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Binance Prosecutors Seek Tougher Travel Restrictions for Crypto Firm’s Founder – PYMNTS.com

Prosecutors want stricter bail conditions forBinancesfounder as he awaits sentencing on money-laundering charges.

Changpeng Zhaopleaded guiltyin November of last year to failing to adhere to proper anti-money laundering practices at his cryptocurrency exchanges, and also agreed to step down as head of the company.

Now,federal prosecutors want a judge to require Zhao to give the U.S. Attorneys office and pretrial service at least three days notice before any travel within the country, CNBC reported Friday (Feb. 23), citing court documents.

The new bail conditions would also require Zhao to give up his Canadian passport and would prevent him from applying for a new one without court permission. In addition, the billionaire would be forbidden from changing his residence without approval.

The argument came as a judge approved Binances $4.3 billion deal with the U.S. government forged the same time as Zhaos plea that resolved ongoing Justice Department investigations connected to the Bank Secrecy Act (BSA), failure to register as a money transmitting business and other financial and regulatory violations.

A December court ruling had determined Zhaowas a flight riskand ordered him to remain in the U.S. ahead of his sentencing. The sentencing had originally been scheduled for Friday, but will now happen in April.

Zhaos lawyers have contended that their client is not a flight risk, pointing to the fact that he traveled to the U.S. to enter his guilty plea, intends to resolve the case, and proposed a sizable bail agreement.

However, federal prosecutors argued that Zhao was a flight risk because of his substantial wealth outside the country and his close ties with the United Arab Emirates, which has no extradition treaty with the U.S.

Zhao is facing up to 18 months in prison under federal sentencing guidelines but could be subject to a stiffer penalty, assuming the Justice Department argues for one.

Despite Binances recent legal and regulatory issues, the company last year saw a 30% increase in its user base, welcoming 40 million new customers.

Importantly, we saw a particularly strong uptick in inflows coming from institutional investors, Binance CEORichard Tengwrote in the companys year-end report.

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IRS hires ConsenSys, Binance US, and TaxBit executives to strengthen crypto supervision – crypto.news

The Internal Revenue Service (IRS) is hiring employees from the crypto industry to improve its expertise in working with digital assets.

According to a Feb. 28 Bloomberg report, the IRS has hired two former cryptocurrency executives. One of them, Sulolit Raj Mukherjee, previously worked for the American division of the Binance crypto exchange, Binance US. His past work experience also includes the crypto firm ConsenSys, where he was head of the tax department.

Another new IRS hire, Seth Wilks, was recently vice president of government affairs and success at TaxBit. Both specialists will help lead the agencys cryptocurrency compliance and enforcement efforts. However, the exact positions of Mukherjee and Wilks have yet to be revealed by the agency.

Pulling in expertise from the private sector to work with the IRS team is critical to successfully building the agencys efforts involving digital assets and helping us do it in a way that works well for everyone.

The process of regulating cryptocurrency activities in the US, including in the tax area, is still under development. Many agencies, including the IRS, are proposing more thorough regulation of the digital assets sector. One of the latest IRS initiatives in this area is the new rules on the taxation of cryptocurrencies, which oblige brokers and exchanges to report sales.

The document was presented jointly with the US Treasury Department last year. Officials expected the new rules to close the tax gap and ensure everyone plays by the same set of rules. Under the proposed regulations, crypto brokers would be treated like more traditional brokers, such as stock brokers.

However, the document was criticized by representatives of various fields. Thus, Congressman Patrick McHenry called on agencies to establish more apparent regulatory requirements. In his opinion, any regulatory requirement must be narrow, tailored, and clear.

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Inside story of Binance executives’ detention in Nigeria – Business Insider Africa

The two executives travelled to Nigeria after the recent ban of Binance and several cryptocurrency trading platforms to halt what it described as continuous manipulation of the forex market and illicit movement of funds.

Upon arrival, they were apprehended by the office of the national security adviser, who also confiscated their passports, as reported by the Financial Times.

Yemi Cardoso, Nigeria's central bank governor, during the monetary policy meeting earlier this week, stated that Binance Nigeria has facilitated transactions exceeding $26 billion from unidentified sources in one year.

According to PREMIUM TIMES, the Nigerian authorities requested Binance executives to provide data relating to transactions involving the Nigerian Naira on the Binance platform in the last seven years. They also demanded that some other data relating to Nigeria be deleted from the Binance platform.

However, the Binance executives insisted that they should be taken to their respective countries embassies before they could comply.

