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  • CFTC Prepares Crypto Rulemaking as Congress Considers Clarity Act

    CFTC Prepares Crypto Rulemaking as Congress Considers Clarity Act

    The Commodity Futures Trading Commission (CFTC) is initiating the development of its own cryptocurrency market structure rules as a contingency measure, should Congress fail to pass the Clarity Act. CFTC Chair Michael S. Selig has directed agency staff to begin this preparatory work, signaling the commission’s readiness to establish a regulatory framework if legislative efforts stall.

    Selig emphasized that passing bipartisan market structure legislation remains his preferred path. However, he stated that if the Clarity Act remains stalled, the CFTC will leverage its existing authority to create a regulatory framework for crypto markets. This announcement was made during the inaugural meeting of the CFTC’s Innovation Advisory Committee on Thursday.

    The Clarity Act is designed to establish a federal framework for digital assets and delineate the regulatory roles of the CFTC and the Securities and Exchange Commission (SEC). Selig suggested that legislative action would result in more durable rules, less susceptible to reversal by future administrations. He also commented that passing the Clarity Act is the most effective way to prevent what he termed “lawfare” against industry participants.

    On Wednesday, President Donald Trump encouraged Congress to pass a “fair version” of the Clarity Act. He also indicated that Selig is working to facilitate the entry of the decentralized perpetual futures exchange Hyperliquid into the United States.

    Should Congress not advance the Clarity Act, Selig indicated the CFTC is prepared to proceed independently. “To achieve this, I’ve directed the CFTC staff to begin exploring rules to codify a CFTC market structure for crypto assets using the agency’s existing authorities,” he stated. This potential framework could bring current CFTC registrants and unregistered crypto exchanges under the commission’s oversight, allowing them to offer leveraged or margined crypto trading under rules tailored for digital asset markets.

    Furthermore, Selig directed staff to engage with developers of on-chain finance protocols. The objective is to identify compliant methods for developers to offer their protocols within the United States, which he described as “future-proofing developer protections.”

    Despite these preparations, the CFTC intends to allow Congress additional time to pass the Clarity Act before formally proposing its own rules. “Rest assured, I will direct CFTC staff to move swiftly to propose these rules for the industry,” Selig added.

    Significant uncertainties persist regarding the specific details of the crypto market structure rules the CFTC might develop, as well as the ultimate passage of the Clarity Act. The timeline for the CFTC to propose its own rules, in the event the legislative path is not pursued, remains undefined.

    Why This Matters

    The materials describe a narrow update: CFTC Chair Michael S. The specific details of the crypto market structure rules the CFTC would develop.

    Broader Context

    Source materials place the factual news in this context: Commodity Futures Trading Commission Chair Michael S. Selig has directed agency staff to begin developing crypto market structure rules, preparing the regulator to act if Congress fails to pass the Clarity Act.

  • Nearly 2,000 WordPress Sites Compromised for Criminal Operations

    Nearly 2,000 WordPress Sites Compromised for Criminal Operations

    Nearly 2,000 Hacked WordPress Sites Used in Sophisticated Malware Operation

    Cybersecurity firm Check Point Research has uncovered a widespread operation utilizing nearly 2,000 compromised WordPress websites to distribute malware, steal sensitive data, monitor victims, and deploy ransomware. The campaign, which began in mid-May, has been linked to the StopAndProtect ransomware family and involves a comprehensive suite of malicious tools working in concert.

    A Multifaceted Criminal Toolkit

    The compromised websites served as a central hub for the operation, hosting various malware components, issuing commands to infected computers, and storing stolen information such as documents, screenshots, and activity logs. “The operation doesn’t rely on a single piece of malware, but on a whole toolkit of criminal software working together,” explained Check Point researcher Jaromír Horejsi. He elaborated that some components are designed to encrypt files, while others silently exfiltrate documents or lock screens, and a distinct tool facilitates live communication between attackers and their targets.

