turp182 shares a report from Ars Technica: Hackers drained millions of dollars in digital coins from cryptocurrency ATMs by exploiting a zero-day vulnerability, leaving customers on the hook for losses that can't be reversed, the kiosk manufacturer has revealed. The heist targeted ATMs sold by General Bytes, a company with multiple locations throughout the world. These BATMs, short for bitcoin ATMs, can be set up in convenience stores and other businesses to allow people to exchange bitcoin for other currencies and vice versa. Customers connect the BATMs to a crypto application server (CAS) that they can manage or, until now, that General Bytes could manage for them. For reasons that aren't entirely clear, the BATMs offer an option that allows customers to upload videos from the terminal to the CAS using a mechanism known as the master server interface.

Over the weekend, General Bytes revealed that more than $1.5 million worth of bitcoin had been drained from CASes operated by the company and by customers. To pull off the heist, an unknown threat actor exploited a previously unknown vulnerability that allowed it to use this interface to upload and execute a malicious Java application. The actor then drained various hot wallets of about 56 BTC, worth roughly $1.5 million. General Bytes patched the vulnerability 15 hours after learning of it, but due to the way cryptocurrencies work, the losses were unrecoverable. [...] Once the malicious application executed on a server, the threat actor was able to (1) access the database, (2) read and decrypt encoded API keys needed to access funds in hot wallets and exchanges, (3) transfer funds from hot wallets to a wallet controlled by the threat actor, (4) download user names and password hashes and turn off 2FA, and (5) access terminal event logs and scan for instances where customers scanned private keys at the ATM. The sensitive data in step 5 had been logged by older versions of ATM software.

Going forward, this weekend's post said, General Bytes will no longer manage CASes on behalf of customers. That means terminal holders will have to manage the servers themselves. The company is also in the process of collecting data from customers to validate all losses related to the hack, performing an internal investigation, and cooperating with authorities in an attempt to identify the threat actor. General Bytes said the company has received "multiple security audits since 2021," and that none of them detected the vulnerability exploited. The company is now in the process of seeking further help in securing its BATMs.

Epic Games' next big plan for the metaverse is to unify all of its disparate asset marketplaces under one brand, Fab. The Verge reports: The new store will include assets from the Unreal Engine Marketplace, Quixel Bridge, Artstation Marketplace, and Sketchfab, and Epic will give creators 88 percent of earnings on the store, like it does for the Epic Games Store. On Fab, you'll be able to get a vast amount of digital assets, including "3D models, materials, sound, VFX, digital humans, and more," Epic says. And the company is positioning it as an open marketplace that will support "all engines, all metaverse-inspired games which support imported content, and the most popular digital content creation packages." In theory, that means you won't need to be an Unreal Engine developer to get value from the store.

Fab is set to launch later this year, though it's available in alpha as a plugin for the new Unreal Editor for Fortnite tools.

An ongoing internet disruption on one of Taiwan's islands is accelerating the self-governed territory's plans to launch an independent satellite network like SpaceX's Starlink, which would help ensure it remains connected in a potential Chinese invasion. From a report: Taiwan's National Communication Commission blamed Chinese vessels last month for cutting two undersea cables providing high-speed internet to Matsu, a Taiwanese island located only a few nautical miles off the coast of China's Fujian province. The cables have yet to be repaired; Matsu residents are currently relying on a microwave backup system and other fixes, such as using SIM cards from China. [...] Taiwan's Digital Minister Audrey Tang said last week that the territory would prioritize testing its satellite internet capabilities in outlying islands such as Matsu. She first announced in September that Taiwan was aiming to build a satellite system similar to the Starlink network run by Elon Musk's SpaceX, which has become instrumental to Ukraine in its war against Russia.

On March 27th, Nintendo's eShop for its 3DS and Wii U consoles will be shut down. With many of the titles being original to those consoles and not available anywhere else, it's left archivists and historians scrambling to preserve them before it's too late. However, those preservation plans get complicated given Nintendo's litigious nature on matters of intellectual property. Techdirt's Timothy Geigner writes: Preventing the gaming public from continuing to buy games that rely on a company-operated backend infrastructure is one thing. After all, Nintendo can do what it wants when it comes to putting its products into commerce. But what really annoyed a ton of people, myself included, was how this would impact archivists and historians, or anyone else interested in preserving video game history and culture. With the impending shutdown, some of those entities are once again expressing concern: "While it's unfortunate that people won't be able to purchase digital 3DS or Wii U games anymore, we understand the business reality that went into this decision,' the Video Game History Foundation (VGHF) tweeted when the eShop shutdowns were announced a year ago. 'What we don't understand is what path Nintendo expects its fans to take, should they wish to play these games in the future.'"

