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The former boss of the world’s largest cryptocurrency exchange has been jailed for four months for allowing money laundering.

The sentence was handed down to Binance founder Changpeng Zhao, nicknamed CZ, after he pleaded guilty to breaching US anti-money laundering laws designed to prevent terrorist financing and funds going to sanctioned countries.

The prison term was far less than sought by US prosecutors who wanted a three-year term – twice the maximum 18 months recommended under federal sentencing guidelines – to be tough on the man once thought to be the most powerful person in the crypto world.

The defence had called for probation with no prison time for their client. A $50m (£40m) fine has already been paid by Zhao.

Despite the massive fine, he remains a billionaire and the wealthiest crypto executive, according to Forbes, with magazine putting his wealth at $33bn (£26.4bn).

Changpeng Zhao
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Changpeng Zhao

Zhao apologised before his sentencing at a court in Seattle, saying: “I failed here. I deeply regret my failure and I am sorry.”

But district judge Richard Jones told him: “You had the wherewithal, the finance capabilities, and the people power to make sure that every single regulation had to be complied with, and so you failed at that opportunity.”

He is the second major crypto boss to go to prison. Last month, the founder of FTX Sam Bankman-Fried was sentenced to 25 years for stealing billions of dollars from the now-bankrupt crypto exchange.

Bankman-Fried has appealed against his conviction and his sentence.

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Sam Bankman-Fried jailed for 25 years

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A ‘wild west’ model

Zhao stepped down from his role at Binance in November after he and the company admitted evading requirements under the US Bank Secrecy Act.

The company agreed to a $4.3bn (£3.4bn) penalty as prosecutors said it used a “wild west” model that failed to report 100,000 suspicious transactions involving terrorist groups.

Prosecutors had also said Binance supported the sale of child sexual abuse material and received the proceeds of ransomware cyberattacks.

The US Justice Department brought the case as part of its clamp down on criminal activity within cryptocurrency, best known for Bitcoin.

Binance is also being investigated and sued by another US agency, the Securities and Exchange Commission.

The company had once processed about two-thirds of all cryptocurrency transactions.

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Scarlett Johansson ‘shocked and angered’ after OpenAI allegedly recreated her voice without consent

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Scarlett Johansson 'shocked and angered' after OpenAI allegedly recreated her voice without consent

Scarlett Johansson has said she was “shocked” and “angered” after OpenAI allegedly recreated her voice without her consent for a new ChatGPT system.

The actress released a statement where she personally criticised the company’s CEO Sam Altman for insinuating she was the voice named ‘Sky’ by posting the word ‘her’ on X, a reference to a film where she voiced an AI which a human fell in love with.

“Last September, I received an offer from Sam Altman, who wanted to hire me to voice the current ChatGPT 4.0 system,” the 39-year-old Oscar nominee said.

“He told me that he felt that by my voicing the system, I could bridge the gap between tech companies and creatives and help consumers to feel comfortable with the seismic shift concerning humans and AI. He said he felt that my voice would be comforting to people.”

She went on to say that eventually for personal reasons she declined his offer then, nine months later, her attention was drawn to how much the “Sky” voice sounded like her.

“When I heard the released demo, I was shocked, angered and in disbelief that Mr Altman would pursue a voice that sounded so eerily similar to mine that my closest friends and news outlets could not tell the difference,” Johansson said.

“Mr Altman even insinuated that the similarity was intentional, tweeting a single word “her” – a reference to the film in which I voiced a chat system, Samantha, who forms an intimate relationship with a human.

“Two days before the ChatGPT 4.0 demo was released, Mr Altman contacted my agent, asking me to reconsider. Before we could connect, the system was out there.

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“As a result of their actions, I was forced to hire legal counsel, who wrote two letters to Mr Altman and OpenAI, setting out what they had done and asking them to detail the exact process by which they created the ‘Sky’ voice. Consequently, OpenAI reluctantly agreed to take down the ‘Sky’ voice.”

“In a time when we are all grappling with deepfakes and the protection of our own likeness, our own work, our own identities, I believe these are questions that deserve absolute clarity. I look forward to resolution in the form of transparency and the passage of appropriate legislation to help ensure that individual rights are protected.”

Sam Altman hero teaser
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Sam Altman

On Monday OpenAI released a statement saying it would “pause” the use of a ChatGPT voice after users noticed it sounded like the actress.

OpenAI said: “We’ve heard questions about how we chose the voices in ChatGPT, especially Sky.

“We are working to pause the use of Sky while we address them.”

