01 / Industry under examination

PayPal blocked WikiLeaks donations routed through German nonprofit, triggering tax-status dispute

      PayPal; Wau Holland Foundation; WikiLeaks
      2010s
      Platform Scandals
      Archive: verified
      3/5 wildness
    

Between October 2009 and December 2010, the Hamburg-based Wau Holland Foundation collected more than $1.9 million in donations for WikiLeaks. On December 4, 2010, PayPal disabled the foundation’s donation account, alleging that it was being used for activities that “encourage, promote, facilitate or instruct others to engage in illegal activity.” The foundation rejected the characterization, announced on December 8 that it had filed legal action over the account closure and alleged libel, and argued that the payment platform had improperly cut off support for a controversial publisher.

The dispute also produced consequences from German tax authorities. On October 25, 2012, the Hamburg Tax Office retroactively revoked the foundation’s nonprofit status for 2010, ruling that forwarding donations to WikiLeaks or people behind the organization did not constitute direct pursuit of tax-advantaged purposes. The foundation’s complaint was rejected, although its charitable status was reinstated retroactively for 2011 and 2012 on December 12, 2012. In February 2024, authorities again revoked its nonprofit status for 2020; the foundation appealed and announced in June 2024 that the status had been restored.

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02 / Daily Briefing

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PayPal blocked WikiLeaks donations routed through German nonprofit, triggering tax-status dispute

Archive Record · 2010s

03 / The Archive

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Platform Scandals2020s

Wuhan police reprimanded doctor Li Wenliang after his early coronavirus warning spread online

WeChat; Wuhan Public Security Bureau; Li Wenliang

On 30 December 2019, ophthalmologist Li Wenliang shared a diagnostic report and messages in a private WeChat group warning fellow doctors about seven suspected SARS cases linked to Wuhan’s Huanan Seafood Market. He asked recipients to alert relatives while exercising discretion, but screenshots circulated publicly. On 3 January 2020, Wuhan police interrogated Li and seven other doctors, issued him a written admonition for publishing allegedly false statements, and warned that continued conduct could lead to prosecution. The warning was also publicized by state media, according to reporting cited in the source. The outbreak was later identified as SARS-CoV-2 rather than SARS, while the Supreme People’s Court said on 4 February that the citizens should not have been punished because their statements were not entirely false. Li contracted COVID-19 while treating a patient and died at Wuhan Central Hospital on 7 February 2020, aged 34. Following public anger and online demands for freedom of speech, an official inquiry exonerated him; Wuhan police apologized to his family and revoked the admonition on 19 March. The government later designated Li a martyr, but censorship removed related hashtags and posts, leaving his case as a lasting example of how information controls and institutional fear impeded early public-health warnings.

Archive: verified ↗

Platform Scandals2020s

Wuhan Doctor’s COVID-19 Warning Was Reprimanded, Then Erased Online

Chinese internet-censorship apparatus; Wuhan Central Hospital; WeChat

On 30 December 2019, Ai Fen, director of the emergency department at Wuhan Central Hospital, received a diagnostic report describing suspected SARS coronavirus and respiratory infections. She circulated an image of the report to medical contacts after reporting it internally; ophthalmologist Li Wenliang then warned former classmates through WeChat. Ai later said that hospital officials accused her of spreading rumors and subjected her to an “unprecedented and very severe rebuke.” The source also reports that, at a 16 January 2020 hospital meeting, officials continued denying human-to-human transmission, while infected nurse Hu Ziwei’s medical description was changed from “viral pulmonary infection?” to “spread-out pulmonary infection.” People magazine published Ai’s first-person account, “The Whistle-Blower,” on 10 March 2020, but the article and its WeChat post were removed within hours. Chinese users reposted it through emojis, Morse code, braille, pinyin, and other formats to evade censorship. Claims that Ai was formally threatened on 2 January were attributed to later reporting and her account; Wuhan Central Hospital party chief Cai Li was later fired, although the supplied source does not establish that the firing was solely for this incident. The episode became a prominent example of how institutional reprimands and online censorship obstructed early public discussion of a dangerous outbreak.

