Month: March 2023

China Shuts Down Major Manga Piracy Site Following Complaint From Japan

Anti-piracy group CODA is reporting the shutdown of B9Good, a pirate manga site that targeted Japan but was operated from China. In response to a criminal complaint filed by CODA on behalf of six Japanese companies, which were backed by 21 others during the investigation, Chinese authorities arrested four people and seized one house worth $580,000. TorrentFreak reports: Manga piracy site B9Good initially appeared in 2008 and established itself under B9DM branding. SimilarWeb stats show that the site was enjoying around 15 million visits each month, with CODA noting that in the two-year period leading to February 2023, the site was accessed more than 300 million times Around 95% of the site’s visitors came from Japan. B9Good had been featured in an MPA submission to the USTR’s notorious markets report in 2019. Traffic was reported as almost 16 million visits per month back then, meaning that site visitor numbers remained stable for the next three years. The MPA said the site was possibly hosted in Canada, but domain records since then show a wider spread, including Hong Kong, China, United States, Bulgaria, and Japan.

Wherever the site ended up, the location of its operator was more important. In 2021, CODA launched its International Enforcement Project (CBEP), which aimed to personally identify the operators of pirate sites, including those behind B9Good who were eventually traced to China. Pursuing copyright cases from outside China is reportedly difficult, but CODA had a plan. In January 2022, CODA’s Beijing office was recognized as an NGO with legitimate standing to protect the rights of its member companies. Working on behalf of Aniplex, TV Tokyo, Toei Animation, Toho, Japan Broadcasting Corporation (NHK), and Bandai Namco Film Works, CODA filed a criminal complaint in China, and starting February 14, 2023, local authorities began rounding up the B9Good team.

Read more of this story at Slashdot.

Anti-piracy group CODA is reporting the shutdown of B9Good, a pirate manga site that targeted Japan but was operated from China. In response to a criminal complaint filed by CODA on behalf of six Japanese companies, which were backed by 21 others during the investigation, Chinese authorities arrested four people and seized one house worth $580,000. TorrentFreak reports: Manga piracy site B9Good initially appeared in 2008 and established itself under B9DM branding. SimilarWeb stats show that the site was enjoying around 15 million visits each month, with CODA noting that in the two-year period leading to February 2023, the site was accessed more than 300 million times Around 95% of the site’s visitors came from Japan. B9Good had been featured in an MPA submission to the USTR’s notorious markets report in 2019. Traffic was reported as almost 16 million visits per month back then, meaning that site visitor numbers remained stable for the next three years. The MPA said the site was possibly hosted in Canada, but domain records since then show a wider spread, including Hong Kong, China, United States, Bulgaria, and Japan.

Wherever the site ended up, the location of its operator was more important. In 2021, CODA launched its International Enforcement Project (CBEP), which aimed to personally identify the operators of pirate sites, including those behind B9Good who were eventually traced to China. Pursuing copyright cases from outside China is reportedly difficult, but CODA had a plan. In January 2022, CODA’s Beijing office was recognized as an NGO with legitimate standing to protect the rights of its member companies. Working on behalf of Aniplex, TV Tokyo, Toei Animation, Toho, Japan Broadcasting Corporation (NHK), and Bandai Namco Film Works, CODA filed a criminal complaint in China, and starting February 14, 2023, local authorities began rounding up the B9Good team.

Read more of this story at Slashdot.

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Friend or foe: Can computer coders trust ChatGPT?

The artificial intelligence ChatGPT can write computer code, but its help comes with many potential problems.

The artificial intelligence ChatGPT can write computer code, but its help comes with many potential problems.

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Google Assistant Division Is Reorganizing To Focus On Bard

An anonymous reader quotes a report from CNBC: Google is reshuffling the reporting structure of its virtual assistant unit — called Assistant — to focus more on Bard, the company’s new artificial intelligence chat technology. In a memo to employees on Wednesday, titled “Changes to Assistant and Bard teams,” Sissie Hsiao, vice president and lead of Google Assistant’s business unit, announced changes to the organization that show the unit heavily prioritizing Bard. “As the Bard teams continue this work, we want to ensure we continue to support and execute on the opportunities ahead,” Hsiao said in the email. “This year, more than ever, we have been focused on delivery with impact to our users.”

Jianchang “JC” Mao, who reported directly to Hsiao, will be leaving the company for personal reasons, according to the memo, which was viewed by CNBC. Mao held the position of vice president of engineering for Google Assistant and “helped shape the Assistant we have today,” Hsiao wrote. Taking Mao’s place will be 16-year Google veteran Peeyush Ranjan, who most recently held the title of vice president in Google’s commerce organization, overseeing payments.

