Science

Serbian Scientists Experiment With Mealworms To Degrade Polystyrene (reuters.com) 62

An anonymous reader quotes a report from Reuters: Serbian scientists have been experimenting with mealworms as a way to break down polystyrene. Larisa Ilijin, a principal research fellow at Belgrade's Institute for Biology, said the scientists had discovered that mealworms can digest various plastics, including polystyrene, which is used in packaging, insulation and food containers. In the project endorsed by the government and the United Nations' agency for international development, UNDP, and other international donors, they have been including the polystyrene in the regular food of the larval form of the yellow mealworm beetle, or Tenebrio molitor.

They habitually eat more or less anything, but need the training to eat the plastic products. "We have larvae that have been adapted over a long time to biodegrade plastic, to be as efficient as possible in the process," Ilijin told Reuters. She said the bacteria living in their guts break down the plastic into carbon dioxide and water, and showed no evidence of leaving microplastic residue in their innards or faeces. The work builds on similar research projects in the U.S. and Africa. [...]

The institute has given Belgrade-based Belinda Animals several containers of the mealworms. It is now breeding them and hoping to attract a network of similar farms. "When breaking down 1 kg of Styrofoam, larvae emit one to two grams of carbon dioxide ... If we incinerate it ... (Styrofoam) emits over 4,000 times more," owner Boris Vasiljev said. He also envisages the larvae being used as animal feed, should it reach a large commercial scale. The use of mealworms is still in its infancy, Ilijin said, as Serbia still needs to adopt regulations that would allow the use and sale of insect products for animal fodder.
"Styrofoam takes over 500 years to decompose in nature ... this would be one of the good ways for solving the problem of plastic waste in nature," Ilijin said.
Science

Most Air Cleaning Devices Have Not Been Tested On People (theconversation.com) 54

A new review of nearly 700 studies on portable air cleaners found that over 90% of them were tested in empty spaces, not on people, leaving major gaps in evidence about whether these devices actually prevent infections or if they might even cause harm by releasing chemicals like ozone or formaldehyde. The Conversation reports: Many respiratory viruses, such as COVID-19 and influenza, can spread through indoor air. Technologies such as HEPA filters, ultraviolet light and special ventilation designs -- collectively known as engineering infection controls -- are intended to clean indoor air and prevent viruses and other disease-causing pathogens from spreading. Along with our colleagues across three academic institutions and two government science agencies, we identified and analyzed every research study evaluating the effectiveness of these technologies published from the 1920s through 2023 -- 672 of them in total.

These studies assessed performance in three main ways: Some measured whether the interventions reduced infections in people; others used animals such as guinea pigs or mice; and the rest took air samples to determine whether the devices reduced the number of small particles or microbes in the air. Only about 8% of the studies tested effectiveness on people, while over 90% tested the devices in unoccupied spaces.

We found substantial variation across different technologies. For example, 44 studies examined an air cleaning process called photocatalytic oxidation, which produces chemicals that kill microbes, but only one of those tested whether the technology prevented infections in people. Another 35 studies evaluated plasma-based technologies for killing microbes, and none involved human participants. We also found 43 studies on filters incorporating nanomaterials designed to both capture and kill microbes -- again, none included human testing.

Intel

Trump Confirms US Is Seeking 10% Stake In Intel (arstechnica.com) 125

An anonymous reader quotes a report from Ars Technica: After the Trump administration confirmed a rumor that the US is planning to buy a 10 percent stake in Intel, US Senator Bernie Sanders (I-Vt.) came forward Wednesday to voice support for the highly unusual plan, finding rare common ground with Donald Trump. According to Commerce Secretary Howard Lutnick, the plan would see the US disbursing approved CHIPS Act grants only after acquiring non-voting shares of Intel and likely other chipmakers. That would allow the US to profit off its investment in chipmakers, Lutnick suggested, and Sanders told Reuters that he agreed American taxpayers could benefit from the potential deals.

"If microchip companies make a profit from the generous grants they receive from the federal government, the taxpayers of America have a right to a reasonable return on that investment," Sanders said. While Lutnick gave Trump credit for coming up with what White House Press Secretary Karoline Leavitt described as a "creative idea that has never been done before" to protect US national and economic security, it appears that Lutnick is driving the initiative. "Lutnick has been pushing the equity idea," insiders granted anonymity previously told Reuters, "adding that Trump likes the idea."