Because Nintendo is litigious, utilizes DRM, and the DMCA exists, all of that combines to make it wildly unsafe for museums and archivists to actually retain copies of these games that will shortly no longer be found anywhere else. And, no, the exemptions built into the DMCA for content such as movies and literature simply don't exist for the video game space. [...] So what can be done? Not a whole lot, honestly, but some hobbyists are at least going to make a go of it: "In an effort to address this -- or at least address it in a single place on as few consoles as possible -- YouTuber The Completionist decided to sit down and spend almost a year of his life (328 days in total) buying his way through both libraries. He's now done, and the statistics are staggering. The dude bought 866 Wii U games and 1547 3DS titles, numbers that include DSiWare, Virtual Console releases and downloadable content. That adds up to 1.2TB of data for the Wii U, and 267GB for the 3DS. Or, for the 3DS purists reading, 2,136,689 blocks."

As part of this effort, The Completionist has said he plans to donate all of this digital media to the VGHF. What they can do with all of that content still remains to be seen. All of the same copyright and DMCA rules still apply, so what access it can grant to researchers, never mind the public, is in question.

An anonymous reader quotes a report from The Drive: Sang Yup Lee, Hyundai's head of design, reiterated the company's commitment to buttons at the introduction of the new Hyundai Kona. As reported by CarsGuide, for the Korean automaker, it's a decision rooted in safety concerns. "We have used the physical buttons quite significantly the last few years. For me, the safety-related buttons have to be a hard key," said Lee. It's a design call that makes a lot of sense. In some modern vehicles, adjusting things like the volume or climate control settings can require diving into menus on a touch screen, or using your eyes to find a touch control on the dash. In comparison, the tactile feedback of real buttons, dials, and switches lets drivers keep their eyes on the road instead.

"When you're driving, it's hard to control it. This is why when it's a hard key it's easy to sense and feel it," said Lee. As far as he is concerned, physical controls are a necessity for anything that could impact safety. Hence the physical buttons and dials for items like the HVAC system and volume control. Lee hinted that while this is a priority for Hyundai today, things may change in future. In particular, the company will likely look at using touch controls more heavily when autonomous driving becomes mainstream. "When it comes to Level 4 autonomous driving, then we'll have everything soft key," said Lee.

An anonymous reader quotes a report from CoinDesk: Crypto ads in Belgium must be accurate and warn investors of the risks under new laws announced by the country's financial regulator Monday. Powers published in Belgium's Official Gazette on Friday mean any mass-media campaign to promote a digital currency would have to be submitted to the Financial Services and Markets Authority (FSMA) 10 days in advance, allowing the regulator to intervene if needed.

"Virtual currencies are all the rage at the moment, but they involve considerable risk," the FSMA said in a statement. "They are often subject to wild price fluctuations and are vulnerable to fraud and IT-related risks." The new rules, which will take effect on May 17, require ads to state that "the only guarantee in crypto is risk." Belgium joins European countries such as Spain and the U.K. in imposing restrictions on publicity campaigns, which often mirror those already in place for traditional finance.

An anonymous reader quotes a report from Ars Technica: An analysis of 2,007 damaged or defective hard disk drives (HDDs) has led a data recovery firm to conclude that "in general, old drives seem more durable and resilient than new drives." The statement comes from a Los Angeles-headquartered HDD, SSD, and RAID data recovery firm aptly named Secure Data Recovery that has been in business since 2007 and claims to have resolved more than 100,000 cases. It studied the HDDs it received in 2022. "Most" of those drives were 40GB to 10TB, according to a blog post by Secure Data Recovery spotted by Blocks & Files on Thursday.

Secure Data Recovery's March 8 post broke down the HDDs it received by engineer-verified "power-on hours," or the total amount of time the drive was functional, starting from when its owner began using it and ending when the device arrived at Secure Data Recovery. The firm also determined the drives' current pending sector count, depicting "the number of damaged or unusable sectors the hard drive developed during routine read-and-write operations." The company's data doesn't include HDDs that endured non-predictable failures or damage by unexpected events, such as electrical surges, malware, natural disasters, and "accidental mishandling," the company said.

