U.S. Imposes Stiff Sanctions on Russia, Blaming It for Major Hacking Operation

WASHINGTON — The Biden administration on Thursday announced tough new sanctions on Russia and formally blamed the country’s premier intelligence agency for the sophisticated hacking operation that breached American government agencies and the nation’s largest companies.

In the broadest effort yet to give more teeth to financial sanctions — which in the past have failed to deter Russian activity — the sanctions are aimed at choking off lending to the Russian government.

In an executive order, President Biden announced a series of additional steps — sanctions on 32 entities and individuals for disinformation efforts and for carrying out the Russian government’s interference in the 2020 presidential election. Ten Russian diplomats, most of them identified as intelligence operatives, were expelled from the Russian Embassy in Washington. The country also joined with European partners to sanction eight people and entities associated with Russia’s occupation in Crimea.

The announcement is the first time that the U.S. government had placed the blame for the “SolarWinds” hacking attack right at the Kremlin’s feet, saying it was masterminded by the SVR, one of the Russian intelligence agencies that was also involved in the hacking of the Democratic National Committee six years ago. The finding comports with the findings of private cybersecurity firms.

SolarWinds; to the C.I.A.’s assessment that Russia offered bounties to kill American troops in Afghanistan; and to Russia’s longstanding effort to interfere in U.S. elections on behalf of Donald J. Trump. The key to the sanctions’ effectiveness, officials concede, will be whether European and Asian allies go along with that ban, and whether the United States decides to seek to extend the sanctions by threatening to cut off financial institutions around the world that deal in those Russian bonds, much as it has enforced “secondary sanctions” against those who do business with Iran.

In a conversation with President Vladimir V. Putin on Tuesday, Mr. Biden warned that the United States was going to act to protect its interests, but also raised the prospect of a summit meeting between the two leaders. It is unclear whether Russia will now feel the need to retaliate for the sanctions and expulsions. American officials are already alarmed by a troop buildup along the border of Ukraine and Russian naval activity in the Black Sea.

And inside American intelligence agencies there have been warnings that the SolarWinds attack — which enabled the SVR to place “back doors” in the computer networks — could give Russia a pathway for malicious cyber activity against government agencies and corporations.

Jake Sullivan, Mr. Biden’s national security adviser, has often said that sanctions alone will not be sufficient, and said there would be “seen and unseen” actions against Russia. Mr. Biden, before his inauguration, suggested the United States would respond in kind to the hack, which seemed to suggest some kind of clandestine cyber response. But it may take weeks or months for any evidence that activity to come to light, if it ever does.

SolarWinds attack because that was the name of the Texas-based company whose network management software was subtlety altered by the SVR before the firms customers downloaded updated version. But the presidential statement alludes to the C.I.A.’s assessment that Russia offered bounties to kill American troops in Afghanistan and explicitly links the sanctions to Russia’s longstanding effort to interfere in U.S. elections on behalf of Donald J. Trump.

In the SolarWinds breach, Russian government hackers infected network-management software used by thousands of government entities and private firms in what officials believe was, at least in its opening stages, an intelligence-gathering mission.

The SVR, also known as the Russian Foreign Intelligence Service, is primarily known for espionage operations. The statement said American intelligence agencies have “high confidence in its assessment of attribution” of responsibility to Russia.

In an advisory, the United States described for private companies specific details about the software vulnerabilities that the Russian intelligence agencies used to hack into the systems of companies and governments. Most of those have been widely known since FireEye, a private security firm, first found evidence of the hack in December. Until FireEye’s discovery, the actions had been entirely missed by the U.S. government, largely because the attack was launched from inside the United States — where, as the Russians know well, American intelligence agencies are prohibited from operating.

Previous sanctions against Russia have been more narrowly drawn and have largely affected individuals. As such, the Kremlin has largely appeared to absorb or shrug off the penalties without changing its behavior.

trading in Moscow before the announcement, the ruble’s exchange rate to the dollar dropped about 1 percent, reflecting nervousness over how the sanctions would play out. The main stock index, Mosbirzhi, also fell just over 1 percent.