So far, Intel has engaged in talks, while the Taiwan Semiconductor Manufacturing Company (TSMC) and other major CHIPS grant recipients like Samsung and Micron have yet to comment on the potential arrangement the Trump administration seems likely to pursue. They may possibly risk clawbacks of grants if such deals aren't made. On Wednesday, Taiwan Economy Minister Kuo Jyh-huei said his ministry would be consulting with TSMC soon, while noting that as yet, it's hard to "thoroughly understand the underlying meaning" of Lutnick's public comments. So far, Lutnick has only specified that "any potential arrangement wouldn't provide the government with voting or governance rights in Intel," dispelling fears that the US would use its ownership stake to try to control the world's most important chipmakers.
Further reading: Intel is Getting a $2 Billion Investment From SoftBank
The Almighty Buck

India Seeks Ban on Online Betting Apps To Curb Addiction (bangkokpost.com) 41

India has moved a legislation to ban online money gaming due to rising instances of addiction, money laundering and financial frauds through these apps. From a report: A bill passed in the lower house of Parliament on Wednesday seeks to prohibit promotion and operation of gaming apps that require users to pay money for the chance to win cash. The move threatens India's $3.8 billion gaming industry that has drawn global investors and also fostered homegrown fantasy sports betting apps such as Dream11, Games24X7 and Mobile Premier League.

"People lose their life's savings in online money gaming," India's Minister for Information and Broadcasting Ashwini Vaishnaw told lawmakers in New Delhi. He said the government intends to curb the addiction and financial harm that comes with online money gaming, but will promote e-sports and social gaming.

Power

Electricity Prices Are Climbing More Than Twice as Fast as Inflation (npr.org) 238

Electricity prices have increased at more than double the inflation rate over the past year, according to NPR reporting. Florida Power & Light customers face monthly bills exceeding $400 during summer months, prompting the utility to seek a 13% rate increase over four years that drew tens of thousands of petition signatures in opposition.

The Energy Department projects data centers will consume more electricity than residential customers for the first time in 2026. Natural gas costs for power generation rose 40% in the first half of 2025 compared to 2024, and the department expects another 17% increase next year. Natural gas generates more than 40% of U.S. electricity. One in six households currently struggles to pay electric bills. The federal government provides $4 billion annually in energy assistance for low-income families.

Further reading: Big Tech's AI Data Centers Are Driving Up Electricity Bills for Everyone.
Encryption

US Spy Chief Gabbard Says UK Agreed To Drop 'Backdoor' Mandate for Apple (reuters.com) 81

The UK government has agreed to withdraw its order requiring Apple to create backdoor access to encrypted iCloud data following intervention from the Trump administration. Vice President JD Vance negotiated the agreement during his recent UK holiday after the January order issued under the UK Investigatory Powers Act prompted Apple to pull its iCloud Advanced Data Protection service from Britain in February. Director of National Intelligence Tulsi Gabbard said the UK agreed to drop demands for access to "the protected encrypted data of American citizens." Apple had filed a complaint with the Investigatory Powers Tribunal scheduled for hearing early next year.
Earth

How Can England Possibly Be Running Out of Water? (theguardian.com) 169

England has declared a "nationally significant" water shortage as reservoirs dropped to 67.7% capacity, their lowest levels in at least a decade. The UK Centre for Ecology and Hydrology warned of exceptionally low river flows while groundwater continues dwindling across the country. Hosepipe bans now affect all of England, with additional restrictions probable in coming months.

Water companies lose approximately one trillion litres annually through leaky pipes -- 20% of all treated water -- while the annual pipe replacement rate remains at 0.05%. No new reservoir has been built in 30 years despite population growth. Government forecasts project England's public water supply could fall short by 5 billion litres daily by 2055 without urgent infrastructure investment. The economic cost of water scarcity could reach $11.48 billion over this parliament, according to thinktank Public First.
Security

Male-Oriented App 'TeaOnHer' Also Had Security Flaws That Could Leak Men's Driver's License Photos (techcrunch.com) 112