    Deceptive CAPTCHA Leads to Infection

    The malware primarily targets Windows users, initiating its attack through a deceptive CAPTCHA prompt on a compromised website. This “ClickFix” prompt then directs victims to execute a PowerShell command. Upon execution, this command installs malware capable of stealing credentials, cryptocurrency wallet seed phrases, spreading across networks and USB drives, locking screens, and ultimately deploying ransomware. The report did not specify whether macOS or Linux users are affected.

    Operational Security Lapses Expose the Operation

    Despite the sophistication of the attack, errors made by the perpetrators inadvertently provided Check Point researchers with a detailed look into the operation. “Operational security (OPSEC) failures by the developer exposed lots of files, including detailed infection logs from victims’ machines, screenshots from infected computers, and source code of tools the criminals use to mass-manage compromised websites,” Horejsi noted.

    By July 24, the campaign had affected over 6,000 unique IP addresses globally, with significant concentrations in the United States (1,852), Russia (630), and India (630). The exposed directories yielded over 31,000 screenshots collected between mid-May and the end of July, alongside more than 700 archives containing stolen data, including documents, passwords, and cryptocurrency wallet files.

    Accidental Self-Infection and Broader Campaign Links

    Check Point also believes the threat actor may have accidentally infected themselves. “We collected a few hundred files exfiltrated from victims’ machines, and we believe that in one instance the threat actor infected themselves, as one archive contained several unusual files with suspicious content,” Horejsi stated. This accidental exposure, he added, aids in understanding the actor’s methods and the scale of their compromised domain control.

    The ClickFix mechanism has appeared in several other malware campaigns this year. In May, an apparel website associated with FBI Director Kash Patel was taken offline after macOS users were reportedly targeted with ClickFix malware, which prompted them to run a command in Terminal to install an infostealer. In July, Jamf Threat Labs identified ClickFix-style malware distributed via a sponsored ad on X, leading users to a site that instructed them to execute a command installing a variant of the Atomic infostealer. Earlier in August, Microsoft researchers had warned of hackers using compromised websites and BNB Chain smart contracts to distribute malware through fake CAPTCHAs.

  • XRP Surges as Ripple Whales Roar

    XRP Surges as Ripple Whales Roar

    Crypto Markets See Shift as Altcoins Follow Bitcoin’s Lead

    Cryptocurrency markets experienced a significant shift in momentum over the past 24 hours, with many altcoins beginning to gain traction following Bitcoin’s substantial double-digit rally.

    XRP Takes Center Stage with Impressive Surge

    XRP, the native token of the Ripple ecosystem, has emerged as a standout performer, skyrocketing by approximately 30% in a single day. The token reached $1.30, a level not seen since June 1. This surge follows a recent dip below $1.00 last week, marking its first descent below this threshold in nearly two years. The subsequent recovery has been remarkable.

    Whale Accumulation Fuels XRP’s Rise

    A key factor contributing to the XRP ecosystem’s notable change has been the recent activity of large token holders, often referred to as “whales.” As previously reported, these significant market participants acquired 72 million XRP tokens within a 24-hour period as the asset struggled to maintain support above $1.00.

    Further data from Santiment Intelligence, highlighted by analyst Ali Martinez, indicates that this accumulation spree has continued. Whales have reportedly purchased over 300 million XRP tokens since the beginning of the current business week. Their total holdings have consequently increased from around 16.05 billion XRP on August 16 to approximately 16.36 billion XRP as of today.

    Such substantial acquisitions have a dual impact on the market. Firstly, they reduce immediate selling pressure. Secondly, they can serve as a signal for smaller investors, who often follow the lead of larger players.

    Analysts Project Further Upside for XRP

    The XRP community, often referred to as the “XRP Army,” has enthusiastically embraced the token’s recovery from the $1.00 support level. Analyst JAVON MARKS celebrated the breakout, suggesting that XRP’s next significant upward trend has just begun and outlining a potential macro target of $15 or higher.