The fallout so far reflects years of Russian government policy to harden its financial defenses against sanctions and low oil prices by running budget surpluses and salting away billions of dollars in sovereign wealth funds.

Balanced budgets have been a core economic policy principle of Mr. Putin, who came to power more than 20 years ago during a post-Soviet debt crisis that he saw as humiliating for Russia and vowed not to repeat.

Still, analysts say strains from the past year of pandemic and the drop in the global price of oil, a major Russian export commodity, have left Russia more vulnerable to sanctions targeting sovereign debt. By the first quarter of this year, however, a recovery in oil prices had helped return the federal budget to surplus.

reported.

Michael D. Shear and David E. Sanger reported from Washington, Steven Erlanger from Brussels, and Andrew E. Kramer from Moscow.

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Turkey Fights for Return of a Work It Says Was Looted

The marble idol was carved as many as 6,000 years ago, a 9-inch-tall female figure with a sleek, abstract form, its head tilted slightly upward as if staring into the firmament.

By the 1960s the idol had been transported to the United States, where it was in the possession of the court tennis star and art collector Alastair Bradley Martin and his wife, Edith, and known as “The Guennol Stargazer.”

Christie’s listed the stargazer for sale in 2017, drawing the attention of the Turkish government, which asked for the auction to be halted.

The Turkish government then sued Christie’s, saying the idol had been looted. The government asked the court to find that it is the rightful owner of the idol and cited the 1906 Ottoman Decree, which asserts broad ownership of antiquities found in Turkey. But the auction proceeded and the idol fetched a price of $14.4 million, before the unidentified buyer backed away.

agreed to return a collection known as the Lydian Hoard, which included more than 200 gold, silver and bronze objects from the reign of King Croesus of Lydia, a kingdom in western Asia Minor that flourished in the seventh and sixth centuries B.C.

And in 2012, the government of Turkey asked museums in Los Angeles, New York and Washington to turn over dozens of artifacts it said were looted from the country’s archaeological sites.

It is generally accepted that the item at issue in the lawsuit originated in Kulaksizlar, the home of the only workshop known to have produced the stargazers. The figures were so-called because of the angle at which a large head rests on a thin neck, Christie’s said in an online description, creating “the whimsical impression of the figure staring up at the heavens.”

When the Guennol Stargazer was first listed for auction, Christie’s said it was “considered to be one of the most impressive of its type known to exist,” adding that it had been on loan at the Metropolitan Museum of Art at various periods from 1966 to 2007.

The Turkish government said that one of its witnesses, Neil Brodie, a senior research fellow in the School of Archaeology at the University of Oxford, would provide “comprehensive scientific evidence” for his conclusion that the idol was almost certainly found in Turkey.

for part of the Lydian Hoard. (The museum’s former director, Thomas Hoving, once referred to Klejman as among his “favorite dealer-smugglers.”)

Christie’s and Steinhardt have maintained that the Turkish government cannot prove ownership of the idol under the 1906 decree because it has “no direct evidence of where or when the Stargazer Idol was found, excavated or exported: it has no witnesses to the excavation or export and no photographs.”

The defendants also have said that Turkey knew about the presence of the idol in New York as early as 1992 but did not act on that knowledge.

“Turkey’s 25-year delay in making its claim baited the trap for dealers, collectors and auction houses,” defense lawyers said in court papers. “And set them up for huge losses when Turkey claimed the Idol only after it came up for sale at a major auction house.”

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Company Will Offer Refunds to Buyers of ‘Satan Shoes’ to Settle Lawsuit by Nike

A Brooklyn company that was sued by Nike over the unauthorized sale of Satan Shoes — an aftermarket sneaker that contains a drop of blood and was promoted by the rapper Lil Nas X — agreed on Thursday to accept returns of the footwear as part of a settlement.