The women-only dating-advice app Tea "has been hit with 10 potential class action lawsuits in federal and state court," NBC News reported last week, "after a data breach led to the leak of thousands of selfies, ID photos and private conversations online." The suits could result in Tea having to pay tens of millions of dollars in damages to the plaintiffs, which could be catastrophic for the company, an expert told NBC News... One of the suits lists the right-wing online discussion board 4chan and the social platform X as defendants, alleging that they allowed bad actors to spread users' personal information.
But meanwhile, a new competing app for men called "TeaOnHer" has already been launched. And it was also found to have enormous security flaws, reports TechCrunch, that "exposed its users' personal information, including photos of their driver's licenses and other government-issued identity documents..." [W]hen we looked at the TeaOnHer's public internet records, it had no meaningful information other than a single subdomain, appserver.teaonher.com. When we opened this page in our browser, what loaded was the landing page for TeaOnHer's API (for the curious, we uploaded a copy here)... It was on this landing page that we found the exposed email address and plaintext password (which wasn't that far off from "password") for [TeaOnHer developer Xavier] Lampkin's account to access the TeaOnHer "admin panel"... This API landing page included an endpoint called /docs, which contained the API's auto-generated documentation (powered by a product called Swagger UI) that contained the full list of commands that can be performed on the API [including administrator commands to return user data]...

While it's not uncommon for developers to publish their API documentation, the problem here was that some API requests could be made without any authentication — no passwords or credentials were needed...

The records returned from TeaOnHer's server contained users' unique identifiers within the app (essentially a string of random letters and numbers), their public profile screen name, and self-reported age and location, along with their private email address. The records also included web address links containing photos of the users' driver's licenses and corresponding selfies. Worse, these photos of driver's licenses, government-issued IDs, and selfies were stored in an Amazon-hosted S3 cloud server set as publicly accessible to anyone with their web addresses. This public setting lets anyone with a link to someone's identity documents open the files from anywhere with no restrictions...

The bugs were so easy to find that it would be sheer luck if nobody malicious found them before we did. We asked, but Lampkin would not say if he has the technical ability, such as logs, to determine if anyone had used (or misused) the API at any time to gain access to users' verification documents, such as by scraping web addresses from the API. In the days since our report to Lampkin, the API landing page has been taken down, along with its documentation page, and it now displays only the state of the server that the TeaOnHer API is running on as "healthy."

The flaws were discovered while TeaOnHer was the #2 free app in the Apple App Store, the article points out. And while these flaws "appear to be resolved," the article notes a larger issue. "Shoddy coding and security flaws highlight the ongoing privacy risks inherent in requiring users to submit sensitive information to use apps and websites,"

And TeaOnHer also had another authentication issue. A female reporter at Cosmopolitan also noted Friday that TeaOnHer "lets you browse through profiles before your verifications are complete. So literally anyone (like myself) can read reviews..."
AI

AI Is Reshaping Hacking. No One Agrees How Fast (axios.com) 18

"Several cybersecurity companies debuted advancements in AI agents at the Black Hat conference last week," reports Axios, "signaling that cyber defenders could soon have the tools to catch up to adversarial hackers." - Microsoft shared details about a prototype for a new agent that can automatically detect malware — although it's able to detect only 24% of malicious files as of now.

- Trend Micro released new AI-driven "digital twin" capabilities that let companies simulate real-world cyber threats in a safe environment walled off from their actual systems.

- Several companies and research teams also publicly released open-source tools that can automatically identify and patch vulnerabilities as part of the government-backed AI Cyber Challenge.

Yes, but: Threat actors are now using those AI-enabled tools to speed up reconnaissance and dream up brand-new attack vectors for targeting each company, John Watters, CEO of iCounter and a former Mandiant executive, told Axios.

The article notes "two competing narratives about how AI is transforming the threat landscape." One says defenders still have the upper hand. Cybercriminals lack the money and computing resources to build out AI-powered tools, and large language models have clear limitations in their ability to carry out offensive strikes. This leaves defenders with time to tap AI's potential for themselves. [In a DEF CON presentation a member of Anthropic's red team said its Claude AI model will "soon" be able to perform at the level of a senior security researcher, the article notes later]

Then there's the darker view. Cybercriminals are already leaning on open-source LLMs to build tools that can scan internet-connected devices to see if they have vulnerabilities, discover zero-day bugs, and write malware. They're only going to get better, and quickly...

Right now, models aren't the best at making human-like judgments, such as recognizing when legitimate tools are being abused for malicious purposes. And running a series of AI agents will require cybercriminals and nation-states to have enough resources to pay the cloud bills they rack up, Michael Sikorski, CTO of Palo Alto Networks' Unit 42 threat research team, told Axios. But LLMs are improving rapidly. Sikorski predicts that malicious hackers will use a victim organization's own AI agents to launch an attack after breaking into their infrastructure.