As of Wednesday, the complete identities of the two Binance executives remain unclear. However, according to the information gathered, one of them is American, and the other is British-Pakistani.

The Nigerian government has secured a court warrant to detain the officials for at least twelve days in the first instance.

A source familiar with the situation told PREMIUM TIMES that the investigation has been transferred to the Economic and Financial Crimes Commission (EFCC). Meanwhile, the two executives are being held at a guest house near the Office of the National Security Adviser.

Last year, the Securities and Exchange Commission (SEC) said the operation of Binance Nigeria Limited, a subsidiary of Binance, was illegal. Despite the warning by the regulatory agency, the firm continued its operation.

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Over $26 billion passed through Binance Nigeria from unknown sources- Cardoso – Business Insider Africa

In the case of Binance, in the last one year, 26 billion dollars has passed through Binance Nigeria from sources and users who we cannot adequately identify, he told reporters.

Last week, the government moved against Binance, OctaFX, Coinbase and other crypto firms following reports that currency speculators and money launderers were using them to execute criminal activities.

The restriction of these platforms is also aimed at slowing currency speculation activities in the country.

In response to the government's action, Binance stated that its platform is not for currency pricing, and users engaging in manipulative behavior will be removed from its platform.

As industry leaders, we are working hand in hand with local authorities, lawmakers, and regulators to ensure we act on non-compliance, the platform added, noting that it is setting an upper limit for ads, filtering and removing bad ads, requiring and raising deposits for merchants posting ads as well as processes for actioning against any market manipulators.

It is important to note that foreign exchange rates are influenced by various complex factors, which Binance has no influence on,"

However, we continue to actively engage with regulators, policymakers and other relevant stakeholders to foster an open, transparent dialogue about managing the evolving landscape of cryptocurrency and financial markets, it said.

In February 2021, the CBN banned crypto in the country, explicitly instructing financial institutions to refrain from operating accounts for cryptocurrency service providers in view of the money laundering and terrorism financing risk and vulnerabilities inherent in their operations.

In December 2023, the Central Bank of Nigeria changed its stance on crypto assets and asked banks to disregard its February 2021 ban on crypto transactions.

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Nigeria fines Binance $10b in forex-rate manipulation probe – crypto.news

Binance faces another hefty fine following $4.3 billion paid to U.S. authorities as part of a plea settlement with the Department of Justice.

Nigerias government is imposing a $10 billion sanction on crypto exchange Binance as the African country investigates suspected foreign exchange rate manipulation tied to the naira currency, special adviser Bayo Onanuga confirmed in a Mar. 1 BBC interview.

The fine follows the arrest of two company executives sent to negotiate with authorities after officials disclosed plans to ban the crypto firm.

Local officials refused to disclose the identities of the Binance representatives, but reports say one is an American and the other is British. Both crypto exchange negotiators reportedly asked to be moved to their respective embassies.

A source close to the matter said enforcement agencies secured a court warrant allowing Nigerias government to hold the two persons for up to 12 days.

The crypto exchange crackdown ensued following government accusations that Binance facilitated illicit transactions and could not account for $26 billion in money flows. Furthermore, Nigerias Securities and Exchange Commission (SEC) said the platform has operated without a license and refused to comply with regulatory requirements.

Binance crypto platform and our Naira

The Central Bank of Nigeria (CBN) governor Yemi Cardoso says over $26 billion has passed through Binance Nigeria in the last four years.

Channels TV reported that Cardoso said this on Tuesday after the MPC meeting in Abuja.

In the case pic.twitter.com/yieFYBywoo

Authorities have demanded naira-related transaction data from Binance for the last seven years, and according to the Premium Times, a request was made to delete specific Nigerian information from the trading venue.

P2P trading was also disabled on the crypto exchange, while some users have reported being unable to access Binance facilities.

One user told crypto.news they had just traded naira for Tethers USDT on P2P to pay for social media services before their login was revoked. The trader preferred to remain anonymous amid uncertainty around the extent of Nigerias clampdown.

Other crypto-forex trading sites like Coinbase and Kraken also fell under Nigerias ban, as internet service providers were instructed to block access to these platforms. However, Coinbase pushed back on the decision and is conducting internal investigations.

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SEC’s Hester Peirce wants more decentralization in the financial system – Cointelegraph

United States Securities and Exchange Commission Commissioner Hester Peirce has advocated for more decentralization in the U.S. financial system, along with a softer approach to crypto regulation and enforcement.