The new leadership changes suggest that the Assistant organization may be planning on integrating Bard technology into similar products in the future. […] As part of Wednesday’s change, Google Assistant engineering vice president Amar Subramanya will now lead engineering for the Bard team, the email said. Trevor Strohman, who previously led engineering efforts for Bard, will continue as an “Area Tech Lead” for Bard, reporting to Hsiao. Ars Technica’s Ron Amadeo ponders if the Google Assistant is facing a “looming Google shutdown.”

“If we assume the idea of the Google Assistant — a voice assistant that helps you do things — isn’t completely dead at Google, you could imagine a future where Bard’s language model helps it understand what you want to do and will do it, but it feels like the service is years away from something like that,” writes Amadeo. “The Assistant today doesn’t have language model problems, though, just voice recognition problems, and Bard won’t help with that.”

Read more of this story at Slashdot.

An anonymous reader quotes a report from CNBC: Google is reshuffling the reporting structure of its virtual assistant unit — called Assistant — to focus more on Bard, the company’s new artificial intelligence chat technology. In a memo to employees on Wednesday, titled “Changes to Assistant and Bard teams,” Sissie Hsiao, vice president and lead of Google Assistant’s business unit, announced changes to the organization that show the unit heavily prioritizing Bard. “As the Bard teams continue this work, we want to ensure we continue to support and execute on the opportunities ahead,” Hsiao said in the email. “This year, more than ever, we have been focused on delivery with impact to our users.”

Jianchang “JC” Mao, who reported directly to Hsiao, will be leaving the company for personal reasons, according to the memo, which was viewed by CNBC. Mao held the position of vice president of engineering for Google Assistant and “helped shape the Assistant we have today,” Hsiao wrote. Taking Mao’s place will be 16-year Google veteran Peeyush Ranjan, who most recently held the title of vice president in Google’s commerce organization, overseeing payments.

The new leadership changes suggest that the Assistant organization may be planning on integrating Bard technology into similar products in the future. […] As part of Wednesday’s change, Google Assistant engineering vice president Amar Subramanya will now lead engineering for the Bard team, the email said. Trevor Strohman, who previously led engineering efforts for Bard, will continue as an “Area Tech Lead” for Bard, reporting to Hsiao. Ars Technica’s Ron Amadeo ponders if the Google Assistant is facing a “looming Google shutdown.”

“If we assume the idea of the Google Assistant — a voice assistant that helps you do things — isn’t completely dead at Google, you could imagine a future where Bard’s language model helps it understand what you want to do and will do it, but it feels like the service is years away from something like that,” writes Amadeo. “The Assistant today doesn’t have language model problems, though, just voice recognition problems, and Bard won’t help with that.”

Read more of this story at Slashdot.

Read More 

Y’all, this laptop is too much

Asus’s ROG Flow Z13, a collaboration with Acronym, has hit shelves, and I don’t even know where to begin with this one. Just take a look for yourself. Every so often I receive one of these bizarre little computers that Asus has done in collaboration with someone or other, and my senses are ever so slightly overwhelmed. They made one with an animated exploding head on the lid. There was one that turned into a DJ deck. There was one covered in dogs.
But this latest release — the ROG Flow Z13 ACRNM — might be the wackiest one yet to cross my desk. There is no discernible theme, rhyme, or reason to it. It is pure chaos, top to bottom. Which, you know what, fine. It’s 2023. Fair enough.

The Flow Z13 is the second collaboration between ROG and ACRONYM, an apparel brand that sells pieces like this $1,800…dress, I think? It’s a 13.4-inch gaming tablet with a kickstand and detachable keyboard — a gaming Surface Pro, for lack of a better descriptor.
With a price of $2,499.99, our Core i9 13900H/RTX 4070/16GB RAM/1TB SSD/2560 x 1600 model test unit targets a fairly niche audience — on-the-go gamers with deep pockets and a deeper desire to project an edgily chaotic aesthetic. Most people should not be spending this much. If it’s the convertible tablet you’re after, you can trick out a Surface Pro 9 for $500 less. If it’s gaming power and portability you’re after, a very comparable Zephyrus G14 is even cheaper. But the Z13 serves its particular, specific niche about as well as a laptop can.

Any idea which of these keys changes the volume? I sure don’t know.

The Form
Here are some phrases that Asus uses in its press materials to sum up the aesthetic it’s going for here:

“A redefinition of mobile computing”
“Beautifully refined yet raw”
“Truly unique machine”
“A hands-free dream machine”
“A functional yet striking work of art”

So, anyway.