China

Chinese State Media Calls US a 'Surveillance Empire' Over Trackers In Chips (reuters.com) 103

An anonymous reader quotes a report from Reuters: The United States' practice of installing location trackers in chip shipments at risk of diversion to China reflects the "instincts of a surveillance empire," China's state-run media outlet Xinhua said in a commentary published on Friday. Reuters reported earlier this week that U.S. authorities had secretly placed location tracking devices in targeted shipments of advanced chips to detect diversions to China, which is under U.S. curbs for advanced chip exports. The Xinhua commentary, titled "America turns chip trade into a surveillance game," cited "reports" that Washington had embedded such trackers, accusing the United States of running "the world's most sprawling intelligence apparatus." [...] In its commentary, Xinhua accused the U.S. government of seeing its trading partners as "rivals to be tripped up or taken down," adding that "if U.S. chips are seen as Trojan horses for surveillance, customers will look elsewhere." Further reading: China Urges Firms To Avoid Nvidia H20 Chips After Trump Resumes Sales
Privacy

Proton Begins Shifting Infrastructure Outside of Switzerland Ahead of Surveillance Legislation (techradar.com) 26

Proton has begun relocating infrastructure outside Switzerland ahead of proposed surveillance legislation requiring VPNs and messaging services with over 5,000 users to identify customers and retain data for six months.

The company's AI chatbot Lumo became the first product hosted on German servers rather than Swiss infrastructure. CEO Andy Yen confirmed the decision and a spokesperson told TechRadar that the company isn't fully exiting Switzerland.

In a blog post about the launch of Lumo last month, Proton's Head of Anti-Abuse and Account Security, Eamonn Maguire, explained that the company had decided to invest outside Switzerland for fear of the looming legal changes. He wrote: "Because of legal uncertainty around Swiss government proposals to introduce mass surveillance -- proposals that have been outlawed in the EU -- Proton is moving most of its physical infrastructure out of Switzerland. Lumo will be the first product to move."

The proposed amendments to Switzerland's Ordinance on the Surveillance of Correspondence by Post and Telecommunications would also mandate decryption capabilities for providers holding encryption keys. Proton is developing additional facilities in Norway.
China

China Launches Three-Day Robot Olympics Featuring Football and Table Tennis (reuters.com) 7

China launched the World Humanoid Robot Games on Friday. The three-day event will see 280 teams from 16 countries compete in football, track and field, and table tennis alongside robot-specific challenges including medicine sorting and cleaning services. The event also features 192 university teams and 88 private enterprise teams from the U.S., Germany, Brazil and other nations as well as Chinese companies Unitree and Fourier among participants.

Beijing municipal government serves as an organizing body. The Chinese robotics sector has received over $20 billion in government subsidies in the past year with Beijing planning a one trillion yuan ($137 billion) fund for AI and robotics startups. A previous Beijing humanoid robot marathon saw several competitors emit smoke and fail to complete the course.
Government

Trump Administration Considers Stake In Intel (cnbc.com) 101

Intel's stock jumped 7% after reports that the Trump administration is considering taking a stake in the struggling chipmaker to support U.S.-based manufacturing. CNBC reports: Intel is the only U.S. company with the capability to manufacture the fastest chips on U.S. shores, although rivals including Taiwan Semiconductor Manufacturing Company and Samsung also have U.S. factories. President Donald Trump has called for more chips and high technology to be manufactured in the U.S. The government's stake would help fund factories that Intel is currently building in Ohio, according to the report.
AI

Dodgy Huawei Chips Nearly Sunk DeepSeek's Next-Gen R2 Model 18

DeepSeek's development of its next-gen R2 AI model was severely delayed after months of failed training attempts on Huawei's Ascend chips, which suffered from unstable hardware, slow interconnects, and immature software. The Register reports: Following the industry rattling launch of DeepSeek R1 earlier this year, the Chinese AI darling faced pressure from government authorities to train the model's successor on Huawei's homegrown silicon, three unnamed sources have told the Financial Times. But after months of work and the help of an entire team of Huawei engineers, unstable chips, glacial interconnects, and immature software proved insurmountable for DeepSeek, which was apparently unable to complete a single successful training run. The failure, along with challenges with data labeling, ultimately delayed the release of DeepSeek R2 as the company started anew, using Nvidia's H20 GPUs instead. The company has reportedly relegated Huawei's Ascend accelerators to inference duty.
Power

Big Tech's AI Data Centers Are Driving Up Electricity Bills for Everyone (nytimes.com) 67

Electricity rates for individuals and small businesses could rise sharply as Amazon, Google, Microsoft and other technology companies build data centers and expand into the energy business. Residential electricity bills increased at least $15 monthly for Ohio households starting in June due to data center demands, according to utility data and an independent grid monitor. A Carnegie Mellon University and North Carolina State University analysis projects average U.S. electricity bills will rise 8% by 2030 from data center growth, with Virginia facing potential 25% increases. Virginia regulators estimate residents could pay an additional $276 annually by 2030.

