The Department of Commerce’s Bureau of Industry and Security (BIS) is taking a firm stance against the unauthorized transfer of sensitive technology to China. Last Friday, GlobalFoundries Inc. (GFS) was slapped with a $500,000 civil penalty for exporting semiconductor wafers valued at approximately $17.1 million to SJ Semiconductor, a Chinese company on the BIS Entity List. While GlobalFoundries voluntarily disclosed the shipments and cooperated with the investigation, the incident underscores the heightened scrutiny surrounding semiconductor exports to China.
Assistant Secretary for Export Enforcement Matthew S. Axelrod stressed the importance of vigilance in preventing sensitive materials from reaching unauthorized recipients. “We want U.S. companies to be hypervigilant when sending semiconductor materials to Chinese parties,” he said. “And when, as here, that vigilance falls short and semiconductor materials have gone where they shouldn’t, we want companies to make voluntary disclosures, remediate, and cooperate with us.”
Meanwhile, the Federal Trade Commission (FTC) is taking aim at Dave, Inc. (DAVE), a company offering online cash advance services. The FTC alleges that Dave misled consumers with false claims of large cash advances while charging undisclosed fees and unauthorized “tips.” Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, accused Dave of preying on consumers living paycheck to paycheck. “Dave lured in consumers living paycheck-to-paycheck with false claims of big-dollar advances, then reached into their pockets to give itself a so-called ‘tip,’” Levine stated. “Whether the products are called cash advances, payday loans, or something else, the FTC will take action to protect consumers from unauthorized charges and deceptive claims.” The FTC claims that Dave generated over $149 million in revenue from these alleged unauthorized “tips” between 2022 and the first half of 2024.
Adding to the cybersecurity concerns, the alleged hacker behind a series of cyberattacks targeting Snowflake Inc. (SNOW) has been apprehended in Canada. According to a Bloomberg report, Alexander “Connor” Moucka was arrested on a provisional warrant at the request of the US. The attacks, which affected numerous major Snowflake clients, including Santander Bank and Ticketmaster, resulted in the theft of hundreds of millions of customer records. Australian authorities also confirmed successful compromises of several companies using Snowflake’s services.
While the specific charges against Moucka remain undisclosed, the arrest highlights the increasing threat of sophisticated cyberattacks targeting businesses and individuals alike. Canada’s Department of Justice, however, declined to comment on the specifics of the case due to the confidentiality of extradition requests.
These developments underscore the evolving landscape of technology regulation and cybersecurity threats. As the global competition for technological dominance intensifies, the US government is taking a more proactive approach to safeguarding sensitive technologies and protecting consumers from fraudulent practices. It remains to be seen what further measures will be implemented to address these challenges in the future.
