Jurisdiction

Singapore expands charges in server fraud case

Singapore authorities have filed additional charges against three men in a widening investigation into server fraud, which may involve AI chips, court documents revealed on Thursday.

The suspects are accused of deceiving tech firms Dell and Super Micro by falsely representing the final destination of the servers they purchased.

Officials have stated the servers could contain Nvidia chips but have not confirmed whether they fall under US export controls.

The case is part of a broader probe involving 22 individuals and companies suspected of fraudulent transactions. US authorities are also investigating whether Chinese AI firm DeepSeek has been using restricted American chips.

Singapore has confirmed that some servers were sent to Malaysia, where authorities are now examining if any laws were violated.

Two suspects, Aaron Woon and Alan Wei, face additional fraud charges, while a third, Li Ming, had his earlier charge updated to include an alleged offence dating back to 2023.

Lawyers representing the men have either declined to comment or stated that the case is complex due to its international scope.

Meanwhile, Singapore police have seized 42 electronic devices and are analysing bank statements as they work with foreign law enforcement to trace the movement of funds.

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Google warns breakup plans could harm economy and security

Google has urged the Trump administration to reconsider efforts to break up the company as part of ongoing antitrust lawsuits.

The meeting with government officials took place last week, according to a source familiar with the matter. The United States Department of Justice (DOJ) is pursuing two cases against Google, focusing on its dominance in search and advertising technology.

Executives at Google have expressed concerns that proposed remedies, including the potential divestment of the Chrome browser and changes to search engine agreements, could negatively impact the American economy and national security.

The DOJ has not yet commented on the discussions. A trial to determine appropriate remedies is set for April, with a final ruling expected in August.

President Trump’s administration is expected to take a softer approach to antitrust enforcement compared to his predecessor.

Industry experts believe this could lead to adjustments in the DOJ’s stance on breaking up Google, potentially reshaping the legal battle over its market power.

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Tech giants challenge Australia’s exemption for YouTube

Major social media companies, including Meta, Snapchat, and TikTok, have urged Australia to reconsider its decision to exempt YouTube from a new law banning under-16s from social media platforms.

The legislation, passed in November, imposes strict age restrictions and threatens heavy fines for non-compliance. YouTube, however, is set to be excluded due to its educational value and parental supervision features.

Industry leaders argue that YouTube shares key features with other platforms, such as algorithmic content recommendations and social interaction tools, making its exemption inconsistent with the law’s intent.

Meta called for equal enforcement, while TikTok warned that excluding YouTube would create an ‘illogical, anticompetitive, and short-sighted’ regulation. Snapchat echoed these concerns, insisting that all platforms should be treated fairly.

Experts have pointed out that YouTube, like other platforms, can expose children to addictive and harmful content. The company has responded by strengthening content moderation and expanding its automated detection systems.

The debate highlights broader concerns over online safety and fair competition as Australia moves to enforce some of the world’s strictest social media regulations.

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Malaysia works with US and Singapore on Nvidia chip probe

Malaysian authorities are investigating whether local laws were breached in the shipment of servers that may have contained advanced AI chips subject to U export controls.

The case is linked to a fraud investigation in Singapore, where three men were recently charged over transactions involving servers supplied by US firms. The equipment was allegedly transferred to Malaysia and may have included Nvidia’s artificial intelligence chips.

The Malaysian government confirmed it is working closely with the United States and Singapore to determine whether US-sanctioned chips were involved. Authorities aim to find effective measures to prevent such transactions from violating trade regulations.

Singapore has not specified whether the chips in question fall under US export restrictions but acknowledged they were used in servers that passed through Malaysia.

US officials are also examining whether DeepSeek, a Chinese AI firm whose technology gained attention in January, has been using restricted US chips.

Washington has tightened controls on AI chip exports to China, and any unauthorised shipments could lead to further scrutiny of supply chains in the region.

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Microsoft executive says firms are lagging in AI adoption

Microsoft’s UK boss has warned that many companies are ‘stuck in neutral’ when it comes to AI, with a significant number of private and public sector organisations lacking any formal AI strategy. According to a Microsoft survey of nearly 1,500 senior leaders and 1,440 employees in the UK, more than half of executives report that their organisations have no official AI plan. Additionally, many recognise a growing productivity gap between employees using AI and those who are not.

Darren Hardman, Microsoft’s UK chief executive, stated that some companies are caught in the experimentation phase rather than fully deploying AI. Microsoft, a major backer of OpenAI, has been promoting AI deployment in workplaces through autonomous AI agents designed to perform tasks without human intervention. Early adopters, like consulting giant McKinsey, are already using AI agents for tasks such as scheduling meetings.

Hardman also discussed AI’s potential impact on jobs, with the Tony Blair Institute estimating that AI could displace up to 3 million UK jobs, though the net job loss will likely be much lower as new roles are created. He compared AI’s transformative impact on the workplace to how the internet revolutionised retail, creating roles like data analysts and social media managers. Hardman also backed proposed UK copyright law reforms, which would allow tech companies to use copyright-protected work for training AI models, arguing that the changes could drive economic growth and support AI development.

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Musk’s bid to halt OpenAI’s for-profit transition rejected

A US court has denied Elon Musk’s request for a preliminary injunction against OpenAI’s transition into a for-profit organisation.

