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Salesforce to face trial after software used by Backpage ‘to track sex traffickers, pimps, johns on social media’ • The Register

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Salesforce should face trial after its software was allegedly used by Backpage.com to track sex traffickers, pimps, and their johns online, a judge has ruled.

The SaaS CRM giant was accused of a whole host of wrongdoing in a civil lawsuit [PDF] filed last year in southern Texas. Insisting the allegations were unfounded, Salesforce filed to have the entire case against it dismissed.

While allowing some facets of the case to go ahead, federal district Judge Andrew Hanen this week agreed to dismiss the lawsuit’s claims of negligence, gross negligence, and civil conspiracy.

That leaves allegations that Salesforce broke state and federal laws on sex trafficking having supplied its tools and services to Backpage.com even after law enforcement publicly called out the dot-com for its seedy operations. The judge said Salesforce was, in this case, not necessarily shielded by Section 230 of America’s Communications Decency Act.

Backpage.com was shut down in 2018 after it was seized by the US Department of Justice. Its CEO, Carl Ferrer, admitted charges including conspiracy to facilitate prostitution and money laundering. His classified ads website was, simply put, a nexus of child sex trafficking in America.

Screengrab of the Backpage takedown notice

Humanitarian champ or sex-trafficking profiteer? Fresh sueball argues Salesforce is the latter

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Judge Hanen’s 11-page order [PDF] on Monday gave an overview of the civil lawsuit, brought in April by anonymous plaintiffs, who said they were trafficked via Backpage.com using Salesforce’s technology. They claimed Salesforce’s software was used to “actively obtain and monitor data and additional information related to pimps and sex traffickers that were using Backpage.”

Since it began supplying software to Backpage.com in 2013, Salesforce knowingly assisted and supported sex trafficking, the plaintiffs continued.

Specifically, the cloud-based software was used by Backpage.com to gather and manage information from traffickers and pimps’ social media activity, including their “likes and dislikes and what they were saying and sharing about Backpage and its competitors,” it was claimed. This intelligence would have been used by the classified ads site to tune and improve its business.

It was further claimed Salesforce’s software was used to develop “an infrastructure for a trafficker and pimp database as well as tracking and collecting trafficker and john data across multiple platforms including phone, email, websites and social media.” Salesforce also provided payment processing and data analyses which resulted in targeted email campaigns for Backpage.com “to advertise and promote illegal prostitution,” according to the plaintiffs.

In their court paperwork, the young women argued that “any reasonable prudent examination of Backpage’s business operations or a simple google search [sic] would have indicated Backpage was not a general online marketplace but was actually the predominant force in online sex trafficking.”

From 2015, Salesforce’s relationship with Backpage survived intense law enforcement scrutiny, lawsuits, investigations, and even the arrest of Ferrer for “conspiracy to commit pimping” by Kamala Harris, then California Attorney General and now vice president of the United States of America.

Salesforce denied any wrongdoing, the judge noted, “especially that it had any knowledge that Backpage was planning to incorporate the use of its operational support into a sex-trafficking venture.”

A spokesperson for the cloud giant was not available for comment. ®

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Elon Musk sells Tesla shares worth $6.9bn as Twitter trial looms | Elon Musk

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Elon Musk has sold $6.9bn (£5.7bn) worth of shares in Tesla after admitting that he could need the funds if he loses a legal battle with Twitter and is forced to buy the social media platform.

The Tesla CEO walked away from a $44bn deal to buy Twitter in July but the company has launched a lawsuit demanding that he complete the deal. A trial will take place in Delaware in October.

“In the (hopefully unlikely) event that Twitter forces this deal to close *and* some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” Musk said in a tweet late on Tuesday.

In other comments on Twitter on Tuesday, Musk said “yes” when asked if he was finished selling Tesla stock. He also said he would buy Tesla stock again if the Twitter deal does not close.

Musk has committed more than $30bn of his own money to the financing of the deal, with more than $7bn of that total provided by a coterie of associates including tech tycoon Larry Ellison, the Qatar state investment fund and the world’s biggest cryptocurrency exchange, Binance.

Musk, the world’s richest person, sold $8.5bn worth of Tesla shares in April and had said at the time there were no further sales planned. But since then, legal experts had suggested that if Musk is forced to complete the acquisition or settle the dispute with a stiff penalty, he was likely to sell more Tesla shares.

Last week Musk launched a countersuit against Twitter, accusing the platform of deliberately miscounting the number of spam accounts on the platform. Twitter has consistently stated that the number of spam accounts on its service is less than 5% of its user base, which currently stands at just under 238 million. Legal experts have said that Musk will find it hard to convince a judge that Twitter’s spam issue represents a “company material adverse effect” that substantially alters the company’s value – and therefore voids the deal.

