"I Did Nothing Illicit": Bill Gates Begins Apology Tour Over His Epstein Ties

A week after Bill Gates abruptly pulled out as a keynote speaker at a high-profile global AI summit in India, the left-wing billionaire finally mustered enough nerve to "take responsibility for his actions" over his ties to late financier and sex offender Jeffrey Epstein during a town hall meeting with Gates Foundation employees.

The Wall Street Journal reports that Gates told employees at a town hall event for the foundation on Tuesday that he never spent time with Epstein's victims, and never visited Epstein's island.

He revealed that Epstein later learned about two affairs he had with Russian women, but said those relationships did not involve Epstein's victims. Gates said photos in the Epstein files show him with redacted women were taken by Epstein's assistants after meetings.

Did Gates fall into a Russian honeypot?

"I did nothing illicit. I saw nothing illicit," Gates emphasized, according to a recording reviewed by WSJ journalists.

Gates continued, "To be clear, I never spent any time with victims, the women around him."

"It was a huge mistake to spend time with Epstein" and bring Gates Foundation executives into meetings with the sex offender, Gates said, adding, "I apologize to other people who are drawn into this because of the mistake that I made."

Last week, the $86 billion philanthropic body's last-minute decision to yank Gates was a major embarrassment and came as the Epstein fallout worsened, with many high-profile people under fire.

Related:

• "Law Must Take Its Course": King Charles Responds To Arrest Of Former Prince Andrew

• Goldman Sacks Ruemmler As Epstein Scandal Claims Obama's Former Lawyer

• Watch: GOP Releases Full Les Wexner Epstein Deposition

"Knowing what I know now makes it, you know, a hundred times worse in terms of not only his crimes in the past, but now it's clear there was ongoing bad behavior," Gates said. He gave credit to his ex-wife, who "was always kind of skeptical about the Epstein thing."

Gates told staff he began meeting Epstein in 2011, despite the financier's 2008 guilty plea for soliciting a minor for prostitution. He said he was aware of the "18-month thing" that had restricted Epstein's travel, yet continued the relationship, even after his then-wife, Melinda French Gates, raised serious concerns in 2013.

He said the relationship continued through 2014 and that he flew on a private jet with Epstein and spent time with him in Germany, France, New York, and Washington. "I never stayed overnight," he said, or visited Epstein's island.

He said Epstein "talked about the kind of intimate relationship he had with a lot of billionaires, particularly Wall Street billionaires," and that he could help raise money for global health nonprofits.

"It definitely is the opposite of the values of the Foundation and the goals of the Foundation," he said. "And our work is very reputation-sensitive. I mean, people can choose to work with us or not work with us."

No matter what, the Gates Foundation has a dark cloud hanging over it because of Gates' involvement amid the deepening Epstein fallout.

Gates is worth billions, so why would he need Epstein to raise money for global health nonprofits? Something doesn't pass the sniff test in this damage-control town hall he held for his foundation's employees.

Tyler Durden Wed, 02/25/2026 - 08:05

Spacecraft Builder That Beats Big Defense Primes On Cost And Speed: Here's How To Profit

Provided continued AI disruption, indiscriminate software stock selling, and credit market risks do not trigger a broader risk-off market event in the coming weeks or months, a June SpaceX IPO could become the bedrock for the grand reopening of the IPO market. The second-order effects of a SpaceX IPO would be improved sentiment toward AI companies going public and potentially a serious investor appetite for the low-Earth-orbit space industry.

Continuing our ever-evolving "how to profit" space theme, a newly listed company on U.S. exchanges is York Space Systems.

YSS is a U.S. government-focused Space Prime that builds standardized satellite buses (spacecraft platforms) at scale, integrates customer payloads, and supports the rest of the mission, launch coordination, the ground segment, and in-orbit operations.

"Its vertically integrated design and manufacturing process means its SVs can be produced at 50% of the cost and 20% faster than defense primes," Goldman analyst Anthony Valentini wrote in a note on Monday.

Valentini told clients her markets team has begun to "initiate coverage of YSS at Neutral with a $29 price target."

YSS' ability to build spacecraft and offer aligned services at not just half the cost but in a quicker timeframe checks all the boxes that the U.S. military is searching for these days, especially with the DOGE unit at the Department of War resetting the procurement program away from big, bloated legacy primes to startups.

Valentini gives three reasons why her markets team favors YSS:

1. Growth: alignment to the growing space economy and shifting DoW purchasing preferences could lead to fast growth;

2. Business model: the business is capital light and structured to control cost, enabling lowest price solutions to customers;

3. Potential sticky high margin revenue: potential for recurring high margin software revenue as the installed fleet increases.

YSS was founded in 2012 and went public at the start of this year. Valentini described a little bit more of its operations:

The company bids as the Prime, under fixed-price contracting terms, manufactures satellite buses, and integrates the payload into its spacecraft for the customer. York serves the customer through the full mission life cycle; the company manufactures the satellite bus, integrates the payloads, organizes launch services, and provides mission operations post-launch.

How YSS benefits from the space industry:

• "Left of Launch": York bids on a contract as the prime, builds the satellite bus, integrates the payload, and delivers it to the launch provider so that the customer can then operate the satellite and receive data from the payload.

• "Right of Launch": York offers software services to operate the satellite for its customer. This is potentially a significant lever for the business because it is high-margin recurring revenue, but currently this offering forms less than 5% of the backlog.

The proliferation of space architecture provides a significant growth opportunity.

The space ecosystem has experienced significant growth in recent years as innovations in launch have reduced the cost to get to orbit, and militaries look to gain the high ground to ensure national security. The SDA has spent ~$14bn on SVs for the PWSA program, and the U.S. government funded ~$25bn for Golden Dome. The company expects that the intel community opportunity is 2x PWSA, and it can service $65bn of the potential $175bn for Golden Dome, leading to a TAM of $140bn.

YSS is one to track.  

Whether the catalyst is the incoming space boom or federal "Golden Dome" spending, YSS stands to benefit from both themes. Investors are already signaling bullish appetite for the space trade, as seen in the recent blast-off in a stock tied to a Korean broker that holds about $400 million in private shares of SpaceX and xAI.

Professional subscribers can read much more of the Goldman note here at our new Marketdesk.ai portal

Tyler Durden Wed, 02/25/2026 - 07:45

Diageo Shares Plunge Most In Two Years On Weaker Guidance, Dividend Cut

Shares of Diageo Plc fell the most in 2 years after the maker of Guinness beer and Johnnie Walker whiskey cut its guidance for the second time this fiscal year amid soft demand in the US and China markets. The move marks an early challenge for new CEO Dave Lewis.

The British distiller now expects organic net sales to decline by 2% to 3% this fiscal year, down from previous guidance of flat to slightly down, and said it would reduce its dividend.

First-half results were mixed. Organic net sales fell 2.8%, worse than expected, while North America's operating profit plunged 15%, missing analyst estimates tracked by Bloomberg Consensus. Europe was a bright spot, with operating profit rising 10% and beating forecasts. Adjusted EPS slightly beat, but overall sales and operating profit were much softer than anticipated by analysts.

Citi analyst Simon Hales said the cut to full-year organic sales growth guidance reflects a much weaker US environment and noted that it could prompt cuts to the 2027 outlook. He added that the dividend cut has "taken the shine off" what could otherwise have been seen as the "clearing event" for the stock to rally.

At Goldman, analyst Natasha de la Grense said the big story in the earnings report is the dividend cut. She noted investors are still waiting for a proper turnaround plan from the new CEO:

Main focus today is the dividend cut which is perhaps not a huge surprise (Mr Lewis did this when he arrived at Tesco) and arguably necessary but never welcome news on the day. They are targeting a 30-50% payout going forward with a minimum floor of 50c per annum (consensus FY26 100c). In terms of the H1, it's a miss on org sales (-2.8% vs cons -2%) driven by volumes (-0.9% vs cons -0.2%) which were particularly weak in North America (-4%). US spirits net sales fell -9.3%. Reported EBIT is more in line at $3,256m (consensus $3,213m) and org EBIT better (-2.8% vs cons -3.9%) driven by A&P efficiencies (16.3% of sales vs consensus 17.7%). They are cutting sales and EBIT guidance as expected, now looking for sales -2-3% (cons -1%) and EBIT flat to +LSD (cons flat). The org profit guidance implies an acceleration in H2 underpinned by higher savings which are coming through earlier than expected. Spot FX rates imply a +$100m FX impact on sales per management (consensus +$200m). FCF guidance is reiterated. Not tons from the new CEO on strategy which is to be expected given he only started 1 Jan - he sees opportunities to enhance competitiveness and to deliver higher growth. In H1, Diageo grew or held market share in just 30% of markets.

Shares of Diageo in London tumbled 7.5%, marking the largest intraday decline since November 10, 2023, when shares dropped by 12%.

From the 2021 peak, shares have been more than halved and currently trade around 2015 levels.