    Another analyst, Dark Defender, also commented on the price movement, asserting that XRP has completed its correction phase. This analysis is based on the premise that XRP has finished its downward trend across all five waves on all timeframes, adhering to Elliott Wave Theory. “There is no 6th limb in the Elliott Wave Theory,” the analyst stated, indicating that the recent rebound signifies a strong reversal and a new impulse wave that could propel the token to $5.85, and subsequently to $9.00.

    While these price projections are notably optimistic, XRP has a history of executing significant price movements shortly after broader market sentiment appeared to be faltering.

  • Kalshi Market Suggests Lower Odds for October Funding Lapse

    Kalshi Market Suggests Lower Odds for October Funding Lapse

    The market-implied probability of a U.S. federal government funding lapse in October has decreased, with odds on the Kalshi exchange trading between 15 and 16 cents as of August 18. This price suggests an approximate 12% chance of a lapse, indicating a reduction in perceived Washington-related risk.

    With over $193,000 in trading volume, the Kalshi market for government funding lapse odds serves as a live sentiment indicator for macro risk. According to Kalshi, this price offers a snapshot of current market expectations rather than a forecast, and it is subject to change as political developments unfold. The market price may differ when Congress returns from its recess in September.

    Historically, government funding lapses have coincided with tangible economic consequences. For instance, a lapse that began on October 1, 2025, and lasted until November 12, 2025, resulted in the furlough of nonessential federal employees. The Congressional Budget Office projected an $11 billion loss in real GDP by the first quarter of fiscal year 2027 due to that lapse, though this represented less than 1% of GDP. Federal employment saw drops of 162,000 in October and 6,000 in November 2025, with these figures partly attributed to deferred resignations. Key economic data releases were also delayed or canceled during that period.

    Market reactions to past lapses have varied. The S&P 500 rose during the 2025 lapse, and the U.S. dollar, while fluctuating, ultimately strengthened. Federal Reserve Governor Lisa D. Cook noted that while disruptions could slow spending and investment, these effects were expected to be temporary.

    It is important to note the specific definition of the Kalshi contract. It resolves as ‘YES’ only if the federal government is at least partially shut down due to a lapse in appropriations at 10 a.m. ET on October 1, 2026. A lapse beginning on a different date would not trigger a ‘YES’ resolution for this specific contract. This precise definition means the contract price can react to funding talks even before a lapse occurs.

    For traders focused on assets like Bitcoin and Ethereum, the Kalshi contract is best viewed as one indicator of Washington-related uncertainty rather than a direct predictor of price movements. The direct causal link between lapse odds and crypto price action is considered thin. Market participants suggest that any correlation between lapse concerns and broader market sentiment in cryptocurrencies depends more on overall market conditions than on the lapse headline alone. Therefore, the Kalshi price is one input among many for assessing macro risk, not a standalone trading signal.

    Why This Matters

    The materials describe a narrow update: The implied probability of a US federal government shutdown in October, as traded on Kalshi, has decreased to approximately 12% (15-16 cents per contract). The market price can change as appropriations headlines emerge.

    Broader Context

    Source materials place the factual news in this context: Federal government shutdown odds on Kalshi traded at 15-16 cents as of August 18, implying roughly a 12% chance.

  • X in Talks to Pay Creator Royalties with Stablecoins

    X in Talks to Pay Creator Royalties with Stablecoins

    X Explores Stablecoin Payments for Content Creators Amid Program Overhaul

    X, formerly known as Twitter, is reportedly in discussions to integrate stablecoin payments for its content creators, a move that could see Circle’s USD Coin (USDC) play a significant role in creator payouts as the platform revamps its monetization strategy.

    The social media giant is exploring the use of stablecoins, such as USDC, to disburse royalties to influential users for their content, according to a report by CoinDesk on August 20. These conversations are ongoing, with a source familiar with the plans indicating that X is not alone in considering such a shift, as other social media platforms are also experimenting with stablecoins for influencer commissions.

    This development coincides with X’s significant changes to its creator monetization programs. Earlier this month, the company announced the discontinuation of new enrollments for its long-standing Revenue Sharing program, replacing it with the new Original Content Rewards Program.

