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The organization’s board filed for bankruptcy after it discovered a wide range of serious problems. The group’s financial statements were falsified, the books were not in order, and taxes haven’t been paid since 2007.

CEO Snæbjörn Steingrímsson has admitted to embezzlement

CNET has learned a constellation of law enforcement groups has asked the U.S. Senate to require that wireless companies retain that information, warning that the lack of a current federal requirement "can hinder law enforcement investigations." They want an SMS retention requirement to be "considered" during congressional discussions over updating a 1986 privacy law for the cloud computing era -- a move that could complicate debate over the measure and erode support for it among civil libertarians. As the popularity of text messages has exploded in recent years, so has their use in criminal investigations and civil lawsuits. They have been introduced as evidence in armed robbery, cocaine distribution, and wire fraud prosecutions. In one 2009 case in Michigan, wireless provider SkyTel turned over the contents of 626,638 SMS messages, a figure described by a federal judge as "staggering."

The case, filed as Prince v. Chodera in the Northern District of California, reads, "The Defendants in this case engage in massive infringement and bootlegging of Prince's material." Only two defendants are named in the suit, however — the rest are listed as John Does, though eight do have the distinction of being regarded by their online handles. Nevertheless, Prince, based on "information and belief," alleges that each of the individuals worked together on Facebook and Blogger to conduct infringing activity, and lists extensively the mirror sites and blogs each used to distribute copies of his work. He has thus demanded $1 million with interest in damages from each of the defendants, along with a permanent injunction to prevent all of them from doing further harm.

The massive data breach was a result of keylogging software maliciously installed on an untold number of computers around the world,

The virus was capturing log-in credentials for key websites over the past month and sending those usernames and passwords to a server controlled by the hackers.

Of all the compromised services, Miller said he is most concerned with ADP. Those log-ins are typically used by payroll personnel who manage workers' paychecks. Any information they see could be viewed by hackers until passwords are reset.