Facebook Apologizes for Providing Researchers Flawed Data

Facebook apologized to researchers this week for data released years ago but only recently outed as inaccurately representing how U.S. users interact with posts and links. Reaching out via email and on a conference call with 47 people, the social media giant attempted to mitigate the harm caused by academics and analysts who have already spent about two years studying what they now say, and Facebook seems to agree, is flawed data about how misinformation spreads on its platform. The problem was identified as Facebook having underreported by about half the number of U.S. users and their data. Continue reading Facebook Apologizes for Providing Researchers Flawed Data

SEC Probe of SolarWinds Attack Concerns Corporate Execs

A Securities and Exchange Commission investigation into the 2020 Russian cyberattack of SolarWinds has corporate executives concerned over the possibility that information unearthed in the probe will expose them to liability. Companies suspected of or known to have been downloading compromised software updates from SolarWinds have received letters requesting records of all breaches since October 2019, raising fears that sensitive cyber incidents previously unreported and unrelated to SolarWinds may be revealed, providing the SEC with details that many companies may never have wanted to disclose. Continue reading SEC Probe of SolarWinds Attack Concerns Corporate Execs

China Cyberspace Agency Tightens Rules on Foreign Listings

The Cyberspace Administration of China, an agency set up by President Xi Jinping that reports to a leadership group he chairs, increased interagency oversight of companies traded in the United States and elsewhere overseas. The agency also will harden rules related to domestic companies listed on foreign stock exchanges and better coordinate various regulators. That lack of coordination was apparent in DiDi Global’s IPO last month, which was supported by financial regulators but tagged by the country’s cybersecurity regulator. Continue reading China Cyberspace Agency Tightens Rules on Foreign Listings

Andreessen Horowitz Debuts $2.2 Billion Cryptocurrency Fund

Andreessen Horowitz launched a $2.2 billion cryptocurrency fund focused on blockchain and digital asset startups. The venture capital firm’s first crypto-focused fund was introduced three years ago, during the last bear market dubbed “crypto winter,” when cryptocurrency’s value plummeted 80 percent from a 2017 high. Andreessen Horowitz partners Katie Haun and Chris Dixon, who run the company’s cryptocurrency group, stated that they “believe that the next wave of computing innovation will be driven by crypto.” Continue reading Andreessen Horowitz Debuts $2.2 Billion Cryptocurrency Fund

Coinbase Becomes First Cryptocurrency Startup to Go Public

Startup Coinbase, a secure exchange platform that helps people purchase, sell and store cryptocurrencies, has become the first such startup to go public. Shares traded at $381 each, up 52 percent from a reference price of $250, and eventually closed at $328.28, for a company valuation of $85.7 billion, ten times higher than its last private valuation. The San Francisco-based company’s IPO is a landmark for long-time crypto advocates. In its wake, Bitcoin’s value soared to $64,829 and Ether traded at a record-high of $2,487 (which also followed news about upgrades to the Ethereum network). Continue reading Coinbase Becomes First Cryptocurrency Startup to Go Public

Fidelity Reveals It Will Launch Bitcoin Exchange-Traded Fund

Fidelity Investments plans to launch the Wise Origin Bitcoin Trust, an exchange-traded fund (ETF) that tracks the price of Bitcoin via the Fidelity Bitcoin Index. Fidelity Digital Assets will store Wise Origin’s holdings. The Securities and Exchange Commission, which blocked nine applications for Bitcoin ETFs in 2018, must approve the plan. Fidelity Investments chief executive Abigail Johnson has long advocated the market potential of cryptocurrencies, and Fidelity was one of the first big financial firms to embrace them as an asset class. Continue reading Fidelity Reveals It Will Launch Bitcoin Exchange-Traded Fund

Bitcoin Tops $51,000 in Value as Major Firms Support Crypto

Bitcoin’s price surged above $50,000 for the first time yesterday as companies including Tesla, Mastercard, PayPal and BNY Mellon showed support for the cryptocurrency. Tesla bought $1.5 billion worth of Bitcoin and plans to accept it as payment for its cars, while Mastercard added that it too would accept Bitcoin as payment for “some of its products.” Coin Metrics reported that Bitcoin broke the $50,000 metric by rising 3 percent on Tuesday to $50,487, and hitting a fresh record high of $51,715 earlier today. Meanwhile, SEC commissioner Hester Peirce has called for crypto regulation. Continue reading Bitcoin Tops $51,000 in Value as Major Firms Support Crypto

