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Chinese national charged with operating ‘world’s largest botnet’ linked to billions in cybercrimes
Colonial Pipeline hack only latest in rising ransomware threats
Hackers hit hundreds of critical systems last year and watchdogs say we’re not doing enough head off more.
STAFF VIDEO, USA TODAY
A Chinese national has been arrested for his role in operating a residential proxy service that was used to defraud billions of dollars from the U.S. government and fund his lavish lifestyle, which included buying luxury cars and property around the world, the Department of Justice announced Wednesday.
YunHe Wang, 35, was arrested on May 24 and charged with creating a massive network of hijacked computer devices, also known as a “botnet,” that was used to conduct cyber attacks, fraud, child exploitation, bomb threats, and export violations, the department alleged. Wang administered the botnet, called “911 S5,” through about 150 servers worldwide from 2014 to 2022, according to an indictment unsealed last week.
About 76 of the servers were leased from online service providers based in the United States, the indictment said. The botnet infected over 19 million IP addresses in nearly 200 countries, including over 613,000 IP addresses located in the United States, according to prosecutors.
The Justice Department announcement comes after Wang and his two co-conspirators, Jingping Liu and Yanni Zheng, were sanctioned by the Department of Treasury for their alleged involvement with the malicious botnet. The department also imposed sanctions on three luxury companies Wang owned or controlled.
Authorities also searched Wang’s residences and seized assets valued at about $30 million as well as identifying other property valued at roughly an additional $30 million, prosecutors said.
“The conduct alleged here reads like it’s ripped from a screenplay,” Matthew Axelrod, assistant secretary for export control at the Department of Commerce, said in a statement Wednesday. “A scheme to sell access to millions of malware-infected computers worldwide, enabling criminals over the world to steal billions of dollars, transmit bomb threats, and exchange child exploitation materials — then using the scheme’s nearly $100 million in profits to buy luxury cars, watches, and real estate.”
The Department of Justice partnered with the FBI and international law enforcement agencies in Singapore, Thailand, and Germany to dismantle the botnet and arrest Wang. The case is the latest in the federal government’s ongoing effort to thwart global cybercrime, which has become increasingly widespread.
These crimes can range from intellectual property theft to ransomware and can cost businesses billions of dollars in losses in addition to threatening critical sectors across the country, according to the Department of State. In recent years, federal authorities have expanded their international operations and country-to-country partnerships in order to better address cyber threats.
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911 S5 Botnet ‘likely the world’s largest botnet ever’
FBI Director Christopher Wray said in a statement Wednesday that 911 S5 is “likely the world’s largest botnet ever.” According to the indictment, Wang allegedly spread his malware through Virtual Private Network programs and pay-per-install services, which allowed him to manage and control the roughly 150 servers.
Paying customers were then given access to proxied IP addresses that were linked to the hacked devices, the indictment said. Cybercriminals used those addresses to hide their locations and “anonymously commit a wide array of offenses,” the Department of Justice alleged.
“These offenses including financial crimes, stalking, transmitting bomb threats and threats of harm, illegal exportation of goods, and receiving and sending child exploitation materials,” according to the department. “Since 2014, 911 S5 allegedly enabled cybercriminals to bypass financial fraud detection systems and steal billions of dollars from financial institutions, credit card issuers, and federal lending programs.”
Specifically, the botnet targeted COVID-19 pandemic relief programs and filed an estimated 560,529 fraudulent unemployment insurance claims, according to the indictment. Federal authorities confirmed that more than $5.9 billion was stolen as a result.
The indictment further alleged that Wang had amassed about $99 million — either in cryptocurrency or fiat currency — from his sales of the infected proxied IP addresses. He used the illicit proceeds to purchase luxury assets and property.
Wang bought property in the United States, St. Kitts and Nevis, China, Singapore, Thailand, and the United Arab Emirates, according to the indictment. He also had dozens of other assets, such as luxury cars, watches, international bank accounts, and cryptocurrency wallets.