Among the sample, 936 drives are from Western Digital, 559 come from Seagate, 211 are Hitachi brand, 151 are Toshiba's, 123 are Samsung's, and there are 27 Maxtor drives. Notably, 74.5 percent of the HDDs came from either Western Digital or Seagate, which Secure Data Recovery noted accounted for 80 percent of hard drive shipments in 2021, citing Digital Storage Technology Newsletter data shared by Forbes. The average time before failure among the sample size was 2 years and 10 months, and the 2,007 defective HDDs had an average of 1,548 bad sectors. "While 1,548 bad sectors out of hundreds of millions or even billions of disk subdivisions might seem minuscule, the rate of development often increases, and the risk of data corruption multiplies," the blog said. "We found that the five most durable and resilient hard drives from each manufacturer were made before 2015," says Secure Data Recovery. "On the other hand, most of the least durable and resilient hard drives from each manufacturer were made after 2015." One of the reasons for this may have to do with HDD manufacturers "pushing the performance envelope," adds Ars. "This includes size limits that cut 'allowance between moving parts, appearing to affect mechanical damage and wear resistance.'"

Secure Data Recovery also believes that shingled magnetic recording (SMR) impacts HDD reliability, as the disks place components under "more stress."

"What this study shows is not the average working life of a hard disk drive," notes Blacks & Files. "Instead it provides the average working life if a failed disk drive. Cloud storage provider Backblaze issues statistics about the working life of its disk drive fleet and its numbers are quite different." A recent report of theirs found that SSDs are more reliable than HDDs.

Indian authorities severed mobile internet access and text messaging for a second day Sunday across Punjab, a state of about 27 million people, as officials sought to capture a Sikh separatist and braced for potential unrest. The Washington Post reports: The statewide ban -- which crippled most smartphone services except for voice calls and some SMS text messages -- marked one of the broadest shutdowns in recent years in India, a country that has increasingly deployed the law enforcement tactic, which digital rights activists call draconian and ineffective. The Punjab government, led by the opposition Aam Admi Party, initially announced a 24-hour ban starting midday Saturday as its security forces launched a sprawling operation to arrest the fugitive Amritpal Singh, then extended the ban Sunday for another 24 hours.

Singh, a 30-year-old preacher, has been a popular figure within a separatist movement that seeks to establish a sovereign state in Punjab called Khalistan for followers of the Sikh religion. He rocketed to nationwide notoriety in February after his supporters stormed a police station to free one of his jailed supporters. The Khalistan movement is outlawed in India and considered a top national security threat by officials, but the movement has sympathizers across Punjab state, which is majority Sikh, and among members of the large Sikh diaspora who have settled in countries such as Canada and Britain. In a bid to forestall unrest and curtail what it called "fake news," Punjab authorities blocked mobile internet service beginning at noon Saturday, shortly after they failed to apprehend Singh as he drove through central Punjab with a cavalcade of supporters. Officials were probably also motivated by a desire to deprive Singh's supporters of social media, which they briefly used Saturday to seek help and organize their ranks.

Singh was still on the run as of late Sunday, and the 4G blackout remained in effect. Three Punjab residents who spoke to The Washington Post said life had been disrupted since midday Saturday. Only essential text messages, such as confirmation codes for bank transfers, were trickling through. Wired internet services were not affected. "My entire business is dependent on internet," said Mohammad Ibrahim, who accepts QR code-based payments at his two clothing shops in a village outside of Ludhiana and also sells garments online. "Since yesterday, I've felt crippled."

The Biden administration is planning to take action soon on at least three of its half-dozen investigations of Amazon -- moves that could lead to a blitz of litigation to rein in the iconic tech-industry giant. From a report: The FTC has been investigating the internet titan on multiple fronts dating at least back to 2019, looking into its abuse of power within its online marketplace, as well as potential consumer-privacy violations connected to its Ring cameras and Alexa digital assistant. The agency is also reviewing Amazon's purchase of robot vacuum maker iRobot.

Any suit against Amazon would be a high-profile move by the agency under chair Lina Khan, a Big Tech skeptic who rose to prominence with a 2017 academic paper specifically identifying Amazon as a modern monopolist needing to be reined in. Although Amazon has already been hit by local antitrust suits in Washington, D.C. and California, the coming federal cases would be the most significant challenges to the global company yet. The exact timing of any cases or settlements is unknown. POLITICO spoke to more than 10 people with direct knowledge of the investigations by the FTC's competition and consumer protection teams to put together a comprehensive picture of how the agency is now pursuing Amazon, why it didn't take action on the company's most recent major acquisition of One Medical and what is likely to happen in the coming months.