The company, MSCHF, will offer refunds to people who want to return the sneakers under the terms of the settlement, according to Nike, which said in a statement that the purpose of the “voluntary recall” was to remove the shoes from circulation.

The settlement came a week after a U.S. District Court judge in Brooklyn granted Nike a temporary restraining order against MSCHF (pronounced mischief) after it sued the company last month.

A total of 666 pairs of the Satan Shoes were produced by MSCHF, which incorporated drops of its employees’ blood and ink into an air bubble in the Nike Air Max 97 sneakers. Each pair cost $1,018. They sold out in less than a minute last month.

“Luke 10:18” — a reference to the biblical passage that says, “I saw Satan fall like lightning from heaven” — is printed on them.

A previous line of unauthorized Nike sneakers that MSCHF sold, which was named the Jesus Shoe and contained holy water, can also be returned for a refund, Nike said.

“In both cases, MSCHF altered these shoes without Nike’s authorization,” Nike said in a statement on Thursday. “Nike had nothing to do with the Satan Shoes or the Jesus Shoes.”

A lawyer for MSCHF did not dispute that the company had agreed to the voluntary buyback, but said on Thursday that he could not disclose the terms of the settlement.

music video for his song “Montero (Call Me by Your Name),” in which he gyrates on Satan’s lap.

In the song, Lil Nas X, who was born Montero Lamar Hill, “cheerfully rejoices in lust as a gay man,” wrote Jon Pareles, the chief music critic for The New York Times.

Lil Nas X came out in 2019. The song’s title is an apparent reference to “Call Me by Your Name,” a novel about a clandestine summer romance between two men that was adapted into a film.

Mr. Bernstein said all but one pair of the Satan Shoes had been shipped to buyers before the temporary restraining order had been issued on April 1.

He described the sneakers, which are individually numbered, as works of art that represent the ideals of equality and inclusion. Mr. Bernstein said MSCHF had looked forward to arguing that its activities were covered under the First Amendment right of artistic expression.

“However, having already achieved its artistic purpose, MSCHF recognized that settlement was the best way to allow it to put this lawsuit behind it so that it could dedicate its time to new artistic and expressive projects,” he said.

Nike said it would not be responsible for any issues with sneakers that people decide to keep.

“Purchasers who choose not to return their shoes and later encounter a product issue, defect, or health concern should contact MSCHF, not Nike,” the company said.

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From the Charred Wreck of a Lamborghini, a D.I.Y. Supercar

PORTLAND, Ore. — Under the rear hood of Chris Steinbacher’s Lamborghini Huracán sits a Chevy engine. Sure, it’s a twin turbo, and, yes, it pumps a menacing 900 horsepower to the wheels, but the pedigree is Detroit, not Italy. And the rest of the car was basically put together in Portland.

Lamborghini purists may want to cover their eyes now.

The left-for-dead Lambo is one of Mr. Steinbacher’s salvaged supercars. He bought it — what was left of it, anyway, after a fire burned it nearly in two — for $40,000, and it was delivered via forklift. (A new Huracán can approach $300,000, and Mr. Steinbacher’s now-tricked-out 2016 model hovers in that same stratosphere.) Parts for this resurrection cost about $50,000, a discounted total that he kept down with the help of sponsors on his YouTube channel, B Is for Build, which has close to 1.5 million subscribers.

Flooded Ferraris and mangled McLarens are easily found on auction sites like Copart and Impact Auto Auctions. Most people playing in this realm work strictly with cash, Mr. Steinbacher said, although financing can sometimes be arranged. What happens after your wreck rolls off the delivery trailer is far more complicated, but with more money and dedication, a dream car may be within reach.

supercars at a small fraction of the used market price, Mr. Steinbacher was “kind of hooked,” he said. He started to buy totaled cars and fixed them up in his backyard.