National residential electricity rates have already risen more than 30% since 2020. Tech companies' AI push requires data centers that consumed over 4% of U.S. electricity in 2023, with government analysts projecting consumption reaching 12% within three years. American Electric Power warned Ohio regulators that without new rate structures requiring data centers to pay more upfront costs, residents and small businesses would bear much of the expense for grid upgrades.
Canada

Commissioner of Canada Elections Will 'Explore the Use' of AI (betakit.com) 12

The Office of the Commissioner of Canada Elections (OCCE) has revealed in its annual report that it will "explore the use" AI and emerging technologies to see how they will shape the government body's approach for the next year. From a report: Commissioner Caroline Simard's office didn't outline ways it might adopt AI. In its outlook, the OCCE expected to use funding announced in January 2025 to secure the tools needed for addressing the "challenges of today's electoral environment." This included staffing roles dictated by its new structure and reflected "ongoing modernization efforts," but no further details.

The Commissioner is an independent officer who ensures the government, political parties, and others honour both the Canada Elections Act and Referendum Act. This includes core aspects like financing, nominations, campaigning, and advertising. More recently, the OCCE has been addressing rising issues with AI, including election disinformation facilitated by bots, AI-generated images, and deepfakes (AI-generated videos that resemble real people in false scenarios).

Communications

Russia Restricts Calls Via WhatsApp and Telegram (apnews.com) 19

Russian authorities are "partially" restricting calls in messaging apps Telegram and WhatsApp, the latest step in an effort to tighten control over the internet. From a report: In a statement, government media and internet regulator Roskomnadzor justified the measure as necessary for fighting crime, saying that "according to law enforcement agencies and numerous appeals from citizens, foreign messengers Telegram and WhatsApp have become the main voice services used to deceive and extort money, and to involve Russian citizens in sabotage and terrorist activities."
The Military

How the Unraveling of Two Pentagon Projects May Result In a Costly Do-Over (reuters.com) 84

The Pentagon is poised to cancel two nearly finished Navy and Air Force HR software projects worth over $800 million so new contracts can be awarded to other vendors, including Salesforce, Palantir, and Workday. "The reason for the unusual move: officials at those departments, who have so far put the existing projects on hold, want other firms, including Salesforce and billionaire Peter Thiel's Palantir, to have a chance to win similar projects, which could amount to a costly do-over," reports Reuters. From the report: In 2019, Accenture said it had won a contract to expand an HR platform to modernize the payroll, absence management, and other HR functions for the Air Force with Oracle software. The project, which includes other vendors and was later expanded to include Space Force, grew to cost $368 million and was scheduled for its first deployment this summer at the Air Force Academy. An April "status update" on the project conducted by the Air Force and obtained by Reuters described the project as "on track," with initial deployment scheduled for June, noting that it would end up saving the Air Force $39 million annually by allowing it to stop using an older system. But on May 30, Darlene Costello, then-Acting assistant Secretary of the Air Force, sent out a memo placing a "strategic pause" on the project for ninety days and calling for the study of alternate technical solutions, according to a copy of the memo seen by Reuters that was previously unreported. Costello, who has since retired, was reacting to pressure from other Air Force officials who wanted to steer a new HR project to SalesForce and Palantir, three sources said. [...] The Air Force said in a statement that it "is committed to reforming acquisition practices, assessing the acquisition workforce, and identifying opportunities to improve major defense acquisition programs."

Space Force, which operates within the Air Force, was set to receive the Air Force's new payroll system in the coming months. But it is also pulling out of the project because officials there want to launch yet another HR platform project to be led by Workday, according to three people familiar with the matter. The service put out a small business tender on May 7 for firms to research HR platform alternatives, with the goal of selecting a company that will recommend Workday as the best option, the people said. Now the Air Force and Space Force "want to start over with vendors that do not meet their requirements, leading to significant duplication and massive costs," said John Weiler, director of the Information Technology Acquisition Advisory Council, a government-chartered nonprofit group that makes recommendations to improve federal IT contracting.

