FTX founder Sam Bankman-Fried was charged by the U.S. Securities and Exchange Commission on Tuesday with defrauding investors in what regulators called “a house of cards,” hours before he was expected to appear before a magistrate in the Bahamas.

Since at least May 2019, FTX raised more than $1.8 billion from equity investors in a years-long fraud in which Bankman-Fried concealed that FTX was diverting customer funds to its affiliated crypto hedge fund Alameda Research LLC, the SEC alleged in a statement. Bankman-Fried used commingled FTX customers’ funds at Alameda to make undisclosed venture investments, “lavish real estate purchases” and political donations, it said.

Separate charges would be announced by the U.S. Attorney’s Office for the Southern District for New York and the Commodity Futures Trading Commission later on Tuesday, the SEC said.

Representatives for Bankman-Fried did not respond immediately to requests for comment.

The securities regulator said it would seek a director and officer bar and a penalty against Bankman-Fried. It would also seek to prevent Bankman-Fried from participating in future securities purchases, offers and sales except for his personal account and a civil penalty.

“We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto,” said SEC Chair Gary Gensler in a statement.

Bankman-Fried was arrested Monday evening in the Bahamas and was expected to appear before a magistrate on Tuesday, marking his first in-person public appearance since the stunning collapse of FTX, which filed for bankruptcy in November after struggling to raise money as traders rushed to withdraw $6 billion from the platform in just 72 hours.

Police in the Bahamas, where FTX was based, said the 30-year-old was arrested after 6 p.m. on Monday (2300 GMT) at his luxury gated community called the Albany in the capital, Nassau.

Damian Williams, the U.S. Attorney for the Southern District of New York, said in a statement on Monday evening the arrest came at the request of the U.S. government, and an indictment against Bankman-Fried would be unsealed on Tuesday.

The Bahamas’ attorney general’s office said it expects him to be extradited to the United States.

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Prime Minister-designate Benjamin Netanyahu pledged on Tuesday to govern in the interests of all Israelis, as religious-nationalist parties slated to join his new coalition government pressed ahead with contested legislation.

One bill submitted for preliminary parliamentary review could potentially grant Defence Ministry powers to far-right politician Bezalel Smotrich to foster more Jewish settlements in the occupied West Bank, where Palestinians seek statehood.

Other bills would consolidate cabinet authority over police for Itamar Ben-Gvir, another ultra-nationalist, and enable ultra-Orthodox Jewish politician Arieh Deri to serve as finance minister despite his having been convicted of tax fraud.

Netanyahu’s Likud Party placed first in the Nov. 1 election. Israel’s longest-serving premier, Netanyahu is courting the religious-nationalists after being shunned by some mainstream parties over his ongoing trial for corruption.

“We were elected to lead in our way, the way of the nationalist-right and the way of the liberal-right, and so shall we do,” he told the Knesset, to boos from centre-left lawmakers.

The prospective new government has stirred concern at home and abroad for the future of Israel’s secular values, frayed ethnic relations and stalled peace talks with the Palestinians.

But the rightist Netanyahu said that, under his watch, “everyone will live in accordance with their own faith. This will not become a nation of religious law. It will be a country in which we tend to all citizens of Israel, without exception.”

“We will preserve the status quo,” Netanyahu said, using a term that has been applied both to freedom of worship in Israel and to the management of access to a contested Jerusalem holy site that has at times ignited violence with the Palestinians.

The site houses Al Aqsa, a major mosque. It is also the most sacred site for Jews, as vestige of their two ancient temples, but Jewish prayer is barred there under an Israeli pact with Muslim authorities. Ben-Gvir has called for that ban to end.

Outgoing centrist Prime Minister Yair Lapid accused Netanyahu, 73, of posing a threat to Israeli democracy.

“Netanyahu is weak, terrified of his trial. People who are younger than him – more extremist and determined than him – have taken over,” Lapid told the Knesset.

Netanyahu has until Dec. 21 to finalise a government. Otherwise it could mean another election.

As with many other aspects of life and business, 2022 held fewer overall surprises in cybersecurity than in recent years — thank goodness. Instead, many trends brewing over the past few years began to take clearer form. Some were unexpected, and many were predictable, but all are important to consider when making plans for security in 2023.

What Overall Trends Did We See in 2022?

Ransomware continued to stay in the headlines in 2022. The share of breaches caused by ransomware grew 41% in the last year and took 49 days longer than the average breach to identify and contain. Ransomware gangs continued reemerging as new groups with the same key players after an arrest or major attack. And ransomware gangs are growing even more lucrative and powerful by selling ransomware as a service.