SEC, State Attorneys Investigate Zoom Over China Contacts

After several months of investigation by the U.S. Securities and Exchange Commission and two U.S. Attorneys’ offices, Zoom Video Communications revealed that it has provided investigators with information regarding its interactions with China and other governments in addition to security and user privacy issues. A former employee based in China, Xinjiang Jin (also known as Julien Jin) has been charged by the Department of Justice for helping the Chinese government halt a remote commemoration of the Tiananmen Square uprising. Continue reading SEC, State Attorneys Investigate Zoom Over China Contacts

New York State Calls for a Dedicated Social Media Regulator

On the heels of a cyberattack on Twitter this summer, the New York State Department of Financial Services (DFS) called for a dedicated regulator to oversee big social media platforms. In a 37-page report, the department described the July 15 attack in which accounts of Barack Obama, Joe Biden, Jeff Bezos, Elon Musk and others were hacked and used to promote a cryptocurrency scam. Three people have since been charged with posing as employees to launch that attack, which relied on relatively simple tactics. Continue reading New York State Calls for a Dedicated Social Media Regulator

High Profile Team Joins Forest Road in Pursuit of M&E Deals

Basketball legend Shaquille O’Neal, Martin Luther King III, and former Disney executives Tom Staggs, Kevin Mayer and Salil Mehta are among those who have formed a new special-purpose acquisition company. SPACs, often dubbed blank check companies, are a popular financial tool to raise money and list a company publicly without having to file for an initial public offering. According to a Security and Exchange Commission filing, the SPAC, Forest Road Acquisition, plans to raise $250 million for new media and entertainment deals. Continue reading High Profile Team Joins Forest Road in Pursuit of M&E Deals

FTC to Fine Twitter for Using Consumer Data for Targeted Ads

Twitter revealed that the Federal Trade Commission may hit it with a fine up to $250 million for using consumers’ email addresses and phone numbers — collected for “safety and security” purposes — to target ads, something it said it did “inadvertently” between 2013 and 2019. This is a violation of its 2011 agreement with the FTC, in which Twitter agreed that it would no longer mislead consumers by not disclosing other potential uses. Twitter has already received a draft complaint from the FTC. Continue reading FTC to Fine Twitter for Using Consumer Data for Targeted Ads

AMC Expresses ‘Substantial Doubt’ About its Chain’s Survival

AMC Theatres told its investors that “substantial doubt exists about our ability to continue as a going concern for a reasonable period of time.” In a new 8-K filing, ahead of its earning call next week, the company described how it is trying to survive but also stressed how badly the coronavirus pandemic is eroding its financial stability. The movie theater chain had $5 billion in debt by the end of 2019 and continues to borrow more. Adding to its woes is the worry that distributors will postpone new film releases. Continue reading AMC Expresses ‘Substantial Doubt’ About its Chain’s Survival

Facebook Agrees to Record FTC Fine, Extensive Oversight

In addition to fining Facebook $5 billion for violating a 2011 privacy settlement, the Federal Trade Commission ordered Facebook to create an independent privacy committee on its board and appoint compliance officers and an outside assessor to oversee how data is handled. Further, chief executive Mark Zuckerberg and other Facebook executives must submit to regular privacy audits. The FTC commissioners approved the measures in a 3-2 vote; the fine is the largest ever levied by the federal government against a tech company. Continue reading Facebook Agrees to Record FTC Fine, Extensive Oversight

SEC Fines Facebook $100 Million Over Misuse of User Data

The Securities and Exchange Commission fined Facebook $100 million to settle a case related to Cambridge Analytica, which in 2014-2015 collected Facebook data — including names, genders, locations, birthdays and “page likes” — of about 30 million Americans to create “personality scores” and ultimately use it for Donald Trump’s presidential election campaign. When Facebook discovered this misuse of data in 2015, it didn’t reveal what had happened for two years, during which time it presented the issue of data misuse as hypothetical. Continue reading SEC Fines Facebook $100 Million Over Misuse of User Data

New Silicon Valley Stock Exchange Is Approved by the SEC

U.S. regulators have approved a new stock exchange originally introduced to the Securities and Exchange Commission last year by tech entrepreneur Eric Ries, who raised $19 million from VCs for his project. The new Long-Term Stock Exchange (LTSE) will provide tech firms with options to traditional New York exchanges. The “Silicon Valley-based national securities exchange” is “promoting what it says is a unique approach to governance and voting rights, while reducing short-term pressures on public companies,” reports Reuters. Continue reading New Silicon Valley Stock Exchange Is Approved by the SEC

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