RBC analyst James Edwardes Jones and Wassachon Udomsilpa told clients that softer sales performance, a guidance downgrade, and a dividend cut are a "non-event" due to the CEO's new strategy, set to kick in later this year.

"We are going to have to wait for 'later in the summer' (hopefully not too much later) to get into the meat of Sir Dave's plans for Diageo," the analyst wrote.

The only problem for analysts hoping for a turnaround at Diageo is the mounting headwinds facing the industry, as younger generations are giving up alcohol for health reasons or perhaps simply lack the discretionary spending power.

Tyler Durden Wed, 02/25/2026 - 07:20

Market Bets Soar That Fed Will Cut Rates To 2% In 2027

Concerns about rising inflation, and the Fed hiking rates to contain it, have reversed rather dramatically. 

As Bloomberg's Edward Bolingbroke observes, after months of consensus trades that the Fed's easing cycle will end in 2026, traders in US futures and options markets are suddenly piling on bets that the Fed will continue cutting rates well into next year instead of raising them.  

As shown below, the key spread linked to the SOFR (the Secured Overnight Financing Rate) which track expected Fed policy, have becoming deeply inverted in the past week, a sign that traders are starting to price a more prolonged easing cycle. The 12-month December 2026 to 2027 SOFR spread dropped into negative on Friday with the inversion deepening on Tuesday to minus 8 basis points, in a sign that investors have flipped from pricing hikes in 2027 to pricing cuts.

In the SOFR options market a similar dovish theme is observed for trades that are hedging (or encouraging, depending on how one views the role of options) the prospect of multiple rate cuts this year. Those trades picked-up again on Tuesday with one position that’s looking to hedge for the policy rate falling to as low as 2% by the end of the year growing in size.

Open interest in the December 98.00 calls ballooned to more than 400,000 this week. A record amount of just over 150,000 calls traded in the 12-month spread over Monday’s session, while the total open interest of SOFR Dec26 98.00 calls soared above 400,000 amid the trading frenzy. For context, the swaps market is currently pricing a Fed rate of around 3.1% - or just over two 25-basis point cuts - by year-end, some 110 basis points above the options strike price. 

Until mid-February, traders were betting that the central bank would resume hiking rates in 2027 after two quarter-point reductions by the end of this year. However, the ongoing wipeout of Software stocks and the growing debate around the impact of artificial intelligence on the labor market is leading them to reassess this outlook. On Tuesday, Fed Governor Lisa Cook warned that the central bank may not be able to counter rising unemployment driven by the adoption of AI.

Which, of course, leaves fiscal policy as the only recourse to provide a safety net for the millions of soon-to-be-unemployed white collar workers displaced by chatbots. And, fiscal policy needs to be funded by brrrr, which means sooner or later the Fed will have to print again, just as we said back in 2024 in a 22-word tweet which effectively previewed and summarized that 7000 word Citrini essay far more eloquently.

Market pricing so much AI success, it will need to leave about 100 million people without a job.

Bring on the UBI

— zerohedge (@zerohedge) January 24, 2024

But we'll cross that money printer when we get to it: for now, what's important is that the flattening move in SOFR spreads accelerated sharply since the end of last week, just as AI disruption fears took a toll on a swath of stocks, setting off a rally in long-dated Treasuries and raising recession odds among multiple brokers..

Gennadiy Goldberg, head of US rates strategy at TD Securities, told Bloomberg that “there has certainly been a bit of repricing for lower yields after the Fed hits terminal, with the market penciling in a more gradual drift higher in yields."

“That could be driven by uncertainty regarding the impact of AI on the labor market, but fluctuations in longer-dated Fed expectations tend to be quite significant, making it difficult to read into them,” he added.

And indeed, “the question is how is AI going to be inflationary and maybe the long end of the curve is sniffing all of this out,” said Jack McIntyre, portfolio manager at Brandywine Global Investment Management. “The only inflationary aspect of AI is the building out of data centers and the associated energy needs, and that is known."

Market positioning for prolonged rate cuts is also becoming evident in treasury curve metrics: the 2- to 5-year spread reached the flattest levels since the start of December on Monday, while the richening of the 2s5s30s butterfly was the biggest one day move seen in six months, driven by outperformance in the belly of the curve.

While many herd-following investors will be caught offside by this latest twist in Fed pricing, one fund manager who has called it correctly so far is David Einhorn: two weeks ago, the co-founder of Greenlight Capital said he has bought Secured Overnight Financing Rate (SOFR) futures on expectations of a rally if the Fed lowers borrowing costs more aggressively. 

“I think one of the best trades out there right now is betting on more cuts this year than expected,” Einhorn said on CNBC On Feb 11 . “I think by the time we get to the end of the year, it’s going to be substantially more than two cuts.”

And not only this year, but next year too. 

He made the comments after a better-than-expected jobs report prompted traders to pare back their bets for Fed cuts this year, to just about two quarter-point moves.

Einhorn said Warsh, whom President Donald Trump has picked to succeed current Fed Chair Jerome Powell, is likely to deliver what the president wants: Lower borrowing costs. Trump has relentlessly pushed Powell to lower rates, a move that would help reduce interest costs on US government debt.

Einhorn said Warsh, a former Fed governor, could convince his colleagues to adopt his view that rising productivity will create room for easier monetary policy - even if the economy is strong. Since then, the term "rising productivity" has rapidly become synonymous with mass future layoffs and so here we are. 

“He’s not being brought on to hold the rates at a steady rate,” Einhorn said. “He’s going to argue we can cut even if the economy is running hot.” Suddenly, the market agrees with him. 
 

Tyler Durden Wed, 02/25/2026 - 06:55

The AI Boom Is Powering A Nuclear Renaissance

Authored by Robert Rapier via OilPrice.com,

• Hyperscale AI data centers require city-scale electricity loads, making dependable baseload power a strategic necessity.

• Microsoft and Amazon are forming direct nuclear partnerships and pursuing advanced reactor technologies to secure long-term energy supply.

• Energy infrastructure, particularly nuclear generation and uranium supply, is emerging as a structural beneficiary of AI-driven demand growth.

For years, Silicon Valley took electricity for granted. The cloud sounded intangible, almost detached from the physical world. But now, artificial intelligence is ending that illusion. Behind every large language model and AI assistant sits a growing fleet of data centers that require enormous and continuous amounts of power.

Industry analysts estimate that a single hyperscale AI data center can demand 300 to 500 megawatts of electricity, comparable to the consumption of a mid-sized city. Multiply that across dozens of facilities under construction, and energy supply becomes less of an operating expense and more of a strategic constraint.

Microsoft and Amazon are responding with moves that signal a fundamental shift. Instead of relying solely on renewable energy contracts or traditional grid access, which alienates communities by driving up utility bills, both companies are securing direct relationships with nuclear power generation. In practical terms, they are beginning to operate like long-term energy planners rather than pure technology companies.

AI Turns Electricity into a Strategic Advantage

Modern AI systems run continuously. Training models, serving queries, and maintaining uptime require stable, round-the-clock power. Intermittent resources such as wind and solar remain essential parts of the energy mix, but they cannot guarantee the steady output required by massive computing clusters without additional firm generation or storage.

For years, technology companies relied on renewable energy credits to balance their emissions claims. That accounting approach becomes harder to maintain when the scale of electricity demand rises dramatically. If an AI facility must operate regardless of weather conditions or time of day, dependable baseload power becomes indispensable.

Electricity is shifting from a background cost to a defining competitive factor.

Microsoft’s Nuclear Strategy Moves from Theory to Reality

Microsoft’s involvement in restarting the former Three Mile Island Unit 1 reactor, now known as the Crane Clean Energy Center, represents one of the clearest signals of this transition. Constellation Energy secured a $1 billion Department of Energy loan in late 2025 to accelerate the restart, with commercial operation targeted around 2027.

Restarting an existing reactor offers a faster path to reliable carbon-free generation than building new infrastructure from scratch. For Microsoft, the project provides long-term power certainty while helping stabilize the surrounding grid.

The company is also pursuing longer-term energy innovation. Microsoft signed a power purchase agreement tied to a planned fusion facility developed by Helion Energy, reflecting a willingness to invest in future technologies that could provide high-density energy at scale. Fusion remains an ambitious goal, but the partnership underscores how seriously Microsoft views future electricity constraints.

Taken together, these steps show a company moving beyond buying power toward influencing how it is produced.

Amazon’s Approach: Control, Location, and Vertical Integration

Amazon’s strategy emphasizes control over energy supply. Its acquisition of the Cumulus Data Center campus from Talen Energy provides direct access to electricity generated by the Susquehanna nuclear facility. This “behind-the-meter” model allows the company to avoid some transmission bottlenecks and grid congestion challenges that increasingly delay new data center development.

Co-locating computing infrastructure with firm generation can shorten timelines and reduce uncertainty. As utilities struggle to expand transmission networks fast enough to meet demand, proximity to power becomes a competitive advantage.

