“If they did not break Russian law, there is nothing to prosecute them for in Russia,” Mr. Putin said. “You must finally realize that people in Russia live by Russian laws, not by American ones.”

After the Colonial attack, President Biden said that intelligence officials had evidence the hackers were from Russia, but that they had yet to find any links to the government.

“So far there is no evidence based on, from our intelligence people, that Russia is involved, though there is evidence that the actors, ransomware, is in Russia,” he said, adding that the Russian authorities “have some responsibility to deal with this.”

This month, DarkSide’s support staff scrambled to respond to parts of the system being shut down, which the group attributed, without evidence, to pressure from the United States. In a posting on May 8, the day after the Colonial attack became public, the DarkSide staff appeared to be hoping for some sympathy from their affiliates.

“There is now the option to leave a tip for Support under ‘payments,’” the posting said. “It’s optional, but Support would be happy :).”

Days after the F.B.I. publicly identified DarkSide as the culprit, Woris, who had yet to extract payment from the publishing company, reached out to customer service, apparently concerned.

“Hi, how’s it going,” he wrote. “They hit you hard.”

It was the last communication Woris had with DarkSide.

Days later, a message popped up on the dashboard saying the group was not exactly shutting down, as it had said it would, but selling its infrastructure so other hackers could carry on the lucrative ransomware business.

“The price is negotiable,” DarkSide wrote. “By fully launching an analogous partnership program it’s possible to make profits of $5 million a month.”

Oleg Matsnev contributed reporting.

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Treasury Defends Plan to Narrow Tax Gap by Hiring More I.R.S. Agents

The Biden administration on Thursday defended its assessment that it could raise $700 billion in revenue by pumping money into the Internal Revenue Service to beef up its enforcement capabilities amid criticism that its projections were overly rosy.

The Treasury Department released a 22-page report laying out the administration’s new “tax compliance agenda,” which is a centerpiece of its plans to pay for a $1.8 trillion infrastructure and jobs proposal. The Biden administration wants to give the I.R.S. $80 billion over the next decade so that it can overhaul its outdated technology and ramp up audits of wealthy taxpayers and corporations.

The Biden administration’s estimates of the return on investment that it could generate from boosting the I.R.S. budget far surpassed projections by the nonpartisan Congressional Budget Office. And John Koskinen, a former I.R.S. commissioner under President Barack Obama and President Donald J. Trump, has suggested that it would be hard for the cash-strapped agency to efficiently spend that much money.

The Treasury Department said that it believes its projections are conservative. Much of the revenue from more rigid enforcement would become evident in the later part of the decade, the report said, but Treasury officials believe that with more enforcement staff and better technology the I.R.S. can chip away at the “tax gap.”

$1 trillion owed to the government is not being collected every year. The Treasury Department estimated on Thursday that in 2019 the tax gap was $584 billion and is on pace to total $7 trillion over the next 10 years.

The Treasury report said that much of the revenue it estimates would come through its “information reporting” rules for financial institutions. This would give the I.R.S. more visibility into corporate accounts to determine how much money they are actually taking in and what should be taxed. The department said it expects that such reporting would be helpful for audits and would serve as a deterrent against corporate tax evasion.

The new information reporting rules would also include an effort by the Biden administration to bring cryptocurrencies into the tax regime and to crack down on those using cryptocurrencies to avoid paying taxes. The report said that cryptocurrency exchange accounts and payment accounts that accept them would fall under the reporting rules. Businesses that receive cryptoassets with a fair market value of more than $10,000 would be subject to information reporting.

The Biden administration has faced questions from Republican lawmakers, such as Senator Mike Crapo of Idaho, to justify its claims that giving the I.R.S. so much money will yield such robust returns. Conservative political groups have criticized the Biden administration plan to hire an army of I.R.S. agents, saying it’s a way to hike taxes.

The Treasury report attempted to rebut such claims, noting that increased audits would be focused on the rich.

“It is important to note that the President’s compliance proposals are designed to ameliorate existing inequities by focusing on high-end evasion,” the report said. “Audit rates will not rise relative to recent years for those with less than $400,000 in actual income.”

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Josh Harris Steps Down From Apollo

Vegan milk is now a multibillion-dollar business on Wall Street. Oatly, the oat milk maker, priced its I.P.O. at $17 a share, the top end of its range, valuing it at about $10 billion. Part of the reason it appeared to avoid broader market declines is that it courted investors focused on so-called E.S.G. principles.

