The FBI arrested a Florida man accused of uploading fake Steam games containing malware that stole passwords, data, and cryptocurrency wallet credentials from victims. Prosecutors say the scheme infected about 8,000 people, compromised roughly 80 crypto wallets, and stole at least $220,000 through games that appeared legitimate but secretly carried malware. TechCrunch reports: On Tuesday, the FBI arrested Zyaire Wilkins, a 21-year-old Florida resident and student. On Wednesday, prosecutors accused him and a number of unnamed co-conspirators of hacking crimes. Over the past two years, Wilkins and his partners allegedly published several malware-laden video games on Steam, including BlockBlasters, Dashverse, Lampy, Lunara, and PirateFi. Using that malware, says the FBI, Wilkins and his accomplices infected around 8,000 victims, and then hacked around 80 cryptocurrency wallets to steal at least $220,000 worth of crypto. Wilkins and the others marketed their malicious video games on Discord, LinkedIn, and Telegram, according to the authorities.

[...] After the FBI identified another person involved in the crimes, according to the complaint, federal agents interviewed them. The unnamed person said they worked with other people to raise money to launch and market the malicious games in return for sharing some of the stolen cryptocurrency. The FBI identified a specific crypto account involved in the scheme, and then traced cryptocurrency payments made with that account to buy several gift cards, including for UberEats. After subpoenaing Uber, the feds were able to see that the gift cards were linked to an account that made deliveries to Wilkins, who went by the nickname Sibel.eth online, according to the complaint. The feds then got a search warrant for Wilkins' residence, where they seized his MacBook laptop, cellphones, other devices, and digital wallets. According to the complaint, he refused to speak or answer any questions.

Microsoft restored streamer Joshua Khane's 25-year-old Xbox and OneDrive account after it was compromised by a hacker and then suspended, putting years of personal data, baby photos, and thousands of dollars in games at risk. IGN reports: While he was "extremely happy" and thanked Microsoft for its help recovering his account and all the invaluable information therein, he levied some criticisms toward the brand for its initial response, claiming it had told him the suspension was "irreversible" at first. "It's unfortunate that such a big company can bring back your account if you ask them to," he said. "The way it all went, to me, is a little bit shady, because it's not that they can't bring back your account -- they won't bring back your account if you're a nobody."

Khane credited the community for making his story go viral and bringing it to Microsoft's attention, but felt that without their help, he would have been up a creek without a paddle. He also tied the situation to the growing conversation surrounding digital ownership, comparing it to Sony's decision to stop printing physical game discs starting January 2028.

"I have been trying to find something meaningful to say about the Id Software layoffs," John Carmack posted Thursday to his 2.8 million followers on X.com: My "Microsoft will probably be a good steward of the brand" statement isn't aging well, and this is certainly going to dampen the mood of the founder reunion at QuakeCon next month.

I'm saddened, but I can't muster anger or outrage over it. I don't have access to the books, but I suspect that Id Software was a marginal business from Microsoft's perspective. I believe the reports that Minecraft revenues have been carrying several other studios.

To continue being produced long term, games need to succeed, not just be beloved. Games are competing with every other option for spending your leisure time and money, and the competition is brutal. You can't rule out the possibility that executives are idiots, but that shouldn't be your default belief. I don't think there is any obvious path that would have doubled the revenue from Id games.

Could they have gotten more with a different pricing strategy? Could they have created more things for fans to buy? Could they have cost effectively marketed in a way that reached more players that would have loved and bought the games? Could they have changed the game designs and broadened the appeal to more players without alienating existing ones? Could they have produced the games at a lower cost, faster or cheaper? I really don't know.

The game isn't over yet, and I hope the studio rallies through.
Id Software co-founder John Romero also shared his thoughts on X.com: I'm so sorry for everyone at id Software affected by these layoffs. I know what it feels like to leave id while id goes on. It's a strange and painful thing to step away from a place that holds so much of your work, friendships and history.

The people at id have done a great job moving that legacy forward. DOOM, Quake, and Wolfenstein are not easy names to carry on, especially in today's industry. The last few games showed real care, skill and respect for what those worlds mean to people.
Romero also expressed his hope for "digital preservation" of Id's ongoing history (including code and assets). "I'm thinking of everyone at id today, and everyone else affected by yesterday's layoffs. Romero Games was there a year ago. I know how devastating it is, and my heart's with all of you.

"Four Xbox studios are already out the door," noted IGN, but shared some thoughts about the future: Some have expressed concern that id Software would be unable to lead development on any new games in its current state, and that it might be relegated to support studio status. But in a new statement [posted to id Software's page on X.com] id Software said it was now at the staffing level it was back when it made the much-loved 2016 Doom reboot — and insisted it was still capable of making "great games."

"While our studio was impacted, those changes were spread across teams. We still have the crew we need to build the games and tech we're known for... We're going to keep building the great games and tech that have defined us for the past 35 years, and we're looking forward to seeing you at QuakeCon this August."