Hello and welcome to Regulator, a newsletter for Verge subscribers about the love-hate (but mostly hate) relationship between Silicon Valley and Washington. I hope everyone got to celebrate George Washington’s birthday in their preferred manner: skiing, staycationing, subscribing to The Verge if you haven’t already, etc.
Technology
It’s MAGA v Broligarch in the battle over prediction markets
Prediction: this is going to be a mess
Political alliances are rarely permanent, so it’s somewhat predictable that the MAGA-tech bro alliance seems to have fallen apart in the span of a single year. Which side the administration would actually choose, though, was more difficult to foresee.
Last winter, it appeared that two groups were in a tenuous relationship, held together by Elon Musk’s shameless execution of the DOGE agenda and Big Tech signing massive checks to settle Donald Trump’s lawsuits against them. But last night, the Trump administration made a choice: the money. The Commodity Futures Trading Commission (CFTC) announced that they would sue any state who tried to regulate prediction markets like Kalshi — even the Republican states.
On Tuesday, the CFTC filed an amicus brief to the Ninth Circuit Court of Appeals, officially opposing an onslaught of lawsuits filed by the states against betting markets like Kalshi, Polymarket, Coinbase, and Crypto.com. (The latter two, known primarily as cryptocurrency exchanges, have partnered with Kalshi and created a standalone prediction market called OG, respectively.) But unusually, the brief was accompanied by a threat — posted on X, of all places. In a video directly facing the camera posted on Tuesday night, sole CFTC chairman Michael Selig asserted his commission’s authority to regulate prediction markets and stated that the federal government was prepared to sue: “To those who seek to challenge our authority in this space, let me be clear: we will see you in court.”
Had Selig simply written a staid Wall Street Journal op-ed asserting the CFTC’s authority (which he also did), that would have barely raised an eyebrow. But in 2026, a video threat, especially one posted on X, is basically grounds to instigate a political firestorm — one that Spencer Cox, the Republican Governor of Utah, gladly kindled. “Mike, I appreciate you attempting this with a straight face, but I don’t remember the CFTC having authority over the ‘derivative market’ of LeBron James rebounds,” he posted in response (also on X). “These prediction markets you are breathlessly defending are gambling—pure and simple. They are destroying the lives of families and countless Americans, especially young men. They have no place in Utah.” He promised that Utah would continue to pursue litigation and beat the federal government in court if need be.
This wouldn’t be the first time that Utah and Cox have voiced their opposition to federal overreach regarding emerging technology. Last year, they publicly opposed an executive order that would have given the Justice Department the power to sue states passing and enforcing AI regulatory laws. The prediction markets issue hits a particular nerve in Utah: nearly half of the state is Mormon, and the Church of Jesus Christ of Latter-day Saints officially opposes all government-sanctioned forms of gambling, even state lotteries. But Cox’s declaration is what’s known in political circles as a “weathervane”: if one deeply Republican state is pushing back against the Trump administration on a new front, who else on the right might follow suit — and what sorts of new broligarch technologies would they fight against?
Is it a coincidence that Anthropic CEO Dario Amodei’s big visit to Washington happened just as the Pentagon was reconsidering its relationship with the AI company? Over the past two weeks, Amodei published a 38-page letter to Congress warning of the rising existential risks of artificial intelligence, conducted an interview with Axios’s Mike Allen (and sponsored their newsletter), and met with Sens. Elizabeth Warren (D-MA) and Jim Banks (R-IN) on Capitol Hill to support their bill banning the sale of advanced AI chips to China.
But Amodei barely finished his capitol blitz when Axios broke the news over the weekend that the Pentagon wasn’t just impatient with Anthropic’s reticence to use Claude for unrestricted purposes, but that it would actively punish Anthropic for refusing to cooperate by designating them a “supply-chain risk.” If it goes through, any company that wants to work with the military would have to cut ties with Anthropic. As one Pentagon official described it, “It will be an enormous pain in the ass to disentangle, and we are going to make sure they pay a price for forcing our hand like this.”
The Pentagon’s move makes no sense for anyone who sees Claude as a superior AI enterprise product to its competitors at the Pentagon (Gemini, ChatGPT, and Grok). If viewed through the lens of every former interaction that Trump’s had with companies that voiced ideological opposition to his agenda however, their treatment of Anthropic is par for the course. Years ago, for instance, Trump threatened to cut off Amazon’s access to their sweetheart deal with the US Postal Service, in retaliation for Jeff Bezos’ ownership of the then highly critical Washington Post.