Even by Bitcoin’s standards, it’s been a wild week. A particularly steep drop in the cryptocurrency yesterday seemed to drag the entire market down with it, and the frenzy led to outages at big exchanges like Binance and Coinbase. Then, it came roaring back in late trading (Elon Musk tweeted about it) and has held the gains so far today. Still, Bitcoin is down by about a third from the all-time high it set just over a week ago.

The episode proves the point of skeptics that digital assets are too volatile to be taken seriously, and of die-hard supporters who say that the ups and downs come with the territory. DealBook spoke with Changpeng “C.Z.” Zhao, the C.E.O. of Binance, the world’s largest crypto exchange, about what it all means.

“It was a busy day but it happens,” C.Z. said. “I think it’s pretty typical.” It’s a commonly held belief among the crypto crowd that big corrections are part of the journey to new heights. “If you look at 2017, where there was a bull market, there were at least two instances of 40 percent drawdowns,” he said. New investors rushing in “may or may not be fully committed” but he believes it’s good for the markets to “shake out” the jittery types.

Lawmakers aren’t so sure. Yesterday, the Senate Banking Committee chair, Sherrod Brown — a crypto skeptic — wrote to the acting Comptroller of the Currency, Michael Hsu, with concerns about crypto companies getting approved for national trust charters. In particular, Brown mentioned that the approvals came under the former acting comptroller, Brian Brooks, who once worked for Coinbase and recently became the C.E.O. of Binance’s U.S. division.

  • “Given the many uncertainties present in the digital asset landscape as identified by other regulators, the volatility of digital asset valuations, and the disproportionate influence individuals can have on entire cryptocurrency markets, the O.C.C. is not in a position to regulate these entities comparably to traditional banks,” Brown wrote.

All eyes are on the regulators. One factor in yesterday’s crash appeared to be a warning from China’s central bank that reiterated the ban on financial institutions in the country dealing in cryptocurrencies. Many of the crypto market’s ups and downs come amid questions about regulation driving mainstream acceptance (or not), as when the launch of a Bitcoin futures exchange in 2017 accompanied the last big run-up in crypto prices.

  • The next milestone, perhaps, is whether the S.E.C. will approve proposals for a Bitcoin E.T.F., which it will likely decide by the end of the year. Crypto’s champion at the S.E.C., commissioner Hester Peirce, last week responded to her colleagues’ qualms about Bitcoin by saying she hopes American investors will “finally” have access to crypto-based securities, so it’s clear where she stands.


— Joseph Blount, the C.E.O. of Colonial Pipeline, in his first public interview about paying a ransom to hackers after a cyberattack crippled its systems. Colonial paid in Bitcoin worth $4.4 million, but the decryption tool it received in return didn’t immediately work, and the pipeline was shut for six days.

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Wall Street tumbles, with tech leading the way. Bitcoin’s drop takes crypto stocks with it.

Tesla was one of the worst-performing stocks in the market on Wednesday, tumbling more than 4 percent. The company had once positioned itself as a prominent supporter of cryptocurrencies, and in March, it announced that it would accept Bitcoin in exchange for cars, helping to set off a surge in the asset.

Last week, Elon Musk, the company’s chief executive, reversed that decision, citing concerns about the energy consumption needed to produce cryptocurrencies. That process, known as mining, involves a using computers to create new Bitcoin by having them solve complex computational problems.

The hard drive maker Seagate Technology — which has a stake in cryptocurrency company Ripple, the creator of the XRP currency — tumbled more than 2 percent. Shares of Seagate and Western Digital, another maker of hard drives, had been on a tear in recent days, as analysts spotlighted surging demand for its computer products, in part, from cryptocurrency miners. Western Digital was down nearly 3 percent.

Bitcoin wasn’t the only element moving the markets. Crude oil tumbled roughly 4 percent, on lingering concerns that the still-spreading coronavirus in India, as well as Thailand, Vietnam and Taiwan, could prompt new restrictions that could curtail economic activity.

The Stoxx Europe 600 index was 1.5 percent lower, while the FTSE 100 in Britain was down 1.3 percent. Stock markets in Asia ended the day mainly lower, with the Nikkei in Japan down by 1.3 percent.

Volatility in the stock markets lately has been driven by sentiment about inflation. Investors are nervous that a jump in prices —  coming as global economies reopen and as the government continues to pump stimulus funds to spur growth — could push the Federal Reserve and other central banks to raise interest rates or take other measures to cool growth. That would be bad news for riskier investments like stocks.