They are quite nice keys, though.

It’s avant garde, that’s for sure. Every time I look at this thing, I spot something else. The bottom is covered in logos and typography (and they’re not just stickers; they’re laser-etched into the metal). The dark leather cover sports a funky-looking shape as well. I can’t say I really know what any of them are. If any of you regularly take ayahuasca and expect that you’re aware of their deeper spiritual meaning, feel free to let me know in the comments.
The rear is dotted with rubber pads, which do look a little bit funny, but will also do a solid job of keeping the device in place if you’re trying to lie it down on a table. The corners have “drop-resistant crashworthy bumpers”. There’s also a strap that you can attach to the corners in order to sling the thing over your shoulder like a briefcase. Let’s just say I’m very glad this didn’t come out while I was in college, because I absolutely would’ve traipsed around campus with this dangling around my front like a fanny pack. The cool kids would’ve bullied me, and rightly so.

Don’t ask me what’s going on here; I haven’t the faintest.

But look, there’s a kickstand!

Eclectic design aside, this is a 13-inch tablet with an RTX 4070 and an H-Series Core i9 inside. That’s highly unusual — those are the types of chips you generally expect to see in much bigger gaming rigs. The keyboard is detachable; the kickstand is not. Said kickstand allows for both vertical and horizontal orientations, a feature Asus has long been convinced that people need. I have no use for a 16:10 Windows tablet in vertical orientation, but more power to you if you do.
A Surface Pro type of deal for gaming
Now, the Z13 is not particularly portable as tablets go. At 2.91 pounds and 0.61 inches thick, it’s hardly an iPad, and it’s not the type of thing I’d necessarily want to bring up for an hour-long presentation. Still, when choosing between carrying this thing in my backpack and carrying, say, a Titan GT77, I’d choose this one any day. I used this for some couch and cafe work, and could fit it onto those crowded work surfaces with no problem.
One other thing to call out: the display. This model’s has a 165Hz refresh rate and 2560 x 1600 resolution. It’s quite vibrant. A number of different color modes were available for various different types of games, and I found that they improved the viewing experience. The 13.4-inch screen is a bit small for playing most games, and I had to squint at some windows here and there, but at least the QHD resolution delivers sharp details.
So those are the bells and whistles. Here’s what it’s like to use the thing.

That’s the power button there on the top.

The Function
The Z13, well, you know. It’s a 13-inch tablet. So, bearing that in mind, the frame rates were fine.
In particular, it had no problem running demanding titles at its native QHD resolution. I saw an average of 232fps on CS:GO and 55fps on Red Dead Redemption 2, with both titles at maximum settings. Those are both better results than we saw from last year’s Zephyrus G14 (which was a full-fledged traditional gaming laptop, not one of these tablet things). They’re not stunningly good to the point where they’re blowing other premium gaming laptops out of the water, and Asus has clearly had to kneecap the (it’s fed just 65W of power — yes, it can run that low) RTX 4070 to squeeze it into this chassis. It’s a bit like having packed an entire college dorm room into the trunk of a sedan. Sure, you did it, but at what cost?
But I digress. Throughout, I was pleasantly surprised by how well the device was able to keep its temperature down. I didn’t see many spikes above 70 degrees Celsius as I played. The nice thing about this form factor, too, is that regardless how hot the chassis gets, it’s generally not going to transfer to the keyboard or palm rests and impact your gaming experience.
For an additional fee, folks can also connect the device to the XG Mobile, a line of external GPUs that should deliver significantly higher frame rates. You can currently get one of these for around $1,000.
Oh, and the Z13 supports Nvidia’s Advanced Optimus. This essentially operates your MUX switch for you automatically — it will turn the integrated GPU off when you’re gaming and turn it back on (and turn the discrete GPU off) when you’re done gaming, which saves you from having to dig through your laptop’s settings to do that manually. Nice! Fun! Love to see it.

Ports include a combo audio jack, a Thunderbolt 4 a USB 3.2 Type-A, a USB 3.2 Gen 2 Type-C and a microSD card reader.

If you were expecting this device to have excellent battery life, bless your heart, but it has no such thing. I averaged four and a half hours of continuous work use, which involved bouncing around 20-ish Chrome tabs, streaming Spotify, Slacking, and such. I did get a better battery gaming result than I’d expected to, eking out about 48 minutes of Red Dead Redemption 2 play to one charge. The included 130W adapter can juice the device up to 50 percent in 30 minutes, per Asus’s estimates.
Regular readers of my reviews might expect a diatribe here about how excellent battery life should be a baseline expectation for a portable machine, but honestly, I don’t have it in me. I know that people aren’t buying this for excellent battery life or top-of-the-line frame rates; they’re buying this because it looks like it just fell down from outer space. As well they should.

