Category: Technology News

VIENNA (AP) — The U.N. nuclear watchdog has been unable to inspect nuclear facilities in Iran affected by the war last June according to a confidential report by the U.N. nuclear watchdog circulated to member states and seen Thursday by The Associated Press.

The International Atomic Energy Agency reported that it “cannot provide any information on the current size, composition or whereabouts of the stockpile of enriched uranium in Iran or whether Iran has suspended all enrichment-related activities.”

The IAEA warned that it was “unable to discharge its safeguards responsibilities” that it has under the Safeguards Agreement of the Nuclear Non-Proliferation Treaty, adding that it is “indispensable and urgent” for Tehran to implement its obligations under that Treaty.

The only nuclear facility inspected in Iran by IAEA inspectors since the last report in February has been the Bushehr nuclear power plant, which was visited on June 1-3. The reactor currently running at Bushehr uses uranium from Russia enriched to 4.5%, a low level needed for power generation in such plants.

The confidential report come as tensions have flared in the Middle East.

Iranian drones heavily damaged a passenger terminal at Kuwait’s main airport on Wednesday, killing one person, wounding dozens of others and briefly closing the airfield — the latest in back-and-forth attacks by Iran and the U.S. that test a fragile ceasefire.

According to the IAEA, Iran maintains a stockpile of 440.9 kilograms (972 pounds) of uranium enriched up to 60% purity — a short, technical step away from weapons-grade levels of 90%.

That stockpile could allow Iran to build as many as 10 nuclear bombs, should it decide to weaponize its program, IAEA director general Rafael Grossi warned in a recent AP interview. He added that it doesn’t mean that Iran has such a weapon.

Such highly enriched nuclear material should normally be verified every month, according to the IAEA’s guidelines.

The report said Grossi reiterates his “full support to the negotiations underway aimed at finding a mutually acceptable solution to issues related to Iran’s nuclear programme, and his readiness … to support an eventual agreement.”

Talks have dragged on for weeks as mediators seek a more enduring truce in the war, now in its fourth month. They are increasingly strained by Israel’s broadening war with Iran-backed Hezbollah militants in Lebanon.

Iran maintains its hold on the Strait of Hormuz — a crucial waterway for the world’s oil and natural gas and related products like fertilizer — and the U.S. continues its blockade of Iranian ports. Global fuel prices remain high, and the effects of the conflict are felt well beyond the region.

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The Associated Press receives support for nuclear security coverage from the Carnegie Corporation of New York and Outrider Foundation. The AP is solely responsible for all content.

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Additional AP coverage of the nuclear landscape: https://apnews.com/projects/the-new-nuclear-landscape/

TORONTO (AP) — Canadian Prime Minister Mark Carney warned Thursday that foreign artificial intelligence platforms could be used against Canadians.

Carney said the defining technology of our era is here and said Canada is too dependent on foreign suppliers. He made the remarks while unveiling his government’s strategy on AI.

Carney warned at the World Economic Forum in Davos earlier his year that global hegemons like the United States have used economic integration to bully smaller countries. He noted Thursday that most of the data used in AI goes across the border.

As with other forms of economic integration like supply chains, Carney said AI could be weaponized against Canadians.

“That creates real risks that foreign entities could access Canadian data, deploy AI products that shape Canadian lives without reflecting our values,” Carney said. “And tilt the playing field against Canadian firms — while Canada lacks the leverage to push back or the ability to control.”

The government’s strategy notes “AI is a game of scale that is dominated by hegemons and hyperscalers” and said this “poses a significant security and economic challenge as countries around the globe risk becoming subordinate or reliant on them.”

The strategy talks about Canada helping lead other middle powers or like-minded countries in navigating the new era.

“A coalition of aligned democracies, who pool research, talent, compute and procurement power, would offer a credible alternative to the dominant market actors that increasingly define the global AI landscape,” the document says.

Carney said his government will introduce legislation to better protect data and privacy. He also said Canada will build a world-leading public AI supercomputer.

“Canadian researchers train models on foreign cloud platforms. Canadian companies store sensitive data in foreign jurisdictions. Government operations rely on infrastructure Canada does not own,” the strategy says.

It says the federal government will address these risks by “building its key sovereign capabilities domestically whenever possible, while partnering with trusted allies or buying existing market solutions when appropriate.”

