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North Korean hackers breached a US tech company to steal crypto

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North Korean hackers breached a US tech company to steal crypto

A North Korean government-backed hacking group penetrated an American IT management company and used it as a springboard to target cryptocurrency companies, according to two sources familiar with the matter.

The hackers broke into Louisville, Colorado-based JumpCloud in late June and used their access to the company’s systems to target its cryptocurrency company clients in an effort to steal digital cash, the sources said.

The hack shows how North Korean cyber spies, once content with going after crypto companies one at a time, are now tackling companies that can give them access to multiple sources of bitcoin and other digital currencies.

JumpCloud, which acknowledged the hack in a blog post last week and blamed it on a “sophisticated nation-state sponsored threat actor,” did not respond to Reuters’ questions about who was behind the hack and which clients were affected.

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A JumpCloud spokesperson said fewer than five customers had been impacted. Reuters could not ascertain whether any digital currency was ultimately stolen as a result of the hack.

Cybersecurity firm CrowdStrike Holdings, (CRWD.O) which is working with JumpCloud to investigate the breach, confirmed that “Labyrinth Chollima” – the name it gives to a particular squad of North Korean hackers – was behind the breach.

CrowdStrike Senior Vice President for Intelligence Adam Meyers declined to comment on what the hackers were seeking but noted that they had a history of targeting cryptocurrency targets.

“One of their primary objectives has been generating revenue for the regime,” he said.

Pyongyang’s mission to the United Nations in New York did not immediately respond to a request for comment. North Korea has previously denied organizing digital currency heists, despite voluminous evidence – including U.N. reports – to the contrary.

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Independent research-backed CrowdStrike’s allegation.

Cybersecurity researcher Tom Hegel, who wasn’t involved in the investigation, told Reuters that the JumpCloud intrusion was the latest of several recent breaches that showed how the North Koreans have become adept at “supply chain attacks,” or elaborate hacks that work by compromising software or service providers in order to steal data – or money – from users downstream.

In a blog post to be published Thursday, Hegel said the digital indicators published by JumpCloud tied the hackers to activity previously attributed to North Korea.

The U.S. cyber watchdog agency CISA and the FBI declined to comment.

The hack on JumpCloud – whose products are used to help network administrators manage devices and servers – first surfaced publicly earlier this month when the firm emailed customers to say their credentials would be changed “out of an abundance of caution relating to an ongoing incident.”

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In the blog post that acknowledged that the incident was a hack, JumpCloud traced the intrusion back to June 27. The cybersecurity-focused podcast Risky Business earlier this week cited two sources as saying that North Korea was a suspect in the intrusion.

Labyrinth Chollima is one of North Korea’s most prolific hacking groups and is said to be responsible for some of the isolated country’s most daring and disruptive cyber intrusions. Its theft of cryptocurrency has led to the loss of eye-watering sums: Blockchain analytics firm Chainalysis said last year that North Korean-linked groups stole an estimated $1.7 billion worth of digital cash across multiple hacks.

CrowdStrike’s Meyers said Pyongyang’s hacking squads should not be underestimated.

“I don’t think this is the last we’ll see of North Korean supply chain attacks this year,” he said. 

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A former OpenAI leader says safety has ‘taken a backseat to shiny products’ at the AI company

A former OpenAI leader says safety has ‘taken a backseat to shiny products’ at the AI company

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A former OpenAI leader says safety has 'taken a backseat to shiny products' at the AI company

A former OpenAI leader who resigned from the company earlier this week said Friday that safety has “taken a backseat to shiny products” at the influential artificial intelligence company.

Jan Leike, who ran OpenAI’s “Superalignment” team alongside a company co-founder who also resigned this week, wrote in a series of posts on the social media platform X that he joined the San Francisco-based company because he thought it would be the best place to do AI research.

“However, I have been disagreeing with OpenAI leadership about the company’s core priorities for quite some time, until we finally reached a breaking point,” wrote Leike, whose last day was Thursday.

An AI researcher by training, Leike said he believes there should be more focus on preparing for the next generation of AI models, including on things like safety and analyzing the societal impacts of such technologies.

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He said building “smarter-than-human machines is an inherently dangerous endeavor” and that the company “is shouldering an enormous responsibility on behalf of all of humanity.”

“OpenAI must become a safety-first AGI company,” wrote Leike, using the abbreviated version of artificial general intelligence, a futuristic vision of machines that are as broadly smart as humans or at least can do many things as well as people can.

Open AI CEO Sam Altman wrote in a reply to Leike’s posts that he was “super appreciative” of Leike’s contributions to the company was “very sad to see him leave.”

Leike is “right we have a lot more to do; we are committed to doing it,” Altman said, pledging to write a longer post on the subject in the coming days.

