the developers and attackers then split the profits. Once an affiliate has infiltrated a network, they typically steal sensitive data before encrypting the victim’s system, incapacitating it. They then ask for a ransom. If the victims pay, the hackers say they’ll decrypt the system and abstain from exposing their confidential information. If the targets refuse to pony up, the hackers leave the victims locked out and publish their spicy documents on the dark web.

Blackcat took credit for infiltrating businesses and other US and European organizations. These included hacks on MGM Resorts, Caesars Entertainment, Reddit, US critical infrastructure (government facilities, emergency services, defense industrial base companies, critical manufacturing and healthcare facilities), a large UK hospital group and various attacks across the energy sector.

Its members aren’t afraid to think outside the box, either. Last month, Blackcat affiliates reportedly ratcheted the pressure on a hacked company by snitching to the SEC for not reporting their infiltration.

Although this could only be a fleeting upper hand in a long-running game of cat and mouse, the DOJ warns it’s just getting started. “Criminal actors should be aware that the announcement today is just one part of this ongoing effort,” wrote the DOJ’s Acting Assistant Attorney General Nicole M. Argentieri. “Going forward, we will continue our investigation and pursue those behind Blackcat until they are brought to justice.”

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The New York Times report says the investigation has expanded beyond what was previously reported, according to people with knowledge of the meetings. Among other areas, its scope has allegedly covered how the Apple Watch is more tightly integrated with iPhone services than rival wearables and how it locks competing platforms out of iMessage.

Executives from Beeper, which got into a public spat with Apple late last year over the iPhone maker’s blocking of the app’s iMessage integration on Android, reportedly talked with investigators. In addition, Tile, which has made Bluetooth trackers since long before the AirTag existed, allegedly sat down with the DOJ, too. The agency is said to have “had conversations with” representatives from banking and payment apps about Apple’s practice of blocking rivals from using tap-to-pay on the iPhone.

Meta also reportedly talked with investigators. The social company allegedly “encouraged” the DOJ to look into Apple’s App Tracking Transparency (ATT) privacy tool in its meetings. ATT, launched in 2021, lets users hinder advertisers’ data collection, a feature Meta said in 2022 could cost it $10 billion that year. The NYT claims investigators have also looked into Apple’s cut of digital purchases made on the iPhone, a point Spotify, Epic Games and dating corporation Match Group have been vocal about in recent years.

The federal government currently has its hands full with Big Tech antitrust cases. The DOJ is pursuing two antitrust cases against Google (one for search and another for advertising), while the FTC has sued Meta and Amazon.

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