The strategy said Canada has “a major adoption gap.” The prime minister said his government will offer artificial intelligence training to Canadians in schools and community centers through a literacy initiative. He said free AI learning kits, including courses, “will help Canadians to identify bias and misinformation — and give them the AI tools to learn and help with their careers.”

Carney said globally, his country ranks near the bottom of countries in AI training, literacy and trust. He said only 12% of Canadian businesses are using AI and adoption is even lower among small and medium-sized businesses.

WASHINGTON (AP) — The Supreme Court sided with the Trump administration Thursday in upholding the power of federal regulators to enforce data privacy laws on telecommunications companies.

The 8-1 decision preserved one of the Federal Communications Commission’s key tools, though the companies also won a concession from the Republican administration that could shift the regulatory landscape.

The appeal from telecommunications giants Verizon and AT&T challenged a combined $100 million in penalties imposed after the agency determined that the companies had failed to safeguard customer location data.

The companies argued that the FCC’s process was unconstitutional because it gave them little opportunity to tell their side of the story in front of a jury.

The administration defended the fines as an essential regulatory tool. But the government also said companies did not have to pay the penalties right away, a regulatory shift in the companies’ favor.

The Supreme Court agreed, affirming the FCC’s power to order fines when challenges are still available.

“The orders at issue did not settle the carriers’ legal obligations because, stated simply, they did not create an obligation to pay,” Chief Justice John Roberts wrote for the majority.

Justice Clarence Thomas, the lone dissenter, said he would have given the two telecom companies a clearer path to recouping the fines they already paid.

Other agencies use similar enforcement methods, so a sweeping victory for AT&T and Verizon could have had widespread effects, advocates said.

The environmental group Earthjustice applauded the ruling, saying it has direct implications for other agencies and a key energy-efficiency case.

“By rejecting this unsupported attack on agency authority, the Court’s decision safeguards the government’s ability to enforce laws that protect people, communities, and the environment,” said Caroline Flynn, the group’s Supreme Court counsel.

The libertarian-leaning New Civil Liberties Alliance was disappointed by the decision, but expected it to help other companies in the future. “In fact, it may even buttress their willingness to challenge future agency orders in federal court before paying any penalties,” said the alliance’s president, Mark Chenoweth.

A few more carriers may decide to litigate, but the decision leaves the FCC with the power to “publicly announce large fines with much fanfare,” said Doug Orvis, a veteran telecom attorney. “It will be interesting to see what happens going forward.”

The Supreme Court’s conservative majority has sided against federal agencies and limited their power before. That includes overturning a decades-old decision that had given regulators an advantage in court and stripping another agency of a major tool in fighting securities fraud.

LONDON (AP) — A British lawmaker said Thursday she is suing Elon Musk’s company xAI for invasion of privacy, alleging that fake images of her were created using the Grok chatbot.

Jess Asato, a legislator with the governing Labour Party, says someone used Grok to create fake images of her in a bikini without her consent in January after she criticized the spread of deepfake pornography online.

She filed a claim Wednesday at the High Court in London, citing misuse of private information under the Data Protection Act.

She is seeking damages and says she wants to create a precedent that companies can be held liable for the design of their AI systems.

“Nobody would be able to walk up to me in the street and strip me and put me in a bikini, and I don’t see why anybody should be able to do that to me online, because the feeling, while it is not quite the same, is very similar,” she said. “It is like somebody has digitally stripped me without my consent.”

Asato said she hopes others will join the claim.

British Prime Minister Keir Starmer said he supports Asato’s legal action “100%.”

“Jess Asato is absolutely right in the action that she is taking,” Starmer told reporters. “Disgusting images were created in her particular case by Grok.”

Following an international outcry against deepfake pornography, Musk’s company said in January it would no longer allow Grok users to edit images of real people to remove their clothing.

A law passed last year in the U.K. made it illegal to create or request a non-consensual deepfake image of an adult. But Asato says xAI should be held accountable for harm that has already been done.

“Once the damage is done, the damage is done,” she said. “If you think about any other products, like a car, for example, that might have been manufactured with a fault, it doesn’t matter if, you know, the cars get recalled and the faults are fixed and no more harm is done.”

In January, American writer Ashley St. Clair, mother of Musk’s son Romulus, filed a lawsuit against xAI in New York. She alleges that explicit images of her were generated by AI chatbot Grok, including one in which she was underage.

xAI did not immediately respond to a request for comment on Thursday.