Peirce, also known as Crypto Mom, closed her fireside chat with CNBCs MacKenzie Sigalos at the ETHDenver conference on Feb. 29 by stating that decentralization benefits the U.S. financial system.

Centralization means that you have concentrated risks, she said before adding:

Peirce, a former lawyer, was appointed by former President Donald Trump to the SEC in 2018.She has been affectionately called Crypto Mom for her support of the industry and has often shown dissent against the over-regulation of digital assets.

Earlier in the talk, Peirce responded to questions about the proposed legislation that aims to treat decentralized technologies such as network nodes, validators, noncustodial wallets, mining pools and blockchain software as financial institutions.

It is troubling, said Peirce, who went on to say that there was still a lot of confusion over who has to register.

Sigalos also spoke about how the broker/dealer rule would redefine the classification of exchanges and could impact and encompass decentralized finance (DeFi), decentralized exchanges and developers, to which Peirce responded:

When you have people working together and someone interacting with code instead of with a person or entity, its a real challenge for the SEC to figure out what to do with that, she added.

She added that it wasnt even necessarily the SECs role to even get comfortable with crypto.

The SEC adopted rules on Feb. 6 that would require more market participants to register with it and comply with federal securities laws, bringing DeFi under greater oversight.

Related: Hester Peirce against gag rule, lawmakers challenging regulators

Peirce added that right now, the SEC is in enforcement only mode, but there need to be provisions to allow projects to grow and become decentralized without the threat of being sued.

The SEC commissioner also spoke about a wide range of crypto-related topics, including the agencys future following the U.S. presidential election later this year, spot Bitcoin (BTC)exchange-traded funds, and central bank digital currencies, coupled with the specter of state financial surveillance.

Magazine: Does SEC Chair Gary Gensler have the final say?

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Decentralized AI will play a pivotal role in shaping the future of AI – TechRadar

In the burgeoning field of artificial intelligence, the term 'decentralized AI' has emerged as a beacon of potential transformation. But what does this term truly encapsulate? At its heart, decentralized AI signifies a shift from the monolithic, siloed computational behemoths to a more distributed, collaborative approach. It's about leveraging open-source models and harnessing the collective power of GPUs scattered across the globe. This paradigm promises to democratize the creation and application of AI, making it more accessible and less reliant on the traditional bastions of technological power.

The concept of decentralized AI is not just a technological shift but also a philosophical one. It challenges the status quo of AI development, which has been dominated by a few large corporations with the resources to invest in massive data centers and computational power. Decentralized AI, on the other hand, is built on the idea of a shared, collaborative network where resources are pooled and accessible to anyone with an internet connection. This approach has the potential to level the playing field, allowing smaller entities and individuals to participate in AI development and benefit from its advancements.

However, the question arises: is decentralized AI genuinely decentralized, or is it a mere facsimile of the concept? While open-source models provide the foundation for this decentralized ethos, they often rely on synthetic data produced by their commercial counterparts, such as GPT. Moreover, the decentralized AI infrastructure typically operates on GPUs provided by a handful of centralized tech giants. There's also the need for a centralized entity to offer a user-friendly access layer, making the technology approachable for the general public. This centralization within decentralization presents a paradox that is as intriguing as it is complex.

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The reliance on synthetic data is a significant concern in the quest for true decentralization. Synthetic data, while useful for training AI models without compromising privacy, is often generated by algorithms that are proprietary and centrally controlled. This creates a dependency on the very systems that decentralized AI aims to move away from. To address this, there is a growing movement towards creating open datasets and using real-world data in a privacy-preserving manner, which could help reduce the reliance on synthetic data and further the cause of decentralization.

Despite these contradictions, the decentralization of AI comes with a suite of compelling advantages. The democratization of AI development is perhaps the most significant of these. Open-source AI fosters a more democratic approach to development, inviting contributions from a global community. This inclusivity accelerates innovation and introduces a plethora of perspectives that could potentially disrupt the dominance of proprietary models.

The democratization of AI also means that the technology becomes more reflective of the diverse global population it serves. With contributions from around the world, AI systems can be trained on a wider variety of data, reducing biases and improving their applicability across different cultures and contexts. This could lead to AI systems that are more fair, ethical, and effective, benefiting society as a whole.

The flexibility inherent in open-source AI paves the way for greater customization, allowing solutions to be tailored to specific needs. This adaptability is a stark contrast to the 'one-size-fits-all' approach often seen in proprietary solutions, offering a significant advantage to those seeking a more personalized AI experience. Customization is not just about tweaking the AI to suit different applications; it's also about empowering users to understand and modify the technology according to their values and requirements.