It’s a sturdy, non-wobbly kickstand and keyboard.

I do need to complain about one thing
I’ve been an open-minded non-curmudgeon the whole way through this review, so I hope you’ll allow me to grump about one thing. I just can’t with the keyboard. It’s too much.
The keys contain what Asus refers to as “Acronym’s own custom alphabet”. I’m happy to learn that Acronym has an alphabet of its own. Unfortunately, it’s not the alphabet I need to type with for work.
I’m a very competent touch typist when it comes to words. When I need to, for example, type a number on the Z13, it becomes a scavenger hunt. It’s not that the real numbers aren’t on the Z13’s keys, but they are buried in a dump of so many other symbols and colors and zany doodads that my eyes couldn’t find them instinctively. Other things just aren’t delineated. For example, the key that lowers the brightness is labeled “DARK” and has a little faint grid on it. I understand what you’re going for, Acronym, but I just want the regular brightness icon. You can jazz up the brightness icon. Just give me the brightness icon.
It looks like it fell down from outer space
Wacky designs are a wonderful thing until they begin to encroach on the everyday function of a device. Kooky laptops are laptops first. The Zephyrus G14 Acronym (which I raved about upon its release) labeled its keyboard keys in a storybook-esque font that made them easier, not harder, to read. It sprinkled other decorations around the keycaps, but they were clearly and obviously delineated from the keys’ real actual labels.
Eye-popping designs are great, and this device is a unique offering you won’t find anywhere else on the market. I admire products that are unapologetically themselves, whether movies or clothing or consumer technology. But the fundamentals cannot fall by the wayside. And I hope companies, as they continue to innovate, remember that.

Asus’s ROG Flow Z13, a collaboration with Acronym, has hit shelves, and I don’t even know where to begin with this one. Just take a look for yourself.

Every so often I receive one of these bizarre little computers that Asus has done in collaboration with someone or other, and my senses are ever so slightly overwhelmed. They made one with an animated exploding head on the lid. There was one that turned into a DJ deck. There was one covered in dogs.

But this latest release — the ROG Flow Z13 ACRNM — might be the wackiest one yet to cross my desk. There is no discernible theme, rhyme, or reason to it. It is pure chaos, top to bottom. Which, you know what, fine. It’s 2023. Fair enough.

The Flow Z13 is the second collaboration between ROG and ACRONYM, an apparel brand that sells pieces like this $1,800…dress, I think? It’s a 13.4-inch gaming tablet with a kickstand and detachable keyboard — a gaming Surface Pro, for lack of a better descriptor.

With a price of $2,499.99, our Core i9 13900H/RTX 4070/16GB RAM/1TB SSD/2560 x 1600 model test unit targets a fairly niche audience — on-the-go gamers with deep pockets and a deeper desire to project an edgily chaotic aesthetic. Most people should not be spending this much. If it’s the convertible tablet you’re after, you can trick out a Surface Pro 9 for $500 less. If it’s gaming power and portability you’re after, a very comparable Zephyrus G14 is even cheaper. But the Z13 serves its particular, specific niche about as well as a laptop can.

Any idea which of these keys changes the volume? I sure don’t know.

The Form

Here are some phrases that Asus uses in its press materials to sum up the aesthetic it’s going for here:

“A redefinition of mobile computing”
“Beautifully refined yet raw”
“Truly unique machine”
“A hands-free dream machine”
“A functional yet striking work of art”

So, anyway.

They are quite nice keys, though.

It’s avant garde, that’s for sure. Every time I look at this thing, I spot something else. The bottom is covered in logos and typography (and they’re not just stickers; they’re laser-etched into the metal). The dark leather cover sports a funky-looking shape as well. I can’t say I really know what any of them are. If any of you regularly take ayahuasca and expect that you’re aware of their deeper spiritual meaning, feel free to let me know in the comments.

The rear is dotted with rubber pads, which do look a little bit funny, but will also do a solid job of keeping the device in place if you’re trying to lie it down on a table. The corners have “drop-resistant crashworthy bumpers”. There’s also a strap that you can attach to the corners in order to sling the thing over your shoulder like a briefcase. Let’s just say I’m very glad this didn’t come out while I was in college, because I absolutely would’ve traipsed around campus with this dangling around my front like a fanny pack. The cool kids would’ve bullied me, and rightly so.