Some of the leading artificial intelligence companies are moving toward initial public offerings this year at eye-popping valuations. From Anthropic to SpaceX to OpenAI, tech giants are looking to take their shares public to access more capital in the race to shape the technology’s future.

The amount of money involved in building and maintaining artificial intelligence models, the pursuit of artificial general intelligence that can surpass humans at many tasks, and widespread AI adoption all have led to an air of excitement around the technology that has helped lift the stock market to record highs.

“These companies are now burning through cash to win the AI race, and public equity is the cheapest source available, particularly in a rising interest rate environment,” said Michael Field, chief equity analyst at Morningstar.

But amid the billions — even trillions — at stake, worries about an AI bubble are looming in the background. Some experts fear tech companies and venture capitalists are pouring too much money into a still-nascent and unproven technology.

For now, though, the market shows no signs of a slowdown. Here’s a look at some of the biggest AI-focused companies.

SpaceX

Elon Musk’s SpaceX was valued at $800 billion last year, but its value grew to $1.25 trillion after the space exploration company merged in February with Musk’s artificial intelligence company, xAI. Now, SpaceX plans an IPO that could become one of the biggest stock sales ever — even though the company is currently losing billions of dollars a year. SpaceX lost $2.6 billion from operations last year on $18.7 billion in revenue, according to a May regulatory filing, and the losses kept piling up at the start of this year. xAI, which features the Grok chatbot, lost $6.4 billion in operations last year, according to a company document.

Musk got SpaceX to buy xAI earlier this year despite protests from some SpaceX investors that it was a bailout and unethical given that he was a controlling shareholder in both.

SpaceX said on Wednesday it plans to raise up to $75 billion when it goes public this month, setting the stage for the largest-ever stock market debut and putting Musk on course to becoming the world’s first trillionaire. An offering of that size would easily break the record for the largest IPO, which was set by Saudi Aramco in 2019 when the oil giant went public and raised $26 billion.

Anthropic

Anthropic, the maker of the Claude chatbot, was formed in 2021 by ex-OpenAI leaders. It was recently valued at $965 billion, making it one of the world’s most valuable startups. It has been a meteoric rise for what was once a little-known research laboratory. The San Francisco-based company is moving toward going public on Wall Street, announcing June 1 that it has submitted a confidential filing with the U.S. Securities and Exchange Commission for a proposed IPO.

Anthropic has said it is making annualized revenue of $47 billion from selling its technology to people and organizations using Claude to write code and do other work and personal tasks on their behalf.

OpenAI

The maker of ChatGPT began in 2015 as a nonprofit dedicated to developing AI for the common good. It is now a company valued at $852 billion planning an IPO as soon as this fall.

While OpenAI may have helped set off the current AI boom, Anthropic’s meteoric rise and Claude’s growing popularity have left the ChatGPT maker playing catch-up.

In an unsuccessful lawsuit against OpenAI and its top executives, Elon Musk, an OpenAI co-founder, claimed the company diverted from its founding mission to make more money. OpenAI had countered that Musk was simply seeking a bigger slice of the company. OpenAI has not yet reported filing initial IPO paperwork with the SEC.

Several AI heavyweights are already public companies

Google designed the Gemini AI assistant in response to a competitive threat posed by OpenAI’s ChatGPT, which came out in late 2022. Gemini AI models are integrated into Google search and other products such as Maps. The market value of Alphabet, Google’s Mountain View, California-based parent company, was $4.54 trillion at the beginning of June, up from $2.3 trillion a year earlier. That growth is a sign that Alphabet’s spending spree on AI is producing dividends so far, despite investor worries about some of its peers’ massive AI investments.

Meta’s AI push has meant integrating its assistant, Llama, into all aspects of its business, including advertising and consumer-facing tools such as a digital assistant that can help with daily tasks, as well as image and video creation. Unlike many rival models, Llama is open source, meaning it is largely available to the public and to developers. Meta AI is available as a standalone app and it is integrated into the Menlo Park, California-based company’s smart glasses. Meta’s market value as of early June was $1.55 trillion, down from $1.76 trillion a year earlier amid investor concerns about the company’s massive AI spending.

Microsoft, which went public 40 years ago, likely would have been running behind in the AI race were it not for a timely multibillion-dollar investment in OpenAI. Microsoft provided the computing power and financial backing that helped OpenAI build ChatGPT. In turn, Microsoft was able to use the same technical foundation to power its own AI assistant, now called Copilot. The once-exclusive partnership has since evolved as both companies look to other partners to advance their AI ambitions.