The Fed and other central banks have said they see the recent increases as transitory caused partly by supply chain issues as economies revive from lockdowns, and that they have no plans to remove emergency support for the economy.

Federal Reserve policymakers will release the minutes from their April meeting on Wednesday.

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Elon Musk Impostors Scammed $2 Million in Cryptocurrency, U.S. Says

The proposition was tantalizing: Handsome returns awaited investors who would be willing to provide an infusion of cryptocurrency to Elon Musk, the billionaire chief executive of Tesla and founder of SpaceX, for a moneymaking venture.

It seemed too good to be true, because it was.

Investors lost $2 million in six months to fraudsters who impersonated Mr. Musk, the Federal Trade Commission said in a report released on Monday that was meant to draw attention to a spike in cryptocurrency scams.

The commission found that nearly 7,000 people lost a reported $80 million over all from October through March as part of various scams targeting investors in Bitcoin and other cryptocurrencies like Dogecoin, a nebulous marketplace that Mr. Musk has bullishly promoted on Twitter. The median amount that they lost was $1,900, according to the commission.

The spate of fraud cases — a nearly 1,000 percent increase compared with the same period the previous year, the report said — came as the price of Bitcoin and Dogecoin soared toward record highs.

bought $1.5 billion worth of Bitcoin, which Tesla said was part of an initiative to invest in alternative assets like digital currencies and gold bullion.

accept Bitcoin as payment for cars in the United States, sent the price of Bitcoin skyward by more than 10 percent. But then Mr. Musk reversed course this month, saying that the company will no longer accept the cryptocurrency because of concerns over its effects on the environment.

Mr. Musk has similarly sent mixed messages regarding Dogecoin, which was created as a cryptocurrency parody in 2013 and has recently been booming.

Last week, he polled his 55.1 million followers on Twitter on whether Tesla should accept Dogecoin; 78 percent of respondents said yes. He also revealed last week that SpaceX would launch a satellite to the moon next year in exchange for a payment in Dogecoin. In a May 8 appearance on “Saturday Night Live,” Mr. Musk said that cryptocurrency was both “the future of currency” and “a hustle.”

Joseph A. Grundfest, a professor of law and business at Stanford and a former member of the Securities and Exchange Commission, said in an interview on Monday night that the surge in scams involving cryptocurrency was not at all surprising amid the surging prices.

He said that investors should be more circumspect when faced with propositions like those concocted by the impersonators of Mr. Musk.

“Don’t send cryptocurrency to Elon Musk,” Mr. Grundfest said. “He already has more than he needs.”

The Federal Trade Commission cautioned on Monday in the report that fraudsters had used online dating platforms to lure people into cryptocurrency scams. About 20 percent of the money that people reported losing through romance schemes since October was sent in cryptocurrency, the report said.

The commission also noted that people ages 20 to 49 were more than five times as likely as older people to report losing money on cryptocurrency investment scams.

Cryptocurrency experts cautioned that it was especially difficult for victims of fraud schemes to get their money back and that cryptocurrency had become a preferred payment method for those orchestrating ransomware attacks.

“As a practical matter, there is no recourse,” Mr. Grundfest said. “Why crypto? It’s very simple. It’s very hard to trace.”

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He’s a Dogecoin Millionaire. And He’s Not Selling.

Last February, when Glauber Contessoto decided to invest his life savings in Dogecoin, his friends had concerns.

“They were all like, you’re crazy,” he said. “It’s a joke coin. It’s a meme. It’s going to crash.”

Their skepticism was warranted. After all, Dogecoin is a joke — a digital currency started in 2013 by a pair of programmers who decided to spoof the cryptocurrency craze by creating their own virtual money based on a meme about Doge, a talking Shiba Inu puppy. And investing money in obscure cryptocurrencies has, historically, been akin to tossing it onto a bonfire.

But Mr. Contessoto, 33, who works at a Los Angeles hip-hop media company, is no ordinary buy-and-hold investor. He is among the many thrill-seeking amateurs who have leapt headfirst into the markets in recent months, using stock-trading apps like Robinhood to chase outsize gains on risky, speculative bets.

In February, after reading a Reddit thread about Dogecoin’s potential, Mr. Contessoto decided to go all in. He maxed out his credit cards, borrowed money using Robinhood’s margin trading feature and spent everything he had on the digital currency — investing about $250,000 in all. Then, he watched his phone obsessively as Dogecoin became an internet phenomenon whose value eclipsed that of blue-chip companies like Twitter and General Motors.

disavowed the coin, and even Mr. Musk has warned investors not to over-speculate in cryptocurrency. (Mr. Musk recently sent the crypto markets into upheaval again, after he announced that Tesla would no longer accept Bitcoin.)