A federal judge on Monday will weigh pleas by four major book publishers to stop an online lending library from freely offering digital copies of books, in a case that raises novel questions about digital-library rights and the reach of copyright law that protects the work of writers and publishers. From a report: Nonprofit organization Internet Archive created the digital books, building its collection by scanning physical book copies in its possession. It lends the digital versions to readers worldwide, with more than three million digitized books on offer. Titles range from Stephen King's scary bestseller "It" to Kristin Hannah's historical novel "The Nightingale." The archive expanded its digital lending during the Covid-19 pandemic, temporarily lifting limits on how many people could check out a book at one time. The move helped prompt the publishers' copyright infringement lawsuit in 2020, which is pending before U.S. District Judge John Koeltl in Manhattan.

The plaintiffs are Lagardere SCA's Hachette Book Group, John Wiley and Sons, Bertelsmann SE's Penguin Random House, and HarperCollins Publishers, which like The Wall Street Journal is owned by News Corp. They argue the Internet Archive book platform "constitutes willful digital piracy on an industrial scale" and hurts writers and publishers who rely on consumers buying their products. William Adams, general counsel for HarperCollins Publishers, said the archive's approach has no basis in law. "What they're doing is supplanting what authors and publishers do with libraries and have been doing for a long time," he said. The Internet Archive says its lending practices are a fair and legal use of the books, in the same way that traditional bricks-and-mortar libraries have a right to share their collections with the public.

Microsoft is preparing to launch a new app store for games on iPhones and Android smartphones as soon as next year if its $75bn acquisition of Activision Blizzard is cleared by regulators, according to the head of its Xbox business. From a report: New rules requiring Apple and Google to open up their mobile platforms to app stores owned and operated by other companies are expected to come into force from March 2024 under the EU's Digital Markets Act. "We want to be in a position to offer Xbox and content from both us and our third-party partners across any screen where somebody would want to play," said Phil Spencer, chief executive of Microsoft Gaming, in an interview ahead of this week's annual Game Developers Conference in San Francisco. "Today, we can't do that on mobile devices but we want to build towards a world that we think will be coming where those devices are opened up."

Microsoft is fighting with regulators in the US, Europe and UK, which have all raised concerns about the potential impact on competition from the owner of the Xbox console buying the developer of Call of Duty, one of the world's most popular games franchises. PlayStation maker Sony has been a vocal opponent of the deal. However, Spencer argues the deal can boost competition in what he called the "largest platform people play on" -- smartphones -- where Apple and Google currently operate what some antitrust authorities have called a "duopoly" over distribution of games and other apps. [...] While acknowledging it was hard to predict exactly when Microsoft will be able to launch its own store, Spencer said it would be "pretty trivial" for Microsoft to adapt its Xbox and Game Pass apps to sell games and subscriptions on mobile devices. Microsoft's current lack of mobile games was an "obvious hole in our capability" that it needed Activision Blizzard to fill, he added.

Slashdot reader Prahjister knows what a system on a chip is. But that's part of the problem: I recently started hearing the term SoC at work when referring to digital signage hardware. This has really triggered me.... It is like when I heard people refer to a PC as a CPU.

I tried to speak to my colleagues and dissuade them from using this term in this manner with no luck. Am I wrong trying to dissuade them for this?
Maybe another question would be: Are there technical malapropisms that drive you crazy? Share your own thoughts and experiences in the comments.

And when should you call hardware a 'SoC'?

Long-time Slashdot reader turp182 shares two stories about the new state-of-the-art in very-high-speed imaging. "The techniques don't image captured photons, but instead 'touch' the target to perform imaging/read structures using either lasers or neutrons."

First, Science Daily reports that physicists from the University of Gothenburg (with colleagues from the U.S. and Germany) have developed an ultrafast laser camera that can create videos at 12.5 billion images per second, "which is at least a thousand times faster than today's best laser equipment." [R]esearchers use a laser camera that photographs the material in [an ultrathin, one-atom-thick] two-dimensional layer.... By observing the sample from the side, it is possible to see what reactions and emissions occur over time and space. Researchers have used single-shot laser sheet compressed ultrafast photography to study the combustion of various hydrocarbons.... This has enabled researchers to illustrate combustion with a time resolution that has never been achieved before. "The more pictures taken, the more precisely we can follow the course of events...." says Yogeshwar Nath Mishra, who was one of the researchers at the University of Gothenburg and who is now presenting the results in a scientific article in the journal Light: Science & Applications.... The new laser camera takes a unique picture with a single laser pulse.
Meanwhile, ScienceAlert reports on a camera with a trillionth-of-a-second shutter speed — that is, 250 million times faster than digital cameras — that's actually able to photograph atomic activity, including "dynamic disorder." Simply put, dynamic disorder is when clusters of atoms move and dance around in a material in specific ways over a certain period — triggered by a vibration or a temperature change, for example. It's not a phenomenon that we fully understand yet, but it's crucial to the properties and reactions of materials. The new super-speedy shutter speed system gives us much more insight into what's happening....