NEW YORK (AP) — SpaceX says it plans to raise up to $75 billion when it goes public this month, setting the stage for the largest-ever stock market debut and putting Elon Musk on course to becoming the world’s first trillionaire.

The company, formally known as Space Exploration Technologies Corp., said Wednesday it will sell 555.6 million shares at $135 a piece in an initial public offering. The estimated proceeds would easily top the $26 billion raised by oil giant Saudi Aramco in 2019. The offering would also give SpaceX a market value of $1.77 trillion. Only six companies in the S&P 500 are currently worth more, with Nvidia tops at $5.2 trillion.

Besides the size of the offering and the expected proceeds, SpaceX’s amended prospectus updates details about how much control of the company Musk will have. As SpaceX’s CEO, chief technical officer and chairman, Musk’s voting power will come primarily through his ownership of 5.22 billion Class B shares, which give the holder 10 votes for every share held. According to the filing, Musk would have 82.4% of the voting power in the company.

Forbes currently values Musk’s net worth at $826 billion and his stake in SpaceX at $542 billion. The estimated value of his SpaceX holdings was based on an overall value for the company of $1.25 trillion. Based on those numbers, a $1.77 trillion valuation for SpaceX would boost Musk’s net worth by $223 billion, making him a trillionaire. However, much of Musk’s worth is in stock that he has yet to cash in.

Even as it makes a bid for a blockbuster market debut, SpaceX is currently losing billions of dollars a year. The filing shows that the company lost $2.6 billion from operations last year on $18.7 billion in revenue, and the losses kept piling up at the start of this year, too.

Fantastical plans

Time will tell how SpaceX fares on the market. Musk’s plans for the company are as fantastical as the money he hopes raise in the sale.

Colorful, even frightening in parts, the IPO document strikes a contrast with the typically dry, technical prose in IPO documents, detailing plans to use proceeds from the sale to help put men on the moon again and perhaps even Mars. In one section, it talks of a need to build “a permanent human colony” on the red planet with “at least one million inhabitants” as existential threats loom that could consign man to “the same fate as the dinosaurs.”

Musk has almost equally ambitious plans for his other publicly traded company, Tesla. His goal is to transform the maker of electric vehicles into a producer of robotaxis and humanoid robots. Dan Ives of Wedbush Securities wrote in a research note that he expects Tesla and SpaceX to merge next year.

AI plays a key role

Key to the success of both companies — and any merged entity — is artificial intelligence. In its IPO filing, SpaceX says it sees potential revenue from AI of up to $26.5 trillion. But that depends on another lofty Musk ambition — putting data centers in space, which is not technologically possible at the moment.

Transforming his space company into a primarily AI-focused company will be a challenge for Musk, who started xAI in 2023 with 11 other co-founders who have all since left. Some were recruited away by rivals.

Its main AI product, the chatbot Grok, is “less impressive than anything that we see from any other major player in the space, whether that’s OpenAI, or Anthropic, or (Google’s) Gemini,” said IDC analyst Arnal Dayaratna.

Dayaratna said that doesn’t mean SpaceX doesn’t have potential as a major AI player, thanks in part to its computing partnership with Anthropic and Musk’s recent deal that gave SpaceX the rights to buy AI coding tool Cursor for $60 billion later this year. Folding in Cursor’s capabilities would give SpaceX access to the coveted business customers now using Anthropic’s Claude or OpenAI’s ChatGPT.

SpaceX plans to use the net proceeds from the IPO to fund the expansion of infrastructure for its AI and rocket businesses, and to beef up the constellation of satellites that power Starlink Mobile, among other investments.

The company plans to list on the Nasdaq under the symbol “SPCX” and could begin trading as soon as the end of next week.

And SpaceX isn’t the only colossal market debut investors are now bracing for. Earlier this week, Anthropic submitted a confidential filing with the U.S. Securities and Exchange Commission to officially start its own IPO clock.

OpenAI has not yet reported filing the initial SEC paperwork, but an IPO from the ChatGPT maker is widely expected.

“This listing represents the first major test for public markets after years of muted IPO activity with SpaceX paving the way for AI giants Anthropic and OpenAI to follow soon after,” Ives wrote.

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Associated Press Technology Writer Matt O’Brien contributed.