Don’t ask me what’s going on here; I haven’t the faintest.

But look, there’s a kickstand!

Eclectic design aside, this is a 13-inch tablet with an RTX 4070 and an H-Series Core i9 inside. That’s highly unusual — those are the types of chips you generally expect to see in much bigger gaming rigs. The keyboard is detachable; the kickstand is not. Said kickstand allows for both vertical and horizontal orientations, a feature Asus has long been convinced that people need. I have no use for a 16:10 Windows tablet in vertical orientation, but more power to you if you do.

A Surface Pro type of deal for gaming

Now, the Z13 is not particularly portable as tablets go. At 2.91 pounds and 0.61 inches thick, it’s hardly an iPad, and it’s not the type of thing I’d necessarily want to bring up for an hour-long presentation. Still, when choosing between carrying this thing in my backpack and carrying, say, a Titan GT77, I’d choose this one any day. I used this for some couch and cafe work, and could fit it onto those crowded work surfaces with no problem.

One other thing to call out: the display. This model’s has a 165Hz refresh rate and 2560 x 1600 resolution. It’s quite vibrant. A number of different color modes were available for various different types of games, and I found that they improved the viewing experience. The 13.4-inch screen is a bit small for playing most games, and I had to squint at some windows here and there, but at least the QHD resolution delivers sharp details.

So those are the bells and whistles. Here’s what it’s like to use the thing.

That’s the power button there on the top.

The Function

The Z13, well, you know. It’s a 13-inch tablet. So, bearing that in mind, the frame rates were fine.

In particular, it had no problem running demanding titles at its native QHD resolution. I saw an average of 232fps on CS:GO and 55fps on Red Dead Redemption 2, with both titles at maximum settings. Those are both better results than we saw from last year’s Zephyrus G14 (which was a full-fledged traditional gaming laptop, not one of these tablet things). They’re not stunningly good to the point where they’re blowing other premium gaming laptops out of the water, and Asus has clearly had to kneecap the (it’s fed just 65W of power — yes, it can run that low) RTX 4070 to squeeze it into this chassis. It’s a bit like having packed an entire college dorm room into the trunk of a sedan. Sure, you did it, but at what cost?

But I digress. Throughout, I was pleasantly surprised by how well the device was able to keep its temperature down. I didn’t see many spikes above 70 degrees Celsius as I played. The nice thing about this form factor, too, is that regardless how hot the chassis gets, it’s generally not going to transfer to the keyboard or palm rests and impact your gaming experience.

For an additional fee, folks can also connect the device to the XG Mobile, a line of external GPUs that should deliver significantly higher frame rates. You can currently get one of these for around $1,000.

Oh, and the Z13 supports Nvidia’s Advanced Optimus. This essentially operates your MUX switch for you automatically — it will turn the integrated GPU off when you’re gaming and turn it back on (and turn the discrete GPU off) when you’re done gaming, which saves you from having to dig through your laptop’s settings to do that manually. Nice! Fun! Love to see it.

Ports include a combo audio jack, a Thunderbolt 4 a USB 3.2 Type-A, a USB 3.2 Gen 2 Type-C and a microSD card reader.

If you were expecting this device to have excellent battery life, bless your heart, but it has no such thing. I averaged four and a half hours of continuous work use, which involved bouncing around 20-ish Chrome tabs, streaming Spotify, Slacking, and such. I did get a better battery gaming result than I’d expected to, eking out about 48 minutes of Red Dead Redemption 2 play to one charge. The included 130W adapter can juice the device up to 50 percent in 30 minutes, per Asus’s estimates.

Regular readers of my reviews might expect a diatribe here about how excellent battery life should be a baseline expectation for a portable machine, but honestly, I don’t have it in me. I know that people aren’t buying this for excellent battery life or top-of-the-line frame rates; they’re buying this because it looks like it just fell down from outer space. As well they should.

It’s a sturdy, non-wobbly kickstand and keyboard.

I do need to complain about one thing

I’ve been an open-minded non-curmudgeon the whole way through this review, so I hope you’ll allow me to grump about one thing. I just can’t with the keyboard. It’s too much.

The keys contain what Asus refers to as “Acronym’s own custom alphabet”. I’m happy to learn that Acronym has an alphabet of its own. Unfortunately, it’s not the alphabet I need to type with for work.