But for me, the question is: exactly what caused the ideological break, and how much of it was even about national security? In the past few months, there’s been a bizarre spurt of online messaging from right-wing influencers trying to claim that Anthropic, of all the AI companies, was too woke — the kind of woke that could convince kids to become trans, or DEI-pill them, or whatever lib-coded nightmares a MAGA personality could dream up. There wasn’t much proof that they could point to, other than its employees expressing opinions that could be lib-coded, if you’re not fully reading the entire tweet:
Screenshot va @KatieMiller/X.
Speaking of influencers eating their own:
- Steve Bannon is under MAGA siege for his 2018 texts with Jeffrey Epstein, newly unearthed from the Justice Department’s Epstein Files, wherein he suggested that Trump should be removed from office using the 25th Amendment. Influencers calling for him to be questioned include Rep. Marjorie Taylor Greene, who broke from Trump and the GOP for trying to bury the Epstein Files, and retired Gen. Mike Flynn. Notably, both of them rose to prominence in 2020 by backing QAnon, the online conspiracy theory that claimed that an elite ring of Satan-worshipping pedophiles were in control of the government. (It may not help Bannon that he called Epstein “God” in one of the texts).
- Mike Davis, an anti-Big Tech lawyer who previously represented Trump in his lawsuits against Meta, took credit for the ouster of former friend and ally Gail Slater from the Department of Justice’s antitrust division, according to texts obtained by The Free Press. Though the two were once allies due to their shared interest in holding Big Tech accountable, their relationship started fracturing over disagreements about when to enforce antitrust laws and when to go for settlements.
- And we’re back to Bannon: per The Bulwark, he and fellow MAGA political operative Boris Epshteyn are being sued for their own shady cryptocurrency operation.
The White House is convening a third meeting between the crypto industry and the banking industry this week, continuing to hash out which major financial entity gets to reap the interests from yield-bearing stablecoin accounts (or if they get to bear interest at all). They have until March 1st to deliver draft language for the Senate. Good luck, y’all!
And finally, looksmaxxing Recess.
Can we all agree that HHS Secretary Robert F. Kennedy is framemogging Kid Rock in this video?
See you next week, and send all tips to every way that we list here.
Technology
Here’s your first look at Kratos in Amazon’s God of War show
Amazon has slowly been teasing out casting details for its live-action adaptation of God of War, and now we have our first look at the show. It’s a single image but a notable one showing protagonist Kratos and his son Atreus. The characters are played by Ryan Hurst and Callum Vinson, respectively, and they look relatively close to their video game counterparts.
There aren’t a lot of other details about the show just yet, but this is Amazon’s official description:
The God of War series storyline follows father and son Kratos and Atreus as they embark on a journey to spread the ashes of their wife and mother, Faye. Through their adventures, Kratos tries to teach his son to be a better god, while Atreus tries to teach his father how to be a better human.
That sounds a lot like the recent soft reboot of the franchise, which started with 2018’s God of War and continued through Ragnarök in 2022. For the Amazon series, Ronald D. Moore, best-known for his work on For All Mankind and Battlestar Galactica, will serve as showrunner. The rest of the cast includes: Mandy Patinkin (Odin), Ed Skrein (Baldur), Max Parker (Heimdall), Ólafur Darri Ólafsson (Thor), Teresa Palmer (Sif), Alastair Duncan (Mimir), Jeff Gulka (Sindri), and Danny Woodburn (Brok).
While production is underway on the God of War series, there’s no word on when it might start streaming.
Technology
300,000 Chrome users hit by fake AI extensions
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Your web browser may feel like a safe place, especially when you install helpful tools that promise to make your life easier. But security researchers have uncovered a dangerous campaign in which more than 300,000 people installed Chrome extensions pretending to be artificial intelligence (AI) assistants. Instead of helping, these fake tools secretly collect sensitive information like your emails, passwords and browsing activity.
They used familiar names like ChatGPT, Gemini and AI Assistant. If you use Chrome and have installed any AI-related extension, your personal information may already be exposed. Even worse, some of these malicious extensions are still available today, putting more people at risk without their knowing.