US District Judge Yvonne Gonzalez Rogers ruled that Musk did not meet the high standards required to block the move. However, the judge indicated that she would expedite a trial on the matter, which is expected to take place later this year.

Musk, who co-founded OpenAI in 2015 but left before its major success, argued that OpenAI had initially sought his charitable funding to create AI for the public good, but has since shifted its focus towards making profits.

His lawyer, Marc Toberoff, expressed satisfaction that the judge had agreed to a swift trial, claiming that the case involves urgent public interest concerns.

OpenAI, which is seeking to become a for-profit entity to attract the necessary capital for its AI projects, welcomed the court’s decision.

The company emphasised that its goal is to develop advanced AI models to benefit society. Musk’s legal action, which also includes antitrust claims, stems from his frustration with OpenAI’s shift in direction since he departed from the organisation.

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UK regulator approves Synopsys’ $35 billion Ansys deal

Britain’s competition regulator has approved Synopsys’ $35 billion acquisition of Ansys after the companies addressed concerns about the potential negative impact on innovation and pricing.

In December, the regulator raised alarms that the deal could reduce competition in the chip design software market, possibly leading to higher prices and less innovation.

However, following negotiations and the companies’ offer of remedies to mitigate these concerns, the regulator decided not to refer the deal for an in-depth phase-2 investigation.

Synopsys, a major player in the chip design software industry, announced the acquisition in January. The deal, which will be a mix of cash and stock, aims to strengthen Synopsys’ portfolio and expand its offerings in the design and development of complex products.

Ansys, a well-established provider of simulation software, is used by a range of industries, from aerospace to sports equipment, to design and optimise products like aeroplanes and tennis rackets.

The acquisition marks a significant move for Synopsys, enhancing its capabilities in the design and development of advanced technology.

The deal is expected to bring together the strengths of both companies, allowing them to offer a broader set of solutions to customers in various sectors, from semiconductor manufacturing to engineering and consumer goods.

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Kraken wins legal battle as SEC ends registration lawsuit

The US Securities and Exchange Commission (SEC) has agreed to dismiss its lawsuit against cryptocurrency exchange Kraken, marking a significant shift in regulatory oversight under the new administration.

Kraken, which was accused of operating as an unregistered securities exchange, announced that the case was dismissed with prejudice, meaning it cannot be refiled. The company maintained that the lawsuit was politically motivated and hindered innovation in the crypto sector.

Kraken stated that the dismissal involved no admission of wrongdoing, no penalties, and no required changes to its business model.

The SEC had sued Kraken in 2023 as part of a broader crackdown on crypto firms under former SEC Chair Gary Gensler. However, the regulator has since scaled back its enforcement efforts, also ending a similar case against Coinbase and considering a resolution in its fraud case against entrepreneur Justin Sun.

The decision follows United States President Donald Trump’s appointment of Paul Atkins, a lawyer with a pro-crypto stance, to lead the SEC. Kraken remains one of the world’s largest cryptocurrency exchanges, ranking 10th globally in trading volume and liquidity.

The outcome signals a shift in the regulatory landscape, with growing support for digital assets under the current administration.

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Indian court rules against Amazon in major trademark dispute

A court in India has ordered an Amazon unit to pay $39 million in damages for trademark infringement after unauthorised ‘Beverly Hills Polo Club’ garments were sold on its platform.

The ruling marks one of the highest damages awarded against a US company in an Indian trademark case. Lifestyle Equities, the owner of the Beverly Hills Polo Club brand, filed the lawsuit in 2020, alleging that Amazon’s Indian website was selling apparel with nearly identical branding at lower prices.

The Delhi High Court found that the infringing brand was owned by Amazon Technologies and sold directly on the platform. Judges noted that the logos were ‘hardly distinguishable’ and stated that Amazon was aware of the brand’s exclusive rights, citing previous legal disputes in the United Kingdom.

The ruling includes a permanent injunction, barring Amazon from selling counterfeit products with the Beverly Hills Polo Club branding. The company has denied wrongdoing, and its representatives have not commented on the decision.

Amazon has faced similar legal battles before, including a trademark dispute in London, where it lost an appeal last year. Critics have long accused the e-commerce giant of engaging in predatory practices, with a 2021 Reuters investigation alleging that Amazon manipulated search results to promote its own private brands in India.

The recent court decision has reignited calls for stricter enforcement of trademark laws and fair business practices in the country.

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SEC fraud lawsuit against hex founder thrown out

A US federal judge has dismissed a fraud lawsuit filed by the Securities and Exchange Commission (SEC) against Richard Heart, the founder of the cryptocurrency platform Hex.

The SEC accused Heart of raising over $1 billion through unregistered offerings and misappropriating investor funds for luxury purchases, including sports cars and a black diamond.

However, the judge ruled that the SEC’s claims lacked a direct link to the United States, as Heart’s activities were primarily directed at a global audience and occurred abroad.

The SEC had also alleged that Heart misled investors with exaggerated claims about potential returns from his Hex token and other crypto projects.

Despite these accusations, the court determined that the transactions, including fund misappropriations, took place outside of US jurisdiction, with no clear evidence of US-based investors being affected.

Heart’s legal team welcomed the ruling, describing it as a significant victory for the cryptocurrency industry. They argued that the decision highlighted the need for clearer regulations surrounding digital assets. The SEC has not yet commented on the ruling.

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