The researchers are referring to their invention as variable shutter atomic pair distribution function, or vsPDF for short.... To achieve its astonishingly quick snap, vsPDF uses neutrons to measure the position of atoms, rather than conventional photography techniques. The way that neutrons hit and pass through a material can be tracked to measure the surrounding atoms, with changes in energy levels the equivalent of shutter speed adjustments.

The Brazilian government is studying whether to regulate Internet platforms with content that earns revenue such as advertising, its secretary for digital policies, Joao Brant, said on Friday. Reuters reports: The idea would be for a regulator to hold such platforms, not consumers, accountable for monetized content, Brant told Reuters. Another goal is "to prevent the networks from being used for the dissemination and promotion of crimes and illegal content" especially after the riots by supporters of former far-right President JairBolsonaro in Brasilia in January, fueled by misinformation about the election he lost in October.

Brant said President Luiz Inacio Lula da Silva's government also intends to make companies responsible for stopping misinformation, hate speech and other crimes on their social media platforms. Platforms would not be held responsible for content individually, but for how diligent they are in protecting the "digital environment," he said in an interview. Brant did not detail what the regulatory body would look like, but said the government wants to regulate monetized content and prevent the platforms from spreading misinformation.

The Federal Reserve's digital payments system, which it promises will help speed up the way money moves, will debut in July. From a report: FedNow, as it will be known, will create "a leading-edge payments system that is resilient, adaptive, and accessible," said Richmond Fed President Tom Barkin, who is the program's executive sponsor. The system will allow bill payments, money transfers such as paychecks and disbursements from the government, as well as a host of other consumer activities to move more rapidly and at lower cost, according to the program's goals. Participants will complete a training and certification process in early April, according to a Fed announcement.

Google's security research unit is sounding the alarm on a set of vulnerabilities it found in certain Samsung chips included in dozens of Android models, wearables and vehicles, fearing the flaws could be soon discovered and exploited. From a report: Google's Project Zero head Tim Willis said the in-house security researchers found and reported 18 zero-day vulnerabilities in Exynos modems produced by Samsung over the past few months, including four top-severity flaws that could compromise affected devices "silently and remotely" over the cellular network.

"Tests conducted by Project Zero confirm that those four vulnerabilities allow an attacker to remotely compromise a phone at the baseband level with no user interaction, and require only that the attacker know the victim's phone number," Willis said. By gaining the ability to remotely run code at a device's baseband level -- essentially the Exynos modems that convert cell signals to digital data -- an attacker would be able to gain near-unfettered access to the data flowing in and out of an affected device, including cellular calls, text messages, and cell data, without alerting the victim. The list of affected devices includes (but is not limited to): Samsung mobile devices, including the S22, M and A series handsets; Vivo mobile devices, including those in the S16, S15, S6, X70, X60 and X30 series; Google Pixel 6 and Pixel 7 series; and connected vehicles that use the Exynos Auto T5123 chipset.

Institutional clients of Coinbase have been contacted by the firm about plans to potentially set up a new crypto-trading platform overseas, Bloomberg News reported Friday, citing three people with direct knowledge of the matter. From the report: The talks with market makers and investment firms touched on the possibility of establishing an alternative venue -- away from the main Coinbase marketplace -- for global clients, said the people, who asked not to be named as the discussions are confidential. The talks are occurring against the backdrop of an intensifying US crackdown on cryptocurrencies.

Coinbase has yet to decide where the platform might be based, but it has been speaking to market makers about connecting to it, one of the people said. The US environment for digital-asset companies continues to sour following a string of regulatory actions and bank failures. While Coinbase's services are available in more than 100 countries, orders from clients around the world are currently routed to the same US platform.