    Under the revamped system, eligible creators will earn revenue based on qualified impressions generated by their original content. These impressions must originate from Premium users viewing content on their Home Timeline, with at least half of the post visible. Creators are required to have a minimum of 500 verified followers and have accumulated 500,000 Home Timeline impressions from verified users within the preceding 90 days. Additionally, they must subscribe to X Premium, Premium+, or Premium Business and maintain their account in good standing.

    Existing participants in the Revenue Sharing program will continue to earn through September 7. X plans to open applications for the Original Content Rewards Program to these users starting September 8, with their first payments under the new scheme anticipated on September 25. The ongoing discussions around stablecoins could therefore influence the delivery method of these future creator payments.

    Stablecoins, which collectively boast a market value exceeding $300 billion, are increasingly utilized by businesses for faster and more cost-effective cross-border transactions compared to traditional banking systems.

    X’s interest in these fiat-pegged digital assets for creator compensation aligns with Elon Musk’s broader financial ambitions for the platform. In March, Musk confirmed that X Money, the platform’s in-house payment product, was slated for early public access within weeks, signaling a step towards his vision of an “everything app” that integrates financial services into social media.

    The X Money product was initially launched to a select group of US Premium+ users in June, before expanding to a wider audience of paid subscribers by late July. Currently, it functions as a dollar-based wallet, enabling eligible users to hold balances, conduct free instant transfers to other X Money users, receive direct deposits, and make purchases using a Visa debit card. The service also offers up to a 6% annual yield on balances and cashback on purchases.

    Notably, X Money does not yet support cryptocurrency or stablecoins, despite significant speculation prior to its launch. However, some of Musk’s other ventures have previously embraced stablecoin technology. SpaceX, for instance, has reportedly been using stablecoins to process cross-border payments from Starlink customers in emerging markets, a precedent that may shed light on X’s current interest in the technology.

  • XRP Reclaims $1 Amid Conflicting Technical Analyses and Unclear Volume Drivers

    XRP Reclaims $1 Amid Conflicting Technical Analyses and Unclear Volume Drivers

    XRP has reclaimed the significant psychological level of $1, trading near $1.15 after an overnight price increase of approximately 15%. However, this price action is currently overshadowed by sharply divergent technical analyses, creating substantial uncertainty regarding XRP’s future trajectory.

    Why This Matters

    The materials describe a narrow update: XRP’s price increased significantly, surpassing the $1 mark. The accuracy and validity of Elliott Wave price targets ($5.8563 and $9.0362).

    Broader Context

    Source materials place the factual news in this context: XRP price climbed roughly +15% overnight to trade near $1.15, reclaiming the psychologically important $1 level after weeks of chop, and XRP analyst Dark Defender argues the move suggests a completed “triple dip” on the weekly chart.

    Divergent Technical Forecasts

    Technical analysts are presenting conflicting outlooks for XRP. According to analyst Dark Defender, the recent price move suggests a completed “triple dip” pattern on the weekly chart, with potential Elliott Wave targets reaching as high as $5.8563 and $9.0362. These targets are considered speculative given their distance from the current price and the thinness of the confirmation. Before such targets could be approached, XRP would need to overcome resistance levels at approximately $1.20–$1.30, $1.50, and $1.88.

    Conversely, other analyses present a more bearish outlook. Just over a week prior, when XRP was trading around $1.01, analyst CasiTrades cited a Relative Strength Index (RSI) reading of 36.62 coupled with a bearish divergence pattern. This suggested a potential for further downside, with projections of a bottom near $0.95, followed by a corrective bounce to $1.00–$1.04, and a final downward leg toward $0.85–$0.86. The critical support level identified in this bearish case is holding above $1; a return below this mark would undermine the bullish premise.

    The core takeaway from these conflicting analyses is the inherent uncertainty. Both interpretations are derived from similar price action data within a two-week window, yet they yield sharply divergent predictions. The ability of XRP to sustain its position above $1 is viewed as a crucial determinant for the validity of either the bullish or bearish scenarios.