WASHINGTON (AP) — The environmental footprint of data centers already rivals some of the world’s largest countries, according to a United Nations University report, which also predicts their water and energy use and pollution will double in just four years as use of artificial intelligence grows.

Last year, global data centers used 448 trillion watt-hours of electricity, more than all but 10 countries of the world, said the report issued Wednesday. That electricity use produced about 208 million tons (189 million metric tons) of carbon dioxide, about the same amount as Argentina, and producing that much energy consumed about 1.2 trillion gallons (4.5 trillion liters) of water, according to the report on the environmental consequences of AI’s energy use.

By 2030, data centers will account for nearly 3% of the world’s projected electricity use, with 935 trillion watt-hours. If data centers were a country, the country would be projected to rank sixth-highest in power use in 2030. That would produce nearly 440 million tons (399 million metric tons) of carbon dioxide, the report said. The study focused on energy use and didn’t examine the massive amount of water used to cool data centers.

“If you look at these numbers, we’re seeing scales comparable to nations,” said study co-author Kaveh Madani, a water scientist and director of the United Nations University Institute for Water, Environment and Health in Canada. “The demand is enormous.”

Much of the growth of data centers is being driven by AI. About 20% of data centers’ energy is currently due to AI, but that should grow to 40% by 2030, the report said.

First global look at ecological impact

The report is significant because of the credibility and authority of the U.N., not just because of any one set of eye-popping numbers, said Fengqi You, a Cornell University energy engineering professor who directs the college’s AI sustainability issues.

“Its value is that a U.N. institution is putting carbon, water, land, life-cycle impacts and environmental justice into one frame” for an issue that is often shrouded in secrecy and partial disclosures, said You, who was not part of the report.

“The general public should be concerned, but not panicked,” he added.

Jean Su, director of the Energy Justice Program at the Center for Biological Diversity, said the report is important because it is the first U.N., or even global, report “that shines a light on the environmental harms of AI.”

National Artificial Intelligence Association President Caleb Max emphasized how his industry is becoming more efficient and how it benefits the public: “AI is rapidly becoming part of our everyday lives and adding benefits that improve safety, live longer, work more efficiently, enhance food production, and reduce poverty. The evidence is growing daily that the energy return on investment of AI development is transformative for our world and therefore more than worth it.”

Josh Levi, president the Data Center Coalition, said the industry takes its environmental impact seriously.

“We remain committed to working with policymakers, local communities, and industry partners to ensure that as data centers grow, they do so responsibly, transparently, and in ways that reflect the best available practices,” he said in a statement.

How much energy your query uses and how to trim it

Madani, also the winner of the most recent of the Stockholm Water Prize, said the numbers show the environmental cost of AI, which may seem cleaner at first glance than other mechanical devices, such as cars and furnaces, that have visible pollution.

“AI is not just a virtual thing. We’re talking about something that has physics, something that has real impacts. There is infrastructure there. There is energy that is being used,” Madani said. “A lot of hardware is behind all these operations that to us seem very, very clean because we don’t see smoke out of our devices. On our cellphone, there is no visible smoke or out of our computer or something. But somewhere else someone is suffering.”

People can reduce AI’s massive energy appetite by being less polite and more concise in their queries, Madani said. The report found that cutting word use in requests by 30% can reduce energy used by AI by 25%. That would save about the same amount of electricity as what about 700,000 people in Africa use in a year, the report said.

“If you’re too polite, then that extra ‘please’ you put there can make a huge difference,” Madani said. “You’ve got to be very precise and be short.”

A typical ChatGPT-style query is about 200 times more energy-intensive than the type of basic text classification used in an email spam filter, for example. AI-generated images or video require much more energy.

And the more complicated the AI, the more energy it takes to train or learn. The report said GPT-3 used about 1.3 billion watt-hours to train, but the next version used 50 to 70 billion watt-hours.

But it’s not training that really feasts on power, said study co-author Miriam Aczel, a United National University environmental policy researcher. About 90% of the power use of AI comes from operational requests, she said. GPT alone accounts for 2.5 billion prompts a day, she said.

Efficiency still means more power use

Even though tech advocates can argue that their machines are becoming more efficient, there’s a common paradox that finds when things get more efficient, they are used more often and total energy use soars even if individual uses are more efficient, Madani said. While some companies tout the use of renewable energy for data centers, Madani said that means the supply of clean electricity is depleted and thus dirtier energy is used elsewhere.

