A CEO Arrested, A Merger, & A Little Spaceship That Couldn’t

August 26, 2024

Hello, readers – happy Monday! Today, we’ll be talking about the arrest of Pavel Durov, the Kroger/Albertsons merger, Venezuela’s elections (still), sanctions, Hurricane Hone, presidential campaign fundraising, and the spaceship problem.

Here’s some good news: Over the weekend, a statue of John Lewis was unveiled in Georgia. The statue took the place of a Confederate monument that was dismantled four years ago. Also, scientists are using bacteria to help them extract rare metals used in the development of green technology.

“Experience is a hard teacher because she gives the test first, the lesson afterward.” – Vern Law

Telegram Gets Blocked IRL

Pavel Durov by Steve Jennings via Getty Images

On Saturday, the founder and CEO of messaging service Telegram was arrested at a Paris airport. Pavel Durov was detained on allegations that the messaging platform has been used for money laundering, drug trafficking, online sexual exploitation, and various other offenses.

Telegram isn’t an encrypted messaging service despite its sometimes-shady reputation. Instead, it’s gained favor from users by simply not moderating its users at all. While WhatsApp “submitted over 1.3 million CyberTipline reports [to law enforcement] in 2023,” said one researcher, “Telegram submits none.” Thanks to that hands-off policy, it’s become the platform of favor for many different groups: Russians looking to avoid government surveillance, Ukrainians looking for updates on the war, people simply trying to chat with family members overseas, and, of course, criminals.

The arrest comes as the E.U. is considering new laws that would, in the name of detecting child sexual abuse material, let the government scan and store the vast majority of online messages sent to and from users within the bloc. Users would have to use an “upload moderation” system, which live scans and stores messages. If users don’t agree to the surveillance program, the government would simply waive their ability to send messages containing any media or URLs.

Cracking Down On Krogertsons

The biggest grocery store merger in U.S. history is about to get stuffed back in the freezer aisle like that pint of ice cream your mom said “no” to when you brought it to her at the cash register. Supermarket giants Kroger and Albertsons were hoping to merge their operations to compete with rivals like Costco, but antitrust regulators at the Federal Trade Commission have decided to take the grocers to court.

That case will begin on Monday in Portland, Oregon, where a federal district court judge will decide whether to grant the FTC’s request to freeze the deal. The grocers say that the $24.6 billion deal will allow them more leverage in negotiations with suppliers (which might, eventually, maybe trickle down some price cuts for consumers?), but the FTC claims the merger will lead to poorer quality products, lower wages for workers, and higher grocery prices during a time when grocery runs are already painful for American families. No matter who wins this initial case, though, one thing is for sure – the loser will appeal the suit to a different court. After all, what’s the point of being a billion-dollar grocery store if you don’t spend a bit on lawyers?

Maduro Needs More Receipts

(Josep Borrell by Celestino Arce via Getty Images)

According to Josep Borrell, the E.U.’s top diplomat, Venezuelan President Nicolás Maduro has still “not provided the necessary public evidence” to confirm that his victory in July’s presidential elections was fully legitimate. While Venezuela’s government (which Maduro still controls) and the nation’s high court have certified the results of the election, the E.U. and other Western powers have called on Venezuela to release the election’s official tally sheets to fully certify Maduro’s victory.
The leaders of Brazil and Colombia also joined in on the fun, saying that the “credibility of the electoral process can only be restored through the transparent publication of disaggregated and verifiable data.” Venezuela’s government has already responded to the outrage, calling Borrell’s statement “interventionist” before adding that “continued disrespect” to Venezuela’s election process might “considerably affect diplomatic, political and economic relations.”

A Sanction-Filled End To Summer

On Friday, the U.S. fired off a barrage from its favorite weapon – the sanctions gun. The sanctions landed in Russia, Europe, Asia, and the Middle East, and all hit their targets squarely on the forehead. Just kidding, the targets didn’t actually have foreheads – the sanctions were all aimed at firms that (allegedly) provided products and services to Russia, (allegedly) helping Moscow continue its war against Ukraine while also (allegedly) helping Russia avoid a wider web of international sanctions.
The sanctioned firms include 60 Russian-based technology and defense companies; multiple firms in Turkey, France, and Hong Kong linked to a Russian transportation firm; and various other companies. “Russia has turned its economy into a tool in service of the Kremlin’s military-industrial complex,” said Treasury Deputy Secretary Wally Adeyemo during the announcement. “Companies, financial institutions, and governments around the world need to ensure they are not supporting Russia’s military-industrial supply chains.”

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Hone Gets Duller

Hurricane Hone is making its way toward Hawaii’s Big Island, reaching maximum sustained winds of over 75 mph, but luckily, it’s not expected to get any stronger. Hone was expected to pass near or south of the island early yesterday and then peak this morning.
The island saw heavy rain on Saturday afternoon, and the National Weather Service was particularly concerned about large waves putting surfers at risk. Gov. Josh Green proclaimed a state of emergency Saturday that was expected to be in effect through today as well.

The Post-DNC Money Dance

Well, folks, you know what time it is – the Democratic National Convention has wrapped up, and we’re ready to see how much cash came rolling in as a result. Vice President Kamala Harris’ campaign said Sunday it has received a total of $540 million since Harris launched her presidential bid a month ago.
The campaign reported a $40 million haul during the convention, with a peak hour of fundraising immediately after the vice president’s acceptance speech. Meanwhile, her mortal enemy opponent, former President Trump, reported about $327 million in the bank as of Aug. 1, after collecting nearly $139 million in July.

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A Lonely Flight Back Home

Barry Wilmore and Sunita Williams, the pair of astronauts who traveled to the International Space Station via Boeing’s Starliner spacecraft this June, are not coming back when their ride does. According to NASA, the pair will return from the ISS on SpaceX’s Dragon spacecraft instead, in a flight scheduled for…February 2025. The Spaceliner, which has been getting its problems diagnosed while it’s been docked, will return home in September (without its human passengers).
“Boeing has worked very hard with NASA to get the necessary data to make this decision,” said NASA administrator Bill Nelson. “We want to further understand the root causes and understand the design improvements so that the Boeing Starliner will serve as an important part of our assured crew access to the ISS.”
The space agency and Boeing both agree that future (hopefully less problematic) Starliners will definitely run crewed flights after the spacecraft’s issues are ironed out. Meanwhile, the astronauts “are having a great time here on ISS,” according to Williams. “You know, Butch and I have been up here before, and it feels like coming back home. It feels good to float around. It feels good to be in space and work up here with the International Space Station team,” she added.

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