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Silk Road 2.0 Shutdown
U.S. governmnent authorities said they have shut down the successor website to Silk Road, an underground online drug marketplace, and charged its alleged operator with conspiracy to commit drug trafficking, computer hacking, money laundering and other crimes.
Blake Benthall, 26, was arrested last Wednesday in San Francisco and was expected to make an initial court appearance in federal court there later on Thursday.
The charges against Benthall carry a maximum sentence of life in prison.
A lawyer for Benthall could not immediately be identified.
Silk Road 2.0 was launched late last year, weeks after authorities had shuttered the original Silk Road website in October and arrested its alleged owner, Ross Ulbricht, who went by the online alias, Dread Pirate Roberts.
“Let’s be clear – this Silk Road, in whatever form, is the road to prison,” Manhattan U.S. Attorney Preet Bharara, whose office is prosecuting both cases, said in a statement.
Benthall, known as “Defcon” online, became the operator of Silk Road 2.0 in December, one month after an unnamed co-conspirator launched the site, according to prosecutors.
Silk Road 2.0 provided an online bazaar where users across the world could buy and sell drugs, computer hacking tools and other illicit items, using the digital currency Bitcoin as payment, authorities said.
As of September, the site was generating at least $8 million a month in sales, they said.
The government’s investigation included an undercover agent who was able to infiltrate the administrative staff of the website and interact directly with Benthall, prosecutors said.
Ulbricht, 30, has pleaded not guilty and is scheduled for trial in New York in January.
Will Sprint Acquisition Efforts Succeed
May 19, 2014 by admin
Filed under Smartphones
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Sprint Corp is meeting with banks to devise a funding plan for its bid for smaller rival T-Mobile US Inc, a source familiar with the situation said, as the mobile carrier works to ease regulatory concerns that the deal would hurt competition.
The source said that Sprint, which is owned by Japan’s SoftBank Corp, is looking to fund the bulk of T-Mobile’s estimated $50 billion price tag with corporate bonds and cover the rest with syndicated loans and convertible bonds.
Sprint is currently having discussions with at least five banks, the source told Reuters, including JP Morgan, Goldman Sachs and Deutsche Bank.
Bloomberg, which first reported that Sprint was in talks with banks on Thursday morning in Asia, said the carrier was also talking to Mizuho Financial Group Ltd and Citibank. Softbank is expected to make a formal offer in June or July, Bloomberg added.
Sprint spokeswoman Roni Singleton told Reuters the company does not comment on rumors and speculation. T-Mobile and SoftBank both declined to comment on the Bloomberg report.
Sprint is facing a battle ahead with U.S. regulators who oppose consolidation in the wireless market on the basis it would inhibit competition. The company is aware it may have to give up some of its spectrum holdings to win over critics, the source said.
Two of the most vocal opponents to the deal are Federal Communications Commission Chairman Tom Wheeler and U.S. antitrust chief William Baer, who have pointed to T-Mobile’s success since U.S. authorities rejected a 2011 merger between AT&T Inc and T-Mobile on the grounds the market needs at least four major players to be competitive.
The failure of that deal cost AT&T a $6 billion break-up fee, a penalty Sprint feels confident it can avoid, the source said, adding that it is leaning towards having Deutsche Telekom, which currently owns 67 percent of T-Mobile, retain part of that stake.
Is Qualcomm In Trouble?
Qualcomm’s activities in China may lead to regulatory penalties for the chip vendor, this time from the U.S. Securities and Exchange Commission over bribery allegations.
The company is currently facing an anti-monopoly probe from Chinese authorities for allegedly overcharging clients. Qualcomm has also said that the SEC may also consider penalizing the company, as part of an anti-corruption investigation.
The SEC’s Los Angeles Regional Office has made a preliminary decision to recommend that the SEC take action against Qualcomm for violating anti-bribery controls, the company said in its second quarter report. The accusations involve Qualcomm offering benefits to “individuals associated with Chinese state-owned companies or agencies,” the report added.
Both the SEC and the U.S. Department of Justice have been probing the company over alleged violations of the nation’s Foreign Corrupt Practices Act.
In cooperation with those official investigations, Qualcomm said it’s found instances of preferential hiring, and giving gifts and other benefits to “several individuals” with China’s state-owned companies. The gifts and benefits amounted to less than US$250,000 in value.
If the SEC takes action against Qualcomm, penalties could include giving up profits, facing injunctions, and other monetary penalties, the company said. Earlier this month, Qualcomm filed a submission with the U.S. regulator, countering any claims of wrongdoing.
Qualcomm is facing the investigations at a time when China is increasingly become a bigger part of its business. The nation is the world’s largest smartphone market, and more Chinese device manufacturers are expanding globally.
Last year, however, Chinese regulators began investigating Qualcomm due to complaints from industry groups. The company was allegedly abusing its market position and charging higher fees for its patent licensing business. In November, Chinese authorities conducted two surprise raids of Qualcomm offices in China for documents.
Chinese regulators could decide to penalize Qualcomm by confiscating financial gains made, and even imposing a fine of 1 to 10 percent on its revenues for the prior year, the company said in its quarterly report.
Is Alcatel-Lucent Running Low?
Alcatel-Lucent, which was the combination of Lucent and French network equipment provider Alcatel, has been going through a tough few years as it battles against rivals such as Huawei, Nokia Siemens and Ericsson. Now the firm has reportedly looked to investment bank Goldman Sachs for a loan in return for the firm putting up some of its assets as collateral.
According to Bloomberg’s sources, the amount of the loan has yet to be disclosed and the firm even mooted the prospect of selling assets including its undersea cable and enterprise businesses. The sources said discussions about the sale were still at an early stage and claimed neither asset could fetch more than €1bn, highlighting just how far the firm has fallen in recent years.
Alcatel-Lucent needs to sort out its balance sheet because the firm needs to service more than €2bn debt in the next three years. The company might have to look at its vast patents portfolio, though whether it might sell them or merely license them is not clear at this stage.
With Huawei and ZTE winning business away from European vendors such as Alcatel-Lucent and Nokia Siemens, it is not surprising that the firm is having to take drastic action in order to keep the lights on. However for Alcatel-Lucent it is a embarrassing situation for the firm.