Fixing cracked-up cars isn’t easy “unless you’re one hell of a gambler,” Mr. Steinbacher said. “The hunting part isn’t hard — anyone can Google around and find salvaged-car auction sites and find supercars on there.” Most times the car will require a shipment, however, and you might not see it in person, let alone get a test drive.

“You’ve got six to 10 pictures to try and assess the extent of the damage and how much it’s going to cost to fix,” he said.

This is a skill that can take years and many mistakes to master. “Eventually I turned a camera on to track my progress,” he said, “and started posting it on YouTube.”

Rich Rebuilds. A computer science major in college, Mr. Benoit “kept working my way up to Teslas, Audis and now the BMW i8,” he said.

“Supercar is a funny word,” Mr. Benoit added. “I’ve built many high-end cars, like Teslas, Audi RS7s, but the i8 is my first ‘supercar’ per se.” All have been built in his family’s garage. His personal favorite retrofit? Swapping a V-8 engine into a Tesla.

Tommy’s Window Tinting.

Specialty Equipment Market Association show, known widely as SEMA.

LS Chevy V-8 engine and transmission swap, twin turbos and a custom carbon-fiber body rounded out his one-of-a-kind Lambo.

To Mr. Steinbacher’s knowledge, no one had fashioned a manual-transmission Huracán before. Much less one that once looked as if it had hung over a campfire like a singed marshmallow.

His next vision is to take a donated 2016 Huracán chassis and build it into a full-blown Mint 400 off-road racecar, “turning it into a purpose-built endurance desert racer,” he said.

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Bat Used by Lou Gehrig in 1938 Sells at Auction for $715,120

A baseball bat used by Lou Gehrig at the twilight of his legendary career with the New York Yankees sold for $715,120 over the weekend, the company that auctioned it said on Sunday.

The bat — a 34-inch, 36-ounce Bill Dickey model Louisville Slugger — was used by Gehrig in 1938, his final full season as a key cog in the early dynasties of the Yankees franchise, according to SCP Auctions.

It may have been used by Gehrig in a World Series sweep of the Chicago Cubs that year and the next spring, said the company, which indicated that it had received 26 bids for the bat before online bidding ended on Saturday.

SCP Auctions, which is based in Laguna Niguel, Calif., and specializes in sports memorabilia sales, would not identify the buyer, other than to say it was a private collector.

Earle Combs, a onetime Yankees teammate and coach who, like Gehrig, was elected to the Baseball Hall of Fame, the company said.

“It’s one of the best Lou Gehrig bats ever discovered and, obviously, the provenance is impeccable,” David Kohler, the auction house’s owner, president and chief executive, said in an interview on Sunday night.

With his batting average having fallen below .300 and his home run production waning, Gehrig dispensed with his heavier bat toward the end of the 1938 season, according to the auction house.

The 1939 season was Gehrig’s last in baseball; the durable but ailing first baseman, who was known as the Iron Horse, removed himself from the lineup that May after playing in 2,130 straight games.

He was found the next month to have amyotrophic lateral sclerosis, the fatal neurological disorder that later became known as Lou Gehrig’s disease. He gave his farewell speech on July 4, 1939, a moment dramatized in “The Pride of the Yankees,” a 1942 film starring Gary Cooper.

sold for more than $1 million, SCP Auctions said at the time. A bat used by Ruth to hit the first home run at the old Yankee Stadium in 1923, sold by the same company in conjunction with Sotheby’s, fetched nearly $1.3 million in 2004.

As part of the same online sale in which Gehrig’s bat was auctioned, an original home plate from Yankee Stadium that was installed just before opening day in 1923 sold for $303,277, the auction house said.

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Forgotten Copy of Super Mario Bros. Sets Record at Auction

Super Mario Bros., an iconic, fan-favorite video game that has since spawned multiple variations, was first produced in 1986.

It features two brothers, Mario and Luigi, who live in the Mushroom Kingdom and are charged with rescuing Princess Toadstool, who has been kidnapped by Bowser, the king of the Koopa. Complete with a recognizable theme song, Mario has remained a popular character among fans for decades.