Musk sold about 7.92m Tesla shares between 5 August and 9 August, according to multiple filings. He now owns 155m Tesla shares or just under 15% of the electric carmaker.

The latest sales bring total Tesla stock sales by Musk to about $32bn in less than one year. However, Musk remains comfortably ahead of Jeff Bezos as the world’s richest man with an estimated $250bn fortune, according to the Bloomberg billionaires index.

Tesla shares have risen nearly 15% since the automaker reported better-than-expected earnings on 20 July, also helped by the Biden administration’s climate bill that, if passed, would lift the cap on tax credits for electric vehicles.

Musk also teased on Tuesday that he could start his own social media platform. When asked by a Twitter user if he had thought about creating his own platform if the deal didn’t close, he replied: “X.com”.

With Reuters



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Iran reveals use of cryptocurrency to pay for imports • The Register

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Iran has announced it used cryptocurrency to pay for imports, raising the prospect that the nation is using digital assets to evade sanctions.

Trade minister Alireza Peyman Pak revealed the transaction with the tweet below, which translates as “This week, the first official import order was successfully placed with cryptocurrency worth ten million dollars. By the end of September, the use of cryptocurrencies and smart contracts will be widespread in foreign trade with target countries.”

It is unclear what Peman Pak referred to with his mention of widespread use of crypto for foreign trade, and the identity of the foreign countries he mentioned is also obscure.

But the intent of the announcement appears clear: Iran will use cryptocurrency to settle cross-border trades.

That’s very significant because Iran is subject to extensive sanctions aimed at preventing its ability to acquire nuclear weapons and reduce its ability to sponsor terrorism. Sanctions prevent the sale of many commodities and technologies to Iran, and financial institutions aren’t allowed to deal with their Iranian counterparts, who are mostly shunned around the world.

As explained in this advisory [PDF] issued by the US Treasury, Iran has developed numerous practices to evade sanctions, including payment offsetting schemes that let it sell oil in contravention of sanctions. Proceeds of such sales are alleged to have been funnelled to terrorist groups.

While cryptocurrency’s anonymity has been largely disproved, trades in digital assets aren’t regulated so sanctions enforcement will be more complex if Iran and its trading partners use crypto instead of fiat currencies.

Which perhaps adds more weight to the argument that cryptocurrency has few proven uses beyond speculative trading, making the ransomware industry possible, and helping authoritarian states like Iran and North Korea to acquire materiel for weapons.

Peyman Pak’s mention of “widespread” cross-border crypto deals, facilitated by automated smart contracts, therefore represents a challenge to those who monitor and enforce sanctions – and something new to worry about for the rest of us. ®



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Edwards Lifesciences is hiring at its ‘key’ Shannon and Limerick facilities

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The medtech company is hiring for a variety of roles at both its Limerick and Shannon sites, the latter of which is being transformed into a specialised manufacturing facility.

Medical devices giant Edwards Lifesciences began renovations to convert its existing Shannon facility into a specialised manufacturing centre at the end of July.

The expansion will allow the company to produce components that are an integral part of its transcatheter heart valves. The conversion is part of Edwards Lifesciences’ expansion plan that will see it hire for hundreds of new roles in the coming years.

“The expanded capability at our Shannon facility demonstrates that our operations in Ireland are a key enabler for Edwards to continue helping patients across the globe,” said Andrew Walls, general manager for the company’s manufacturing facilities in Ireland.

According to Walls, hiring is currently underway at the company’s Shannon and Limerick facilities for a variety of functions such as assembly and inspection roles, manufacturing and quality engineering, supply chain, warehouse operations and project management.

Why Ireland?

Headquartered in Irvine, California, Edwards Lifesciences established its operations in Shannon in 2018 and announced 600 new jobs for the mid-west region. This number was then doubled a year later when it revealed increased investment in Limerick.

When the Limerick plant was officially opened in October 2021, the medtech company added another 250 roles onto the previously announced 600, promising 850 new jobs by 2025.

“As the company grows and serves even more patients around the world, Edwards conducted a thorough review of its global valve manufacturing network to ensure we have the right facilities and talent to address our future needs,” Walls told SiliconRepublic.com

“We consider multiple factors when determining where we decide to manufacture – for example, a location that will allow us to produce close to where products are utilised, a location that offers advantages for our supply chain, excellent local talent pool for an engaged workforce, an interest in education and good academic infrastructure, and other characteristics that will be good for business and, ultimately, good for patients.

“Both our Shannon and Limerick sites are key enablers for Edwards Lifesciences to continue helping patients across the globe.”

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