Business
Column: Molly White's message for journalists going freelance — be ready for the pitfalls
Molly White is the model of an indefatigable and intrepid journalist. Through her website Web3 is Going Just Great and newsletter Citation Needed, she keeps tabs on the hacks, scams, failures, hype and assorted legal difficulties swirling about the cryptocurrency world.
She’s also independent, which means she’s unprotected by the fortification of lawyers and resources erected by the owners of newspapers such as The Times to fend off legal threats, frivolous and otherwise, that are part of the arsenal of people and firms we write about.
So she has some advice for journalists tempted by the burden of having bosses to “just go independent,” enticed, say, by the siren call of freelancing: “Just do a substack! It’s the future of journalism.”
I am the legal team. I am the fact-checking department. I am the editorial staff. I am the one responsible for triple-checking every single statement I make in the type of original reporting that I know carries a serious risk of baseless but ruinously expensive litigation regularly used to silence journalists, critics, and whistleblowers.
— Molly White
White’s warning is, in a nutshell: “It’s not for everyone.”
Anyone who follows crypto scams is familiar with White’s work. A software engineer by training, she is a longtime Wikipedia editor who got interested in the dark underbelly of crypto when she tried to write a Wikipedia article about it.
She doesn’t find much if anything to like about the field, which she sees as a hive of people aiming to take advantage of the innocent and unwary — the facetious subtitle of her Web3 website calls it “definitely not an enormous grift that’s pouring lighter fluid on our already smoldering planet.”
But she does it all by herself.
“As an independent writer and publisher,” White wrote recently, “I am the legal team. I am the fact-checking department. I am the editorial staff. I am the one responsible for triple-checking every single statement I make in the type of original reporting that I know carries a serious risk of baseless but ruinously expensive litigation regularly used to silence journalists, critics, and whistleblowers…. I am the one who ultimately could be financially ruined by such a lawsuit. I am the one in charge of weighing whether I should spring for the type of insurance that is standard fare for big outlets to protect themselves and their staff, but often prohibitively expensive for independent writers.”
In recent weeks, White has had to fend off a couple of fatuous legal threats stemming from her work — one from a putative lawyer demanding that she take down a post for infringing a copyright under the Digital Millennium Copyright Act (it wasn’t an infringement), and some sinister legalistic-sounding noise from the crypto platform Coinbase. We’ll return to both in a moment.
Experts in the potholes and pitfalls facing writers — especially investigation-minded or merely activist journalists — say they’ve received a rising number of inquiries from those considering launching a freelance career. Lloyd Jassin, a New York lawyer specializing in publishing law — including copyright and libel law, among other issues important to independent writers — says he’s referred several clients to brokers who represent insurance firms for writers in the last few months.
Curiosity about the freelance life is rising for several reasons. Mass layoffs in the media industry have put thousands of journalists on the street, forcing them to ponder new ways to exercise their professional skills.
Substack and other such platforms purport to offer writers a way to acquire followers of their own, building their personal brands. And the performance of established news media in the recent election, including the decision of the owners of The Times and the Washington Post not to endorse a presidential candidate, may have inspired established staffers to consider an exit from corporate media.
Independent writers’ works are protected, if theoretically, by U.S. libel laws, which discourage defamation lawsuits by public figures, and by so-called SLAPP laws, which discourage “strategic lawsuits against public participation” — that is, lawsuits designed chiefly to intimidate or silence critics. But exercising one’s rights under those laws can require hiring a lawyer, sometimes at considerable expense. Plaintiffs deemed to have filed a SLAPP lawsuit can be required to cover the defendant’s legal costs, but that would happen only after motions in court.
White is no stranger to efforts to intimidate her. The most concentrated pushback she has received recently has come from Coinbase. The crypto platform is irked at White’s reporting that it may have violated federal law by making political contributions while negotiating for and subsequently holding a federal contract.
In conjunction with the watchdog group Public Citizen, White filed a formal complaint against Coinbase with the Federal Election Commission on Aug. 1. In her reporting, White has shown that some of its contributions to the crypto industry super PAC Fairshake were made within the period in which political contributions are barred, which extends from the start of a contributor’s contract negotiations through the completion of the contract. The U.S. Marshals Service awarded Coinbase the $7-million, one-year contract to help manage the government’s hoard of seized crypto assets in July.
Coinbase hasn’t responded directly to White. Its response to the accusation has come through a series of tweets by its chief legal officer, Paul Grewal.
