Law

This 12-second crime has never happened before

Leave it to two genius brothers to commit an unprecedented criminal scheme. Last Thursday, a pair of brothers were indicted by the DOJ for allegedly stealing $25 million of cryptocurrency in a 12-second theft that happened in 2023.

The crypto bros (no, not the ones who buy NFTs), who both attended MIT, face two decades in prison and are being charged with money laundering and conspiracy to commit wire fraud. I wouldn’t mind $25 million every few seconds… if it weren’t for the jail time.

A new type of crime

According to prosecutors, James and Anton Peraire-Bueno’s education studying math and computer science at the prestigious university allowed them to commit the first-of-its-kind crime in a matter of seconds.

So, how did they do it? Over the course of months, the Peraire-Bueno brothers allegedly discovered a key weakness in how crypto, specifically Ethereum, is transferred. This enabled them to conduct a “baiting” operation that targeted three victim traders.

• Essentially, the time between when a crypto transaction is posted and when it's added to the blockchain dilutes the security of the tokens, adding a point of vulnerability.

• Prosecutors said they used that fraction of time to redirect pending transactions and steal $25 million before transferring it to shell companies in order to cover their tracks.

Perfect timing? The indictment comes amid the Securities and Exchange Commission’s pending decision whether to approve an Ethereum ETF. One prosecutor from the case said the novel offense “calls the very integrity of the blockchain into question.”

The SEC chair, Gary Gensler, is a known cynic regarding crypto, meaning the indictment might just have an effect on the SEC’s decision. Gensler has previously voiced concerns about investor security and blockchain’s ability to protect it.

Tech

Neuralink can now implant another brain chip

This may very well be the next superpower. The FDA gave Elon Musk’s neurotech company, Neuralink, the go ahead to place its brain chip into a second human after an electrode problem caused the first participant to experience partial detachment.

This is a step forward in the progress of the cutting edge industry which aims to assist those with neurological disorders in using technology. Eventually, the implant could help disabled patients restore critical functions, allowing the paralyzed to walk, the blind to see, and even cure neurological conditions such as Alzheimer's and dementia.

How does it work?

Neuralink embeds thin wires into the brain of the patient, which sense activity in the area of the brain linked to intentional movement. The implant then processes these impulses, converting them into signals that a connected computer can utilize to carry out basic tasks on a screen, though much more sophisticated interactions could be possible (even with the current version).

Watch a demonstration of the implant at work here:

What went wrong with the first implant?

Noland Arbaugh, a quadriplegic, can now use his thoughts to control a computer thanks to the company's first implant. However, Arbaugh stated that when 85% of the incredibly thin threads linking Neuralink's chip to the cortex of his brain detached, the company had to modify the software in order to keep it working properly.

Who gets it next? More than 1,000 quadriplegics have applied for the chip, according to Neuralink, but less than 100 of them fit the requirements for the study, for which applications are still being accepted. Although the company stated that most of the current candidates are white men, it still hopes to implant 10 chips into a diverse range of patients by the end of 2024.

A step in the right direction

There is understandably an element of excitement about the promise of a brain implant that can grant the ability to use an otherwise healthy brain through thought rather than physical movement to those with quadriplegia or severe motor disabilities.

Despite the setbacks with Arbaugh's implant (which seem to have been resolved), even Musk's most ardent critics should, at minimum, acknowledge the successful implementation of the implant and the tangible benefits it could bring.

OpenAI: the newest existential threat to humanity?

We can’t make it through the week without some drama involving AI, can we? The team at OpenAI seems to constantly disagree about what steps to take regarding the future of AI and how to protect humanity from it, resulting in the company losing essential employees.

Big implications, small concerns

Two executives resigned from OpenAI last week, the first being co-founder and chief scientist Ilya Sutskever, who was briefly accompanied by long-time employee Jan Leike.

Leike took to social media to voice his concerns after leaving the company, saying, “Building smarter-than-human machines is an inherently dangerous endeavor… but over the past years, safety culture and processes have taken a backseat to shiny products.”

This is why employees are so deeply concerned. Those running OpenAI don’t seem to care about this paramount issue, according to former employees such as Leike. He went on to write that the safety team’s disagreements with leadership reached a “breaking point,” and they weren’t able to secure crucial resources to do their job correctly, if at all.