What explains Dogecoin’s durability, then?

There’s no doubt that Dogecoin mania, like GameStop mania before it, is at least partly attributable to some combination of pandemic-era boredom and the eternal appeal of get-rich-quick schemes.

But there may be more structural forces at work. Over the past few years, soaring housing costs, record student loan debt and historically low interest rates have made it harder for some young people to imagine achieving financial stability by slowly working their way up the career ladder and saving money paycheck by paycheck, the way their parents did.

Instead of ladders, these people are looking for trampolines — risky, volatile investments that could either result in a life-changing windfall or send them right back to where they started.

posted a screenshot of his cryptocurrency trading app, showing that he’d bought more. And on Thursday, when the value of his Dogecoin holdings fell to $1.5 million, roughly half what it was at the peak, he posted another screenshot of his account on Reddit.

“If I can hodl, you can HODL!” the caption read.

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Coinbase made $771 million in profit in the first quarter, benefiting from crypto mania.

The cryptocurrency exchange Coinbase said on Thursday that its quarterly profit soared by more than 20 times from a year earlier as its revenue skyrocketed, in a sign of how enthusiasm for digital currencies has gone mainstream in the pandemic.

Coinbase said it brought in $1.8 billion in revenue during the first three months of the year, up from $191 million in the same period a year ago. Profits jumped to $771 million from $32 million. It was the company’s first earnings report since it went public last month.

But Coinbase also offered a cautionary note, saying that rivals were swarming the market and increasing competition. The company has been spending heavily on marketing and development to keep ahead of its competitors.

“The rapid expansion of the cryptoeconomy also creates challenges for Coinbase,” it said in a letter to shareholders. “We also have to continue to move quickly to address them, and that inspires us toward action and growth.”

a wave of market manias have gripped the financial world during the pandemic. That surge has also driven growth and profits for Coinbase. It said Thursday that 56 million people were verified on its platform, up from 34 million a year earlier.

But Coinbase’s share price has dropped as cryptocurrencies have fallen from their highs and its market capitalization now stands at $53 billion. On Wednesday, Elon Musk, chief executive of Tesla and a vocal cryptocurrency supporter, tweeted that Tesla would stop accepting Bitcoin as payment for cars, citing environmental reasons, and Bitcoin’s value dropped. One Bitcoin was worth under $50,000 on Thursday, down from more than $63,000 in mid-April.

Coinbase has also faced criticism as it has grown. Customers have said the company has ignored their pleas for help when their digital fortunes were stolen or when they were locked out of their accounts. Current and former employees have also said Coinbase has treated Black and women employees unfairly.

This week, Coinbase said it was increasing compensation for its employees as it tried to stay competitive and reduce uncertainty. Employees will no longer negotiate for salaries when starting at the company, which “can disproportionately leave women and underrepresented minorities behind,” it said in a blog post.

started as a joke, would be available to trade on Coinbase in six to eight weeks.

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How ‘Put That on Top Shot!’ Became a New N.B.A. Mantra

Late in the third quarter of a March game between the Utah Jazz and the New Orleans Pelicans, Rudy Gobert, the Jazz’s 7-foot-1 center, caught a pass and slammed down a dunk as the Pelicans’ Josh Hart leapt to contest the shot.

As the two National Basketball Association players jogged back down the court, television viewers could see Mr. Gobert bark out something to Mr. Hart.

Trash talk? Sort of.

“As I was running back on defense, I told him that would be a nice Top Shot Moment right there,” Mr. Gobert said in an interview. Mr. Hart said he had responded with a four-letter word that was not suitable to be printed.

LeBron James reverse windmill dunk Top Shot, for example, sold for $210,000 in March.

Nearly four dozen N.B.A. players have created Top Shot accounts, from All-Stars like Mr. Gobert to journeymen and rookies. Some have collected just a handful of clips, while others own dozens or hundreds.

The trend is an engaging — if expensive — way for fans and players to celebrate exhilarating basketball plays. It’s also a moneymaker for the N.B.A., which lost about $1.5 billion in revenue last season between the pandemic’s emptying arenas and China’s pausing the broadcasting of basketball games over a geopolitical dispute.