On a positive note, zero trust evolved from being a new concept to a best practice. As hybrid work became a way of life, more organizations have started adopting zero trust frameworks– meaning all users, apps and devices that request access are assumed to be unauthorized until proven otherwise. Organizations with a zero trust approach deployed saved nearly $1 million in average breach costs compared to organizations without zero trust deployed.

To get more insight into how 2022 trends are impacting the future of the industry, we talked to leading experts. Here’s what they have to say.

Ransomware Attacks are Rebounding — But Not for All

Cyber criminals look for organizations or industries teetering at the edge and then make their move to tip them over. Last year, we saw that with manufacturing — a strained industry viewed as the backbone of supply chains. With the distinct possibility of a global recession on the horizon, we expect to see ransomware attacks spike in 2023. However, larger organizations in regions heavily impacted during the ransomware boom are the most prepared for this wave after investing time and money in fighting back.

– Charles Henderson, Global Managing Partner, Head of IBM Security X-Force

Opportunities for Hackers-for-Hire Skyrocket Amid a Global Recession

As operators offer new tools that dramatically lower the barrier of entry for less experienced and less technical cyber criminals, the cyber crime-as-a-service ecosystem may balloon in the year ahead. If the global economy faces a downturn, hackers-for-hire may emerge in search of quick and easy pay. We expect the biggest rise to be across Europe, considering geopolitical tensions and a challenging winter ahead.

– John Dwyer, Head of Research, IBM Security X-Force

Zero Trust Got 99 (Implementation) Problems

Now that it’s finally more than just a buzzword, security teams will accelerate zero trust adoption plans in 2023 — and make several missteps along the way. Without a deep understanding of trust relationships, implementations will fail. We already see security teams building “less trust” rather than “no trust” architectures, which opens the door to security gaps that adversaries may take advantage of in 2023.

– Charles Henderson, Global Managing Partner, Head of IBM Security X-Force

Social Engineers are Setting Their Sights on ICS Systems

ICS/SCADA systems are essential to the daily operations of industrial manufacturers. Due to their importance, these systems are a top target for attackers. Yet while the tactics and techniques required to social engineer ICS systems differ from IT, the impact can be even more detrimental — going so far as the possible loss of life. Social engineers are already beginning to advance their techniques and tactics to more successfully gain access to these vulnerable systems. We anticipate social engineering to accelerate — with even more success — in the year ahead.

– Stephanie Carruthers, Chief People Hacker, IBM Security X-Force Red

Adversaries Sidestep New Security Technologies

Almost as fast as the cybersecurity industry releases new security tools, adversaries evolve their techniques to circumvent them. This year will be no different. We expect to see cyber criminals set their sights more specifically on MFA and EDR technologies. With some attackers having succeeded at circumventing non-phishing-resistant MFA this past year — and more organizations relying on it than ever before — this technology will grow as a top target next year. Similarly, adversaries have been honing EDR evasion techniques. We expect to see a massive spike in the number of EDR evasion tools for sale on the dark web.

– John Dwyer, Head of Research, IBM Security X-Force

Specialists Will Double-Back to Generalists to Secure the Cloud in 2023

Hiring the talent required to secure the cloud will be a challenge for security leaders in 2023. One of the greatest hurdles stems from the large number of people needed in very niche, specialized roles. With so many companies increasingly going all-in on the cloud — and a skills crisis that’s worsening year by year — the solution to the skills gap lies in cybersecurity generalists. Organizations will recruit more generalists with successful track records, and build internal teams by reskilling specialists back to generalists.

– John Hendley, Head of Strategy, IBM Security X-Force

Automation Will Help Defenders Protect the “Moat”

With data being more dispersed than ever the concept of protecting the “moat” is no longer a successful strategy — we now have too much surface area to cover. We’ll see more automated protection of the “moat”, so defenders can focus more time on detecting adversaries earlier and responding more effectively.

– Evan Anderson, Principal Technologist, Randori 

Credential-Stealing Will Continue to Rise

Cyber criminals will continue to leverage large caches of leaked/stolen credentials to devastating effect. Many consumers and businesses are gradually migrating to password managers, passwordless and hardware identity tokens. However, the vast majority of the population continues to reuse credentials or variations of credentials between environments, systems or sites. Next year, we’ll see attacks against legacy second-factor authentication, such as SMS, continue, as will attacks against push-based multi-factor authentication solutions. Phishing and other attacks designed to capture authentication tokens will also rise.

– Dustin Heywood, Chief Architect, IBM Security X-Force

What Else Will 2023 Bring?

Though the 2023 cyber forecast has become clearer, the current wild card is a potential looming recession and how the uncertain economy will affect cybersecurity spending – and attackers’ motivations. The early months of 2023 should provide insight into the direction the economy is likely to take. But no matter what the economy does, organizations that continue to prioritize cybersecurity will continue to reduce their risk of business disruption and reputational loss from major breaches.