Wang was charged with conspiracy to commit computer fraud, substantive computer fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering. He faces a maximum of 65 years in prison.
Cybercrime, COVID fraud in the U.S.
Cybercrime is a “significant and growing threat” to the country’s national and economic security, according to the State Department. As people become more dependent on information and communication technologies, the department said more criminals continue to shift online.
Wang’s arrest also comes amid a push from federal officials for organizations to update and follow cybersecurity guidelines. Federal agencies have issued multiple advisories for cyberattacks committed by foreign groups in recent years.
In January, the FBI and Department of Justice announced that they had “disrupted a botnet of hundreds of U.S.-based small office/home office routers hijacked” by China-linked hackers. The group, known as “Volt Typhoon,” targeted critical infrastructure organizations in the United States, such as water systems and electric grids.
The surge in malicious cyber incidents coincides with the rise in online communication during the COVID-19 pandemic, according to a 2023 cyberthreat study. Citing FBI data, the study said cybercrime increased by 400% during the pandemic.
“Cybercriminals find the uncertainty brought by changing daily habits opportune and the increased virtual existence is converted into available attack vectors,” the study noted.
In the four years since the onset of the pandemic, the Internal Revenue Service has investigated over 1,600 tax and money laundering cases related to COVID-19 fraud potentially worth about $8.9 billion, the agency said in March. Cases included fraudulently obtained loans, credits and payments meant for U.S. workers, families and small businesses under the Coronavirus Aid, Relief and Economic Security, or CARES, Act.
Contributing: Josh Meyer, USA TODAY
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In a Quiet Corner of America, Greyhound Racing Hangs On. For Now.
The announcer’s voice broke the silence that had fallen over the racetrack: “Here comes Spunky!”
As a white, fluffy object, supposed to look like a hare, shot past the starting box, a line of eight greyhounds burst out, a blur of canine energy rocketing down the straightaway.
Such races were once a familiar sight across the country, as bettors flocked to tracks in 19 states, from Florida to Massachusetts to California. At its height, in the 1980s and early 1990s, dog racing drew tens of millions of spectators, routinely posting higher yearly attendance figures than hockey or tennis. Spectator bets totaled roughly $3.5 billion every year.
But today only two dog tracks remain, down from more than 60. Both are in West Virginia, the only state where commercial races still take place. Attendance has waned as pressure from animal rights groups led many states to ban dog tracks and as the legalization of sports betting nationwide gave people a bounty of new gambling options.
Now a bill is making its way through Congress that would ban dog racing altogether. Fans and critics agree that the sport is on its final lap.
“I know at some point, it’s going to end,” said Ronald Welch, who was sitting at a picnic table last month at the track in Wheeling, W.Va. “But still I’d be heartbroken if it did.”
Public sentiment about greyhound racing had already started shifting by the early 2000s, due in part to the efforts of Carey Theil and Christine Dorchak.
Through their Boston-based nonprofit, GREY2K USA Worldwide, the couple has led lobbying to end dog racing over concerns about animal welfare.
The industry has faced criticism for killing dogs that could no longer race, though many of the documented cases took place before adoption programs became common in the 2000s. Critics also draw attention to confined living spaces in the kennels where most of the dogs live, along with reports of performance enhancing drugs, and diets of low-quality meat.
The New York Times reached out to five kennels associated with the Wheeling racetrack. They did not respond or declined to comment.
The efforts by GREY2K and other organizations have yielded changes, with 44 states banning greyhound racing. When voters in Florida, once a stronghold, approved a ban in 2018, it was a gut punch to the industry.
“We’ve been in the endgame phase since,” Mr. Theil said.
But in West Virginia, a law passed nearly two decades ago has made it harder to land the final blow. In an effort to keep gamblers from taking their betting dollars to neighboring Pennsylvania, which had just legalized slot machines, West Virginia in 2007 said casinos could sweeten the pot by offering table games — so long as they also were operating a track with live racing.
It also diverts a percentage of slot machine and table game revenue to a fund that pays race purses. This provision comes out to roughly $15 million to $22 million a year, accounting for about 95 percent of payouts.