One of the problems in conducting this study is that many companies and places are not transparent about what data centers and AI are consuming or even where and how big they are, Aczel and Madani said.

“We cannot manage what companies do not disclose,” Cornell’s You said.

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The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

BRUSSELS (AP) — European Union leaders, worried about the continent relying too heavily on American companies for AI and cloud computing services and Asia for microchips, are pushing back.

The 27-nation bloc unveiled a “tech sovereignty” package on Wednesday with measures to promote homegrown European alternatives to Big Tech services and hardware.

The efforts by Brussels have gained urgency as leaders worry about dependence on technologies from foreign providers, which they say could be “weaponized” against Europeans. Those fears crystallized after the International Criminal Court’s top prosecutor was sanctioned by the Trump administration, which led to Microsoft canceling his email account, sparking fears of a “kill switch” hidden in U.S. tech services.

“Europe wants to be in the position to make its own choices, avoiding risky dependencies on single dominant suppliers, one company or one third country,” European Commission Executive Vice-President Henna Virkkunen, who oversees tech sovereignty, told reporters in Brussels.

“Because we live in a world where geopolitics and technology go hand in hand. Those who champion technological innovation will shape the future, and we must ensure that Europe plays a leading role in this.”

A cornerstone of the package is a sequel to the EU’s 2023 Chips Act to further boost local production of semiconductors by cutting red tape for chip fabs and fostering a European chipmaking ecosystem.

Europe’s vulnerability to the global chip supply chain centered in East Asia was highlighted last year in a power struggle at the Chinese-owned, Netherlands-based chipmaker Nexperia.

Another key part of the package is supporting local cloud and AI development, with plans to triple Europe’s data center capacity by over the next five to seven years. The EU is pushing to expand data centers to keep up with the AI boom, which is driving demand for cloud computing services.

The proposals from the EU’s executive arm still need to be debated by the EU’s two other main institutions, the European Parliament and the Council of the European Union.

LONDON (AP) — Google must allow news sites to opt out of having their online content scraped to feed AI overviews and other artificial intelligence services and features for British users, regulators said Wednesday.

The Competition and Markets Authority said it was ordering Google to give online publishers the option, in what it called a “world first.”

The watchdog is seeking to loosen the U.S. tech giant’s stranglehold on the U.K’s online search market by using new digital powers to force changes to the company’s business practices.

Under the decision, Google will have to give publishers “effective tools” to prevent their content from being used to power the company’s generative artificial intelligence services and its AI search features like AI Overviews and AI Mode.

Google will also have to properly cite publisher content in AI-generated search resulted by using clear links, and let publishers opt out of having their content used to fine-tune AI models.

The watchdog said the decision will give publishers a stronger hand when negotiating content deals with Google. Publishers are defined as anyone who puts content on the web that’s available to people in Britain.

The CMA’s ruling was expected, because it had released draft proposals at the start of the year after using its new digital powers to label Google a “ strategic” player in online search advertising.

It previously found that news publishers had suffered a drop in traffic since Google rolled out its AI Overviews – summaries that appear at the top of some search queries – because fewer users are clicking through to the original articles.

The watchdog said its requirements will also apply to big changes that Google unveiled in May, which further embed AI in the company’s search services.

Google is “engaging with regulators like the UK’s Competition and Markets Authority to ensure website owners have the right tools as user preferences evolve,” the company’s general manager of search ecosystem, Mrinalini Loew, said in a blog post.

“Today, we’re beginning to test a new control that lets website owners manage how their links and content appear in generative AI Search features.”

CMA Chief Executive Sarah Cardell said the measures will result in “fair treatment, greater transparency and meaningful choice for businesses and consumers” and will help tens of millions of British users “better understand and trust the information presented to them.”

On a leafy Connecticut road in the summer of 2024, would-be kidnappers pulled a couple from their Lamborghini SUV, beat them in broad daylight and threw them into a van, only to be arrested shortly thereafter as multiple witnesses, including a passing off-duty FBI agent, called police.

The investigation would lead police to some sensational findings.

The attack turned out to be linked to a $245 million Bitcoin heist the month before involving the couple’s son. And this week, a California cryptocurrency mogul who authorities say called himself “The Godfather” and had previously hired off-duty sheriff’s deputies to strongarm his enemies admitted to orchestrating the attempted abduction to get a piece of the son’s stolen loot.