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More than 300,000 Chrome users installed fake AI extensions that secretly harvested sensitive data. (Kurt “CyberGuy” Knutsson)
What you need to know about fake AI extensions
Security researchers at browser security company LayerX discovered a large campaign involving 30 malicious Chrome extensions disguised as AI-powered assistants (via BleepingComputer). Together, these extensions were installed more than 300,000 times by unsuspecting users.
Some of the most popular extensions included names like AI Sidebar with 70,000 users, AI Assistant with 60,000 users, ChatGPT Translate with 30,000 users, and Google Gemini with 10,000 users. Another extension called Gemini AI Sidebar had 80,000 users before it was removed.
These extensions were distributed through the official Chrome Web Store, which made them appear legitimate and trustworthy. Even more concerning, researchers found that many of these extensions were connected to the same malicious server, showing they were part of a coordinated effort.
While some extensions have since been removed, others remain available. This means new users could still unknowingly install them and expose their personal data. Here’s the list of the affected extensions:
- AI Assistant
- Llama
- Gemini AI Sidebar
- AI Sidebar
- ChatGPT Sidebar
- Grok
- Asking ChatGPT
- ChatGBT
- Chat Bot GPT
- Grok Chatbot
- Chat With Gemini
- XAI
- Google Gemini
- Ask Gemini
- AI Letter Generator
- AI Message Generator
- AI Translator
- AI For Translation
- AI Cover Letter Generator
- AI Image Generator ChatGPT
- Ai Wallpaper Generator
- Ai Picture Generator
- DeepSeek Download
- AI Email Writer
- Email Generator AI
- DeepSeek Chat
- ChatGPT Picture Generator
- ChatGPT Translate
- AI GPT
- ChatGPT Translation
- ChatGPT for Gmail
FAKE AI CHAT RESULTS ARE SPREADING DANGEROUS MAC MALWARE
These malicious tools were listed in the official Chrome Web Store, making them appear legitimate and trustworthy. (LayerX)
How the fake AI Chrome extension attack works
These fake extensions pretend to offer helpful AI features, such as translating text, summarizing emails, or acting as an AI assistant. But behind the scenes, they quietly monitor what you are doing online.
Once installed, the extension gains permission to view and interact with the websites you visit. This allows it to read the contents of web pages, including login screens where you enter your username and password.
In some cases, the extensions specifically targeted Gmail. They could read your email messages directly from your browser, including emails you received and even drafts you were still writing. This means attackers could access private conversations, financial information and sensitive personal details.
The extensions then sent this information to servers controlled by the attackers. Because they loaded content remotely, the attackers could change their behavior at any time without needing to update the extension.
Some versions could also activate voice features through your browser. This could potentially capture spoken conversations near your device and send transcripts back to the attackers.
If you installed one of these extensions, attackers may already have access to extremely sensitive information. This includes your email content, login credentials, browsing habits and possibly even voice recordings.
We reached out to Google for comment, and a spokesperson told CyberGuy that the company “can confirm that the extensions from this report have all been removed from the Google Web Store.”
BROWSER EXTENSION MALWARE INFECTED 8.8M USERS IN DARKSPECTRE ATTACK
Once installed, the extensions could read emails, capture passwords, monitor browsing activity and send the data to attacker-controlled servers. (Bildquelle/ullstein bild via Getty Images)
7 ways you can protect yourself from malicious Chrome extensions
If you have ever installed an AI-related Chrome extension, taking a few simple precautions now can help protect your accounts and prevent further damage.
1) Remove any suspicious or unused browser extensions
On a Windows PC or Mac, open Chrome and type chrome://extensions into the address bar. Review every extension listed. If you see anything unfamiliar, especially AI assistants you don’t remember installing, click “Remove” immediately. Malicious extensions depend on going unnoticed. Removing them stops further data collection and cuts off the attacker’s access to your information.
2) Change your passwords
If you installed any suspicious extension, assume your passwords may be compromised. Start by changing your email password first, since email controls access to most other accounts. Then update passwords for banking, shopping and social media accounts. This prevents attackers from using stolen credentials to break into your accounts.
3) Use a password manager to create and protect strong passwords
A password manager generates unique, complex passwords for each account and stores them securely. This prevents attackers from accessing multiple accounts if one password is stolen. Password managers also alert you if your login credentials appear in known data breaches, helping you respond quickly and protect your identity. Check out the best expert-reviewed password managers of 2026 at Cyberguy.com.