The post Cybersecurity Trends: IBM’s Predictions for 2023 appeared first on Security Intelligence.

The European Parliament stripped Greek lawmaker Eva Kaili of her senior assembly post on Tuesday over allegations that World Cup host Qatar had bribed her to influence decision-making, charges she has denied.

Kaili, one of 14 vice presidents in the parliament, was among four people arrested and charged in Belgium over the scandal that has triggered outrage in Brussels and risks damaging the European Union’s image.

The case, in which police discovered stacks of cash, casts a shadow over the European Parliament which seeks to be a moral compass, criticising global rights abuses and taking EU governments to task over any hint of impropriety.

Qatar has denied any wrongdoing.

The parliament acted quickly to loosen ties with Kaili, with 625 MEPs voting in favour of the move, only one against and two abstaining.

“The integrity of @Europarl_EN comes first and foremost,” President Roberta Metsola tweeted.

Michalis Dimitrakopoulos, Kaili’s lawyer in Greece, said earlier on Tuesday: “Her position is that she is innocent, I can tell you that.”

“She has nothing to do with financing from Qatar, nothing, explicitly and unequivocally,” Dimitrakopoulos told Open TV in a first public comment.

Several EU states including Germany, said the 27-nation union’s credibility was at stake. Countries which have faced criticism from the assembly, including EU member Hungary, said it had lost the moral high ground.

“From now on the European Parliament will not be able to speak about corruption in a credible manner,” Hungary Foreign Minister Peter Szijjarto wrote on Facebook.

Belgian police searched 19 homes and the offices of the parliament from Friday to Monday as part of their investigation and seized computers, mobile phones and cash, some of it found in a suitcase in a hotel room.

None of the four people charged have been formally identified, but Kaili’s name was rapidly leaked to the press.

Belgian prosecutors said they had suspected for more than four months that a Gulf state was trying to buy influence in Brussels. Although no state was publicly named by prosecutors, a source with knowledge of the case said it was Qatar.

Several European lawmakers called for Kaili to quit.

“Given the extent of the corruption scandal, it is the least we could expect of her,” said MEP Manon Aubry, who co-chairs the Left group.

Manfred Weber, of the conservative European’s People Party, said: “Our colleagues at the European Parliament have been deeply shocked. These developments represent a heavy burden.”

The Greek authorities on Monday froze Kaili’s assets in her homeland, while the Greek socialist PASOK party said it would expel her from its ranks.

Kaili, 44, a Socialist MEP was among a stable of young aspiring Greek politicians who emerged in the debilitating debt crisis which swept Greece from 2010 to 2015, where the country required three international bailouts.

Chinese leaders have reportedly delayed a key economic policy meeting amid growing signs that COVID-19 infections are surging nearly a week after Beijing jettisoned some of the world’s toughest restrictions.

President Xi Jinping and other Politburo members and senior government figures had been expected to attend the closed-door Central Economic Work Conference, most likely this week, to chart a policy course for the embattled Chinese economy in 2023.

A Bloomberg News report on Tuesday night, citing people familiar with the matter, said the meeting had been delayed and there was no timetable for rescheduling.

The delay comes as authorities continue to overturn the previously resolute “zero-COVID” policy championed by Xi.

Long queues are appearing outside fever clinics in a worrying sign that a wave of infections is building, even though official tallies of new cases have dropped in recent weeks as authorities reduce testing.

And companies in China, from e-commerce giant JD.com to cosmetics brand Sephora, are rushing to minimise the impact of surging infections – doling out test kits, encouraging more work from home and, in some cases, procuring truckloads of medicine.

The signs come as China attempts to swiftly align with a world that has largely reopened, following unprecedented protests last month in China three years into the pandemic.

The protests were the strongest show of public defiance during Xi’s decade-old presidency and come amid growth figures for China’s $17 trillion economy that were some of the worst in 50 years.

Despite rising infections, people in China cheered the withdrawal on Tuesday of a state-mandated app used to track whether they had travelled to COVID-stricken areas.

As authorities deactivated the “itinerary code” app at midnight on Monday, China’s four telecoms firms said they would delete users’ data associated with the app.

“Goodbye itinerary code, I hope to never see you again,” said a post on social media platform Weibo, where people cheered the demise of an app that critics feared could be used for mass surveillance.

“The hand that stretched out to exert power during the epidemic should now be pulled back,” wrote another user.

And in a further sign of policy easing, Chinese healthcare company 111.inc has started selling Pfizer’s Paxlovid for COVID-19 treatment in China via its app – medicine previously only available in some hospitals.

It sold out just over half an hour after the listing was reported by local media, according to the platform’s customer service.