Archive: verified ↗

Platform Scandals1970s

Scientology lost British copyright case over ex-member’s critical exposé

Church of Scientology; The Mind Benders

Former Scientology auditor Cyril Ronald Vosper published The Mind Benders in 1971 after being expelled from the organization in September 1968. The book used internal material and quotations from L. Ron Hubbard’s writings to criticize Scientology’s practices. The Church sued Vosper and a newspaper editor for breach of copyright and breach of confidence, seeking to restrict publication and discussion of its affairs. The British courts rejected the Church’s claims. The Court of Appeal held that the book’s use of material qualified as fair dealing for criticism and was in the public interest, rejecting the Church’s appeal. During the litigation, a High Court judge was reported to have characterized the Church’s contempt applications as attempts to stifle criticism or inquiry. Vosper later alleged additional harassment, including the disappearance of a manuscript and a suspicious package incident, but those allegations are not independently established in the supplied account. The episode became an early legal setback for Scientology’s attempts to use intellectual-property and confidentiality claims against critics.

Archive: verified ↗

Platform Scandals2000s

Secret memo about alleged plan to bomb Al Jazeera led to Official Secrets Act convictions

Al Jazeera; UK Government; David Keogh and Leo O'Connor

In November 2005, British civil servant David Keogh and parliamentary researcher Leo O'Connor were charged under sections 3 and 5 of the Official Secrets Act 1989 over the alleged leak of a classified memo. The document reportedly recorded an April 2004 discussion between Prime Minister Tony Blair and President George W. Bush in which Blair dissuaded Bush from bombing Al Jazeera's headquarters in Qatar. The source establishes the charges and the alleged contents, but does not independently prove that a bombing plan was authorized or carried out. The UK government argued that disclosure could seriously damage international relations, and the trial was held under extensive secrecy at the Old Bailey after a judge invoked Section 11 of the Contempt of Court Act 1981. On 10 May 2007, Keogh was convicted on two counts and sentenced to six months in prison, with £5,000 in prosecution costs; O'Connor was convicted on one count and sentenced to three months. The case also raised concerns about government control of information after the BBC initially reported that a different Iraq memo was involved, a claim later challenged and superseded by mainstream coverage identifying the Al Jazeera memo.

Archive: verified ↗

Platform Scandals2024–2025

Former OpenAI researcher challenged the legality of generative-AI training data

OpenAI, GPT-4, and ChatGPT; Suchir Balaji

Suchir Balaji, a researcher who helped gather and organize internet data used to train GPT-4, left OpenAI in August 2024 after concluding that its business practices violated copyright law. In an essay published in October 2024 and an October 23 interview with The New York Times, he argued that systems such as ChatGPT were trained on competitors’ and creators’ works and could generate outputs that imitate or substitute for those works. He contended that the systems failed the four-factor U.S. fair-use test, while OpenAI maintained that its models relied on publicly available data and were protected by fair use and related international principles. The claim remained legally contested rather than an established finding. The New York Times’ attorneys identified Balaji in a November 18, 2024 court filing as a person who might possess relevant documents in its copyright lawsuit against OpenAI, and he said he would testify, but the source states that he had not disclosed previously unknown inside information. Stanford professor Mark Lemley disputed his legal conclusion, and attorneys later described the essay as an intelligent but incomplete non-lawyer analysis. Balaji died on November 26, 2024; after public speculation and claims by his parents of foul play, the San Francisco Police Department and Chief Medical Examiner concluded there was no evidence of homicide and ruled the death a suicide in an autopsy released February 14, 2025. The copyright lawsuits and regulatory debate over AI training data continued.

Archive: verified ↗

Platform Scandals2020s

Fox News Paid $787.5 Million After Broadcasting False Voting-Machine Claims

Fox News, Lou Dobbs Tonight, Dominion Voting Systems, Smartmatic

After the 2020 U.S. presidential election, Lou Dobbs and other Fox Corporation hosts promoted conspiracy theories alleging that Dominion Voting Systems and Smartmatic had helped rig the election against Donald Trump. Dominion sued Fox News and related parties for defamation, arguing that the broadcasts damaged its business and reputation despite the absence of supporting evidence. The source identifies Dobbs as one of the hosts named in the litigation. On April 18, 2023, Fox News settled Dominion’s lawsuit for $787.5 million. As part of the aftermath, Fox acknowledged in court that it had broadcast claims about Dominion that were false. Smartmatic separately filed a $2.7 billion defamation lawsuit on February 4, 2021, naming Dobbs and two other Fox hosts; the programs had aired video retractions after receiving a demand letter, but the hosts did not personally issue retractions. Dobbs and Fox also reached a confidential settlement with Venezuelan businessman Majed Khalil in April 2023 over allegations that broadcasts falsely implicated him in election-machine manipulation.

Archive: verified ↗

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