Rumble Secures $775 Million Strategic Investment from Tether

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Rumble, a video-sharing platform and cloud services provider, announced on Friday that it has secured a strategic investment of $775 million from Tether, a blockchain-enabled platform. The news caused Rumble’s shares to surge by 43.7% in after-hours trading.

Following the deal, Chris Pavlovski, Rumble’s chairman and CEO, will maintain control of the company, with Tether taking a minority stake in Rumble’s common stock. However, Tether will not have the right to appoint any members to Rumble’s board.

Rumble also revealed plans to use part of the investment to launch a self-tender offer for up to 70 million of its common shares. The transaction and tender offer are expected to be completed by the first quarter of 2025.

The move follows a broader surge in cryptocurrency enthusiasm, partly driven by political developments, including former President Donald Trump’s pro-cryptocurrency stance and his proposal for a U.S. bitcoin strategic reserve.

 

US to Blacklist Chinese Firm Linked to Huawei AI Chip Development

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The Biden administration plans to add Chinese company Sophgo to the U.S. Entity List for its role in providing a chip manufactured by Taiwan Semiconductor Manufacturing Company (TSMC) that was allegedly used in Huawei’s advanced AI processor, according to an informed source.

Sophgo, affiliated with bitcoin mining firm Bitmain, is accused of indirectly supporting Huawei, which has been under U.S. restrictions since 2019. The move follows the recent addition of other Chinese firms to the blacklist for forming part of what U.S. officials describe as Huawei’s shadow network.

Being placed on the Entity List means companies are prohibited from receiving U.S. goods or technology without a license, which is generally denied. Sophgo has denied any direct or indirect business relationship with Huawei.

The controversy centers on Huawei’s Ascend 910B AI chip, which incorporates a component matching a design ordered by Sophgo from TSMC. Tech research firm TechInsights identified the chip, prompting TSMC to suspend shipments to Sophgo and notify U.S. authorities. TSMC has denied supplying Huawei since 2020, adhering to export rules.

Huawei’s diversification efforts have placed it at the forefront of China’s AI ambitions, despite U.S. restrictions. The Ascend 910B, launched in 2022, is considered the most advanced AI chip from a Chinese company. Huawei plans to mass-produce its Ascend 910C chip by early 2025 to compete with U.S.-based Nvidia.

Sophgo supplies state-owned firms and institutions in China, including universities developing AI tools and police departments enhancing surveillance systems, according to procurement records. Sophgo’s co-founder, Micree Zhan, who also co-founded Bitmain, indirectly owns a significant stake in the company.

The U.S. has intensified its measures against China’s semiconductor advancements, including ordering TSMC to halt shipments of advanced chips to China starting November 11. The restrictions aim to limit China’s ability to develop cutting-edge technologies for AI and other sensitive applications.

As Huawei continues to adapt and expand its chip capabilities, the blacklisting of Sophgo underscores escalating tensions between the U.S. and China over technology and national security.

 

U.S. Judge Finds NSO Group Liable for Hacking in WhatsApp Lawsuit

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In a significant legal victory for Meta Platforms’ WhatsApp, a U.S. judge has ruled that Israel’s NSO Group is liable for exploiting a vulnerability in the messaging app to install Pegasus spyware, enabling unauthorized surveillance. U.S. District Judge Phyllis Hamilton, presiding in Oakland, California, granted a motion in favor of WhatsApp, finding NSO liable for hacking and breach of contract.

The case will now proceed to trial to determine damages. NSO Group did not immediately comment on the ruling.

Will Cathcart, WhatsApp’s head, celebrated the decision as a win for privacy. “This ruling is a clear message that spyware companies cannot hide behind claims of immunity or evade accountability for their unlawful actions,” he said in a social media post. He further emphasized WhatsApp’s commitment to protecting users’ private communications.

Cybersecurity experts also hailed the ruling as a landmark decision with far-reaching implications. John Scott-Railton, a senior researcher at Citizen Lab, said the judgment has “huge implications for the spyware industry.” He added, “This ruling establishes that NSO Group is responsible for breaking laws, despite the industry’s long-standing claims of non-responsibility for how their tools are used.”

The lawsuit, originally filed in 2019, accused NSO Group of using WhatsApp servers to install Pegasus spyware on the mobile devices of 1,400 victims, including journalists, human rights activists, and dissidents. The breach, which occurred six months prior to the filing, allowed NSO clients to conduct surveillance without the victims’ consent.

NSO defended its actions by claiming Pegasus was designed to assist law enforcement and intelligence agencies in combating terrorism, child exploitation, and serious crime. However, the U.S. courts rejected the group’s argument for “conduct-based immunity,” a doctrine shielding foreign officials acting in their official capacity.

In 2021, the 9th U.S. Circuit Court of Appeals upheld an earlier decision that denied NSO immunity, stating that the company’s licensing of Pegasus and providing technical support did not exempt it from liability under the Foreign Sovereign Immunities Act. The U.S. Supreme Court declined to hear NSO’s appeal in 2022, allowing the lawsuit to move forward.

Cybersecurity organizations like Citizen Lab, which first exposed Pegasus spyware in 2016, have called the decision a significant step toward regulating spyware misuse. The ruling sets a precedent that could hold other surveillance companies accountable for illegal hacking and breaches of privacy.