Sunday, March 18th 2018

Viceroy Research and CTS-Labs Make Their Positions Known on "AMD Flaws"

In separate interviews with Vice Motherboard, Viceroy Research, the AMD stock short-seller that posted an obituary of AMD, and CTS-Labs, which claims AMD "Zen" architecture is infested with glaring security vulnerabilities; crystallized their financial positions on "AMD Flaws." CTS-Labs and Viceroy Research each went on record to state that they have no financial relationship with each other. "Viceroy [Research] is not a client of CTS[-Labs], and CTS[-Labs] did not send its research to Viceroy [Research]," said Yaron Luk, co-founder of CTS-Labs, but confirmed that his company's business-model involves sharing their cyber-security research with stock research firms (like Viceroy Research), which probably use the information to short tech stocks (a highly unethical though not yet illegal practice). "We are a for-profit company that gets paid for its research by a variety of research clients," Luk stated.

It's becoming increasingly clear that entities other than AMD had access to CTS-Labs' work, at least the report, if not the "research package," greater than 24 hours before public disclosure (i.e. before even AMD could see it), and one such entity, referred to as an "anonymous tipster" in the Motherboard report, "shared" the information with Viceroy Research, which quickly bought itself a shorting position against the AMD stock, and posted a 25-page doomsaying report to accelerate the fall of AMD stock (which isn't quite happening at the time of writing this post). Viceroy Research is brazen about its position on the matter. "We haven't hidden the fact that we short the stock," said Fraser Perring, founder of Viceroy. Cybersecurity guru Alex Stamos, who is associated with Facebook, without taking names, tweeted an ominous warning that short-selling fueled security research "is going to end in tears. Hopefully due to lost money, and not because naive researchers go to prison." Does this foretell new regulation by the SEC that renders Viceroy's position into a black-hole for their money? The SEC has taken a great interest in the behavior of tech corporations and investors around cyber-security research.
Source: Vice
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19 Comments on Viceroy Research and CTS-Labs Make Their Positions Known on "AMD Flaws"

#1
Durvelle27
Many already knew this

It smelled like a scheme since the announcement
Posted on Reply
#2
eidairaman1
The Exiled Airman
Durvelle27Many already knew this

It smelled like a scheme since the announcement
I highly feel Intel had their hands in this to spread FUD.

Pressing on myself from these libel scams
Posted on Reply
#3
Durvelle27
eidairaman1I highly feel Intel had their hands in this to spread FUD.

Pressing on myself from these libel scams
More than likely possible

Intel is always upto no good
Posted on Reply
#4
Xzibit
CYA (Cover Your Ass) tour.
MotherboardPerring also said that Viceroy has never had any financial relationship with CTS Labs. An anonymous tipster shared CTS Labs’ report with Viceroy last week
Would it constitute as insider trading if the report wasn't public yet and they shorted AMD?
Motherboard"we are a for-profit company that gets paid for its research by a variety of research clients."
Okay, but who paid for this one. Besides they said this is their first rodeo, so how much variety in clientele can they have in less then a year and this being their first.



Source: Motherboard doesn't mention the information being sold but TPU does
TPUone such entity, referred to as an "anonymous tipster" in the Motherboard report, sold the information to Viceroy Research
Posted on Reply
#5
btarunr
Editor & Senior Moderator
Thanks, fixed.
Posted on Reply
#6
ShurikN
I honestly doubt Intel had anything to do with this.
Posted on Reply
#7
_Flare
Some say peoples at CTS-Labs have done some Malware-creation before, and therefore have no relationship to non-written security ethics.

This stock-weakening practices will only have effect if a non-fire-raising Company publicates it first.

Maybe those non-ethical methods are additionally illegal because of insider-trading/stock-manipulation, but for sure it is fire raising.