Amazon is also investing in advanced nuclear development. Partnerships involving Energy Northwest and X-energy aim to deploy small modular reactors capable of delivering nearly a gigawatt of reliable capacity tailored to industrial-scale electricity needs.

Rather than treating energy procurement as a secondary function, Amazon appears to be integrating it directly into its long-term infrastructure strategy.

Why Nuclear Energy Is Returning to the Conversation

Renewable energy continues to grow rapidly, but the requirements of AI highlight the need for complementary sources of firm generation. High-performance computing environments cannot tolerate frequent power variability.

Nuclear energy aligns with several critical requirements:

• Capacity factors typically exceeding 90 percent

• Continuous output suited for constant workloads

• Minimal direct carbon emissions

• Operational lifetimes measured in decades

These attributes make nuclear power an increasingly attractive partner for large-scale AI infrastructure.

Implications for Investors

The convergence of artificial intelligence and energy infrastructure is reshaping how markets evaluate certain sectors. Nuclear operators and energy infrastructure companies are increasingly viewed as strategic enablers of technological growth rather than slow-moving defensive assets.

Companies such as Constellation Energy and Vistra benefit from existing generation fleets aligned with rising data center demand. Meanwhile, renewed interest in nuclear capacity could strengthen the uranium supply chain, supporting companies like uranium producer Cameco.

Electricity supply is emerging as a structural driver of technology investment decisions.

The Real Constraint Behind the AI Boom

Technology companies spent years trying to abstract away the physical world. Artificial intelligence is forcing a return to fundamentals. Computing power ultimately depends on energy density, infrastructure, and reliability.

Microsoft and Amazon are not abandoning renewable energy goals. They are acknowledging that scaling AI requires firm power that operates continuously. In that sense, the next phase of technological competition may hinge less on software breakthroughs and more on access to dependable electricity.

The companies that secure reliable energy first may hold the strongest advantage in the race to scale artificial intelligence.

Tyler Durden Wed, 02/25/2026 - 06:30

Trump's Cuba Pressure Campaign Could Spark Cohiba Cigar Price Spikes

Cuba is buckling under a severe economic crisis. Years of economic mismanagement, turbocharged by hyperinflation and population decline, have left the nearly seven-decade-old communist government weaker than at any point in years. Now, the Trump administration has promised maximum pressure, with President Trump openly vowing to bring the regime to its knees.

We've focused on Trump's blockade of oil deliveries to Cuba, the worsening power grid blackouts, and even the tourism collapse, as flight disruptions have erupted in recent weeks amid a fuel crisis. But one area that remains off the radar for many is that the current crisis has likely spread into the Caribbean nation's agricultural sector.

Cuba's annual cigar festival in Havana, hosted by Habanos S.A., the state-run entity that holds a monopoly on global Cuban cigar sales, has been "postponed."  

Habanos posted a message on its website last week detailing the postponement of the cigar festival, explaining, "The priority of the Habano Festival is to offer its participants a comprehensive experience at the height of the relevance and prestige that this event represents internationally. The postponement of its celebration is a measure aimed at protecting this experience and guaranteeing its excellence."

The festival features 1,000 guests from around the world, participating in auctions for Cuban premium cigars, conferences, tastings and pairings, as well as factory and plantation visits.

"Agriculture is not spared by the current oil situation, which is very serious," Hector Luis Prieto, a producer from the western Vuelta Abajo region, told AFP.

International sales of Cuban cigars remain the Caribbean island's flagship export, but near-term availability could tighten as the Trump administration ramps up its maximum pressure campaign.

The key question for all those cigar aficionados is whether supply will dwindle in the months ahead, particularly after the annual festival was canceled. This could disrupt distribution lines and send prices for Cohiba, Montecristo, Partagás, and Romeo y Julieta even higher.

One cigar aficionado by the name of Matt Delovino on YouTube asked the simple question, "Is the era of the "everyday" Cuban cigar officially over?"

"Before we dive into the market data, I want to acknowledge that the situation in Cuba right now is incredibly complex. However, for the purpose of this video, I am speaking strictly from a cigar industry and consumer perspective," Delovino wrote in the description of the video.

Representatives from Colombian cigar retailer La Cava del Puro, which specializes in selling Habanos, Colombian cigars, and other premium tobacco products and has been in business for 25 years, told us in recent days that a looming Cuban cigar supply crunch will likely push prices higher.

They said supplies are set to dwindle in the coming months.

Is a Cuban cigar supply crunch imminent? If so, the U.S. Customs and Border Protection website has a "Knowledge Article" that explains the maximum number of cigars you can bring into the U.S. before you must declare them.

Tyler Durden Wed, 02/25/2026 - 05:45

Trump Admin To Launch New Free-Speech Site To Combat Censorship Abroad

Authored by Kevin Stocklin via The Epoch Times (emphasis ours),

In response to what the Trump administration says is a rising tide of censorship in Europe, the State Department is launching a new app that will give users worldwide access to content that has been censored in other countries.

European Commissioner Thierry Breton speaks during a news conference at the European Union office in San Francisco on June 22, 2023. Josh Edelson /AFP via Getty Images

This includes not only Europe but also China and Iran. The platform, called Freedom.gov, will go live over the next several weeks, according to the State Department, and will be operable on iOS and Android devices.

“Freedom.gov is the latest in a long line of efforts by the State Department to protect and promote fundamental freedoms, both online and offline,” the State Department stated in an email to The Epoch Times. “The project will be global in its scope, but distinctly American in its mission: commemorating our commitment to free expression as we approach our 250th birthday.”

Lauding the move, Jeremy Tedesco, senior counsel at the Alliance Defending Freedom, a civil rights legal group that has been critical of recent EU speech laws, stated on X that “for 250 years, this is what America does,” citing examples such as Radio Free Europe, which broadcast into communist countries during the Cold War.

“If Europe’s bureaucrats don’t want you to see it, that tells you everything,” Tedesco stated. “Because even if your government fears freedom—ours doesn’t.”

The First Amendment, which prohibits the U.S. government from “abridging the freedom of speech,” has provided a legal restraint against government censorship that most other countries lack. 

Recent European speech laws, most notably the Digital Services Act (DSA), were ostensibly written to combat what lawmakers deemed “hate speech,” “harmful speech,” and “misinformation,” as well as pornography and abusive AI deep fakes. But critics of European speech codes say they are becoming increasingly draconian.  

In 2025, Virginie Joron, a French member of the European Parliament, called the DSA a “Trojan horse for surveillance and control.”

In Finland, Paivi Rasanen, a member of parliament, was charged for quoting Bible verses online in 2019, criticizing her church’s participation in a gay pride event. 

“I never imagined that quoting the Bible in a Twitter post would lead to years of criminal charges, yet this is now the reality in Europe,” she told The Epoch Times.

In Germany, illegal online speech could include insulting government officials. German police conducted early morning raids in June 2025 as part of Germany’s 12th annual “day of action against hate-posts,” and arrested 140 residents in the process.

In the UK, people praying silently in the vicinity of abortion clinics were arrested in 2023 and 2025. Left-wing ruling parties in Canada are likewise working to remove religious exemptions from their “hate speech” laws. 

Increasingly, U.S. companies are facing extensive fines for allowing online posts that are illegal in Europe. In December, social media company X was fined $140 million for violating EU speech laws.

Such fines on U.S. tech companies, both for speech code violations and for what the EU deems to be anti-competitive behavior, could become a trade issue for the Trump administration.

In January, President Donald Trump posted on Truth Social that the “EU makes more from fines on US tech, than tax from ALL of public European tech,” noting that in 2024, the EU fined American tech companies a total of 3.8 billion euros. 

In addition, legal experts have warned that Europe’s online censorship laws could also silence Americans if U.S. tech companies are forced, on a global basis, to take down content that violates EU speech codes. 

A House of Representatives report released on Feb. 3 and titled “The Foreign Censorship Threat” stated that “The European Commission, in a comprehensive decade-long effort, has successfully pressured social media platforms to change their global content moderation rules, thereby directly infringing on Americans’ online speech in the United States.”

According to the Digital Services Act, illegal online speech could include anything that is prohibited in any EU member country. And in one of the more explicit efforts to regulate speech globally, European Commissioner Thierry Breton warned X owner Elon Musk during the 2024 U.S. presidential campaign that his company could face penalties for posting an interview with Trump.

In a 2025 interview with The Epoch Times, Andrew Puzder, U.S. ambassador to the European Union, stated: “When a company like Facebook or Twitter or X has to change its algorithm, and that algorithm might impact the free speech rights of Americans, that’s something that we really can’t tolerate. I know President Trump is not going to allow a foreign government to restrict the free speech rights of American citizens in ways that even our own government couldn’t restrict them.”

Tyler Durden Wed, 02/25/2026 - 05:00

Report Details Russia's Shadowy Digital Pipeline Concealing $90BN In Crude Exports

Global sanctions meet the digital age in a recent interesting bit of FT analysis, which concluded that a single email server may have exposed what amounts to a $90 billion shadow pipeline for Russian crude.