The gist of Grewal’s argument is that the funding for Coinbase’s contract comes from seized crypto assets in the Justice Department’s Assets Forfeiture Fund, not from congressional appropriations. Therefore, he contends, Coinbase didn’t violate the law prohibiting political contributions by contractors paid from “funds appropriated by the Congress.”
“Seized crypto assets are not Congressionally appropriated funds, period,” Grewal wrote.
As it happens, the legal question is far from being so cut and dried. In fact, the definition of “appropriated” was settled conclusively by the Supreme Court, in a 7-2 decision handed down in May and written by Justice Clarence Thomas. The only dissenters were justices Samuel A. Alito Jr. and Neil M. Gorsuch.
In that case, the justices turned away a challenge to the funding of the Consumer Financial Protection Bureau, which derives from the Federal Reserve System. (The plaintiffs made an elaborately legalistic argument that such funding violates the “appropriations clause” of the Constitution and therefore the CFPB is unconstitutional.)
Thomas wrote that the plaintiffs had offered “no defensible argument” that the appropriations clause requires more than a congressional law authorizing “the disbursement of specified funds for identified purposes,” as was the funding for the CFPB.
By extension, so is the funding for the Coinbase contract. Indeed, the Congressional Research Service, in a close examination of the Assets Forfeiture Fund in 2015, found that for most purposes, the fund was the beneficiary of “a permanent appropriation” by Congress.
Grewal went further. Noting that he had placed his interpretation of the law on the record, he wrote that “repeating misrepresentations of facts after previously being put on notice is …. unwise.”
That sinister ellipsis is Grewal’s.
Grewal told me by email that no legal threat was implied by his tweet, and that Coinbase “certainly would make plain if it were our intent” to progress to a lawsuit.
Still, White interpreted Grewal’s tweet as “certainly a threat of something. I don’t think Coinbase is going to come and break my kneecaps, so a legal threat is the most obvious interpretation. It seems like a pretty clear threat to stop writing about this, or else.”
Public Citizen is sanguine about Coinbase’s swaggering. “Whenever corporate misconduct is pointed out, they always say ‘We didn’t really break the law, or the law doesn’t apply to us the way you think it does,’” says Rick Claypool, a research director at Public Citizen who co-filed the complaint with White. “It would be surprising if they said, ‘Oh, yeah, you’re right, whoops.’ Going up against a Goliath, they have a lot of strength to squish the Davids coming after them.”
Separately, White fielded a “takedown” notice from supposed representatives of Roman Ziemian, a co-founder of the alleged crypto pyramid scheme FutureNet. In an Aug. 19 post on Web3 is Going Just Great, White posted news reports that Ziemian had been arrested in Montenegro, and that he faces international warrants from authorities in Poland and South Korea.
The representatives tried to bribe her $500 to take down the post. When she refused, they copied the post to a blogging website, backdated it, and then claimed she had plagiarized it in an example of copyright infringement. She posted the notice, which came from a purported lawyer named Michael Woods with a Los Angeles address that doesn’t exist in Postal Service records. He didn’t respond to a message I left at the telephone number he listed.
How can independent journalists keep intimidation efforts like these at arm’s length? The goal of those threatening legal action, no matter how frivolous, is “to suppress criticism,” Jassin says. “Being a good journalist is the first defense,” he adds, so getting the facts right is indispensable.
White doesn’t keep a lawyer on retainer, but she knows lawyers who are “willing to glance at something I’ve received in my email inbox and reach out to offer support should one of those threats escalate into something more tangible” — which hasn’t yet happened.
“In a perfect world, reporting the facts would be enough to avoid frivolous lawsuits,” she told me. “But obviously, companies and people with resources are willing to file frivolous lawsuits regardless. That is a risk I take on, with hopes that being cautious and being very careful about fact-checking will at least stave off the worst.”
She advises journalists thinking about going independent to “think through if it would be life-altering to be on the risky end of an actual lawsuit.” There are ways, she notes, to “structure your business so you’re not risking your personal assets,” including finding insurance to cover one’s legal defense.
“Legal threats are only one component” of life as a freelancer. “There are a lot of other challenges — you don’t have employer-sponsored healthcare, or a 401k. A lot of readers think it’s an easy decision to quit a job and go independent. But despite all the challenges, I really love being independent.”
Business
In-N-Out Burger outlets in Southern California hit by counterfeit bill scam
Two people allegedly used $100 counterfeit bills at dozens of In-N-Out Burger restaurants in Southern California in a wide-reaching scam.