I’m a very competent touch typist when it comes to words. When I need to, for example, type a number on the Z13, it becomes a scavenger hunt. It’s not that the real numbers aren’t on the Z13’s keys, but they are buried in a dump of so many other symbols and colors and zany doodads that my eyes couldn’t find them instinctively. Other things just aren’t delineated. For example, the key that lowers the brightness is labeled “DARK” and has a little faint grid on it. I understand what you’re going for, Acronym, but I just want the regular brightness icon. You can jazz up the brightness icon. Just give me the brightness icon.

It looks like it fell down from outer space

Wacky designs are a wonderful thing until they begin to encroach on the everyday function of a device. Kooky laptops are laptops first. The Zephyrus G14 Acronym (which I raved about upon its release) labeled its keyboard keys in a storybook-esque font that made them easier, not harder, to read. It sprinkled other decorations around the keycaps, but they were clearly and obviously delineated from the keys’ real actual labels.

Eye-popping designs are great, and this device is a unique offering you won’t find anywhere else on the market. I admire products that are unapologetically themselves, whether movies or clothing or consumer technology. But the fundamentals cannot fall by the wayside. And I hope companies, as they continue to innovate, remember that.

Read More 

Opening Day, Bronx-Style

Bryan Hoch, reporting for MLB:

There were familiar chants of “M-V-P!” as Aaron Judge strode
toward home plate in the first inning on Opening Day, digging his
right cleat across the dirt of the batter’s box as he prepared for
his first official at-bat since being named the 16th captain in
Yankees franchise history.

It took all of two pitches for Judge to pick up where he left off.
Having eclipsed Roger Maris’ single-season American League record
with 62 home runs last year, Judge belted the Majors’ first of
2023, powering a Logan Webb sinker over the center-field wall at
Yankee Stadium as the Yankees cruised to a 5-0 win over the Giants
on Thursday.

Opening Day is one of my favorite holidays of the year.

In addition to Judge’s homer and Gerrit Cole’s 11 strikeouts, the game also marked the debut of 21-year-old rookie shortstop Anthony Volpe, the youngest player to start on Opening Day for the Yankees since Derek Jeter. No shame in losing to the Yankees, Giants fans. (Giants starter Logan Webb struck out 12 and gave up only 4 hits in 6 innings — a hell of a good outing that looks crooked on the scoreboard.)

 ★ 

Bryan Hoch, reporting for MLB:

There were familiar chants of “M-V-P!” as Aaron Judge strode
toward home plate in the first inning on Opening Day, digging his
right cleat across the dirt of the batter’s box as he prepared for
his first official at-bat since being named the 16th captain in
Yankees franchise history.

It took all of two pitches for Judge to pick up where he left off.
Having eclipsed Roger Maris’ single-season American League record
with 62 home runs last year, Judge belted the Majors’ first of
2023, powering a Logan Webb sinker over the center-field wall at
Yankee Stadium as the Yankees cruised to a 5-0 win over the Giants
on Thursday.

Opening Day is one of my favorite holidays of the year.

In addition to Judge’s homer and Gerrit Cole’s 11 strikeouts, the game also marked the debut of 21-year-old rookie shortstop Anthony Volpe, the youngest player to start on Opening Day for the Yankees since Derek Jeter. No shame in losing to the Yankees, Giants fans. (Giants starter Logan Webb struck out 12 and gave up only 4 hits in 6 innings — a hell of a good outing that looks crooked on the scoreboard.)

Read More 

Block knows you have questions, and it doesn’t have good answers

Not the kind of statement you can take to the bank | Illustration by Hugo Herrera / The Verge

Block, recently targeted by short sellers at Hindenburg Research, is still presumably exploring its legal options. It has, however, released a statement about common investor questions it would like to answer. Unfortunately, none of the questions it wants to answer are “How did you not notice you were issuing a cash card to an obviously fake Donald Trump?”
There’s a lot in the Hindenburg report, which essentially accuses Block of falling down on the job of fraud prevention. To demonstrate the point, Hindenburg changed its accounts’ names to “Donald Trump” and “Jack Dorsey,” and they were still able to send and receive money. They even got a debit card under the name Donald Trump!

To test this, we turned our accounts into “Donald Trump” and “Elon Musk” and were easily able to send and receive funds. (15/n) pic.twitter.com/fAsETG94Jk— Hindenburg Research (@HindenburgRes) March 23, 2023

Now, personally, my question was, How could this happen? Block did not feel like answering that question, though! Here’s what it answered instead:

Why would a Cash App customer have multiple accounts?
How many accounts have gone through your identity verification program?
How much of Cash App’s business comes from these identity verified accounts?
How does your identity verification system work?
Is your approach to compliance different from others?
How much fraud and illicit activity do you have in your system?
How is Cash App peer-to-peer risk loss reflected in your financials and how has it trended over time?
How much have you invested in your compliance program?