While Western media and officials would consider this an 'illicit' sprawling sanctions-evasion machine hiding in plain sight, Moscow sees US-EU efforts to stamp out its international energy trade as an unjust tactic to impose total economic isolation related to the Putin's 'special military operation' in Ukraine.

The Financial Times report alleges that "48 seemingly independent companies working from different physical addresses" in reality appear to be "operating together to disguise the origin of Russian oil, particularly from Kremlin-controlled Rosneft."

Source: Shutterstock

Discovery of a common backend infrastructure reportedly exposes the scheme, as on the surface it looked like a fragmented web of independent traders - while digitally, it was one ecosystem.

For example, the FT identified 442 web domains all routed through the same private server - "mx.phoenixtrading.ltd" - with 19 of those domains reportedly tied to Russian businesses, spanning energy and real estate ventures, and curiously several are linked to Azeri nationals.

Among the heavy hitters identified are Dubai-based Foxton FZCO, listed in Russian export records as purchasing $5.6 billion worth of oil - and Advan Alliance appears in Indian customs data as having sold $1.5 billion in Russian crude into India.

Investigators further found the companies had remarkably short lifespans, suggesting fraud, and in some cases customs records revealed the average entity operated for just six months.

The report alleges additionally that once sanctioned a firm would often vanish, only to be replaced by a fresh corporate shell - leaving oversight authorities and enforcement lagging far behind.

The report further highlights in the wake of Trump sanctioning export giants Rosneft and Lukoil back in October 2025:

Since those sanctions were imposed, an otherwise unknown company in the network, “Redwood Global Supply”, has become the single largest exporter of Russian crude. The companies are linked to a group of Azeri businessmen with strong ties to Rosneft.

Ukraine and EU officials are calling for greater efforts to bust up such deceptive digital networks in order to starve the Russian war machine financially.

"The frequent changes of names of ships, managers and oil marketing companies... are long-standing deceptive shipping practices designed to obfuscate the destination, origin and ownership of cargoes and their logistics," Michelle Wiese Bockmann of maritime intelligence firm Windward told the FT.

Tyler Durden Wed, 02/25/2026 - 04:15

Another Migrant Sex Offender Granted Asylum In Britain Despite Skipping Bail In Europe

Authored by Thomas Brooke via Remix News,

An Afghan man accused of rape in Austria jumped bail and fled to Britain, where he was granted asylum and lived freely for over six years.

It is the second such case to be exposed this month after a similar incident involving a Syrian convicted of sexually assaulting a teenager in Germany, who failed to attend his probation hearings and illegally entered the U.K.

As revealed by The Sun newspaper, Omar Ali Noori, 31, arrived illegally in Britain in 2019 after fleeing Austria. He had been arrested in connection with the rape of a woman in Linz in 2018, but absconded while on bail before proceedings concluded.

Despite this, he was granted indefinite leave to remain for five years by the Home Office in 2023. His 23-year-old wife joined him in Britain last year.

Court records cited during an extradition hearing revealed that Noori had used four identities and five different dates of birth on official documents.

At Westminster Magistrates’ Court, Judge Neeta Minhas ordered that Noori, currently held at Wandsworth Prison in south-west London, be returned to Austria to serve a three-year prison sentence for absconding, in addition to facing the rape charge.

Judge Minhas said, “Noori was directly asked if he had committed or been accused of an offence in any country or whether he had been detained in any country. His response to both questions was in the negative. This was clearly not accurate. I find that Noori is a fugitive.”

Noori is now appealing his extradition back to Austria.

An almost mirror case was reported earlier this month after it emerged that Syrian national Azizadeen Alsheikh Suliman, 34, was convicted in Germany of sexually assaulting a 15-year-old girl in Osnabrück in 2022.

According to German media reports, he approached the victim in the city center, under the pretext of asking for a cigarette, before attempting to kiss her and later sexually assaulting her in a nearby courtyard. He was also convicted of supplying drugs to a minor.

German courts handed Suliman a two-year suspended custodial sentence, conditional on probation, and ordered him to pay €3,000 in compensation to the victim. He later breached the terms of his probation and left Germany, prompting the issuance of a European arrest warrant.

Suliman subsequently travelled to Britain via a small boat across the English Channel. He applied for asylum using a different spelling of his name, enabling him to avoid detection for several years. He was housed in taxpayer-funded accommodation in the Greater Manchester area, where he lived with his wife and child before being identified by authorities.

An extradition request was upheld earlier this month, but has been appealed by Suliman. His legal team argues that he faces a risk to his life if returned to Germany because of a feud originating in Syria involving his cousin, and that extradition would breach Article 8 of the European Convention on Human Rights by separating him from his wife and child.

It is likely that Noori’s appeal will also focus on human rights legislation.

Read more here...

Tyler Durden Wed, 02/25/2026 - 03:30

Saudi Arabia Records Largest Budget Deficit Since 2020

Via The Cradle

Saudi Arabia recorded its widest quarterly budget deficit in five years in the final three months of 2025, as lower crude oil prices weigh down the kingdom's finances, Bloomberg is reporting.

Data released by the Saudi Ministry of Finance  shows the government posted a deficit of 94.9 billion riyals ($25.3 billion) in the fourth quarter, which brought the total shortfall for 2025 to nearly 276.6 billion riyals ($73.73 billion), more than double the previous year's 115.6 billion riyals ($30.82 billion) deficit in 2024. 

via Bookings Inst

The full-year deficit amounted to roughly 5.5 percent of gross domestic product.

Non-oil revenue reached about 122.6 billion riyals ($32.68 billion) in the fourth quarter of 2025, while oil revenue fell to around 154.2 billion riyals ($41.10 billion), down from 170.8 billion riyals ($45.53 billion) in the same period a year earlier, according to Finance Ministry data.

Saudi Arabia has been running budget deficits since late 2022, with Bloomberg Economics noting that the kingdom would need oil prices to average about $97 per barrel in 2025 to balance its budget.

That figure rises to roughly $114 per barrel when domestic spending by the sovereign wealth fund is included. Meanwhile, Brent crude, the global benchmark for oil prices, is currently trading at around $71.

This gap has prompted heavier borrowing on international bond markets, as well as major delays and downscaling of the Kingdom's large-scale megaprojects tied to the Saudi Vision 2030 program, championed by Crown Prince Mohammed bin Salman (MbS).

Bloomberg reported in late January that Saudi authorities had begun pressing some of the kingdom's wealthiest families to inject additional capital into domestic ventures, as Vision 2030 megaprojects face scaling back or suspension. 

In the same month, Reuters reported that the construction of the Mukaab, the towering cube-shaped centerpiece of Riyadh’s New Murabba development, was suspended beyond initial groundwork, as the Public Investment Fund (PIF) reassessed financing and feasibility. 

The Financial Times had also reported that Saudi Arabia’s $1.5 trillion NEOM development is set to be significantly "downscaled and redesigned," with its flagship component, The Line, being "radically scaled back."

These scale-backs and delays come as capital is redirected toward priority projects tied to Expo 2030 and the 2034 World Cup, as well as sectors expected to deliver quicker returns, including logistics, mining, and AI.

Saudi officials expect the fiscal deficit this year to narrow to 3.3 percent of GDP; however, analysts at Goldman Sachs Group Inc. and Bank of America Corp. project a higher figure in the range of five to six percent.

Tyler Durden Wed, 02/25/2026 - 02:45

Russia Faces Five Geostrategic Challenges As The Special Operation Enters Its Fifth Year

Authored by Andrew Korybko,

As it’s always done, Russia is expected to ensure its sovereignty, security, and thus its survival through the creative interplay between its political, military, intelligence, diplomatic, expert, and civil society communities.

Russia’s special operation against NATO-backed Ukraine just entered its fifth year.

The last three anniversaries were reflected upon here, here, and here, and keeping with tradition, the present piece will review what happened over the past year and forecast what might be come in the next one.

Generally speaking, Russia now faces five geostrategic challenges that are expected to shape its approach towards the US-mediated peace talks with Ukraine and its grand strategy overall, namely:

* NATO Influence Is Poised To Expand Along Russia’s Entire Southern Periphery

Last August’s “Trump Route for International Peace and Prosperity” (TRIPP) along Armenia’s southern Syunik Province has the dual function of a NATO military-logistics corridor through the South Caucasus to Central Asia. Spearheaded by member state Turkiye with allied Azerbaijan serving as the launchpad across the Caspian, TRIPP threatens to revolutionize Russia’s regional security situation for the worse if these threats aren’t contained, especially if it emboldens Kazakhstan to follow in Ukraine’s footsteps.

* The US Supports The Revival Of Poland’s Long-Lost Great Power Status

“September 2025 Was The Most Eventful Month For Poland Since The End Of Communism” for the 18 reasons enumerated in the preceding hyperlinked analysis, which set Poland up to play a central role in the US’ National Security Strategy for containing Russia after the Ukrainian Conflict ends. It already has the EU’s largest army, is located in the middle of pivotal military-logistics corridors, and is very eager to revive its long-lost Great Power status and attendant historical rivalry with Russia at Moscow’s expense.