Altman is under fire

OpenAI CEO Sam Altman was fired in November amid disagreements with the board regarding the security risks posed by AI, but was reinstated just days later. He has also drawn criticism for lending too much support to the commercial side of OpenAI, and a lack of it toward the safety division.

More recently, as of last week, ex-employees at OpenAI told Vox that those who wanted to leave the company were forced to sign restrictive exit documents that required they do not criticize OpenAI publicly, or they will have to give up their vested equity (which could be worth millions).

Altman later apologized on X, both about the reports of withheld vested equity as well as Leike and others safety concerns, saying, “[Leike is] right we have a lot more to do; we are committed to doing it.”

Grab Bag

Owning a home seems like a long-shot for a record number of people

Whether its interest rates, housing prices, inflation, or all three, people don’t think they’ll be getting a house anytime soon. According to a New York Federal Reserve survey, a record-low 40% of renters don’t think they’ll ever own a home in their lifetime.

Why the frowny face on home buying? Mostly because of mortgage rates and listing prices that are higher than the Burj Khalifa.

• Almost 75% of Americans think getting a mortgage is difficult compared to just half of Americans in 2021 (when interest rates were basically zero).

• Americans also expect interest rates and house prices to climb at least 5.1% in the next year, which is close to double they anticipated last year.

Moving to nowhere

Penske and U-Haul might take company wide sabbaticals if they see these numbers: only 13% of people expect to move in the coming year, and 25% think they’ll move in the next three years.

Some are worried about having to take out a new mortgage at a higher rate, which has homeowners staying put and also reducing the number of homes on the market.

According to Redfin, almost 9 in 10 homeowners had a mortgage rate lower than 6% last year. As of May 16th, the current 30-year fixed mortgage rate is 7.02%, per Forbes.

The job market isn’t looking good for new grads

For many 2024 grads, answering family members questions about job prospects won’t be very easy this year. According to the National Association of Colleges and Employers, entry-level hiring is expected to drop by almost 6% in 2024 compared to 2023, making it even more difficult for hopeful grads to get jobs.

According to Glassdoor, Entry-level employee confidence is the lowest it’s been since at least 2016, as the majority of new graduates sent in over 100 applications for every one accepted.

Those looking to get into industries like finance, consulting, and tech have been hit the hardest, as increased applicants and a shortage of openings debilitate newcomers to the job market.

Bad news for this major

After a massive wave of tech layoffs (around 64,000 in 2024 alone), and more employers focusing on AI-centered roles, those looking to get into the tech industry without a stacked LinkedIn are having an especially hard time.

• Between 2018 and 2023, the number of people studying computer science went up 41%, according to the National Student Clearinghouse Research Center.

• Software engineer hiring on Indeed dropped 30% since 2019, per the WSJ.

Job shortages and increasingly high demand for the same positions have pushed many school counselors to recommend students broaden their horizons when it comes to searching for post-grad employment options.

But, there’s a silver lining: The government and healthcare industries are in need of young people with tech skills, according to Joseph Mercadante, senior associate director of the NYU Wasserman Center for Career Development, who spoke with the Financial Times.

According to the most recent Labor Department jobs report, those with recently earned diplomas also have the backup option of landing a part-time job in one of the most actively hiring industries: retail, transportation, or healthcare.

Fast Facts

Boneless Bonus: Buffalo Wild Wings, apparently unbothered by the “endless shrimp” that put Red Lobster $11 million in debt, will run an all-you-can-eat boneless wings deal twice per week until July 10.

Sunblock Scientists: According to scientists, these are the best kinds sunscreen to use for the inevitably hot summer ahead.

Giant Glizzy: You might’ve noticed a 65-foot-long hot dog was put in Times Square. The “sculpture” (that doubles at a confetti cannon) will remain there until June 13.

Time Testing: TikTok is testing 60-minute videos as some users in select markets can now upload hour long TikToks, TechCrunch reported. Now you can spend even more time watching one TikTok instead of 10. A+.

Franken-Family: In new research, AI ethicists at the University of Cambridge explained that digital advertisers could create ads personalized to users with the same voice, likeness, and mannerisms of their deceased family members. No thank you.