According to the narrative from the original instruction booklet, the kingdom of the peaceful Mushroom People had been invaded by the Koopa, a tribe of turtles who turned the “quiet, peace-loving” Mushroom People into stones, bricks and plants. The only person who can reverse the magic spell is Princess Toadstool, the daughter of the Mushroom King.

In the game, players guide Mario on a quest to free the princess and save the kingdom of the Mushroom People. He navigates eight levels filled with giant mushrooms, menacing turtles and other strange obstacles.

“You are Mario! It’s up to you to save the Mushroom People from the black magic of the Koopa!” the original instructions tell players.

Since Super Mario Bros. debuted, the brothers have been featured in numerous games, saving new lands and rescuing more princesses, including Super Mario Sunshine, Super Mario Galaxy and Super Mario Odyssey. The most recent, Super Mario 3D World, was released in February for the Nintendo Switch system.

Mario’s presence expands beyond the video game world, too.

In March, Super Nintendo World opened at Universal Studios Japan in Osaka. Visitors can walk through the familiar green pipe at the park’s entrance, explore Princess Peach’s castle and eat burgers inside a giant mushroom, all with the Mario theme song playing in the background.

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¿Por qué alguien pagó 560.000 dólares por una imagen de mi columna?

“A las personas de mi generación, que crecieron en la década de 1970, les encantará coleccionar libros de primera edición, novelas como el Ulises de James Joyce”, escribió en un correo electrónico. “Lo que las cripto y los NFT abrieron es la propiedad de los derechos para decir que uno posee tal cosa, ya sea tangible o intangible, en una forma que miles, si no es que millones, pueden ver y rastrear en tiempo real, en cualquier parte del mundo”.

André Allen Anjos, un artista de música electrónica de Portland, Oregón, que ofreció 5,69 etheres (cerca de 9200 dólares) por el NFT, me dijo en una entrevista telefónica que pujar por el token tal vez se podría considerar como un gesto simbólico de agradecimiento hacia mí y el Times de parte de la criptocomunidad por, sobre todo, tomarlos con la suficiente seriedad como para hacer un experimento con nuestra propia venta de tokens.

“Es como si una publicación convencional intentara interactuar con nosotros como comunidad de una manera real y sincera”, señaló. “Yo quería dar a entender que esto es fabuloso, que están planteando las preguntas correctas”.

Anjos mencionó que había crecido en la era de Napster, cuando los músicos se dieron cuenta de que internet podría destruir su modo de subsistencia al facilitar la reproducción de canciones de manera gratuita. Comentó que la tecnología de cadenas de bloques había cambiado eso al poder crear objetos coleccionables de edición limitada timbrados con el sello digital de su procedencia. Anjos mencionó que la idea de coleccionar los NFT no era tanto poseer las piezas en sí (la mayoría de las cuales pueden descargarse de manera gratuita de internet, pero sin las firmas criptográficas especiales), sino más bien demostrar confianza en este nuevo modelo de adquisición.

“No voy a llamarlo protesta, pero es una declaración”, afirmó. “Este es el criptomundo intentando probar que existimos; nos interesa revolucionar este modelo y estamos dispuestos a invertir nuestro dinero en eso”.

No todos los motivos de los postores eran tan nobles. Sterling Crispin, investigador de Apple que tiene otro trabajo como artista de NFT, mencionó que había ofrecido 4125 etheres (cerca de 6700 dólares) por mi token porque tenía en puerta una presentación virtual y esperaba que la puja atrajera algo de publicidad.

“Dije, bueno, estoy a punto de emitir un NFT para esta presentación en solitario”, comentó. “Valdría muchísimo la pena que aparecieran cuatro etheres en el Times”.

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Why Did Someone Pay $560,000 for a Picture of My Column?

$98,000.

$143,000.

$277,000.