* The EU Is Unprecedentedly Militarizing And Upgrading Its Military-Logistics

De facto EU leader “Germany Is Competing With Poland To Lead Russia’s Containment” in no small part through the nearly $100 billion in defense procurement projects that it approved last year alone. The EU as a whole is also militarizing too with the help of the €800 billion “ReArm Europe Plan”. To make matters even more concerning for Russia, the “military Schengen” for optimizing the dispatch of troops and equipment towards its borders continues apace, with the Baltic States newly committing to join this too.

* India Seems To Be Undergoing A US-Friendly Grand Strategic Recalibration

India began aligning with some of the US’ interests after their trade deal as explained here, which could eliminate tens of billions of dollars’ worth of Russian budgetary revenue if India does indeed reduce its import of Russian oil like the US claimed that it agreed to. The same goes for India possibly eschewing new big-ticket military-technical purposes from Russia too. This US-friendly grand strategic recalibration might also put more pressure on Russia’s top Chinese partner and therefore reshape Asian geopolitics.

* Poland Now Wants Nukes & Turkiye Might Soon Declare The Same Intent

The US’ decision to let the New START lapse risks a global nuclear arms race. Poland was emboldened to declare its nuclear intentions while RT published a detailed report about how Turkiye might go down this route too. Both are historical Russian rivals, and seeing as how Poland envisages carving out a sphere of influence in Central & Eastern Europe and Turkiye envisages one in Central Asia as was noted above, them obtaining nukes would pose a huge threat to Russia and raise the likelihood of its containment.

The five geostrategic challenges confronting Russia in the fifth year of its special operation are formidable but not insurmountable.

As it’s always done, Russia is expected to ensure its sovereignty, security, and thus its survival through the creative interplay between its political, military, intelligence, diplomatic, expert, and civil society communities.

They might opt to cut a deal with the US over Ukraine so as to focus more on tackling these challenges, but not at any cost, ergo why that hasn’t yet happened.

Tyler Durden Wed, 02/25/2026 - 02:00

Chinese Defense Labs Exploit Nearly $1 Billion In US Research Funds, Report Says

Authored by Dorothy Li via The Epoch Times (emphasis ours),

Nearly $1 billion in U.S. federal research funds have been funneled into projects involving the Chinese regime’s defense laboratories that pose “critical risks” to America’s national security, according to a new study.

Chinese missile launchers are seen during a military parade marking the 80th anniversary of the end of World War II, in Tiananmen Square in Beijing on Sept. 3, 2025. Kevin Frayer/Getty Images

Nearly $1 billion in U.S. federal research funds have been funneled into projects involving the Chinese regime’s defense laboratories that pose “critical risks” to America’s national security, according to a new study.

The report, released by the Center for Research Security and Integrity (CRSI) on Feb. 19, identifies nearly 1,800 research papers published between January 2019 and July 2025 that involve U.S. collaborations with Chinese defense laboratories.

About one-third of the articles specifically credited U.S. federal funding for the research. The topics of these projects ranged from directed energy systems and energetic materials to radar and sensing, artificial intelligence, flexible electronics, and high-performance computational physics.

“These are critical technology fields that can fundamentally change future military and warfighting capabilities, yet PRC defense laboratories are directly benefiting from this research,” analysts wrote in the report, using the acronym of the Chinese communist regime’s official name, the People’s Republic of China.

The report estimates the total value of these research projects at approximately $943.5 million, noting that the figure could be much higher due to ambiguities in certain research grants and facility contracts.

Jeffrey Stoff, founder of the Virginia-based nonprofit CRSI and co-author of the report, said the U.S. government and academia “lack the will, resources, or priorities” to effectively safeguard its research and innovation.

“This is largely because there are very few regulations that restrict such collaborations. In other words, research-performing organizations, including government laboratories, are not concerned with protecting national interests, even when the research is funded by taxpayers,” Stoff told The Epoch Times via email.

The report was released following multiple congressional investigations into projects involving researchers funded by the Pentagon or the Department of Energy collaborating with Chinese institutions that advance China’s military.

Stoff, a former China adviser for the U.S. government, said the latest study was “intentionally limited to collaborations with a subset of PRC entities that unambiguously pose critical risks to US national security: official PRC defense laboratories.”

‘Unacceptable Risk’

The study identifies 45 Chinese laboratories, acknowledged by Beijing itself as key state-level defense laboratories, that have collaborated with U.S. entities.

Almost all of these laboratories removed the terms “defense” or “national defense” from their official English titles, the report notes, saying that this lack of transparency could complicate U.S. institutions’ due diligence and risk assessment efforts.

Among the most active collaborators with American researchers is the State Key Laboratory of Powder Metallurgy at Central South University in Changsha, China. Over the past five years, its personnel co-authored 285 articles with American researchers from public and private universities and federal laboratories. Of these publications, 80 credited U.S. government funding.

Even though the metallurgy lab omits the term “defense” from its official Chinese name, the report notes that its core mission is to support the Chinese armed forces, particularly in the defense aerospace sector.

Established in 1989 by Huang Peiyuan—a key scientist involved in China’s first atomic weapons and missile development programs—the lab is currently led by Zhou Kechao, who has worked on projects funded by the People’s Liberation Army’s (PLA) Equipment Development Department.

A security guard stands beside a screen showing a video about China's atomic and hydrogen bomb research during an exhibition on the Chinese regime's rejuvenation at the Military Museum of the Chinese People's Revolution in Beijing on Oct. 17, 2007. China Photos/Getty Images

About 70 U.S. institutions have published research papers with the Chinese metallurgy laboratory since 2019, with the University of Tennessee being the most frequent partner. The Knoxville-based university didn’t respond to a request for comment by publication time.

The report also gives case studies of three other Chinese laboratories that frequently collaborate with U.S. institutions and scholars, including a national welding laboratory operated by China’s primary missile designer and producer, the China Academy of Launch Vehicle Technology. The lab is located within the Harbin Institute of Technology in northern China, a top-ranked member of the “Seven Sons of National Defense,” a club of Chinese universities with deep ties to the PLA.

“US institutions and federal research facilities’ critical-risk collaborations with entities supporting China’s defense [research and development] are significant and continue unabated,” the report reads.

“This raises a fundamental question: if collaborating with PRC defense laboratories is not considered an unacceptable risk that should be restricted, then what is?”

US Funders

The National Science Foundation (NSF) stands out as the largest sponsor of U.S. institutions partnering with these Chinese laboratories, accounting for more than 71 percent of federal funds identified in the report. While the NSF grants largely support theoretical and early-stage fundamental research, the report said, the collaborating Chinese laboratories clearly seek to apply the research in defense and even weaponry.

Other federal funders of such collaborations include the Pentagon and the Department of Energy (DOE).

The report found that 10 federally funded research centers affiliated with the DOE have had researchers working with Chinese defense laboratories. For instance, at the DOE-sponsored Argonne National Laboratory, researchers have co-authored 19 articles with identified Chinese laboratories since 2019, in which they credited U.S. government funds.

An undated aerial photo shows the Argonne National Laboratory in Illinois. Argonne National Laboratory/Getty Images

The report offers several recommendations to policymakers, including creating a government-run research center to oversee all research security and due diligence functions for federal agencies that allocate fundamental research funding.

In response to the study, Emil Michael, under secretary of war for research and engineering, told The Epoch Times that the Pentagon is “intensifying its efforts to safeguard taxpayer-funded research and is upholding the integrity of America’s scientific community.”

The DOE, NSF, and Argonne didn’t respond to a request for comment by publication time.

Tyler Durden Tue, 02/24/2026 - 23:25

Iran To Buy Chinese Supersonic Anti-Ship Missiles As US Carriers Near

As US carriers and warships mass in the Gulf and as the next round of Geneva talks are expected by week's end, Tehran appears to be quietly upgrading its ability to threaten maritime chokepoints.

According to Reuters, Iran is in advanced negotiations with Beijing to purchase Chinese-made CM-302 anti-ship cruise missiles - which are supersonic weapons (projectiles which go faster than the speed of sound) designed to skim low over the water and evade naval defenses.

via state media: CM-301/YJ-12

"The deal for the Chinese-made CM-302 missiles is near completion. No delivery date has been agreed," informed sources told the outlet.

"Iran has military and security agreements with its allies, and now is an appropriate time to make use of these agreements," an Iranian Foreign Ministry official said separately, at a moment additional deals with Russia are being reported, including a half-billion Euro agreement for Moscow to send thousands of its advanced shoulder-fired missiles to Tehran.

As for the Chinese CM-302, it has a listed range of roughly 290 kilometers (or 180 miles) and is engineered specifically to penetrate layered ship defenses - which the Iranians would seek as they want to complicate US naval operations in the Persian Gulf and beyond, in the event of a hot conflict.