Read more:
How the chaos at OpenAI has unfolded
Snapchat flagged in nearly half of child abuse imagery crimes in past year

The artificial intelligence (AI) company offers five voices that can speak generated answers through its ChatGPT service.

Scarlett Johansson’s statement in full

Last September, I received an offer from Sam Altman, who wanted to hire me to voice the current ChatGPT 4.0 system.

He told me that he felt that by my voicing the system, I could bridge the gap between tech companies and creatives and help consumers to feel comfortable with the seismic shift concerning humans and AI.

He said he felt that my voice would be comforting to people.

After much consideration and for personal reasons, I declined the offer.

Nine months later, my friends, family and the general public all noted how much the newest system named “Sky” sounded like me.

When I heard the released demo, I was shocked, angered and in disbelief that Mr Altman would pursue a voice that sounded so eerily similar to mine that my closest friends and news outlets could not tell the difference.

Mr Altman even insinuated that the similarity was intentional, tweeting a single word “her” – a reference to the film in which I voiced a chat system, Samantha, who forms an intimate relationship with a human.

Two days before the ChatGPT 4.0 demo was released, Mr Altman contacted my agent, asking me to reconsider. Before we could connect, the system was out there.

As a result of their actions, I was forced to hire legal counsel, who wrote two letters to Mr Altman and OpenAI, setting out what they had done and asking them to detail the exact process by which they created the “Sky” voice. Consequently, OpenAI reluctantly agreed to take down the “Sky” voice.

In a time when we are all grappling with deepfakes and the protection of our own likeness, our own work, our own identities, I believe these are questions that deserve absolute clarity.

I look forward to resolution in the form of transparency and the passage of appropriate legislation to help ensure that individual rights are protected.

OpenAI earlier denied it intentionally copied Johansson and said it believed “AI voices should not deliberately mimic a celebrity’s distinctive voice”.

The New York Times sued OpenAI at the end of last year over allegations it, and its biggest investor Microsoft, unlawfully used the newspaper’s articles to train and create ChatGPT.

The suit alleges that the AI text model now competes with the newspaper as a source of reliable information and threatens the ability of the organisation to provide such a service.

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Donald Trump trial star witness admits stealing from ex-US president’s company

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Donald Trump trial star witness admits stealing from ex-US president's company

A former lawyer for Donald Trump has admitted to jurors in the Republican’s hush money trial that he stole tens of thousands of dollars from his then-boss’s company.

The landmark trial returned with defence cross-examination of Michael Cohen, whose testimony last week directly tied Trump to the alleged hush money scheme.

Defence lawyers have questioned Cohen for hours about his criminal history and past lies to paint him as a serial liar who is on a revenge campaign aimed at taking down Trump.

While being pressed by defence lawyer Todd Blanche, Cohen admitted he pocketed cash that was supposed to be reimbursement for a $50,000 payment he claimed he had shelled out to a technology firm.

But Mr Cohen actually gave the technology firm just $20,000, he said.

“So you stole from the Trump Organisation,” Mr Blanche asked.

“Yes, sir,” Mr Cohen replied.

Former President Donald Trump pictured in court on 20 May. Pic: Mark Peterson/Pool Photo via AP
Image:
Donald Trump pictured in court on 20 May. Pic: Mark Peterson/Pool Photo via AP

Mr Cohen said he never paid the Trump Organisation back. He has never been charged with stealing from Trump’s company.

He is the last prosecution witness, and it is not yet clear whether Trump’s lawyers will call any witnesses, let alone the presumptive Republican presidential nominee himself.

Jurors could begin deliberating as soon as next week to decide whether Trump is guilty of 34 felony counts of falsifying business records in the first criminal trial of a former US president.

Read more:
Porn stars, sex scandals and zzzs: A to Z of Trump trial

The charges stem from internal Trump Organisation records where payments to Cohen were marked as legal expenses, when prosecutors say they were really reimbursements for porn star Stormy Daniels’ hush money payment.

Trump has pleaded not guilty. His lawyers say there was nothing criminal about the Daniels deal or the way Cohen was paid.

“There’s no crime,” Trump told reporters after arriving at the courthouse on Monday. “We paid a legal expense. You know what it’s marked down as? A legal expense.”

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Trump and lawyer audio about hush money

Manhattan District Attorney Alvin Bragg’s office is expected to rest its case once Mr Cohen is off the stand, but prosecutors could call rebuttal witnesses if Trump’s lawyers put on witnesses of their own.

Judge Juan M Merchan has said he expects closing arguments to happen on 28 May.

Cohen is the prosecutors’ most important witness, but he is also vulnerable to attack.