“Without the subsidy, this industry wouldn’t exist,” Mr. Theil said.
A 2017 state bill would have allowed the casinos to operate without a live track, and done away with the subsidy. In a sign that support was fading even in West Virginia, it passed in both the state House and Senate. But then-Gov. Jim Justice vetoed it, saying “eliminating support for the greyhounds is a job killer.”
Mr. Theil has focused on rebutting assertions that the industry benefits the local economy. This year, a study by Ball State University commissioned by GREY2K found that apart from providing minimal low-paying jobs, the industry was buoyed almost entirely by the subsidy and provided nearly nonexistent economic benefit.
The concerns have made their way to Capitol Hill, where a bill being considered by Congress could spell the end of greyhound racing. The Greyhound Protection Act would make it illegal to train or possess greyhounds for racing and to bet on the races in-person or via simulcast.
The legislation was incorporated into the Farm Bill, a huge legislative package, which reauthorizes major food and agriculture programs roughly once every five years. The Farm Bill, which totals $390 billion in proposed spending, passed the House in April and is awaiting a Senate vote.
The act now looks like GREY2K’s best bet.
“Greyhound racing is going to end in the United States,” Mr. Theil said. “The real question is how.”
One hour southwest of Pittsburgh, the Wheeling Island Hotel, Casino & Racetrack sits at the southern tip of the most populated isle in the Ohio River. “The Island,” as locals called it, was once the home of wealthy industrialist families. Now, it is lined with dilapidated Victorian houses and beset by flooding and opioids.
But it is still home to the racetrack, which has welcomed locals and out-of-staters from Ohio, Pennsylvania and even Canada, since 1937.
In the 1940s, when horses raced there, the track was nicknamed “Little Churchill Downs,” after the storied Kentucky venue. The track transitioned to greyhounds in the 1970s.
Nearly 40 years ago, Delaware North, a food service and hospitality company based in Buffalo, purchased the track and added a full casino. Now, the course stages around 500 races a year.
In-person attendance is down about 60 percent over the last decade, according to Delaware North. But many of those who still come are fiercely loyal.
With the third race of the day about to begin, Donna and Dennis Kennedy lounged at a table in the betting area overlooking the track.
The couple, both former teachers from Bridgeport, Ohio, often hit the track together. It wasn’t always that way; for years, she refused to join her husband because of concerns about the dogs’ welfare.
“I’m an animal person,” she said.
But when the track was raffling off a free car, Ms. Kennedy couldn’t resist. “The first thing I did was march up to the adoption center,” she said, referring to a spot at the track where people can take in retired racing dogs. She ended up volunteering for a decade and adopting four dogs of her own.
Mr. Kennedy, 84, had the likeness of one of them, Fancy, inked on his forearm two years ago. It was his first and only tattoo. “If those were my dogs, I’m not going to allow anyone to abuse it because that’s an investment — and we love them,” he said.
Chuck Galloway has been betting at the track since greyhounds started racing there in 1976. On the small screen in front of him, race lineups showed dogs with names like Gonz Megatron, Loyal Duck, Bulldozer Mozer and Venus.
The races are simulcast so patrons in other states and countries can bet remotely — about 95 percent of bets placed on Wheeling races are made this way.
But even with lots of the bets coming from elsewhere, there’s a certain camaraderie at the track, Mr. Galloway said. He likened it to his time campaigning for Barack Obama. “I got to know people that I never would have crossed paths with,” he said.
Several track patrons pointed to what they said was a double standard — horse racing, a sport with a blue-blood pedigree, can still capture a mass audience, while dog racing is on the verge of extinction.
Mr. Welch, 60, the man who was sitting at the picnic table, had a theory.
“Horse racing is like apple pie. Like baseball, the Wild West,” he said. “But the dogs, they aren’t part of that American mystique.”
Mr. Welch grew up attending races in Iowa before the state banned the sport. In need of an anchor in his life after his mother passed away, he moved to Wheeling to live near the track.