After more than 30 bids, the auction ended at 12:32 p.m. Eastern time, with a winning bid of 350 Ether, or about $560,000. A few minutes later, after the auction platform had taken its cut, nearly $500,000 in cryptocurrency landed in my digital wallet. I was stunned. Congratulatory texts and media requests started pouring in. My colleagues joked about stiffing the charity and slipping off to the Cayman Islands. My editor said I shouldn’t expect a raise.

The whole ordeal was surreal, and it raised the question: Why would anyone spend the price of a high-end Lamborghini on a picture of my words? After all, the NFT was just a cryptographic signature linked to an image of a column that anyone could read on The Times’s website, albeit with a few bonus perks. (I also stipulated that I would feature the winner’s name and photo in a follow-up column, and Michael Barbaro, the host of “The Daily,” gamely agreed to throw in a voice message for the winner.)

The winner, whose handle on the auction site was @3fmusic, appeared to be a prominent NFT collector. The profile on the site was linked to a Twitter profile belonging to a Dubai-based music production company, and to an Instagram account identified as that of Farzin Fardin Fard, the company’s chief executive. The user’s NFT collection included a variety of other expensive digital works, including a $14,000 “emoji portrait” of the musician Billie Eilish and a $8,000 piece titled “Jumping Spider enjoying coffee in the morning.”

I reached out to @3fmusic to offer my congratulations on the purchase and to discuss the bid. They (it’s not clear if the winner is Mr. Fard or some other individual or multiple people) declined to be named — and, because of the pseudonymous nature of blockchain-based transactions, there’s no easy way for me to identify them beyond the information they volunteered — but they sent me a statement over Twitter direct message that read:

“We are already involved in art and media for a long time now,” the message read. “Our management team is always in cooperation with some highly knowledgeable and experienced art advisers who believe that we must grow with technological movements that help us to not only promote our business but also to support artists and the art market. Thus, we have proudly decided to dedicate sufficient funds and resources to invest in NFT as pioneers of this industry.”

They also gave me permission to include an image of their music studio’s logo in this column.

Jiannan Ouyang, an NFT collector who dropped out of the auction after a high bid of 290 Ether (about $469,000), told me that he had decided to bid on my NFT for both personal and professional reasons. He’s a former Facebook research scientist who is now a blockchain entrepreneur, and he’s married to a journalist.

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Crypto token of New York Times column sells for $560,000.

A one-of-a-kind digital collectible item created out of a New York Times technology column sold for more than $500,000 in an auction, the first such sale in the history of the newspaper.

An image of the column — titled “Buy This Column on the Blockchain!” — was turned into a nonfungible token, or NFT, and sold in a heated auction that brought in more than 30 bids on the NFT marketplace website Foundation.

The NFT, a unique bit of digital code that is stored on the Ethereum blockchain and refers to a 14 megabyte graphic of the column hosted on a decentralized file hosting service, cannot be duplicated or counterfeited, making it potentially valuable for collectors. Some NFTs have sold for hundreds of thousands of dollars in recent weeks, with one such sale — a collection of art by the digital artist Beeple — bringing in more than $69 million at auction.

Along with the token, the winner of the auction — should they choose to identify themselves — will receive additional perks including a voice message from Michael Barbaro, the host of “The Daily” podcast. All proceeds from the auction will be donated to the Neediest Cases Fund, a Times-affiliated charity.

The winner of the auction, an NFT collector who goes by the handle @3fmusic, placed a last-minute winning bid of 350 ether, a digital currency, which translates to roughly $560,000 at Wednesday’s exchange rates. A link on the user’s profile led to the website of a Dubai-based music studio.

@3fmusic could not be reached as of Wednesday afternoon. The user appeared to be an avid collector of NFT artwork. In addition to the Times token, their collection on Foundation also includes such works as “The result of 2020,” an image of a sad-looking Kermit the Frog, and “Mushy’s Midafternoon Nap,” an image of a cartoon toadstool sitting on a log.

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