I don´t think intel whould go such high risk.
Posted on Reply
#8
john_
I hope AMD and ASMedia sue the hell out of them. Even if these vulnerabilities are real and probably they are, it's clear that we have stock manipulation here. Those people at CTS Labs should either explain why they tried so hard with logos, sites, names to have the biggest negative impact on AMD's reputation, or clarify why they withhold the information of ASMedia vulnerabilities all these months/years. Maybe they where making money out of these?
Posted on Reply
#9
ZeppMan217
ShurikNI honestly doubt Intel had anything to do with this.
You mean Intel, a company known for its shady behavior and regular abuse of its nigh monopolistic market position, wouldn't engage in a smear campaign against its primary competitor after having suffered a major PR disaster?
Posted on Reply
#10
evernessince
Can you even claim to be vulnerability researchers if you are selling that information to short sellers? You are more like Black Hat Hackers, you sell vulnerability information to make a profit. Heck, these guys are even worse than Black Hat hackers because they took multiple extra steps to market the vulnerabilities as the next meltdown and take potshots at AMD.

To be clear here, the vulnerabilities might be real but their website is not a disclosure for the good of anyone but themselves and their financial interests.
Posted on Reply
#11
Chaitanya
john_I hope AMD and ASMedia sue the hell out of them. Even if these vulnerabilities are real and probably they are, it's clear that we have stock manipulation here. Those people at CTS Labs should either explain why they tried so hard with logos, sites, names to have the biggest negative impact on AMD's reputation, or clarify why they withhold the information of ASMedia vulnerabilities all these months/years. Maybe they where making money out of these?
That list should also include media outlets who regurgitated blabber without using common sense.
Posted on Reply
#12
techy1
I do not think that intel had something to do with so small amateurs - small amateurs just got greedy and acted on that (you do not need big budget to make up "researches" like these as they did and to short a stock with leverage). the Sad part of all this is - that even small amateurs like these gets full publicity for free !!! that means any scum can repeat it any time to any product/company - no "big money" or "big help" needed.
But one of the most sadest part here on TPU was/is admins reaction, they did a low quality work (to give these stock manipulators free Press multiple times), but flagged actually better comments than their content.... yes some comments was just insults without any point, explanation or logic - you can flag those, no value of those anyway, BUT some comments had logical and with explanation that just was not pleasing for admins to read and coments like these (not pleasing to admins current state) are getting flagged like no big deal from now on? and everyone is cool with that?
Posted on Reply
#13
W1zzard
techy1BUT some comments had logical and with explanation that just was not pleasing for admins to read and coments like these (not pleasing to admins current state) are getting flagged like no big deal from now on?
I don't think I've removed any comments that had logical explanations that were elaborated an a proper way
Posted on Reply
#14
Vya Domus
No one is going to believe that Viceroy had nothing to do with CTS when they both made public their FUD-filled "papers" literally at the same time. If there is one thing I hate the most is when you have the audacity to consider everyone a moron who will totally buy your obvious lies and made up crap.

I wonder why don't they just shut up , at this point there is nothing they can do or say that will clear up the suspicions revolving around their true intentions.
Posted on Reply
#15
W1zzard
Vya DomusI wonder why don't they just shut up , at this point there is nothing they can do or say that will clear up the suspicions revolving around their true intentions.
Is there ever a time for anyone to know the other's true intentions? That's why I chose to focus reporting on the technical details
Posted on Reply
#16
Vya Domus
W1zzardIs there ever a time for anyone to know the other's true intentions? That's why I chose to focus reporting on the technical details
You are right , I have no problem with the article or how these reports have been handled. It was just an observation on my part as to how they (CTS and viceroy ) are handling this situation and how poor of a job they are doing trying to clear up their name.
Posted on Reply
#17
dicktracy
W1zzardIs there ever a time for anyone to know the other's true intentions? That's why I chose to focus reporting on the technical details
Keep it up. Don’t give in to any bias.
Posted on Reply
#18
Vayra86
My oh my this really did explode right in their faces, and it'll probably still do so again, and there's nothing they can do about it anymore.
Posted on Reply
#19
wiyosaya
The way Viceroy handled this, it looks like an attempt at stock price manipulation for their gain. To publish anything like this is one thing, but to have a position in the stock which could potentially result in financial gain and then to publish what is an attempt at a smear that would result in financial gain due to one's position in the stock is, IMO, unethical at the very least, and may even be illegal. All I can say is that this case seems worth of an investigation by the SEC regardless of whether or not AMD confirms these vulnerabilities. If anyone digs up Intel dirt in this, to say the least they could be on the hot seat for potential anti-competitive behavior.

Intel has been riding a cash cow for years, they will not like giving up that cash cow.
Posted on Reply
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