An anonymous reader quotes a report from MIT Technology Review: China's annual, week-long parliamentary meeting just ended on Monday. Apart from confirming President Xi Jinping for a historic third term and appointing a new batch of other top leaders, the government also approved a restructuring plan for national ministries, as it typically does every five years. Among all the changes, there's one that the tech world is avidly watching: the creation of a new regulatory body named the National Data Administration. According to official documents, the NDA will be in charge of "advancing the development of data-related fundamental institutions, coordinating the integration, sharing, development and application of data resources, and pushing forward the planning and building of a Digital China, the digital economy and a digital society, among others." In plain words, the NDA will help build smart cities in China, digitize government services, improve internet infrastructure, and make government agencies share data with each other.

The big question mark is how much regulatory authority it will exert. At the moment, many different governmental groups in China have a hand in data regulation (last year, one political representative counted 15), and there is no government body that has an explicit mission to protect data privacy. The closest the country has is the Cyberspace Administration of China, which was originally created to police online content and promote party propaganda. "It makes sense to set something [like NDA] up, given how important data is," says Jamie Horsley, a senior fellow at the Paul Tsai China Center at Yale Law School, who studies regulatory reforms in China. "But the problem anytime you try to streamline government is that you realize every issue impacts other issues. It's very hard to just carve out something that's only going to be regulated by this one entity." For now, it seems this new department is part of an ongoing effort by the Chinese government to drum up a "digital economy" around collecting, sharing, and trading data.

In fact, the new national administration greatly resembles the Big Data Bureaus that Chinese provinces have been setting up since 2014. These local bureaus have built data centers across China and set up data exchanges that can trade data sets like stocks. The content of the data is as varied as cell phone locations and results from remote sensing of the ocean floor. The bureaus have even embraced and invested in the questionable concept of the metaverse. Those bureaus tend to view data as a promising economic resource rather than a Pandora's box full of privacy concerns. Now, these local experiments are being integrated and elevated to a national-level agency. And that explains why the new NDA is set up under China's National Development and Reform Commission, an office mostly responsible for drawing broad economic blueprints for the country. We may not get clarity on NDA's full scope of authority until the summer, when its organizational structure, personnel, and regulatory responsibilities are expected to be put down in writing. But analysts think that it's not likely to replace the Cyberspace Administration of China, which has risen up in recent years to become the "super regulator" of the tech industry.

Twitch CEO Emmett Shear is resigning, effective immediately, he announced in a blog post on Thursday. The Verge reports: Shear has been at Twitch since before it was Twitch. He was a co-founder of Justin.tv, the platform where Justin Kan streamed his life 24/7. That became Twitch in 2011 to focus on popular gaming livestreams, and just three years later, the platform was acquired by Amazon for nearly a billion dollars.

"With my first child just born, I've been reflecting on my future with Twitch," Shear wrote. "Twitch often feels to me like a child I've been raising as well. And while I will always want to be there if Twitch needs me, at 16 years old it feels to me Twitch is ready to move out of the house and venture alone."

Shear will be replaced by Dan Clancy, who has been at Twitch for more than three years and was serving as the company's president. Clancy was originally hired in 2019 as the company's executive VP of creator and community experience, according to Variety. Shear will continue at the company in an advisory role. "I've never had more confidence in Twitch's leadership, in all our people, and in our product, than I do today," he wrote. "For many years I truly felt Twitch might die without my guidance and input, but I no longer feel that is true."

The U.S. Justice Department is probing last year's collapse of the TerraUSD stablecoin, raising the possibility of criminal charges being filed against the stablecoin's creator, Do Kwon, according to the Wall Street Journal, citing sources familiar with the matter. CoinDesk reports: The FBI and the Southern District of New York have interviewed former employees of Terraform Labs, the company behind TerraUSD, and sought to interview others, according to the Journal. Manhattan federal prosecutors are also examining chat-group discussions among prominent trading firms Jump Trading Group, Jane Street Group and failed FTX affiliate Alameda Research involving a potential bailout of TerraUSD, according to a separate report from Bloomberg, citing a person familiar with the matter.

Such a bailout never took place, but the investigation is seeking to determine whether the firms were involved in possible market manipulation. TerraUSD and its sister token, Luna, both eventually collapsed, setting off a series of high-profile failures of prominent crypto firms, including hedge fund Three Arrows capital, Voyager Digital and FTX. The Department of Justice previously alleged that an unnamed crypto firm -- believed to be Jump -- had bailed out TerraUSD once before, in an indictment against FTX founder Sam Bankman-Fried. In February, the SEC filed a civil fraud lawsuit against Kwon and Terraform Labs, accusing them of misleading investors about TerraUSD's risks.