“When I see them run,” he said, “it’s a spiritual experience.”
In downtown Wheeling, many people seemed to have at least a tangential connection to the racetrack — an uncle who trained dogs, a friend who worked there one summer. But not everyone knew that greyhound racing’s days could be coming to an end. Some said they were ready to see it go.
Outside Coleman’s Fish Market, Mitchell Visnic, 40, was adamant about his distaste for any animal-related sport. “I don’t even like the zoo,” he said.
Others were disappointed but not surprised. Michael Mudrak, 42, who was sitting nearby on his lunch break, said it was emblematic.
“Take another thing away from West Virginia,” he said.
Alain Delaquérière contributed research.
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Pride celebrations struggle as corporate sponsorships dry up
Lyndsey Sickler, one of Pittsburgh Pride organizers.
Hannah Frances Johansson
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Hannah Frances Johansson
PITTSBURGH, Pa. — Pride celebrations across the country continue to lose out on large sponsorships as corporations, a key source of funding, shrink their affiliation with diversity causes and LGBTQ+ events.
Corporate sponsorships of celebrations in several cities, including New York City, Salt Lake City, Louisville, St. Louis, Orlando, and Pittsburgh are down from previous years, organizers said.
Jordan Braxton, co-president of the United States Association of Prides, which supports Pride celebrations nationwide, said that while some smaller Prides have seen a growth in sponsorships, a majority have seen a reduction.
She said the Trump administration’s dismantling of Diversity, Equity and Inclusion initiatives, has scared corporations away from sponsoring Pride celebrations. “I think that’s why some of the corporations have pulled back, because they don’t want that government scrutiny,” she said.
In his first days in office in 2025, Trump issued presidential actions targeting DEI within the federal government and encouraging the private sector to end what the administration considers “illegal DEI discrimination and preferences.”
In Pittsburgh, Pride organizers are trying to make up for lost sponsorships in time for their festival and parade in early June.
“It takes a lot of money to do this,” said Dena Stanley, director of Pittsburgh Pride. “Permittings costs, security costs, headliners costs, staging costs, cleaning crew costs, insurance costs, all of these are expenses.”
Pittsburgh Pride organizers think it will secure 30-40% of the sponsorship dollars they were able to fundraise a few years ago.
To narrow the gap, the group said they received a state grant and solicited individual donations.
Dena Stanley, director of Pittsburgh Pride.
Hannah Frances Johansson.
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Hannah Frances Johansson.
E Ciszek, who researches advertising and public relations at The University of Texas at Austin, said the downturn in corporate sponsorships is happening amid a movement against Diversity, Equity and Inclusion (DEI) initiatives and the “attack on trans rights, in particular.”
“I think this is not just a matter of budget cuts, right?” Ciszek said. “It’s important to take a step back and see this more as a moment of risk, a moment of political pressure, and looking really at the limits of corporate allyship, particularly when LGBTQ visibility has become really politically costly.”
Corporations, she said, are calculating the risk of public support for Pride, which could expose them to litigation, political retaliation or consumer boycotts.
“What once was [an] organizational asset, has now become an organizational risk,” Ciszek said.
Lyndsey Sickler, another Pittsburgh Pride organizer, described Pride celebrations as empowering for LGBTQ+ people who live in communities where they feel scrutinized for their identity.
For some people, it’s their first time being in, “a space that is actively, loudly celebrating everything that is us,” Sickler said. “Nothing else matters at that point.”
Less sponsorship money can also impact year-round events and resources for the LGBTQ+ community.
“People sometimes look at Pride festivals just as a big party, which they are, but they’re also resource fairs, job fairs, and we also use it as a fundraising event,” said Braxton of the United States Association of Prides.
In Florida, Tampa Pride announced a one-year hiatus after a slew of corporations dropped their sponsorships, said Carrie West, who ran the organization.
“All of a sudden, bingo. Here you have no money, no grant money, no supporting money, to make operations, to plan, to get any kind of anything,” he said. “Oh my gosh, it was, it’s devastating.”
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