Community support and sustainability are other hallmarks of open-source AI. These projects often boast robust communities that provide support and expertise that can rival, or even surpass, the customer service of proprietary vendors. The community-driven nature of open-source AI not only ensures its long-term sustainability but also fosters continuous improvement, independent of any single company's financial health.

The sustainability of open-source AI projects is closely tied to their community support. A vibrant community can drive the project forward, ensuring that it stays up-to-date with the latest advancements and adapts to changing needs. This is particularly important in the fast-paced world of AI, where new breakthroughs are made regularly. Open-source projects that can harness the collective intelligence of their community can evolve more rapidly and effectively than those that rely on a centralized development team.

Open-source AI also has profound ethical and societal implications. By facilitating community audits and challenges to unethical practices, open-source AI promotes a more ethical development process. In contrast, proprietary solutions may not be as transparent, leading to potential ethical concerns that are harder to address. The open nature of these projects means that anyone can examine the code and the data used to train the AI, providing an opportunity for scrutiny and accountability that is often lacking in proprietary systems.

The role of open-source AI in education and research cannot be overstated. These tools are indispensable for educational purposes, allowing students and researchers to explore and experiment without the burden of financial constraints. The result is a more skilled workforce, equipped to contribute to the AI field and challenge proprietary AI solutions. Access to open-source AI tools can transform education, enabling a hands-on learning experience that prepares students for the real-world challenges they will face in their careers.

In conclusion, while centralized AI has paved the way, the future shines brightly for open-source AI. Much like the evolution seen in traditional software development, open-source AI is poised to provide a burgeoning ecosystem of robust, reliable tools. This shift towards a more open, collaborative approach to AI development promises to unlock new possibilities and drive innovation in ways we are only beginning to imagine. As we stand on the cusp of this new era, it is clear that decentralized AI will play a pivotal role in shaping the technological landscape of tomorrow. The potential for decentralized AI to empower individuals, enhance global collaboration, and promote ethical practices makes it a truly transformative force in the field of artificial intelligence.

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Android Auto AI message summaries are now available here’s how it works – 9to5Google

With the launch of Android Auto 11.4, Google is making its AI message summaries available to all users. Heres how the feature works.

AI messages summaries were first announced by Google earlier this year as a way to quickly understand long messages without having Google Assistant read the whole thing aloud. The feature popped up in Android Autos settings quickly after, but the feature wasnt actually live.

But, now, it seems to finally be widely available.

When starting up Android Auto for the first time after installing v11.4, Google will send a notification to your phone explaining that message summaries are now available. You dont have to take any action with this, but it does also offer a shortcut to settings to manage the feature.

As was detailed recently, AI message summaries only work on longer messages, with 40 words being the barrier. For shorter messages, Google Assistant will still read the contents aloud in full.

On the first time you trigger an AI message summary, Google will alert you that it is generating a summary and that, with that in mind, the contents may be slightly incorrect. While that message is being read, a silent notification on your phone shows up to indicate that the summary is being generated. When read aloud, our test message of over 100 words was summarized down to about 15 words. Much of the detail was purged in the process, but the overall meaning was preserved. Your results, obviously, may vary depending on the scenario.

When an AI summary is being read, theres virtually no difference in the on-screen reply UI, which now takes up the entire display following a recent redesign.

After the summary is read, a notification appears on Android Auto asking for feedback on the summary.

If you do not want AI summaries, the feature can be easily turned off through Android Auto settings either on the cars display or on your phone.

The feature is still referred to as AI message summaries both on the phone and in Android Autos on-car settings, but theres also a new toggle for Notifications with Assistant, but its not super clear at this time exactly what that does.

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These are the top AI programming languages – Fortune

Weve all heard some of the conversations around AI. While there are many risks, the opportunities for global development and innovation are endlessand likely unstoppable.

In fact, PwC predicts that by 2030, AI alone will contribute $15.7 trillion to the global economy.

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And with household names like ChatGPT only making up a fraction of the AI ecosystem, the career opportunities in the space also seem endless. AI and machine learning specialist roles are predicted to be the fastest-growing jobs in the world, according to the World Economic Forums 2023 Future of Jobs Report.

Even beyond namesake AI experts, the technology is being utilized more and more across the text world. In fact, 70% of professional developers either use or are planning to use AI tools in their workflows, according to Stack Overflows 2023 Developer Survey.

So, for those especially outside the world of tech, how does AI even work and get created? Programming is at the core.