    Volume Concentration: Unclear Drivers

    Further complicating the market picture is the observed concentration of XRP trading volume. According to an August 18 disclosure by Evernorth, approximately 23% of all XRP traded on-chain now occurs within a three-hour window encompassing London’s afternoon and New York’s morning. This is a significant increase from about 14% a year ago. This concentration has been noted across various trading venues on the XRP Ledger (XRPL), coinciding with roughly $900 million in RLUSD-XRP volume over the past six months.

    However, the drivers behind this increased volume concentration remain unclear. Public ledger records track transaction timing and volume but do not reveal the identities of the transacting wallets. Evernorth itself has acknowledged that its data cannot suggest whether banks, trading desks, or automated systems are responsible for this shift. Consequently, the narrative of institutional demand underpinning bullish XRP price predictions is considered circumstantial rather than proven.

    In conclusion, while XRP has successfully reclaimed the $1 level, the market faces significant ambiguity. The presence of sharply conflicting technical analyses, coupled with unconfirmed drivers for increased trading volume concentration, means that XRP’s future price direction remains highly speculative and uncertain.

  • Perplexity AI: Moderna Stock’s 2026 Wealth Potential

    Perplexity AI: Moderna Stock’s 2026 Wealth Potential

    Moderna’s Market Value Soars on Promising Cancer Vaccine Trial

    A single trial readout has effectively doubled Moderna’s market capitalization in one trading session, with AI firm Perplexity predicting the upward rerating of the stock will continue. Perplexity forecasts Moderna’s share price could reach between $180 and $240 by the end of 2026, with a bullish base case scenario of $210.

    Intisemran: The Key Driver for Moderna’s Valuation

    The primary catalyst for this significant valuation shift is Intisemran, Moderna’s personalized mRNA cancer vaccine. Perplexity identifies it as the dominant factor influencing the company’s future valuation. The Phase 3 INTerpath-001 trial for melanoma met both of its primary endpoints, demonstrating improved recurrence-free survival and distant-metastasis-free survival when used in conjunction with Keytruda. This marks the first late-stage validation of Moderna’s oncology platform and Perplexity suggests it could unlock a substantial opportunity within the melanoma market.

    Near-Term Catalysts Bolster the Outlook

    Two immediate factors are also supporting the positive outlook for Moderna. The anticipated FDA approval of mFLUSIVA is expected to introduce a commercial product generating revenue before the oncology platform fully matures. Furthermore, revised cost guidance for 2026 suggests an improvement in cash-burn expectations. These developments are seen as providing crucial time for the oncology thesis to fully develop.

    Risks Remain Data-Dependent

    Despite the positive momentum, significant risks persist, primarily tied to future data. Disappointing hazard ratios are a key concern, followed by overall survival data, pricing strategies, and regulatory approval timelines. Any negative developments in these areas could potentially drive the stock price down to the $125 to $150 range.

    Chart Analysis Reveals Dramatic Reversal

    Technical analysis of Moderna’s daily chart illustrates a dramatic reversal following a four-year decline. The stock, which peaked near $170 in mid-2024, entered a prolonged downturn, plummeting from $120 to approximately $23 by late 2025. A base was established in the autumn of that year.

    The recovery began in early 2026, pushing prices towards $60 by March. A surge to $85 occurred in July, followed by a pullback. The most recent trading session saw a significant surge, with the stock gapping up from $116 to close at $174.38 following the trial news.

    The closing price of $174.38 represented a 176.97% increase, or $111.42. The daily trading range spanned from $114.46 to $176.66, with post-market trading reaching $180.17. Key support levels are identified at $150, $120, and $85, while resistance is anticipated at $180, $210, and $240.

    The Relative Strength Index (RSI) stands at an exceptionally high 92.21, with its signal line lagging significantly at 52.98. This substantial gap of nearly 40 points indicates a one-day repricing event rather than a sustained trend. The oscillator is deeply overbought, signaling extreme momentum that rarely persists without a period of consolidation.