The now-disbarred attorney has admitted on the witness stand to previously lying under oath and other falsehoods, many of which he claims were meant to protect Trump.

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Cohen served prison time after pleading guilty to various federal charges, including lying to Congress and a bank and engaging in campaign finance violations related to the hush money scheme.

And he has made millions of dollars off critical books about the former president, whom he regularly slams on social media in often profane terms.

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P Diddy: Stars react to video showing rapper attacking Cassie Ventura in hotel hallway

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P Diddy: Stars react to video showing rapper attacking Cassie Ventura in hotel hallway

Stars have hit out at rapper P Diddy following the release of CCTV footage showing him attacking singer Cassie Ventura in a hotel hallway in 2016.

Warning: This story includes images readers may find distressing

The video, which was obtained by CNN, was shot on 5 March eight years ago and shows the 54-year-old – whose real name is Sean Combsshirtless and wearing just a white towel and brightly coloured socks, punching and kicking Ventura.

Sean Combs and Cassie in 2017. Pic: PA
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Sean Combs and Cassie in 2017. Pic: PA

The R&B singer, whose legal name is Cassandra Ventura, was his protege and girlfriend at the time.

The footage also shows Combs shoving and dragging her across the floor, as well as throwing a glass vase in her direction.

It closely resembles the description of an incident at the now-closed InterContinental Hotel in Los Angeles described in a lawsuit filed by Cassie last year.

Commenting on the video on X, formerly known as Twitter, actress Emily Ratajkowski, wrote: “Monster”.

More on Sean Combs

Fellow rapper 50 Cent, whose real name is Curtis Jackson, shared the video, writing sarcastically: “Now I’m sure Puffy didn’t do it, he is innocent this proves nothing! This is what his lawyers are gonna say, God help us all.”

Jackson also re-posted a screenshot of a statement shared by Combs in December last year, denying allegations against him and accusing those making them of “looking for a quick payday”.

50 Cent wrote: “The lie detector test has determined this was a lie…”

Pic: CNN via AP
Image:
Pic: CNN via AP

Pic: CNN via AP
Image:
Pic: CNN via AP

He also shared a statement from LA police which called the footage “extremely disturbing and difficult to watch,” but explained that it happened too long ago to be prosecuted.

California law has a one-year statute of limitations for assault.

Read more: What is Sean Combs accused of?

The husband of Ventura, Alex Fine, shared a lengthy statement on Instagram titled “Letter to women and children,” calling out men who perpetrate violence against women.

‘Men who hurt women hate women’

He wrote: “Men who hit women aren’t men. Men who enable it and protect those people aren’t men…

“Hold the women in your life with the utmost regard. Men who hurt women hate women.”

The personal trainer also shared the number of a domestic abuse helpline, urging those who need help to call.

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Sean ‘Diddy’ Combs issues an apology

Meanwhile, lawyers representing Ventura branded Combs’s apology “pathetic,” after he shared a short video on social media on Sunday, saying he was “truly sorry,” and was “disgusted” by his own behaviour.

‘Disingenuous words’

Meredith Firetog, who is a partner at Wigdor LLP, said in a statement: “Combs’ most recent statement is more about himself than the many people he has hurt.

“When Cassie and multiple other women came forward, he denied everything and suggested that his victims were looking for a payday.

“That he was only compelled to ‘apologize’ once his repeated denials were proven false shows his pathetic desperation, and no one will be swayed by his disingenuous words.”

‘Leave god and mercy out of this’

US singer and reality star Aubrey O’Day, who previously worked with Combs, also hit out at Combs’s apology video, writing on X: “Diddy did not apologize to Cassie. He apologized to the world for seeing what he did… Leave god and mercy out of this, they aren’t present here, and you know it.”

It is the first time Combs has responded directly to allegations of physical and sexual violence levelled at him in recent months.

Sean Comb's home raided by federal law enforcement.
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Sean Combs’ home raided by federal law enforcement. Pic: AP


Multiple claims

In March, his homes in Los Angeles and Miami were raided by Homeland Security as part of an ongoing sex trafficking investigation by federal authorities in New York.

In April, Combs was named in a lawsuit that alleges his son sexually assaulted a woman working on a yacht chartered by his father.

Ventura, who began dating Combs a few years after meeting him in 2005, and split with him in 2019, sued him in November, alleging she was trafficked, raped, plied with drugs and beaten by Combs over a 10-year period.

The lawsuit claimed he forced her to have sex with male prostitutes while he filmed them. The case was settled the day after it was filed.

Combs has previously denied the allegations in the lawsuits and his lawyers have said he denies any wrongdoing.

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