Talks to acquire the weapons have reportedly been in the works for some two years, but were accelerated in the wake of Israel's US-backed 12-day war against Iran last June.

Danny Citrinowicz, a former Israeli intelligence officer now with the Institute for National Security Studies, has been cited in international reports describing that the acquisition would be "a complete game-changer if Iran has supersonic capability to attack ships in the area."

"These missiles are very difficult to intercept," he added. "China does not want to see a pro-Western regime in Iran. That would be a threat to their interests. They are hoping that this regime will stay."

While neither China nor Russia would likely come to Iran's direct military aid in the event of attack, the pattern on display would likely be along the lines of these expedited weapons deals. 

Washington will be none to happy about this, and could move to expand sanctions and punitive measures on China's defense and 'dual use' industrial sectors.

Tyler Durden Tue, 02/24/2026 - 23:00

California Allocates $35 Million To Aid Illegal Immigrants

Authored by Kimberly Hayek via The Epoch Times,

California Gov. Gavin Newsom’s administration has boosted support for illegal immigrants in response to the federal government’s escalated law enforcement and deportation operations under President Donald Trump.

The new support includes $35 million in existing humanitarian funding for basic needs and legal aid. The money is in addition to $125 million already allocated for “free” immigration-related legal services, the governor’s office said in a statement.

“While the federal government targets hardworking families, California stands with them—uniting partners and funding local communities to help support their neighbors,” Newsom said in a statement.

“The urgent need grows as the Trump Administration accelerates mass detention, tramples due process, and funds authoritarian enforcement with over $170 billion. As the Trump Administration chooses cruelty and chaos, California chooses community.”

The funding will not be cash payouts but instead will go to philanthropic and nonprofit organizations that will help connect illegal immigrants facing deportation to legal services, food assistance, and other aid.

The White House and the Department of Homeland Security (DHS) did not immediately return a request for comment.

Assemblymember Carl DeMaio, a Republican serving communities in east San Diego County, criticized the new funding.

“If you were audited by the IRS and found to owe money and back taxes, as a citizen, you couldn’t say, ‘Well, I want a free lawyer to fight the federal government,’” DeMaio told CalMatters.

State Sen. Lena Gonzalez, a Democrat from Long Beach who chairs the California Latino Legislative Caucus, described the move as protecting families.

“We continue to stand in solidarity with our immigrant families. The federal government is waging a war on our communities—and we won’t stand for it,” she said.

“We are putting money behind an effort to stop the fear, stop the separation of our families, and stop violating our basic rights.”

The funding expands access to U.S. support regardless of immigration status. Such measures reflect California’s longstanding commitment to immigrant integration, even as the state grapples with budget deficits and federal pushback.

Disputes Over Sanctuary Policies

Meanwhile, Trump administration immigration law enforcement efforts, including detention and removals, will cost $170 billion over four years, Newsom’s office said.

Department of Homeland Security data indicates that more than 675,000 illegal immigrants have been deported since Trump returned to office for a second term in January 2025. An estimated 2.2 million have self-deported for a total of approximately 3 million departures. Each deportee was paid between $1,000 and $3,000 and had their airfare paid by the U.S. taxpayer.

“In the last year, fentanyl trafficking at the southern border has also been cut by more than half compared to the same period in 2024,” DHS Secretary Kristi Noem said in a statement. “The U.S. Coast Guard alone seized enough cocaine to kill more than 177 million Americans.”

Noem added that the efforts have saved taxpayers more than $13.2 billion, partly because forced removals cost a lot more than incentivized self-deportations.

“Countless lives have been saved, communities have been strengthened, and the American people have been put first again,” she said.

California is a sanctuary state, meaning it limits cooperation with federal immigration authorities in enforcing federal immigration law, save for those who have already been found guilty of serious or violent felonies. However, California’s sanctuary laws—SB 54 and TRUTH Act—do not require state compliance with ICE detainers for those not yet convicted of serious or violent felonies, so arrests and charges alone don’t secure state cooperation.

Immigration and Customs Enforcement (ICE) in February asked Newsom not to release 33,179 noncitizens with ICE arrest detainers from state custody. ICE said they include people previously convicted of murder, sex offenses, or drug trafficking.

“Governor Newsom and his fellow California sanctuary politicians are releasing murderers, pedophiles, and drug traffickers back into our neighborhoods and putting American lives at risk,” DHS Assistant Secretary Tricia McLaughlin said.

The federal government has withheld more than $160 million in transportation funds from California over issues such as foreign truck-driver licenses and freezing billions in other aid to Democratic-led states.

An appeals court prevented federal restrictions on commercial driver’s licenses for certain immigrants from going into effect—a reprieve for temporary workers. Los Angeles County has spent more than $1 billion on welfare for illegal immigrants over two years.

DHS on Feb. 23 criticized Newsom for pardoning a convicted attempted murderer facing deportation, saying the governor is putting American lives at risk.

Trump also hosted “Angel families,” who have become victims of crimes by criminal illegal immigrants, at the White House for a remembrance ceremony on Feb. 23.

Jody Jones, the brother of Rocky Jones, who was fatally shot by an illegal alien in California, said:

“I’m sick and tired of hearing these Democratic politicians stand up on these podiums and say how sorry they are for seeing these criminal illegal aliens being ripped apart from their families.

“What about us? What about the American family? What about us? We mean something, too.”

Earlier, the president signed a proclamation declaring Feb. 22—the anniversary of Laken Riley’s murder by Venezuelan illegal immigrant Jose Ibarra—as National Angel Family Day, honoring 62 victims and two survivors of such crimes.

Tyler Durden Tue, 02/24/2026 - 22:35

Man Accidentally Hacks Himself A 7,000-Robot Army

A software engineer in Spain had the surprise of his life when he found himself in control of thousands of robots in what was supposed to be a pet project. Sammy Azdoufal set out to customize his new Chinese-made DJI Romo robot vacuum, a high-end autonomous cleaner that comes with a price tag of $2,000 that maps homes, mops floors, and navigates obstacles with onboard sensors, according to Popular Science.

Dissatisfied with the manufacturer's app, Azdoufal aimed to steer the device using a PlayStation 5 controller (like any intelligent man would) and that’s when things got weird.

Using an AI-powered coding assistant, Azdoufal reverse-engineered the vacuum's communication protocol with DJI's cloud servers and unwittingly uncovered a critical backend vulnerability. The authentication token for his single device granted access to live camera feeds, microphone audio, detailed floor maps, and operational status from nearly 7,000 other Romo units deployed across 24 countries.

Azdoufal leads AI strategy at a vacation rental home company; when he told me he reverse engineered DJI’s protocols using Claude Code, I had to wonder whether AI was hallucinating these robots. So I asked my colleague Thomas Ricker, who just finished reviewing the DJI Romo, to pass us its serial number.

With nothing more than that 14-digit number, Azdoufal could not only pull up our robot, he could correctly see it was cleaning the living room and had 80 percent battery life remaining. Within minutes, I watched the robot generate and transmit an accurate floor plan of my colleague’s house, with the correct shape and size of each room, just by typing some digits into a laptop located in a different country.

...

Separately, Azdoufal pulled up his own DJI Romo’s live video feed, completely bypassing its security PIN, then walked into his living room and waved to the camera while I watched. He also says he shared a limited read-only version of his app with Gonzague Dambricourt, CTO at an IT consulting firm in France; Dambricourt tells me the app let him remotely watch his own DJI Romo’s camera feed before he even paired it. -The Verge

In malicious hands, attackers could have monitored private spaces, eavesdropped on conversations, or even remotely maneuvered the devices without owners' knowledge. IP addresses provided approximate locations, compounding the privacy breach.

Azdoufal says he could remote-control robovacs and view live video over the internet.

The Verge alerted DJI, which acted swiftly. The company identified the issue during an internal review in late January 2026, deployed an initial patch on February 8, and completed a follow-up update by February 10.

The recent security lapse in the robot vacuum will likely fuel U.S. regulators' scrutiny of the Chinese company. Just two months after the Federal Communications Commission added foreign-made drones and critical components, including those from DJI, to its Covered List in December 2025—effectively blocking approvals for new models—DJI filed a petition last week challenging the decision in the U.S. Court of Appeals for the Ninth Circuit. The company argues the FCC acted without sufficient evidence of national-security threats, procedural flaws, and violations of due process.

"It carelessly restricts ⁠DJI’s business in the U.S. and summarily denies U.S. customers access to ⁠its latest technology," the Chinese dronemaker said in a statement obtained by Reuters.

The ⁠Federal Communications Commission decision in December meant that DJI, Autel and other foreign drone companies will not be able to obtain the necessary FCC approval to sell ⁠new models of drones or critical components in the U.S but it can continue to sell existing versions, Reuters said.

Last March, FCC Chairman Brendan Carr announced the launch of a broad investigation into whether companies aligned with the Chinese Communist Party continue to conduct business in the U.S., despite their equipment and services having been designated as posing unacceptable risks to national security.

