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Netflix has been sued in Texas over claims it collects data belonging to children and adults in the US state without their consent, and uses "addictive" design to keep them hooked.
Texas Attorney General Ken Paxton accused the streaming giant of "spying" on citizens saying it "records and monetises billions" of pieces of information about how users behave on the platform, despite suggesting otherwise.
Every interaction on the platform became a data point revealing information about the user," his office said.
Netflix has rejected the claims and says it will challenge them in court, according to a statement shared with Reuters.
Respectfully to the great state of Texas and Attorney General Paxton, this lawsuit lacks merit and is based on inaccurate and distorted information," a Netflix spokesperson told the news agency.
Netflix takes our members' privacy seriously and complies with privacy and data protection laws everywhere we operate."
The attorney general can pursue action including penalties against those found to have engaged in such activity.
In this case, it wants the court to order Netflix to delete any data "deceptively collected from Texans", cease processing their data for targeted advertising and to turn auto-play off by default for children's profiles.
It comes as platforms face calls to disable features like auto-play and infinite scroll, over concerns they keep users unhealthily hooked on endless streams of content.
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U.S. District Judge Lewis A. Kaplan, who presided over Bankman-Fried’s 2023 fraud trial and sentenced him to 25 years in prison, issued the ruling in New York, according to court records reported by Bloomberg and Inner City Press. The judge described Bankman-Fried’s arguments as “baseless on multiple independently sufficient levels.”
The motion, filed pro se around Feb. 10, 2026, asked the court to grant a new trial under Rule 33 of the Federal Rules of Criminal Procedure. Bankman-Fried alleged that new witness testimony from former FTX executive Ryan Salame and an individual identified as Daniel Chapsky undermined the government’s case.
Prosecutors pushed back hard in March 2026, arguing the claims had no merit. Judge Kaplan agreed, finding that the purported new evidence would not likely produce an acquittal given the weight of proof presented at trial.
Before the ruling came down, Bankman-Fried sent a handwritten letter to the court on April 22, 2026, asking to withdraw the motion without prejudice. He gave two reasons: he had not been given enough time to respond to the government’s opposition, and he did not believe he would get a fair hearing from Judge Kaplan.
The judge denied that request, too, and ruled on the motion anyway.
Bankman-Fried’s letter also addressed questions the court had raised about who wrote the filing. He denied improper ghostwriting but acknowledged that his mother, Barbara Fried, provided editorial suggestions and helped print the document. Judge Kaplan had scrutinized the submission because Fried is not a licensed attorney.
Bankman-Fried was convicted in November 2023 on seven counts of fraud and conspiracy tied to the collapse of FTX and his trading firm Alameda Research. Billions in customer funds went missing. He was sentenced in March 2024.
His direct appeal is pending before the Second Circuit Court of Appeals, with oral arguments held in 2025. That case remains active and is separate from the Rule 33 motion Judge Kaplan just denied.
A request to have Judge Kaplan removed from the case on bias grounds is also still pending. Bankman-Fried reserved the right to refile the new trial motion once that reassignment request and his direct appeal are resolved
For now, his 25-year sentence stands. No changes to his incarceration status have been ordered.
The latest ruling closes the district court door on this particular legal effort, though Bankman-Fried retains options at the appellate level. How the Second Circuit handles his direct appeal will likely shape what comes next.
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A coordinated global regulatory shift and institutional investment in infrastructure are accelerating stablecoins toward mainstream adoption, reshaping how digital money functions at scale. Mastercard shared on July 17 in a post authored by Jesse McWaters, Executive Vice President and Head of Global Policy, that stablecoins are moving closer to mass-market use as legal clarity and technical integration align.
The U.S. Congress’s approval of the GENIUS Act, alongside the now-active European Union’s Markets in Crypto-Assets (MiCA) framework, has created a regulatory foundation that encourages adoption. Countries like Singapore, Hong Kong, and the United Arab Emirates are implementing similar frameworks, forming a global blueprint. Mastercard stated:
Mass adoption, however, depends on more than legal structure—it requires infrastructure that supports security, trust, and ease of use. Mastercard highlighted how stablecoins are already facilitating faster, lower-cost cross-border payments and enabling flexible compensation for gig workers and content creators. Yet to expand beyond niche use, McWaters explained they “need to be embedded in systems that people trust,” emphasizing the need for built-in user protections and cross-platform operability.
The goal is to make stablecoin use as seamless and dependable as mainstream payment methods.
To that end, Mastercard has developed products like the Mastercard Multi-Token Network and Mastercard Crypto Credential to support stablecoin transactions at scale. These tools are built to manage settlement, enhance safety, and ensure compliance, enabling stablecoins to operate within global financial norms. McWaters concluded:
Despite ongoing scrutiny of crypto markets, Mastercard’s structured approach demonstrates how digital assets can become part of everyday commerce under the right regulatory and technical conditions.
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