Briefly

TikTok facing FTC investigation over data

The Federal Trade Commission is investigating TikTok over its data and security practices, a probe that could lead to a settlement or a lawsuit against the company, according to a person familiar with the matter.

The investigation is the latest battle in Washington, D.C., for the social media company, which already is fighting against a federal bill that could ban the platform in the U.S. if it doesn’t break ties with its Beijing-based parent company, ByteDance.

In its investigation, the

FTC has been looking into whether TikTok violated a portion of federal law that prohibits “unfair and deceptive” business practices by denying that individuals in China had access to U.S. user data, said the person, who is not authorized to discuss the investigation.

The agency also is scrutinizing the company over potential violations of the Children’s Online Privacy Protection Act, which requires kid-oriented apps and websites to get parents’ consent before collecting personal information of children under 13.

FTC spokesperson Nicole Drayton and TikTok declined to comment on the investigation, which was first reported by Politico. Lawmakers and intelligence officials have said they worry the platform could be used by the Chinese government to access U.S. user data or influence Americans.

Coinbase lawsuit can go forward, judge rules

The U.S. Securities and Exchange Commission can proceed with its lawsuit against Coinbase, alleging the company failed to register as a securities business, a federal judge in Manhattan ruled Wednesday.

The decision is a blow to Coinbase and other cryptocurrency players who have argued the SEC has no power to regulate them because they don’t traffic in “securities” that have to be registered. Shares of Coinbase were down 1.3% after falling close to 4% in earlier trading.

Coinbase engages in the

“unregistered sale and offer of securities” under U.S. law and operates as an exchange, a broker and a clearing agency for purposes of the federal securities laws, U.S. District Judge Katherine Polk Failla said in the ruling, which comes at an early stage of the case. Coinbase still has the opportunity to end the case after evidence-gathering or on appeal.

“The ‘crypto’ nomenclature may be of recent vintage, but the challenged transactions fall comfortably within the framework that courts have used to identify securities for nearly eighty years,” the ruling said.

The judge, however, dismissed claims that Coinbase’s Wallet application acts as a broker under the U.S. law.

The overall ruling is a win for the SEC, which has asserted jurisdiction over cryptocurrencies and has won rulings from several judges in New York.

Lindell's MyPillow faces eviction from warehouse

A court plans to order the eviction of MyPillow from a suburban Minneapolis warehouse that it formerly used, but company founder and prominent election denier Mike Lindell said Wednesday that it’s just a formality because the landlord wants to take the property back.

Lindell denied in an interview with The Associated Press that the eviction was another sign of his money woes. He said his financial picture is actually improving after a credit crunch last year disrupted cash flow at MyPillow after the company lost one of its major advertising platforms and was dropped by several national retailers. “We’re fine,” he said. Lindell faced a setback last month when a federal judge affirmed a $5 million arbitration award in favor of a software engineer who challenged data that Lindell said proves China interfered in the 2020 U.S. presidential election and tipped the outcome to Joe Biden. Lindell acknowledged in January that Fox News stopped running MyPillow commercials amid a billing dispute.