The probe, the first major effort by the agency's newly established Council on National Security, targets entities previously added to the FCC's Covered List under the Secure and Trusted Communications Networks Act. Placement on the list prohibits new FCC equipment authorizations for those companies' products, effectively barring their importation, marketing and sale of new models in the U.S., and restricts their use in networks supported by federal funds.

“The FCC has taken concrete actions to address the threats posed by Huawei, ZTE, China Telecom, and many other entities that pose an unacceptable risk to America’s national security, including by doing Communist China’s bidding,” Carr said in a statement at the time.

“We have reason to believe that, despite those actions, some or all of these Covered List entities are trying to make an end run around those FCC prohibitions by continuing to do business in America on a private or ‘unregulated’ basis. We are not going to just look the other way,” he added.

Tyler Durden Tue, 02/24/2026 - 22:10

Your Gut Microbiome Could Affect Colon Cancer - What You Can Do

Authored by Zena le Roux via The Epoch Times (emphasis ours),

“Supporting the gut microbiome can help reduce colorectal cancer risk and may even enhance prevention and treatment,” Sachin Aryal, gut microbiome researcher at the University of Toledo, told The Epoch Times.

Rost9/Shutterstock

The microbiome has been linked to many aspects of health and has been shown to also play a key role in colorectal cancer.

The good news is that the microbiome is not fixed and that it can be influenced by everyday habits and choices.

How Gut Bacteria Influence Colorectal Cancer

“We’re learning that the bacteria in the gut matter more than we used to think,” Dr. Cedrek McFadden, colorectal surgeon and medical advisor to the Colorectal Cancer Alliance, told The Epoch Times.

Gut bacteria are not just sitting there as bystanders. They interact directly with the lining of the colon, the immune system, and inflammatory processes over time. When the microbial balance is off—a condition called dysbiosis—some bacteria can create a low-level inflammatory state or produce substances that irritate the colon lining. Over many years, that kind of environment can contribute to cancer, McFadden said.

Because the colon is directly exposed to gut bacteria and their by-products, colorectal cancer appears to be more strongly influenced by the microbiome than many other types of tumors, although the microbiome can also affect other cancers indirectly.

“It’s not that one bacterium causes cancer,” McFadden said. “It’s more about the overall balance and what the colon is being exposed to day after day.”

When dysbiosis continues, it can further damage the gut barrier—a condition sometimes referred to as “leaky gut.” The tight connections between gut cells loosen, allowing bacteria and their by-products to move deeper into the gut wall. This keeps the immune system in a constant state of activation and inflammation, Raz Abdulqadir, researcher in microbiome and colorectal cancer at Penn State College of Medicine, told The Epoch Times.

“As a result, inflammatory cells release molecules that increase oxidative stress and can damage DNA in colon cells, raising the risk of abnormal cell growth,” he said.

It’s now clear that gut bacteria influence not only inflammation linked to tumor formation, but also how well the immune system recognizes and attacks cancer cell. This explains why patients with different gut microbiomes can respond very differently to the same cancer treatments.

Bacterial Culprits Identified

Several microbes have been consistently associated with colorectal cancer, including Fusobacterium nucleatum, enterotoxigenic Bacteroides fragilis, Enterococcus faecalis, and certain strains of E. coli, Aryal said.

Fusobacterium nucleatum, for example, is found in much higher amounts in people with colorectal cancer compared to healthy people and is particularly abundant in tumor tissue. Higher levels of this bacterium are also linked to stronger inflammatory signals in the gut and can attach directly to the gut lining using a specialized protein, which helps kick-start cancer-related changes.

“However, we still need well-designed intervention studies to determine whether these microbial changes are true drivers of cancer or simply a consequence of the tumor environment,” Aryal said.

The microbiome’s impact is not only about which bacteria are present, but also what they are doing. Microbial by-products—substances produced by microorganisms such as bacteria as a result of breaking down—and toxins—such as chemicals made by bacteria that can irritate the gut or damage cells—either protect the colon or increase inflammation and DNA damage.

“This is why the microbiome is becoming an increasingly important part of conversations around early detection, prevention, and personalized cancer therapy,” Aryal said.

What You Can Do

Maintaining a healthy gut microbiome is a key factor in preventing colorectal cancer.

Dietary fiber, probiotics, prebiotics, synbiotics—products combining probiotics and prebiotics—and even fecal microbiota transplantation can help rebuild microbial balance and regulate immune and inflammatory pathways, Abdulqadir said.

Focus on Fiber and Whole Foods

From a dietary perspective, the most important step is to consistently follow an eating pattern that supports microbial diversity, especially one rich in dietary fiber. A high-fiber diet that includes fruits, vegetables, fermented foods, and prebiotic or probiotic sources helps maintain a healthier microbial balance and creates a gut environment less supportive of tumor development, Aryal said.

“Incorporating Mediterranean-style eating patterns is especially helpful because they emphasize whole grains, legumes, vegetables, and healthy fats that support microbial diversity,” he added.

Consider Targeted Supplements

Probiotics may help lower the risk of colorectal cancer. One well-studied strain, Faecalibacterium, has been shown in animal research to reduce gut inflammation and protect against colitis.

Other probiotics, including certain Lactobacillus and Bifidobacterium strains, help strengthen the gut lining and support healthy cell growth—especially in people with a history of polyps—small growths on the lining of the bowel that can sometimes turn into cancer.

“When probiotics and prebiotics are used together as synbiotics, they help reduce inflammatory mediators and create a gut environment less favorable for tumor development,” Aryal said.

Doses and specific types can vary, so it’s best to talk to a doctor before trying them.

Stay Active

Regular physical activity also plays an important role in optimizing the gut microbiome and lowering colorectal cancer risk, Aryal said.

“Exercise increases microbial diversity, enhances short-chain fatty acid production, and reduces inflammation, all of which help keep the colon healthy.”

Keep It Simple

Gut health doesn’t need to be complicated, McFadden said. His top advice is not to overthink it.

“Eat real food more often. Get fiber in your diet. Cut back on heavily processed foods when you can and don’t chase supplements or trends,” he said.

In his own life, McFadden keeps things simple. He tries to eat balanced meals, stay active, and get decent sleep. He pays attention to stress because of his awareness of its effects on the body, including the gut.

“I’m not perfect, and I don’t expect my patients to be either. I just try to be consistent most of the time.”

Tyler Durden Tue, 02/24/2026 - 21:45

CIA Tells Iranians: 'We Want To Help You' - As US Bombers Loom

The US Central Intelligence Agency has never been shy about letting it be known it is seeking to recruit informants from places like China, North Korea and Iran.

The agency has in the recent past released messages in Mandarin, Korean, and Farsi. As a CIA spokesman once said during a prior recruitment effort, "We want to make sure individuals in other authoritarian regimes know that we're open for business."

On Tuesday the CIA issued a special message once again for Iranians in particular, but now the timing is more interesting, given the Trump administration stands on the precipice of deciding on pursuing war or diplomacy with Tehran. He's also gearing up to give his State of the Union Address, and Iran will be high on the agenda.

The CIA posted to X, Instagram, and other officially verified platforms a video in Farsi which encourages Iranians to contact the agency, while featuring instructions for using Tor and other encrypted methods to ensure anonymity, and so local Iranian authorities can't uncover the communications.

The CIA in the message while addressing Iranians in the context of the recent anti-government protests stressed the agency "can hear your voice" and "wants to help you".

According to some of the brief video details:

The video walks viewers through several steps that should be taken to ensure that any contact with the CIA from within Iran will be kept private and to ensure that the identity of the dissident cannot be found out.

It suggests that anyone wishing to contact the CIA should do so from a burner device and using the most up-to-date version of their internet browser of choice.

The person should also use the browser’s incognito mode and clear the browser and device history after making contact, it says.

It also strongly encourages anyone who contacts the agency from Iran to use Tor or a VPN to encrypt the communication, and provides instructions on how to use Tor, warning that without doing so, a visit to the CIA website will be visible to others.

Such outreach efforts, in search of potential future spies, isn't going to help relations between Iran and the US, given Iranian leaders are already on edge about the biggest Pentagon build-up in the region since the 2003 Iraq war.

Tehran has already accused the protesters of being in league with the US, Israel, and foreign intelligence. This fresh CIA recruitment effort is only going to fuel these suspicions and paranoia further. 

Israel has all the while been even more boastful that it had agents "on the ground" during January's deadly unrest, which saw thousands of protesters killed, but also resulted a reported couple hundred police and security personnel killed.

Tyler Durden Tue, 02/24/2026 - 21:20

A Dozen US F-22 Stealth Jets Land In Israel As Iran Tensions Soar

On Tuesday, TOI and other Israeli media featured some photos of American F-22 Raptors taking off from England's Royal Air Force Lakenheath, which were expected to then fly to southern Israel...

Israel's public broadcaster KAN has reported that at least 12 US F-22 fighter jets landed at an Israeli air base in the south of the country, connected with the ongoing Pentagon build-up threatening anti-Tehran action.