Glendale Police officials said in a statement Friday that 26-year-old Tatiyanna Foster of Long Beach was taken into custody last month. Another suspect, 24-year-old Auriona Lewis, also of Long Beach, was arrested in October.
Police released images of $100 bills used to purchase a $2.53 order of fries and a $5.93 order of a Flying Dutchman.
The Los Angeles County District Attorney’s Office charged Lewis with felony counterfeiting and grand theft in November.
Elizabeth Megan Lashley-Haynes, Lewis’s public defender, didn’t immediately respond to a request for comment.
Glendale police said that Lewis was arrested in Palmdale in an operation involving the U.S. Marshals Task Force. Foster is expected in court later this month, officials said.
”Lewis was found to be in possession of counterfeit bills matching those used in the Glendale incident, along with numerous gift cards and transaction receipts believed to be connected to similar fraudulent activity,” according to a police statement.
A representative for In-N-Out Burger told KTLA-TV that restaurants in Riverside, San Bernardino and San Diego counties were also targeted by the alleged scam.
“Their dedication and expertise resulted in the identification and apprehension of the suspects, helping to protect our business and our communities,” In-N-Out’s Chief Operations Officer Denny Warnick said. “We greatly value the support of law enforcement and appreciate the vital role they play in making our communities stronger and safer places to live.”
The company, opened in 1948 in Baldwin Park, has restaurants in nine states.
An Oakland location closed in 2024, with the owner blaming crime and slow police response times.
Company chief executive Lynsi Snyder announced last year that she planned to relocate her family to Tennessee, although the burger chain’s headquarters will remain in California.
Business
Newsom’s budget includes $200 million to make up for Trump’s canceled EV rebates, among other climate items
Gov. Gavin Newsom on Friday doubled down on California’s commitment to electric vehicles with proposed rebates intended to backfill federal tax credits canceled by the Trump administration.
The plan would allocate $200 million in one-time special funds for a new point-of-sale incentive program for light-duty zero-emissions vehicles. It was part of a sweeping $348.9-billion state budget proposal released Friday, which also included items to address air pollution and worsening wildfires, amid a projected $3-billion state deficit.
EVs have become a flashpoint in California’s battle against the Trump administration, which moved last year to repeal the state’s long-held authority to set strict tailpipe emission standards and eventually ban the sale of new gas powered cars.
Last year, Trump ended federal tax credits of up to $7,500 for EV customers that were part of President Biden’s 2022 Inflation Reduction Act. In September, his administration also let lapse federal authorization for California’s Clean Air Vehicle decal program, which allowed solo EV drivers to use carpool lanes.
“Despite federal interference, the governor maintains his commitment to protecting public health and achieving California’s world leading climate agenda,” Lindsay Buckley, spokesperson for the California Air Resources Board, said in an email. “This incentive program will help continue the state’s ZEV momentum, especially with the federal administration eliminating the federal EV tax credit and carpool lane access.”
Newsom had previously flip-flopped on this idea, first vowing to restore a state program that provided up to $7,500 to buy clean cars and then walking it back in September. That same month, a group of five automakers including Honda, Rivian, Hyundai, Volkswagen and Audi wrote a letter urging Newsom and state legislators to establish a $5,000 EV tax rebate to replace the lost federal incentives, Politico reported.
During his State of the State speech Thursday — one year after the devastating Palisades and Eaton fires in Los Angeles — Newsom said California “refuse[s] to be bystanders” while China and other nations take the lead on electric vehicles and the clean energy transition. He touted the state’s investments in solar, hydrogen, wind and nuclear power, as well as its recent move away from the use of any coal-fired power.
“We must continue our prudent fiscal management, funding our reserves, and continuing the investments Californians rely on, from education to public safety, all while preparing for Trump’s volatility outside our control,” the governor said in a statement. “This is what responsible governance looks like.”
Several environmental groups had been urging Newsom to invest more in clean air and clean vehicle programs, which they say are critical to the state’s ambitious goals for human health and the environment. Transportation is the largest source of climate and air pollution in California and is responsible for more than a third of global warming emissions, said Daniel Barad, Western states policy manager with the nonprofit Union of Concerned Scientists.
“As federal attacks threaten California’s authority to protect public health, incentives are more essential than ever to scale up clean cars and trucks,” Barad said. “The governor and legislative leaders must act now to fully fund zero-emission transportation and pursue new revenue to grow and sustain climate investments.”