    Perplexity’s base case scenario places the stock 20% higher than its current close. The market’s ability to sustain this new valuation will hinge on detailed efficacy data and ongoing regulatory discussions.

    Moderna’s 177% surge serves as a stark reminder that markets often await a single, decisive event to resolve uncertainty.

  • Hyperliquid Launches in US

    Hyperliquid Launches in US

    Trump Signals Push to Bring Offshore Crypto Derivatives Platform Onshore

    Former President Donald Trump announced that the Commodity Futures Trading Commission (CFTC) is actively working to bring the popular offshore cryptocurrency derivatives platform Hyperliquid into the United States. The statement, made during a meeting at the White House with executives from major financial and crypto firms, sent ripples through the market.

    Trump indicated that CFTC Chair Michael Selig is spearheading efforts to establish Hyperliquid’s presence in the U.S. in a “fully compliant and legal fashion.” He expressed a desire to see this development, stating, “We would really like to see it.”

    The news had an immediate impact on cryptocurrency prices. Hyperliquid’s native token, HYPE, surged 23% to a peak of $72. Another derivatives platform leader, LIT, saw a 20% increase, reaching a new local high. The broader crypto market also experienced gains, with Bitcoin climbing to $72,000, Ethereum rising by 20% to over $2,300, and Solana reaching $87. Stocks of publicly traded crypto-related companies also saw significant boosts, with Coinbase and Circle each jumping 17%, and Robinhood stock gaining 10%.

    Hyperliquid is an offshore platform that allows traders to engage in leveraged bets using perpetual futures – contracts without an expiration date – by simply connecting a cryptocurrency wallet, bypassing the need for a traditional brokerage account. U.S. residents are currently prohibited from legally accessing the platform. This operational model circumvents the intermediary typically assumed by U.S. derivatives regulations, which has historically led to offshore operations for many crypto platforms due to registration, customer protection, and market oversight requirements. The CFTC has been laying groundwork for such a move, having previously cleared Coinbase Derivatives for perp-style Bitcoin and Ethereum futures slated for April 2025, and approving Kalshi for a similar product.

    The meeting also touched upon broader legislative efforts. Trump urged Congress to pass a revised version of the Clarity Act, a market structure bill designed to delineate authority over digital assets between the Securities and Exchange Commission (SEC) and the CFTC. He framed this legislation as crucial for maintaining a competitive edge against China. The bill is scheduled for a return to the Senate floor in September, following the lawmakers’ recess. However, it still requires approximately six Democratic votes to overcome a potential filibuster and reach the 60-vote threshold needed for passage.

    The current landscape suggests a divergence in regulatory approaches. While the SEC recently proposed its first formal cryptocurrency rules, President Trump’s public directive to the CFTC to find a pathway for a major offshore derivatives venue highlights a distinct regulatory push. With the Clarity Act facing legislative hurdles, the SEC and CFTC appear to be proceeding with rule-making, potentially exerting pressure on Congress to either act on legislation or allow the agencies to establish their own regulatory frameworks for digital assets.

    Attention now turns to the CFTC’s Innovation Advisory Committee, which is set to convene for its inaugural meeting on Thursday.

  • ELIZAOS, PRCL, TUSD Delisted

    ELIZAOS, PRCL, TUSD Delisted

    Bybit to Delist Several Tokens, Citing Performance and Compliance Standards

    Cryptocurrency exchange Bybit announced today that it will delist and cease trading for several tokens, including ELIZAOS, PRCL, and TUSD, along with their associated USDT trading pairs. The move, effective August 27, 2026, is part of Bybit’s ongoing commitment to maintaining a secure and reliable trading environment, adhering to its Token Management Rules.

    Delisting Details and Timeline

    The delisting will impact trading on Bybit’s Spot platform, with trading for ELIZAOSUSDT, PRCLUSDT, and TUSDUSDT pairs concluding after August 27, 2026, at 8:00 AM UTC. All open orders for these pairs will be automatically canceled.

    Furthermore, ELIZAOS, PRCL, and TUSD tokens will be removed from Bybit Convert after the same date and time.