"Twelve US F-22 fighter jets landed this afternoon at one of the Israeli Air Force bases in the south of the country, as part of the American deployment in the Middle East," KAN said.

The publication added of what is the world's most sophisticated and high-tech stealth jet, that it is capable of "penetrating enemy territory and disabling air defense systems and radar installations."

Local media further described the fighter jets' presence as in anticipation of potential new attacks by Iran-aligned Houthi forces in Yemen. The Houthis had previously, in solidarity with Gaza and Iran, pummeled Israel with long-range drones and ballistic missiles.

These projectiles have at times even reached international airports in Israel, but the launches out of Yemen have quieted down of late, especially once a Gaza ceasefire was finally cemented.

Over in Iran, there are reports of some sporadic protests at universities, but nothing yet near in size to what January witnessed: 

The Iranian government has emphasised that protesting students must adhere to the theocratic establishment’s “red lines” as violent clashes took place inside universities for a fourth day.

Iranian students “have wounds in their hearts” and are angry, government spokesperson Fatemeh Mohajerani acknowledged to reporters during a news conference in Tehran on Tuesday, in an apparent reference to thousands killed during nationwide protests in January.

The Iranians are meanwhile still hoping for diplomatic resolution to the standoff, and by week's close another round of nuclear and peace talks are expected.

Are the F-22s already active in skies over Gaza and the region?

Breaking | A squadron of U.S. F-22 fighter jets is flying over the skies of the Gaza Strip, deploying thermal flares. pic.twitter.com/zjJu90jylA

— غزة 24 | التغطية مستمرة (@Gaza24Live) February 24, 2026

Tyler Durden Tue, 02/24/2026 - 20:30

Anthropic Accuses DeepSeek, Other China-Based AI Firms Of Free-Riding

Authored by Bill Pan via The Epoch Times (emphasis ours),

Anthropic, the maker of the Claude chatbot, accused three of China’s leading artificial intelligence (AI) companies of creating more than 24,000 fraudulent accounts to tap into its system and train their own models.

The DeepSeek app on an iPhone screen in San Anselmo, Calif., on Jan. 27, 2025. Justin Sullivan/Getty Images

The three companies—DeepSeek, Moonshot AI, and MiniMax—allegedly used those accounts to send more than 16 million prompts to Claude, siphoning off output to refine their own products, Anthropic said in a Feb. 23 blog post.

“These campaigns are growing in intensity and sophistication,” the San Francisco-based company said.

The tactic, known as “distillation,” involves training a smaller, less powerful “student” model on the outputs, behavior, and knowledge of a much larger, more advanced “teacher” model. This allows the student system to imitate the teacher’s capabilities without the time and money required to develop them independently.

Anthropic said the scale of the three companies’ alleged distillation activities varied. DeepSeek alone generated about 150,000 interactions with Claude, while Moonshot and MiniMax logged more than 3.4 million and 13 million, respectively, according to Anthropic.

Since many China-based models such as DeepSeek’s R1 do not charge a monthly subscription fee, widespread distillation could make it harder for American providers, such as OpenAI and Anthropic, to monetize products they have spent billions of dollars to build and maintain. That imbalance, the company said, risks eroding the United States’ competitive advantage in AI that export controls are designed to preserve.

Anthropic, which emphasizes its focus on AI safety, further warned that it and other U.S. companies build safeguards to prevent bad actors from using AI to, for example, develop biological weapons or carry out cyber attacks. Illicitly distilled models, by contrast, may lack such guardrails.

“Foreign labs that distill American models can then feed these unprotected capabilities into military, intelligence, and surveillance systems—enabling authoritarian governments to deploy frontier AI for offensive cyber operations, disinformation campaigns, and mass surveillance,” the company warned.

If distilled models are later open-sourced, it added, the risk multiplies as those capabilities “spread freely beyond any single government’s control.”

DeepSeek, Moonshot, and MiniMax did not respond to requests for comment by publication time.

DeepSeek leaped into the top ranks of AI makers last year with the release of its R1 chatbot, which it says was built at a fraction of the cost of leading U.S. alternatives. The launch sparked a tech stock selloff of more than $1 trillion, as investors fretted that a low-cost made-in-China model could undercut Silicon Valley’s AI lead.

Since then, China-based firms have flooded the market with relatively affordable text, image, and video models. Moonshot last month released a new open source model, Kimi K2.5, and is seeking a valuation of about $10 billion in a new funding round, while MiniMax also made its public market debut at about $6.5 billion.

Anthropic alleged that the three firms used “fraudulent accounts and proxy services to access Claude at scale while evading detection.” Proxy networks can obscure a user’s true location and allow them to bypass regional restrictions to open large numbers of accounts.

The Claude maker said it identified the actors with “high confidence” based on internet protocol addresses, metadata, and “corroboration from industry partners who observed the same actors and behaviors on their platforms.” MiniMax, for instance, was seen in action as the company allegedly redirected nearly half its traffic to siphon capabilities from the latest Claude model when it was launched, Anthropic stated.

The allegations come as U.S. chip exports to China attract debate over national security concerns.

In January, the Trump administration published a new regulation that loosened restrictions on the export of Nvidia’s H200 chips, a move that federal officials said is justified to foster China’s reliance on lower-tier U.S. chips rather than the most advanced ones. Critics, however, say that any potential boost to China’s AI computing capacity is a risk too big to accept.

Anthropic, which has consistently called for tighter controls on advanced chips to China, did not explicitly blame the U.S. policy for enabling the alleged extraction, but cited such attacks as further justification for stricter export controls.

“Executing this extraction at scale requires access to advanced chips,” the company wrote in its blog post, stating that restricted chip access would limit “both direct model training and the scale of illicit distillation.”

The Epoch Times has reached out to the U.S. Department of Commerce for comments regarding Anthropic’s concerns.

Tyler Durden Tue, 02/24/2026 - 20:05

"Anathema In The University Mission": Bari Weiss Canceled At UCLA

Authored by Jonathan Turley,

This week, CBS News Editor-in-Chief Bari Weiss was supposed to give the UCLA Burkle Center’s annual Daniel Pearl Memorial guest lecture on “The Future of Journalism.” It was a wonderful opportunity for students to hear from one of the impactful voices in the media. However, they will not be able to do so after a successful cancel campaign supported by faculty members.

The College Fix reports that roughly 11,000 people signed a petition demanding the university cancel the event, and a leader at the center hosting her talk threatened to resign if the journalist spoke.

One of the most outspoken critics was Margaret Peters, associate director of the Burkle Center, who suggested that she would resign even if Weiss were allowed to speak virtually, according to The Daily Bruin.

The LA Times reported that UCLA was turning to the common excuse of security concerns to effectively yield to the heckler’s veto.

Peters told The Daily Bruin:

“that she believes Weiss has used the guise of free speech to attack people on the left whose opinions she does not agree with – and having her speak at a signatory lecture would legitimize these actions...

To invite somebody who is working against that mission in highly powerful places just seems like anathema in the university mission.”

This statement is an example of the culture that is inculcated into students who become intolerant in college. It explains why students feel righteous in shouting down or interrupting speakers.

What is “anathema” to the academic mission is the viewpoint intolerance and orthodoxy shown by Peters and the faculty and students at UCLA. In accusing Weiss of attacking those with “opinions she does not agree with,” Peters demanded that Weiss be silenced as someone with opinions that she does not agree with.

The lack of self-awareness is a common element among many in higher education who claim to support free speech and intellectual diversity while purging universities of conservative or libertarian faculty or speakers.

The fact that UCLA would pick Peters to lead this Center speaks volumes about the culture in higher education. Peters felt complete license to speak as the Associate Director for the canceling of speakers with opposing views.  Her overt intolerance was likely an advantage with other faculty members.

After years of surveys showing the purging of faculty ranks, there is no evidence that faculty members are willing to allow a diversity of opinions.

After years of viewpoint intolerance, schools like Yale have finally reached the point where there is not a single faculty member left who donates to the Republican Party or candidates.

In 2018, a faculty member who called for greater viewpoint diversity at Sarah Lawrence was the subject of threats and vandalism.

Samuel J. Abrams, a professor at Sarah Lawrence College, wrote about the problem almost ten years ago. His research showed that, while the faculty was overwhelmingly liberal, the administrators were even more so. In his survey of 900 college administrators, he found that liberal staff members outnumber conservative staff members by a 12-to-1 ratio: “A fairly liberal student body is being taught by a very liberal professoriate — and socialized by an incredibly liberal group of administrators.”

That was almost a decade ago.

This does not happen overnight or by accident. It is the result of faculty and administrators replicating their own views while effectively purging their ranks of conservatives or moderates.

Today, even liberal columnists like Ezra Klein have been subject to disruptive protests. It is rare for libertarian or conservative figures to be invited on campuses and these faculty members have succeeded in deterring others.

It is important for speakers to continue to appear on campuses despite these threats. We cannot yield to the mob.

Tyler Durden Tue, 02/24/2026 - 19:15