Katelyn Roedner Sutter, California senior director with the nonprofit Environmental Defense Fund, called it “an essential step to save money for Californians, cut harmful pollution, spur innovation, and support the global competitiveness of our auto industry.”
While the budget proposal does not include significant new spending proposals, it contains other line items relating to climate and the environment. Among them are plans to continue implementing Proposition 4, the $10-billion climate bond approved by voters in 2024 for programs geared toward wildfire resilience, safe drinking water, flood management, extreme heat mitigation and other similar efforts.
Among $2.1 billion in climate bond investments proposed this year are $58 million for wildfire prevention and hazardous fuels reduction projects in vulnerable communities, and nearly $20 million to assist homeowners with defensible space to prevent fire. Water-related investments include $232 million for flood control projects and nearly $70 million to support repairs to existing or new water conveyance projects.
The proposal also lays out how to spend money from California’s signature cap-and-trade program, which sets limits on greenhouse gas emissions and allows large polluters to buy and sell unused emission allowances at quarterly auctions. State lawmakers last year voted to extend the program through 2045 and rename it cap-and-invest.
The spending plan includes a new tiered structure for cap-and-invest that first funds statutory obligations such as manufacturing tax exemptions, followed by $1 billion for the high speed rail project, $750 million to support the California Department of Forestry and Fire Protection, and finally secondary program funding such as affordable housing and low-carbon transit options.
But while some groups applauded the budget’s broad handling of climate issues, others criticized it for leaning too heavily on volatile funding sources for environmental priorities, such as special funds and one-time allocations.
The Sierra Club called the EV incentive program a crucial investment but said too many other items were left with “patchwork strategies that make long-term planning harder.”
“Just yesterday, the Governor acknowledged in his State of the State address that the climate risk is a financial risk. That is exactly why California needs climate investments that are stable and ongoing,” said Sierra Club director Miguel Miguel.
California Environmental Voters, meanwhile, stressed that the state should continue to work toward legislation that would hold oil and gas companies liable for damages caused by their emissions — a plan known as “Make Polluters Pay” that stalled last year amid fierce lobbying and industry pressure.
“Instead of asking families to absorb the costs, the Legislature must look seriously at holding polluters accountable for the harm they’ve caused,” said Shannon Olivieri Hovis, California Environmental Voters’ chief strategy officer.
Sarah Swig, Newsom’s senior advisor for climate, noted that the state’s budget plan came just days after Trump withdrew the United States from the United Nations Framework Convention on Climate Change, a major global treaty signed by nearly 200 countries with the aim of addressing global warming through coordinated international action.
“California is not slowing down on climate at a time when we continue to see attack after attack from the federal government, including as recently as this week with the Trump administration’s withdrawal from the UNFCCC,” Swig told reporters Friday. “California’s leadership has never mattered more.”
Business
Abandoned shops and missing customers: Fire-scarred businesses are still stuck in the aftermath
The charred remains of the historic Pacific Palisades Business Block cast a shadow over a once-bustling shopping district along West Sunset Boulevard.
Empty lots littered with debris and ash line the street where houses and small businesses once stood. A year since the Palisades fire roared through the neighborhood, only a handful of businesses have reopened.
The Starbucks, Bank of America, and other businesses that used to operate in the century-old Business Block are gone. All that remains of the Spanish Colonial Revival building are some arches surrounding what used to be a busy retail space. The burned-out, rusty remnants of a walk-in vault squat in the center of the structure.
Nearby, the Shade Store, the Free-est clothing store, Skin Local spa, a Hastens mattress store, Sweet Laurel Bakery and the Hydration Room are among the many stores still shuttered. Local barbershop Gornik & Drucker doesn’t know if it can reopen.
“We have been going back and forth on what it would take to survive,” co-owner Leslie Gornik said. “If we open, we have to start over from scratch.”
Hundreds gathered around Business Block on the anniversary of he fire on Wednesday to witness a military-style white-glove ceremony to pay respects to the families who lost loved ones. Photos of those killed from the neighborhood were placed at the Palisades Village Green next door.
The Palisades fire burned for 24 days, destroying more than 6,800 structures, damaging countless others and forcing most of the neighborhood’s residents to move elsewhere. About 30 miles northeast, the Eaton fire burned more than 9,400 structures. Combined, the fires killed 31 people.
Remnants of the the Pacific Palisades Business Block, which was completed in 1924 and burned in the Palisades fire.
The few businesses that are back in Palisades serve as a beacon of hope for the community, but owners and managers say business is down and customers haven’t returned.