In 2022, the Honolulu-based Nakupuna Companies took over a 2019 project with other firms to integrate the Navy's payroll and personnel systems into one platform using Oracle software and known as "NP2". The project, which has cost about $425 million since 2023, according to the Government Accountability Office, was set to be rolled out earlier this year after receiving a positive review by independent reviewer and consulting firm Guidehouse in January, according to a copy obtained by Reuters. But the head of Navy's human resources, now retired Admiral Rick Cheeseman, sought to cancel the project according to a June 5 memo seen by Reuters, directing another official to "take appropriate contractual actions" to cancel the project. Navy leaders instead mandated yet another assessment of project, according to a memo seen by Reuters, leaving it in limbo, two sources said.

Cheeseman's reason for trying to kill the project was his anger over a decision by DOGE earlier this year to cancel a $171 million contract for data services provider Pantheon Data that essentially duplicated parts of the HR project. In an email obtained by Reuters, he threatened to withhold funding from the Nakupuna-led project unless the Pantheon contract was restored. "I am beyond exasperated with how this happened," Cheeseman wrote in a May 7 email to Chief Information Officer Jane Rathbun about the contract cancellation, arguing the Pantheon contract was not "duplicative of any effort." "From where I sit, I'm content taking every dime away from NP2 in order to continue this effort," he added in the email. The pausing of NP2 was "unexpected, especially given that multiple comprehensive reviews validated the technical solution as the fastest and most affordable approach," Nakupuna said in a statement, adding it was disappointed by the change because the project was ready to deploy. The Navy said it "continues to prioritize essential personnel resources in support of efforts to strengthen military readiness through fiscal responsibility and departmental efficiency."

Businesses

Kodak Warns It May Go Out of Business (usatoday.com) 109

After over 130 years in business, Kodak has warned it may not survive. From a report: The Rochester, New York-based Eastman Kodak Co. offered a bleak picture of its financials in earnings reports and filings, tracking a second quarter loss and sending shares tumbling in early trading Tuesday, Aug. 12. The iconic brand said in Monday, Aug. 11 government filings that there is "substantial doubt" about the company's ability to continue, as it faces more than $470 million in debt and slashes its pension plan in an attempt to remain afloat.

"Kodak has debt coming due within twelve months and does not have committed financing or available liquidity to meet such debt obligations if they were to become due in accordance with their current terms," the company said in its filings to the Securities and Exchange Commission. [...] In its most recent earnings report, Kodak said its consolidated revenues were $263 million at the end of the quarter on June 30, a decrease of $4 million since the same period last year. Gross profit decreased 12% compared to last year's second quarter end, Kodak disclosed, and its cash balance sits at $155 million, marking a loss of just under 23% since the end of December.

Jim Continenza, Kodak's Executive Chairman and CEO, said tariffs have not had a "material impact" on its businesses, noting the domestic production of many of its products such as printing plates, film, inkjet presses and inks and pharmaceutical ingredients. Kodak's chief financial officer David Bullwinkle said in the company's Aug. 11 statement it plans to focus on its advanced chemicals and materials sector moving forward, and said the cut to its retirement program is going toward paying down its debt. He said the company expects to "have a clear understanding" by Friday, Aug. 15 of how it will meet its debt obligations. "For the second half of the year, we will continue to focus on reducing costs today and converting our investments into long-term growth," Bullwinkle said.

The Courts

Do Kwon Pleads Guilty to US Fraud Charges In $40 Billion Crypto Collapse (reuters.com) 18

Terraform Labs founder Do Kwon pleaded guilty in U.S. federal court to conspiracy to defraud and wire fraud over the $40 billion collapse of TerraUSD and Luna in 2022. Reuters reports: Kwon, 33, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, entered the plea at a court hearing in New York before U.S. District Judge Paul Engelmayer. He had pleaded not guilty in January to a nine-count indictment charging him with securities fraud, wire fraud, commodities fraud and money laundering conspiracy.

Accused of misleading investors in 2021 about TerraUSD - a so-called stablecoin designed to maintain a value of $1 - Kwon pleaded guilty to the two counts under an agreement with the Manhattan U.S. Attorney's office, which brought the charges. He faces up to 25 years in prison when Engelmayer sentences him on December 11, though prosecutor Kimberly Ravener said the government had agreed to advocate for a prison term of no more than 12 years provided he accepts responsibility for his crimes.
"I made false and misleading statements about why it regained its peg by failing to disclose a trading firm's role in restoring that peg," Kwon said in court. "What I did was wrong."

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