By and large, Python is the programming language most relevant when it comes to AIin part thanks to the languages dynamism and ease.

Python dominates the landscape because of its simplicity, readability, and extensive library ecosystem, especially for generative AI projects, says Ratinder Paul Singh Ahuja, CTO and VP at Pure Storage.

Rakesh Anigundi, Ryzen AI product lead at AMD, goes even further and calls Python a table stakes languagemeaning it is a baseline skill all those working in AI need to know.

LinkedIn even ranks Python as the second-most in-demand hard skills for engineering in the U.S., second only to engineering itself.

In particular, skills in key programming languages commonly used in the development of AIPython, Java, and SQLrank among the top five most sought-after skills on the technical side in the U.S., writes LinkedIns head of data and AI, Ya Xu.

The programming languages that are most relevant to the world of AI today may not be the most important tomorrow. And, even more crucially, they may not be most utilized by your company.

Regardless, having foundation skills in a language like Python can only help you in the long run. Enrolling in a Python bootcamp or taking a free online Python course is one of many ways to learn the skills to succeed. Students may also be exposed to Python in an undergraduate or graduate level coursework in data science or computer science.

Anigundi also notes it is important for students to be able to know how to efficiently set up programming work environments and know what packages are needed to work on a particular AI model. Being an expert at mathematics like statistics and regressions is also useful.

We have been through these tech trends alwaysits just that the pace at which some of these changes are happening is mind boggling to me, at least in my lifetime, he says. But that still doesnt take away some of the institutional knowledge that these different educational institutes impart in you.

It can be worth considering specializing in a sub-field aligning with personal interests like natural language processing, computer vision, or robotics, Singh Ahuja says. Prioritizing ethics and understanding the true implications of AI are also critical.

But since AI technology is changing so rapidly, soft skills can be argued to be even more important than technical capabilities. Some of the critical skills Singh Ahuja identifies include:

Above all, demonstrating your passion and desire to learn through real-world experience can help you distinguish yourself among the competitive field.

If youre in a very early part of your careerpicking a project, doing a project demonstrating value, sharing it, writing blocks, thats how you create an impact, Anigundi says.

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Here Come the AI Worms – WIRED

As generative AI systems like OpenAI's ChatGPT and Google's Gemini become more advanced, they are increasingly being put to work. Startups and tech companies are building AI agents and ecosystems on top of the systems that can complete boring chores for you: think automatically making calendar bookings and potentially buying products. But as the tools are given more freedom, it also increases the potential ways they can be attacked.

Now, in a demonstration of the risks of connected, autonomous AI ecosystems, a group of researchers have created one of what they claim are the first generative AI wormswhich can spread from one system to another, potentially stealing data or deploying malware in the process. It basically means that now you have the ability to conduct or to perform a new kind of cyberattack that hasn't been seen before, says Ben Nassi, a Cornell Tech researcher behind the research.

Nassi, along with fellow researchers Stav Cohen and Ron Bitton, created the worm, dubbed Morris II, as a nod to the original Morris computer worm that caused chaos across the internet in 1988. In a research paper and website shared exclusively with WIRED, the researchers show how the AI worm can attack a generative AI email assistant to steal data from emails and send spam messagesbreaking some security protections in ChatGPT and Gemini in the process.

The research, which was undertaken in test environments and not against a publicly available email assistant, comes as large language models (LLMs) are increasingly becoming multimodal, being able to generate images and video as well as text. While generative AI worms havent been spotted in the wild yet, multiple researchers say they are a security risk that startups, developers, and tech companies should be concerned about.

Most generative AI systems work by being fed promptstext instructions that tell the tools to answer a question or create an image. However, these prompts can also be weaponized against the system. Jailbreaks can make a system disregard its safety rules and spew out toxic or hateful content, while prompt injection attacks can give a chatbot secret instructions. For example, an attacker may hide text on a webpage telling an LLM to act as a scammer and ask for your bank details.

To create the generative AI worm, the researchers turned to a so-called adversarial self-replicating prompt. This is a prompt that triggers the generative AI model to output, in its response, another prompt, the researchers say. In short, the AI system is told to produce a set of further instructions in its replies. This is broadly similar to traditional SQL injection and buffer overflow attacks, the researchers say.

To show how the worm can work, the researchers created an email system that could send and receive messages using generative AI, plugging into ChatGPT, Gemini, and open source LLM, LLaVA. They then found two ways to exploit the systemby using a text-based self-replicating prompt and by embedding a self-replicating prompt within an image file.

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