4) Install strong antivirus software and keep it active
Good antivirus software can detect malicious browser extensions, spyware, and other hidden threats. It scans your system for suspicious activity and blocks harmful programs before they can steal your information. This adds an important layer of protection that works continuously in the background to keep your device safe. Get my picks for the best 2026 antivirus protection winners for your Windows, Mac, Android & iOS devices at Cyberguy.com.
5) Use an identity theft protection service
Identity theft protection services monitor your personal data, including email addresses, financial accounts, and Social Security numbers, for signs of misuse. If criminals try to open accounts or commit fraud using your information, you receive alerts quickly. Early detection allows you to act fast and limit financial and personal damage. See my tips and best picks on how to protect yourself from identity theft at Cyberguy.com.
6) Keep your browser and computer fully updated
Software updates fix security vulnerabilities that attackers exploit. Enable automatic updates for Chrome and your operating system so you always have the latest protections. These updates strengthen your defenses against malicious extensions and prevent attackers from taking advantage of known weaknesses.
7) Use a personal data removal service
Personal data removal services scan data broker websites that collect and sell your personal information. They help remove your data from these sites, reducing what attackers can find and use against you. Less exposed information means fewer opportunities for criminals to target you with scams, identity theft or phishing attacks.
Check out my top picks for data removal services and get a free scan to find out if your personal information is already out on the web by visiting Cyberguy.com.
Get a free scan to find out if your personal information is already out on the web: Cyberguy.com.
Kurt’s key takeaway
Even tools designed to make your life easier can become tools for cybercriminals. Malicious extensions often hide behind trusted names and convincing features, making them difficult to spot. You can significantly reduce your risk by reviewing your browser extensions regularly, removing anything suspicious and using protective tools like password managers and strong antivirus software.
Have you checked your browser extensions recently? Let us know your thoughts by writing to us at Cyberguy.com.
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Technology
Anthropic refuses Pentagon’s new terms, standing firm on lethal autonomous weapons and mass surveillance
Less than 24 hours before the deadline in an ultimatum issued by the Pentagon, Anthropic has refused the Department of Defense’s demands for unrestricted access to its AI.
It’s the culmination of a dramatic exchange of public statements, social media posts, and behind-the-scenes negotiations, coming down to Defense Secretary Pete Hegseth’s desire to renegotiate all AI labs’ current contracts with the military. But Anthropic, so far, has refused to back down from its two current red lines: no mass surveillance of Americans, and no lethal autonomous weapons (or weapons with license to kill targets with no human oversight whatsoever). OpenAI and xAI had reportedly already agreed to the new terms, while Anthropic’s refusal had led to CEO Dario Amodei being summoned to the White House this week for a meeting with Hegseth himself, in which the Secretary reportedly issued an ultimatum to the CEO to back down by the end of business day on Friday or else.
In a statement late Thursday, Amodei wrote, “I believe deeply in the existential importance of using AI to defend the United States and other democracies, and to defeat our autocratic adversaries. Anthropic has therefore worked proactively to deploy our models to the Department of War and the intelligence community.”
He added that the company has “never raised objections to particular military operations nor attempted to limit use of our technology in an ad hoc manner” but that in a “narrow set of cases, we believe AI can undermine, rather than defend, democratic values” — going on to specifically mention mass domestic surveillance and fully autonomous weapons. (Amodei mentioned that “partial autonomous weapons … are vital to the defense of democracy” and that fully autonomous weapons may eventually “prove critical for our national defense,” but that “today, frontier AI systems are simply not reliable enough to power fully autonomous weapons.” He did not rule out Anthropic acquiescing to the military’s use of fully autonomous weapons in the future but mentioned that they were not ready now.)
The Pentagon had already reportedly asked major defense contractors to assess their dependence on Anthropic’s Claude, which could be seen as the first step to designating the company a “supply chain risk” – a public threat that the Pentagon had made recently (and a classification usually reserved for threats to national security). The Pentagon was also reportedly considering invoking the Defense Production Act to make Anthropic comply.
Amodei wrote in his statement that the Pentagon’s “threats do not change our position: we cannot in good conscience accede to their request.” He also wrote that “should the Department choose to offboard Anthropic, we will work to enable a smooth transition to another provider, avoiding any disruption to ongoing military planning, operations, or other critical missions. Our models will be available on the expansive terms we have proposed for as long as required.”
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