Ruby Nails & Spa, located near the Business Block, was closed for eight months before reopening in September. Now business is only half of what it was before the fires, owner Ruby Hong-Tran said.
“People come back to support but they live far away now,” she said. “All my clients, their houses burned.”
Ruby Hong-Tran, owner of Ruby Nails & Spa in Pacific Palisades, says her business is half of what it was since reopening.
It took months to clean all the smoke damage from her shop. The front is still being fixed to cover up burn damage.
The firestorms destroyed swaths of other neighborhoods, including Malibu, Topanga, Sierra Madre and Altadena, where businesses and homeowners also are struggling to build back.
Some are figuring out whether it is worth rebuilding. Some have given up.
The Los Angeles Economic Development Corporation estimated last year that more than 1,800 small businesses were in the burn zones in Pacific Palisades, Malibu and Altadena, impacting more than 11,000 jobs.
Businesses say they often have been on their own. The Federal Emergency Management Agency tasked the U.S. Army Corps of Engineers to clean up debris at private residences, some public buildings and places of worship — but not commercial properties.
Business owners had to clean up the charred debris and toxic waste on their properties. Many had to navigate complicated insurance claims and apply for emergency loans to stay afloat.
Rosie Maravilla, general manager of Anawalt’s Palisades Hardware, said damage to her store was limited, and insurance covered the cleaning, so she was able to open quickly. The store reopened just one month after the fire.
Rosie Maravilla, general manager of Anawalt Palisades Hardware, in front of of the store in Pacific Palisades.
Still, sales are 35% lower than what they used to be.
“In the early days, it was bad. We weren’t making anything,” Maravilla said. “We’re lucky the company kept us employed.”
The customer base has changed. Instead of homeowners working on personal projects, the store is serving contractors working on rebuilding in the area.
An archival image of the area in Pacific Palisades hangs over the aisles in Anawalt Palisades Hardware, where business is down despite a customer base of contractors who are rebuilding.
Across the street from the Business Block, the Palisades Village mall was spared the flames and looks pristine, but is still closed. Shop windows are covered with tarps. Low metal gates block entry to the high-end outlets. The mall is still replacing its drywall to eliminate airborne contaminants that the fire could have spread.
All of its posh shops still are shut: Erewhon, Lululemon ,Bay Theater, Blue Ribbon Sushi, athletic apparel store Alo, Buck Mason men’s and Veronica Beard women’s boutiques.
Mall owner and developer Rick Caruso said he is spending $60 million to reopen in August.
The need to bring back businesses impacted by the fires is urgent, Caruso said, and not just to support returning residents.
“It’s critical to bring jobs back and also for the city to start creating some tax revenue to support city services,” he said. ”Leaders need to do more to speed up the rebuilding process, such as speeding up the approval of building permits and stationing building inspectors closer to burn areas.”
Pedestrians walk past the Erewhon market in Palisades Village that plans to reopen this year.
(Genaro Molina/Los Angeles Times)
Wednesday, on the anniversary of the fire, Caruso sent three light beams into the sky over the mall, which met in one stream to honor the impacted communities of Pacific Palisades, Altadena and Malibu.
The nighttime display will continue through Jan. 31.
Business Block’s history dates to 1924, when it served as a home for the community’s first ventures. In the 1980s, plans to tear it down and build a mall sparked a local uprising to save the historic symbol of the neighborhood’s vibrancy. It was designated a Los Angeles Historic-Cultural Monument in 1984.
Tiana Noble, a Starbucks spokesperson, said the landlord terminated the company’s lease when the building burned down. Bank of America said it secured a new lease to rebuild nearby.
Business Block’s fate is still unclear. Some people want to preserve its shell and turn it into a memorial.
This week, it was ringed by a fence emblazoned with the words “Empowering fresh starts together.”
Caruso said the ruins should be torn down.
“It needs to be demolished and cleaned up,” he said. “It’s an eyesore right now and a hazard. I would put grass on it and make it attractive to the community.”
Twisted and scorched remnants of the the Pacific Palisades Business Block still are there a year after the fire.
A short walk from the Business Block and near a burned-down Ralphs grocery store is the Palisades Garden Cafe, one of the few places in the neighborhood to get food and drink. The small, vibrant cafe was closed for two months after the fire, during which the employees went without pay.
Manager Lita Rodriguez said business is improving, but misses the regulars.
“We used to get tons of students and teachers who live and work here,” she said. “Our customers are mostly contractors now.”
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