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US Tries to Override New York Gambling Laws, Orders Kalshi to Keep Operating

2 weeks 1 day ago
The CFTC has ordered Kalshi to keep operating in New York, claiming the state's lawsuit against the prediction market created a "market emergency." They said it acted "to ensure market stability" and "ordered the exchange to continue to operate in accordance with the Commodity Exchange Act's Core Principles." Ars Technica reports: The market emergency alleged by the CFTC is that New York Attorney General Letitia James sued Kalshi on July 31. James' lawsuit seeks a court order to permanently enjoin Kalshi "from operating an unlawful gambling business" in the state. The lawsuit also demands that Kalshi "make full restitution to customers who have engaged in betting" and pay financial penalties. "New York intends to make event contract derivatives waste away under its iron curtain of state gaming laws before the courts get the chance to issue final rulings," CFTC Chairman Michael Selig said yesterday. "Congress did not intend for derivatives exchanges to be regulated under a patchwork of state gaming laws... New York has no business regulating these interstate financial markets. The commission is required by law to ensure order in these markets, and that is what we have done today." [...] The CFTC says it alone has the power to regulate platforms such as Kalshi and Polymarket under the Commodity Exchange Act, a US law that gives the CFTC exclusive jurisdiction over designated contract markets (DCMs). "These are financial exchanges that offer financial instruments and operate across state lines," Selig said yesterday. "They match the bid from a resident of one state with the offer of a resident from another state and submit the trade to a clearinghouse that backstops the transactions of customers throughout the country."

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China-Linked Hackers Used AI To Run First-Ever 'Autonomous' Cyberattack On Taiwan

2 weeks 1 day ago
Researchers at Israeli cybersecurity firm Dream say suspected China-linked hackers used an open-source AI-agent system to conduct what may be the first observed end-to-end autonomous cyberattack against a government. According to the Financial Times (paywalled), the attack compromised at least 85 accounts and resulted in the theft of more than 2,500 personnel records from Taiwanese systems. Tom's Hardware reports: The campaign reportedly ran for four days at the beginning of July and at times deployed as many as eight autonomous agents in parallel. Dream said the system mapped 21 government systems before compromising user accounts and extracting personnel information. The attackers subsequently expanded their activity to Taiwan's nuclear safety agency, at least seven energy companies, government suppliers, and other government systems. Dream says it found the evidence inside a 160-megabyte (160MB) online archive that surfaced during its broader tracking of cyberthreat actors. The archive reportedly held 1,395 files showing that the tool was built on two open-source AI agent systems -- Hermes and OpenClaw -- both of which can be downloaded freely and are designed to let large language models carry out multi-step tasks on their own. Researchers could not determine which underlying model powered the agents, but the data reportedly showed the model's safeguards had been sidestepped by presenting the intrusion as an authorized penetration test rather than a real attack. Of particular concern is that the toolkit for the hack comprised such easily available systems, neither of which was purpose-built for offense. The operators appear to have assembled a capable autonomous tool out of components any developer can pull down and run. What the researchers describe as the tool's most striking feature was its ability to continuously devise attacks on its own, rather than follow a preprogrammed route. The platform continuously assessed available evidence, ranked possible attack paths, and reprioritized them as circumstances changed. When one technique failed, the tool tasked another agent with searching the internet for information and developing an alternative approach.

Read more of this story at Slashdot.

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