    Deposits for these tokens will cease earlier, closing after August 26, 2026, at 8:00 AM UTC.

    Impact on Trading Bots and Withdrawals

    Users employing Spot Grid Bots or DCA Bots on the affected ELIZAOSUSDT, PRCLUSDT, and TUSDUSDT pairs are advised to close their active bots before August 27, 2026, 8:00 AM UTC. Failure to do so will result in automatic termination by the system.

    While withdrawals for ELIZAOS, PRCL, and TUSD assets will remain open after the trading pairs are closed, Bybit recommends users initiate withdrawals promptly to ensure effective asset management.

    The exchange reiterated its dedication to upholding performance and compliance standards through regular reviews of listed tokens and projects.

  • Flock’s AI Spots Drivers Without ID

    Flock’s AI Spots Drivers Without ID

    Flock Safety Develops AI to Track Drivers by Movement Alone

    Flock Safety, a surveillance company whose cameras are deployed in over 6,000 U.S. communities to log vehicle movements, has developed an artificial intelligence tool capable of identifying and tracking drivers based solely on their travel patterns.

    The existence of this system was revealed in a report by Wired, which obtained the software’s code from files accessible on Flock’s own website.

    The software, initially named Nightshift and now referred to as OS Investigate, is currently in development and undergoing testing with a select group of law enforcement agencies, according to the company.

    The system allows officers to select from a menu of 69 pre-written prompts or to input custom queries. One such prompt is designed to identify “witnesses,” listing vehicles most frequently observed in a neighborhood over the preceding two weeks. Another query can identify individuals arrested more than twice in a two-year period (excluding drug offenses) and compile profiles on the top three suspects. A “workup” function can generate a dossier on an individual, including relatives, phone numbers, and online accounts, by cross-referencing police records with commercial data brokers, using just a name and date of birth.

    Crucially, 14 of these prompts do not require any vehicle plate number, name, or description. Instead, an officer can specify a location, a timeframe, and a behavior—such as cars involved in incidents at three retail stores over three days, or multiple bank visits within a week—and the system will return individuals matching the criteria. Filters are in place to exclude buses and delivery vans, ensuring that ordinary drivers performing routine tasks remain on the list.

    The underlying logic for identifying associates is detailed in the code. It works by counting how often other license plates appear at the same cameras within a two-minute window of a target vehicle. Any plates appearing three or more times with a confidence score above 0.75 are flagged and up to 20 associated names are returned.

    “I don’t know how else to say this, but this sounds completely insane,” Noel Pichardo, a former police officer in Pawtucket, Rhode Island, who reviewed the prompts, told Wired. “I don’t know how anyone can argue against the idea that Flock literally tracks people.”

    Jay Stanley, a senior policy analyst at the ACLU, expressed concern that the capabilities of Flock’s cameras, combined with this new software, create a surveillance environment with “very little space… like China.”

    Flock has consistently stated that its technology “cannot recognize, identify, or track individuals” and is “not for watching people.” Spokesperson Paris Lewbel described OS Investigate as a distinct product from the company’s license-plate readers, designed to assist investigators in working with existing agency records. Lewbel also noted that its capabilities may undergo significant changes before any broader release. The company did not dispute Wired’s reporting.

    The controversy has already led to direct action. In June and July, activists vandalized, covered, or destroyed Flock cameras across the country, with The Guardian documenting at least 33 incidents in 23 states. This backlash is consistent with documented instances of police misuse of the network. A report by the Institute for Justice found over two dozen cases where officers allegedly used license-plate readers to stalk current or former partners, leading to resignations or arrests.

    The issue has also reached Capitol Hill. Representative Thomas Massie has proposed legislation that would prohibit federal funding for agencies deploying this technology.

    Meanwhile, researchers have developed AI-generated patterns designed to confuse the plate-reading software. Flock is not the only entity pushing the boundaries of surveillance technology; Meta has patented cameras capable of recognizing faces and logging individuals’ actions.