Okay.
So we discover that some customers have multiple accounts because they want multiple accounts, that customers can transact with up to $1000 during any 30-day period without identity verification, and that Block “believe[s] that our approach to compliance is consistent with other financial services platforms.”
There are a couple things I want to focus on, though, and one of them has to do with that 30-day period transaction limit. It kind of seems like it would be trivial for scammers to create an account, hit their 30-day max, and move on to a new account? This doesn’t really disprove any Hindenburg allegation.
But what’s weirder is this:
Over time, as customers engage more with our platform or want to use additional products like the Cash App Card, send money from their Cash App stored balance, or transact at higher dollar amounts, they are required to complete our IDV [identity verification] process.
The existence of Hindenburg’s Donald J. Trump cash card suggests that either this is not true, the answer is fuzzy somehow (ie, you need multiple products to trip the verification wire), or that there is something deeply wrong with the identity verification process. Block does not speak to this, and it seems like a weird omission!
The response to the fraud question is, somehow, even weirder. Yes, fraud is common anywhere money exists — that’s part of the reason know your customer and anti-money laundering laws exist in the first place. But in estimating fraud, Block uses its “denylist” —which prevents transactions. The allegation from Hindenburg is, essentially, that Block’s denylist should be larger. Block responds by saying its denylist is 2 percent of all transacting accounts. This doesn’t disprove anything Hindenburg has claimed. Nor does it speak to any of the allegations in the Hindenburg report.
And when it comes to peer-to-peer fraud — a major allegation in the Hindenburg report, we get a similar dodge:
This figure has remained at or below 0.20% of both applicable peer-to-peer payment volume and of overall inflows for each of the past five years. While we saw an increase during 2020, we have driven improvements since, and, in 2022, Cash App risk loss recognized in sales and marketing was 0.14% of applicable peer-to-peer payment volume and 0.12% of overall inflows.
Okay, but how do we know that Block is counting correctly? Again, the Hindenburg suggestion is that Block is falling down on the job — so relying on your own internal figures to rebut that… doesn’t rebut it!
There’s another thing that lifted my eyebrows:
The 44 million verified accounts represented approximately 39 million unique Social Security numbers as of December 2022 (we use Social Security number as a logical, unique identifier to estimate the number of identities in this analysis).
So some Social Security numbers have multiple verified accounts. Sure! And they did disclose in their 10-K that one customer can have multiple accounts. Fine! But here’s my question, which isn’t answered directly and pertains precisely to the Donald J. Trump card: Does the name on the account have to match the name associated with the Social Security number? I ask because, you know, there are a lot of Social Security numbers for sale on the dark web. The statement doesn’t say.
One other thing stuck out to me:
The company’s compliance investments have grown more than twice as fast as overall gross profit, and compliance investments have also meaningfully increased as a percentage of our overall operating expenses.
The question here is, “How much have you invested in your compliance program?” and Block doesn’t answer it. There is a number in a budget somewhere for this, and yet, we don’t see it! Instead, we get told that compliance investments have “grown twice as fast as overall gross profit.” It is very easy to double the size of something small, and I have no idea in what timeframe that growth has taken place.
The thing about this non-answer is that Block asked the question itself in its own press release. It’s not like I showed up wearing my fedora with a press card in the brim and asked CEO Jack Dorsey a hard-hitting question he was unprepared for. This question could easily have been omitted rather than dodged. That’s shocking to me!
Anyway, based on this, I will be surprised if Block files that lawsuit it was threatening. Block has promised more discussion of this on its forthcoming earnings call, and I genuinely hope analysts rake them over the coals, because this statement is a nothingburger. Talking past Hindenburg is not the same as disproving their allegations — did Block really think no one would notice that? Maybe Dorsey is a blockhead in more than just title.

Not the kind of statement you can take to the bank | Illustration by Hugo Herrera / The Verge

Block, recently targeted by short sellers at Hindenburg Research, is still presumably exploring its legal options. It has, however, released a statement about common investor questions it would like to answer. Unfortunately, none of the questions it wants to answer are “How did you not notice you were issuing a cash card to an obviously fake Donald Trump?”

There’s a lot in the Hindenburg report, which essentially accuses Block of falling down on the job of fraud prevention. To demonstrate the point, Hindenburg changed its accounts’ names to “Donald Trump” and “Jack Dorsey,” and they were still able to send and receive money. They even got a debit card under the name Donald Trump!