The California man, 25-year-old Adam Iza, pleaded guilty Monday to conspiracy to interfere with commerce by robbery. Federal prosecutors are seeking a prison term of at least 14 years when he’s sentenced.

Iza’s lawyer, William Paetzold, didn’t immediately respond to Tuesday phone and email messages seeking comment.

The case is part of an increasing trend worldwide of cryptocurrency theft spilling over to violence.

Nightclub fight spawns kidnapping plot

A month before the abduction attempt, one of Iza’s alleged co-conspirators got into a beef with the couple’s son, Veer Chetal, at a Miami nightclub, according to an FBI affidavit. The man, James Schwab, then told an acquaintance to rob Chetal and his friends at their Miami rental home, authorities said. It’s not clear if the robbery happened.

Schwab’s lawyers didn’t immediately respond to phone messages seeking comment.

Then came the Bitcoin heist. A few weeks after the nightclub fight, Chetal and two other men hatched an elaborate online scheme that involved impersonating technical support staff for Google and a cryptocurrency exchange. They managed to steal 4,100 Bitcoins — worth about $245 million at the time — from a Washington, D.C., resident, according to court documents.

The trio lived large after the theft, spending millions of dollars on cars, clothing, jewelry, rental mansions and nightclub parties before being arrested, prosecutors said. Chetal pleaded guilty last November and awaits sentencing, while the two other men have pleaded not guilty.

Iza and Schwab, meanwhile, came up with the idea to take Chetal’s parents hostage in a bid to snatch some of his ill-gotten riches, the FBI said, citing information from informants. Schwab and Iza’s brother, Saif Faiq, also were charged in the kidnapping attempt and pleaded not guilty.

They recruited six other men to go to Connecticut, paying for their travel and lodging, authorities said. A week after the Bitcoin heist, the group surveilled Chetal’s parents hours before the kidnapping, according to court records.

Abduction quickly goes awry

Sushil and Radhika Chetal were driving in the Lamborghini on Aug. 25, 2024, near Danbury High School when they were rear-ended by a car. A white van then pulled in front of the SUV and several men surrounded them, police said.

The men pulled the Chetals out of the SUV and forced them into their van, beating Sushil Chetal with a baseball bat and dragging Radhika Chetal by her hair. The couple were bound with duct tape and the van drove off, according to court documents.

After witnesses called police, officers soon spotted the van and a chase ensued. The van eventually crashed and four of the men got out and fled on foot but were arrested shortly thereafter. The other two men were later found at a home the group had rented in a nearby town. The Chetals were taken to a hospital and released.

The six men, all from Florida, have pleaded guilty in connection with the kidnapping. Two have been sentenced to 11 years in prison and the others await sentencing.

How the ‘Godfather’ went from a Bel Air mansion to federal charges

Before Iza’s arrest in the Connecticut case, he was under investigation by federal authorities in California for extorting money and property from victims in Los Angeles and elsewhere, court records show. He was charged in that case a month after the kidnapping and later pleaded guilty.

Iza, also known as Ahmed Faiq, was living in a mansion in the Bel Air section of Los Angeles, calling himself The Godfather while running a crypto trading company, Zort. While stealing millions of dollars and funneling it through shell companies, Iza spent freely on luxury cars and other extravagances, including cosmetic surgery to lengthen his legs, prosecutors said.

Beginning in August 2021, Iza paid around $100,000 a month for his personal protection to a private security firm founded by a Los Angeles County sheriff’s deputy that also employed other deputies, prosecutors said.

Iza, authorities said, hired off-duty deputies to act as enforcers against people with whom he had personal and business disputes. He used the deputies to extort, intimidate, set people up for arrest and abuse the legal process, prosecutors said.

The deputies used law enforcement databases to generate information about Iza’s enemies and obtained search warrants under false pretenses, authorities said. On one occasion, two deputies held a victim at gunpoint inside Iza’s home, pressuring the victim to transfer $25,000 to Iza’s bank account, prosecutors said.

When he pleaded guilty in that case in January, Iza also admitted to stealing more than $37 million by fraudulently accessing the business manager accounts of Meta Platforms, owner of Facebook, and their lines of credit from 2020 to 2022. He awaits sentencing after pleading guilty to wire fraud, conspiracy against rights and tax evasion.

His attorney in California, Josef Sadat, declined to comment Tuesday.

Several deputies also were charged in the investigation.