The N.B.A. has long been one of the most innovative leagues in finding ways to make money. It finished its 2019-20 season in a Disney World bubble and squeezed in a condensed All-Star Weekend in March to recoup some lost revenue. But with arenas only now slowly filling, Adam Silver, the N.B.A. commissioner, recently told Time magazine that the league would still miss out on 30 percent to 35 percent of revenue this season.

dozens of N.B.A. players blew their millions on risky investments, but the league has pushed in recent years for its young stars to educate themselves financially.

Top Shot is risky, too, because the price of the highlights could plummet at any time if people decide they are no longer interested. One warning sign: Top Shot’s sales last month, $82 million, were down from $208 million in March and $224 million in February, according to CryptoSlam, an NFT tracker. Dapper said that the marketplace was still growing, and that April’s numbers were more normal after a brief NFT boom.

“It’s a marketplace that obviously is purely built on demand and scarcity,” said Darren Heitner, a lawyer and a sports law professor at the University of Florida. Between shifting interests and the ebbing of the pandemic, he said, “there’s a lot of reasons you could see this marketplace drying up and find individuals left holding the bag.”

valued at $2.6 billion in a recent funding round. In April, The Information reported that Dapper was raising another round that would value it at more than $7.5 billion.

streams live on YouTube while opening Top Shot packs.

Of course, it’s still the N.B.A., and the fraternity of Top Shot aficionados engages in plenty of antics and inside jokes.

In the locker room and on team plane rides, Mr. Ross and teammates Cole Anthony and Michael Carter-Williams answer questions from curious coaches and debate which vintage basketball play would make the best Top Shot.

“We’re making jokes, like, in-game,” Mr. Ross said. In a game against the Washington Wizards, for instance, Mr. Ross had an impressive dunk, and Mr. Carter-Williams told him as they ran back down the court that he hoped it would become a Top Shot.

In San Francisco, the Golden State Warriors guard Damion Lee — also a Dapper investor — is trying to start a new tradition: having players swap Moments instead of jerseys after games.

The king of Top Shot, though, is a Sacramento King: the rookie guard Tyrese Haliburton.

Bored one day in February, Mr. Haliburton checked Top Shot and saw the value of a Moment featuring him had grown by $600. He posted about it on Twitter and immediately saw another spike, piquing his interest.

“From there on, I was full go with Top Shot,” said Mr. Haliburton, who owns 163 Moments and has spent months exhorting other players to get involved.

During one postgame interview, he even urged Sacramento journalists to pool their money to buy a $10,000 highlight of his 6-foot-4 teammate Buddy Hield dunking over 7-foot Mitchell Robinson of the New York Knicks.

“There’s only 50 in existence, and you will never see Buddy do that again,” he said. They laughed at the advice; Mr. Haliburton, who makes $3.8 million this season, clearly did not know how little journalists earn, they said.

The next day, the Hield Moment surged to $50,000 in value.

Mr. Haliburton, who also invested in Dapper recently, has persuaded at least four other Kings to join Top Shot, including Harrison Barnes, who was “hooked.”

Mr. Barnes, the secretary-treasurer of the players association, is another veteran with a reputation for financial smarts. He owns 242 Top Shot Moments, the most of any player.

Mr. Haliburton thinks the Top Shot bets will pay off.

“I have a real belief that this is the future of our world,” he said. “I’m just going to keep collecting.”

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Tesla stops accepting Bitcoin as payment for its cars.

Three months after Tesla said it would begin accepting the cryptocurrency Bitcoin as payment, the electric carmaker has abruptly reversed course.

In a message posted to Twitter on Wednesday, Elon Musk, Tesla’s chief executive, said Tesla had suspended accepting Bitcoin because of concern about the energy consumed by computers crunching the calculations that underpin the currency.

“Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at a great cost to the environment,” Mr. Musk wrote. “We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”

Earlier this year, Tesla announced that it had purchased $1.5 billion worth of Bitcoin and Mr. Musk trumpeted the company’s plan to accept the currency. Tesla later sold about $300 million of its Bitcoin holdings, proceeds that padded its bottom line in the first quarter.

Some estimates put the energy use of Bitcoin at more than the entire country of Argentina.

“Bitcoin uses more electricity per transaction than any other method known to mankind, and so it’s not a great climate thing,” Bill Gates said in February.

Mr. Musk also said on Wednesday that Tesla was “looking at other cryptocurrencies” that use a fraction of the energy consumed by Bitcoin. Mr. Musk has been a promoter of Dogecoin, a cryptocurrency that started as a joke but that has exploded in value. In an appearance on “Saturday Night Live” last week, Mr. Musk referred to Dogecoin as a “hustle.” Dogecoin fell by nearly a third in price on the night of the show.

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