To test this, we turned our accounts into “Donald Trump” and “Elon Musk” and were easily able to send and receive funds. (15/n) pic.twitter.com/fAsETG94Jk

— Hindenburg Research (@HindenburgRes) March 23, 2023

Now, personally, my question was, How could this happen? Block did not feel like answering that question, though! Here’s what it answered instead:

Why would a Cash App customer have multiple accounts?
How many accounts have gone through your identity verification program?
How much of Cash App’s business comes from these identity verified accounts?
How does your identity verification system work?
Is your approach to compliance different from others?
How much fraud and illicit activity do you have in your system?
How is Cash App peer-to-peer risk loss reflected in your financials and how has it trended over time?
How much have you invested in your compliance program?

Okay.

So we discover that some customers have multiple accounts because they want multiple accounts, that customers can transact with up to $1000 during any 30-day period without identity verification, and that Block “believe[s] that our approach to compliance is consistent with other financial services platforms.”

There are a couple things I want to focus on, though, and one of them has to do with that 30-day period transaction limit. It kind of seems like it would be trivial for scammers to create an account, hit their 30-day max, and move on to a new account? This doesn’t really disprove any Hindenburg allegation.

But what’s weirder is this:

Over time, as customers engage more with our platform or want to use additional products like the Cash App Card, send money from their Cash App stored balance, or transact at higher dollar amounts, they are required to complete our IDV [identity verification] process.

The existence of Hindenburg’s Donald J. Trump cash card suggests that either this is not true, the answer is fuzzy somehow (ie, you need multiple products to trip the verification wire), or that there is something deeply wrong with the identity verification process. Block does not speak to this, and it seems like a weird omission!

The response to the fraud question is, somehow, even weirder. Yes, fraud is common anywhere money exists — that’s part of the reason know your customer and anti-money laundering laws exist in the first place. But in estimating fraud, Block uses its “denylist” —which prevents transactions. The allegation from Hindenburg is, essentially, that Block’s denylist should be larger. Block responds by saying its denylist is 2 percent of all transacting accounts. This doesn’t disprove anything Hindenburg has claimed. Nor does it speak to any of the allegations in the Hindenburg report.

And when it comes to peer-to-peer fraud — a major allegation in the Hindenburg report, we get a similar dodge:

This figure has remained at or below 0.20% of both applicable peer-to-peer payment volume and of overall inflows for each of the past five years. While we saw an increase during 2020, we have driven improvements since, and, in 2022, Cash App risk loss recognized in sales and marketing was 0.14% of applicable peer-to-peer payment volume and 0.12% of overall inflows.

Okay, but how do we know that Block is counting correctly? Again, the Hindenburg suggestion is that Block is falling down on the job — so relying on your own internal figures to rebut that… doesn’t rebut it!

There’s another thing that lifted my eyebrows:

The 44 million verified accounts represented approximately 39 million unique Social Security numbers as of December 2022 (we use Social Security number as a logical, unique identifier to estimate the number of identities in this analysis).

So some Social Security numbers have multiple verified accounts. Sure! And they did disclose in their 10-K that one customer can have multiple accounts. Fine! But here’s my question, which isn’t answered directly and pertains precisely to the Donald J. Trump card: Does the name on the account have to match the name associated with the Social Security number? I ask because, you know, there are a lot of Social Security numbers for sale on the dark web. The statement doesn’t say.

One other thing stuck out to me:

The company’s compliance investments have grown more than twice as fast as overall gross profit, and compliance investments have also meaningfully increased as a percentage of our overall operating expenses.

The question here is, “How much have you invested in your compliance program?” and Block doesn’t answer it. There is a number in a budget somewhere for this, and yet, we don’t see it! Instead, we get told that compliance investments have “grown twice as fast as overall gross profit.” It is very easy to double the size of something small, and I have no idea in what timeframe that growth has taken place.

The thing about this non-answer is that Block asked the question itself in its own press release. It’s not like I showed up wearing my fedora with a press card in the brim and asked CEO Jack Dorsey a hard-hitting question he was unprepared for. This question could easily have been omitted rather than dodged. That’s shocking to me!

Anyway, based on this, I will be surprised if Block files that lawsuit it was threatening. Block has promised more discussion of this on its forthcoming earnings call, and I genuinely hope analysts rake them over the coals, because this statement is a nothingburger. Talking past Hindenburg is not the same as disproving their allegations — did Block really think no one would notice that? Maybe Dorsey is a blockhead in more than just title.

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