For all the relief over last week’s decision to begin overturning the government’s zero-COVID policy, there are fears that China may now pay a price.

Infections are expected to rise further during the Chinese New Year holiday next month, when people travel across the country to be with their families, – a risk for a 1.4 billion population that lacks “herd immunity” and has relatively low vaccination rates among the elderly, according to some analysts.

The moves made last week to unwind the COVID curbs included dropping mandatory testing prior to many public activities and reining in quarantine.

Beijing’s envoy to the United States on Monday said he believes China’s COVID-19 measures will be further relaxed in the near future and international travel to the country will also become easier.

China has all but shut its borders to international travel since the pandemic first erupted in the central Chinese city of Wuhan in later 2019. International flights are still at a fraction of pre-pandemic levels and arrivals face eight days in quarantine.

Financial hub Hong Kong, which already has less stringent border controls than mainland China, on Tuesday said it would drop a requirement for incoming travellers to avoid bars and restaurants in the three days after arrival.

Hong Kong will also scrap its mobility-tracking app governing access to restaurants and venues such as gyms, clubs and salons, Chief Executive John Lee said.

While the lifting of controls is seen as brightening the prospects for global growth longer term, analysts say Chinese businesses will struggle in the weeks ahead, as a wave of infections creates staff shortages and makes consumers wary.

Analysts say the decline in reported new cases could reflect the dropping of testing requirements rather than the actual situation on the ground.

“The rapid surge of infections in big cities might be only the beginning of a massive wave of COVID infections,” said Ting Lu, Chief China Economist at Nomura.

“We reckon that the incoming migration around the Chinese New Year holiday in late January could bring about an unprecedented spread of COVID.”

Experts say China’s fragile healthcare system could be quickly overwhelmed if those fears are realised.

In Beijing, empty seats on commuter trains and deserted restaurants highlight some people’s caution.

“Maybe other people are afraid or are worried about kids’ and grandparents’ health. It’s a personal choice,” Gao Lin, a 33-year-old financier, told Reuters.

China stocks (.CSI300) edged lower on Tuesday as a recent rebound triggered by reopening hopes gave way to concerns about spreading infections. The yuan currency was little changed, but it is already set for its worst year since 1994, when China unified the official and market exchange rates.

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FTX founder Sam Bankman-Fried was charged by the U.S. Securities and Exchange Commission on Tuesday with defrauding investors in what regulators called “a house of cards,” hours before he was expected to appear before a magistrate in the Bahamas.

Separate charges would be announced by the U.S. Attorney’s Office for the Southern District for New York and the Commodity Futures Trading Commission later on Tuesday, the SEC said.

In a statement, the SEC said it would seek a director and officer bar and a penalty against Bankman-Fried, and to prevent Bankman-Fried from participating in future securities purchases, offers and sales except for his personal account and a civil penalty, among other actions.

“We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto,” said SEC Chair Gary Gensler in a statement.

Bankman-Fried was arrested Monday evening in the Bahamas and was expected to appear before a magistrate on Tuesday, marking his first in-person public appearance since the stunning collapse of FTX, which filed for bankruptcy in November after struggling to raise money as traders rushed to withdraw $6 billion from the platform in just 72 hours.

Police in the Bahamas, where FTX was based, said the 30-year-old was arrested after 6 p.m. on Monday (2300 GMT) at his luxury gated community called the Albany in the capital, Nassau.

Damian Williams, the U.S. Attorney for the Southern District of New York, said in a statement on Monday evening the arrest came at the request of the U.S. government, and an indictment against Bankman-Fried would be unsealed on Tuesday.

A lawyer for Bankman-Fried did not respond to requests for comment on Monday.

The Bahamas’ attorney general’s office said it expects him to be extradited to the United States.

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Chrysler parent Stellantis (STLA.MI) said Tuesday it is recalling 1.4 million pickup trucks worldwide because tailgates may not latch properly and could open while driving.

The automaker said the recall covers various 2019 through 2022 model year Ram 1500, 2500, and 3500 pickup trucks.

The company said it has no reports of crashes or injuries but more than 800 warranty claims and other reports potentially related to the issue. Dealers will inspect the tailgate striker alignment to the box latch and adjust if necessary, the company said.

The recall includes more than 1.23 million vehicles in the United States, 120,000 in Canada, 26,000 in Mexico and about 27,000 outside North America. Owner notification letters will be mailed in late January.

The U.S. National Highway Traffic Safety Administration said an unintended tailgate opening while driving could result in a loss of unsecured cargo, potentially creating a road hazard and increasing the risk of a crash.

The automaker opened an internal investigation into the issue in July 2021 and the company said it “continuously monitored field data for potentially related incidents.”

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