Boeing to pay $200 million to settle charges over ‘misleading’ crash statements

Boeing has agreed to pay $200 million to settle charges from the Securities and Exchange Commission. The agency found that Boeing made “materially misleading public statements” related to crashes involving its 737 Max aircraft. The company’s former CEO Dennis Muilenburg will also pay $1 million to settle charges. The SEC alleged that Boeing and Muilenburg violated the antifraud provisions of federal securities laws. They neither admitted to nor denied the agency’s findings.

The SEC alleged that, after the first crash in October 2018, which caused the death of 189 people, Boeing and Muilenburg were aware that the anti-stall Maneuvering Characteristics Augmentation System (MCAS) posed an ongoing safety concern. However, the company told the public that the 737 Max was “as safe as any airplane that has ever flown the skies.” 

After a second crash in March 2019, in which 157 people died, the company and Muilenburg claimed “there were no slips or gaps in the certification process with respect to MCAS, despite being aware of contrary information,” the SEC said in a statement. Following the crashes, all 737 Max planes were grounded for over 18 months.

“There are no words to describe the tragic loss of life brought about by these two airplane crashes,” SEC Chair Gary Gensler said. “In times of crisis and tragedy, it is especially important that public companies and executives provide full, fair and truthful disclosures to the markets. The Boeing Company and its former CEO, Dennis Muilenburg, failed in this most basic obligation. They misled investors by providing assurances about the safety of the 737 Max, despite knowing about serious safety concerns.”

The settlement “fully resolves the SEC’s previously disclosed inquiry into matters relating to the 737 Max accidents,” Boeing told CNN. “Today’s settlement is part of the company’s broader effort to responsibly resolve outstanding legal matters related to the 737 Max accidents in a manner that serves the best interests of our shareholders, employees, and other stakeholders.”

Boeing previously reached a $2.5 billion settlement with the Department of Justice to avoid criminal charges. Last year, a grand jury indicted Boeing’s former chief technical pilot, Mark A. Forkner, on fraud charges. Forkner, the only Boeing employee who has faced a criminal indictment in relation to the crashes, was accused of deceiving the FAA’s Aircraft Evaluation Group during evaluation and certification of the 737 Max. Following a four-day trial earlier this year, a jury found Forkner not guilty.

UK police arrest alleged ‘GTA VI’ hacker

Police in the UK have arrested a 17-year-old suspected hacker. Reports suggest the arrest is connected to the Rockstar Games hack that led to a major Grand Theft Auto VI leak. The individual may have been involved with an intrusion on Uber as well.

According to journalist Matthew Keys’ sources, the arrest is the result of an investigation involving the City of London Police, the UK’s National Cyber Crime Unit and the FBI. Keys noted that the police and/or the FBI will reveal more details about the arrest later today. The City of London Police told Engadget it had “no further information to share at this stage.”

The GTA VI leak is unquestionably one of the biggest in video game history. Last weekend, the hacker shared a trove of footage from a test build of the game, which is one of the most hotly anticipated titles around. Rockstar, which tends to keep a tight lid on its development process, confirmed on Monday that the leak was legitimate. It said the incident won’t impact work on the game and that it will “properly introduce” fans to the next title in the blockbuster series once it’s ready.

Uber was also subject to a cybersecurity incident this month. The company said this week that the hacker in question didn’t access user accounts but, as of Monday, it was still trying to determine the impact of the intrusion. Uber also noted reports suggesting that the same person or group might have been responsible for the Rockstar hack. In addition, it said the perpetrator may be connected to the Lapsus$ hacking group.

The 17-year-old was arrested in Oxfordshire, where one of the leaders of Lapsus$ is said to live. In March, BBC News reported that a 16-year-old from Oxford (who may have had a birthday since then) had been identified by researchers and hackers as having ties to the group. That same month, City of London Police arrested seven teenagers with alleged ties to Lapsus$, but it wasn’t confirmed if the Oxford teen was among them. Lapsus$ has also targeted the likes of Microsoft, Okta and T-Mobile.

South Korean prosecutors ask Interpol for help in locating TerraUSD developer Do Kwon

Over the weekend, Terraform Labs’ CEO and co-founder Do Kwon took to Twitter to say that he was not “on the run” or “anything similar.” He made the statement after South Korean authorities issued an arrest warrant for him and five other people connected to Terraform Labs for violating the country’s capital markets laws last week. But Korean prosecutors aren’t convinced, especially since authorities in Singapore, where Kwon flew to back in April, said he was no longer in the country. Now, the Seoul Southern District Prosecutors’ Office is asking the Interpol to place him in the agency’s red notice list and to revoke his passport, according to The Financial Times. 

According to the Interpol’s website, a red notice entails seeking “the location and arrest of wanted persons wanted for prosecution or to serve a sentence” and is commonly issued for fugitives. As Yonhap News notes, Kwon flew to Singapore in late April around the time he dissolved his company’s office in Korea. His family members and other key Terraform Labs personnel reportedly followed him to the city-state in May. 

The executive and other Terraform Labs’ personnel are under investigation for financial fraud and tax evasion following the collapse of the company’s stablecoins, TerraUSD and Luna. $40 billion of investor money was wiped out from the even. And those investors, who lost their life savings to the crash, filed complaints that accuse him of running a Ponzi scheme. 

Prosecutors believe he left Korea to “evade investigation,” seeing as Kwon also apparently told them through his lawyers that he didn’t intend to appear before them for questioning. A spokesperson for the Seoul prosecutors’ office told The Times that they’re doing their best to locate and arrest him. “He is clearly on the run as his company’s key finance people also left for the same country during that time,” they added. 

Kwon has yet to respond to the prosecutors enlisting the Interpol for help in finding him. On Twitter, his location is still set to Singapore, and his latest tweets were still from the weekend, denying that he was trying to avoid being captured by law enforcement.