The company also confirmed Friday that it had disbanded Leike’s Superalignment team, which was launched last year to focus on AI risks, and is integrating the team’s members across its research efforts.

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Leike’s resignation came after OpenAI co-founder and chief scientist Ilya Sutskever said Tuesday that he was leaving the company after nearly a decade.

Sutskever was one of four board members last fall who voted to push out Altman — only to quickly reinstate him. It was Sutskever who told Altman last November that he was being fired, but he later said he regretted doing so.

Sutskever said he is working on a new project that’s meaningful to him without offering additional details.

He will be replaced by Jakub Pachocki as chief scientist. Altman called Pachocki “also easily one of the greatest minds of our generation” and said he is “very confident he will lead us to make rapid and safe progress towards our mission of ensuring that AGI benefits everyone.”

On Monday, OpenAI showed off the latest update to its artificial intelligence m

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US, TikTok seek fast-track schedule, ruling by Dec. 6 on potential ban

US, TikTok seek fast-track schedule, ruling by Dec. 6 on potential ban

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US, TikTok seek fast-track schedule, ruling by Dec. 6 on potential ban

The U.S. Justice Department and TikTok on Friday asked a U.S. appeals court to set a fast-track schedule to consider the legal challenges to a new law requiring China-based ByteDance to divest TikTok’s U.S. assets by Jan. 19 or face a ban.

TikTok, ByteDance and a group of TikTok content creators joined with the Justice Department in asking the U.S. Court of Appeals for the District of Columbia to rule by Dec. 6 to be able to seek review from the Supreme Court if needed before the U.S. deadline. 

On Tuesday, a group of TikTok creators filed suit to block the law that could ban the app used by 170 million Americans, saying it has had “a profound effect on American life.”

Last week, TikTok and parent company ByteDance filed a similar lawsuit, arguing that the law violates the U.S. Constitution on a number of grounds including running afoul of First Amendment free speech protections.

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“In light of the large number of users of the TikTok platform, the public at large has a significant interest in the prompt disposition of this matter,” the U.S. Justice Department and TikTok petitioners said.

TikTok said with a fast-track schedule it believes the legal challenge can be resolved without it needing to request
emergency preliminary injunctive relief.

The law, signed by President Joe Biden on April 24, gives ByteDance until Jan. 19 to sell TikTok or face a ban. The White House says it wants to see Chinese-based ownership ended on national security grounds, but not a ban on TikTok.

The parties asked the court to set the case for oral arguments as soon as practical during the September case calendar. The Justice Department said it may file classified material to support the national security justifications in secret with the court.

Earlier this week the Justice Department said the TikTok law “addresses critical national security concerns in a manner that is consistent with the First Amendment and other constitutional limitations.”

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The law prohibits app stores like Apple and Alphabet’s Google from offering TikTok and bars internet hosting services from supporting TikTok unless ByteDance divests TikTok.

Driven by worries among U.S. lawmakers that China could access data on Americans or spy on them with the app, the measure was passed overwhelmingly in Congress just weeks after being introduced.

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Spotify sued over alleged unpaid royalties

Spotify sued over alleged unpaid royalties

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Spotify sued over alleged unpaid royalties

Music streaming giant Spotify has been sued in a US federal court for allegedly underpaying songwriters, composers and publishers by tens of millions of dollars.

The lawsuit against Spotify USA was filed in New York on Thursday by the Mechanical Licensing Collective (MLC), a non-profit that collects and distributes royalties owed from music streaming services.

The suit alleges that Spotify on March 1, without advance notice, reclassified its paid subscription services, resulting in a nearly 50 percent reduction in royalty payments to MLC.

“The financial consequences of Spotify’s failure to meet its statutory obligations are enormous for Songwriters and Music Publishers,” MLC said.

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“If unchecked, the impact on Songwriters and Music Publishers of Spotify’s unlawful underreporting could run into the hundreds of millions of dollars.”

According to MLC, Spotify reclassified its Premium Individual, Duo and Family subscription streaming plans as Bundled Subscription Offerings because they now include audiobooks.

Royalties paid on bundled services are significantly less. MLC said Premium subscribers already had access to audiobooks and “nothing has been bundled with it.”

“Premium is exactly the same service that Spotify offered to its subscribers before the launch of Audiobooks Access,” it said. In a statement, Spotify said the lawsuit “concerns terms that publishers and streaming services agreed to and celebrated years ago.”

Spotify said it paid a “record amount” in royalties last year and “is on track to pay out an even larger amount in 2024.” “We look forward to a swift resolution of this matter,” the Swedish company said.

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In February, Spotify said it paid $9 billion to musicians and publishers last year, about half of which went to independent artists. 

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