Author

admin

Browsing

Tech billionaires Michael and Susan Dell announced Tuesday that they are pledging $6.25 billion to create some 25 million additional ‘Trump Accounts’ for children across the country.

These accounts will be seeded with $250 each, and available for children who missed the eligibility cutoff for the $1,000 federally funded ‘Trump Accounts’ for babies born after Jan. 1, 2025.

Children living in ZIP codes with median incomes below $150,000 will be the first to receive the funds, the White House said.

‘The greatest investment that we could possibly make is in children,’ Susan Dell said alongside President Donald Trump at the White House.

‘It’s really an amazing moment that two people would do that kind of a contribution,’ Trump said.

The president said he was also talking to other wealthy donors and friends to potentially make similar contributions.

Michael Dell; President Donald Trump.Errich Petersen; Chip Somodevilla / Getty Images

Asked how this donation came to be, Michael Dell said: ‘We started talking about Texas only at the beginning. And then we thought about it some more, and we went back and forth, as we do on these things, and this is where we ended up.’

The Dells said they considered making the pledge for a long time. But they said they didn’t want the pledge to be the end of their involvement.

Michael Dell encouraged states to ‘really grow financial literacy’ to help educate families about how the accounts and markets work.

‘These deposits will reach the accounts of most children age 10 and under who were born prior to the qualifying date for the federal newborn contribution,’ the Dells said in a statement issued by their foundation.

‘Children older than 10 may benefit, too, if funds remain available after initial sign-ups,’ the Dell family said. ‘It is an incredibly practical and direct step to help families begin saving today.’

The Dells say they ‘believe this effort will expand opportunity, strengthen communities, and help more children take ownership of their future.’

The Dell family gift “is expected to reach nearly 80% of children age 10 and under across 75% of U.S. zip codes,” according to the nonprofit Invest America.

Children born after Jan. 1 and until Dec. 31, 2028, will receive an account infused with a $1,000 investment from the U.S. Treasury, as part of the recently passed One Big Beautiful Bill.

The accounts will open and begin accepting contributions starting on July 4, 2026. The accounts will initially be held by a financial firm designated by the Treasury Department, but later will be able to be transferred to any brokerage firm.

Those accounts will also be eligible for additional contributions of up to $5,000 per year until the beneficiary child reaches age 18. Withdrawals from the accounts are not permitted until the children reach that age.

Trump accounts can be invested only in low-cost index funds or ETFs that either mirror the S&P 500 or ‘another American stock index,’ according to the White House Council of Economic Advisers.

‘These investment accounts are simple, secure, and structured to grow in value through market returns over time,’ the Dell family said.

‘Trump Accounts represent a potentially valuable tool for building up savings and tapping the power of compound growth for the young,’ Charles Schwab tax planning director Hayden Adams recently wrote.

If a family could contribute and invest the maximum $5,000 per year in the accounts, and with a reasonable growth rate of about 6%, ‘by age 18, the child’s account would hold around $191,000 in assets.’

Once a child turns 18, the accounts are eligible to be converted to a traditional individual retirement account, ‘meaning it could continue to accumulate potential gains on a tax-free basis’ for many years.

The Dells are one of the wealthiest families in America, with a fortune of nearly $150 billion, according to Bloomberg Billionaires. The family’s primary source of wealth is Dell Technologies, the company founded by Michael Dell in 1984.

In recent years, the value of Dell shares have been fueled by the booming AI revolution, for which Dell is a supplier of servers and other technology.

This post appeared first on NBC NEWS

MILAN — The Prada Group announced Tuesday that it has officially purchased Milan fashion rival Versace in a 1.25 billion euro (nearly $1.4 billion) deal that puts the fashion house known for its sexy silhouettes under the same roof as Prada’s “ugly chic” aesthetic and Miu Miu’s youth-driven appeal.

The highly anticipated deal is expected to relaunch Versace’s fortunes, after middling post-pandemic performance as part of the U.S. luxury group Capri Holdings.

Prada said in a one-line statement that the acquisition had been completed after receiving all regulatory clearances.

Prada heir Lorenzo Bertelli will steer Versace’s next phase as executive chairman, in addition to his roles as group marketing director and sustainability chief.

The son of co-creative director Miuccia Prada and longtime Prada Group chairman Patrizio Bertelli has said he doesn’t expect to make any swift executive changes at Versace. But Bertelli has said that the company, which places among the top 10 most recognized brands in the world, has long been underperforming in the market.

Prada has underlined that the 47-year-old Versace brand offered “significant untapped growth potential.’’

Versace has been in the midst of a creative relaunch under a new designer, Dario Vitale, who previewed his first collection during Milan Fashion Week in September. He had previously been head of design at Miu Miu, but his move to Versace was unrelated to the Prada deal, executives have said.

Capri Holdings, which owns Michael Kors and Jimmy Choo, paid $2 billion for Versace in 2018, but had been struggling to position Versace’s bold profile in the recent era of “quiet luxury.″

Versace represented 20% of Capri Holdings 2024 revenue of 5.2 billion euros. An analyst presentation for the Prada deal said that Versace would represent 13% of the Prada Group’s pro-forma revenues, with Miu Miu coming in at 22% and Prada at 64%. The Prada Group, which also includes Church’s footwear, reported a 17% boost in revenues to 5.4 billion euros last year.

The Prada Group has already begun preparations to incorporate crosstown rival Versace into its Italian manufacturing system, a point of pride for the group.

“Making a bag for one brand or another, the know-how is the same,″ Bertelli told reporters last week at the group’s Scandicci leather goods factory, which already makes bags for the Prada and Miu Miu brands and will soon add Versace.

The Prada Group’s has invested 60 million euros in its supply chain this year, including a new leather goods factory near Siena, a new knitwear factory near Perugia as well as increasing production at its factory Church’s footwear factory in Britain and expanding another Tuscan factory. That’s on top of 200 million euros in investments from 2019-24.

Prada’s efforts include an academy that has trained some 570 new artisans over the last 25 years in an in-house training academy operating in the Tuscany, Marche, Veneto and Umbria regions.

Last year, Prada hired 70% of the 120 artisans who trained in the academy. The number of trainees rose by 28% to 152 this year.

This post appeared first on NBC NEWS

Outages on Shopify’s e-commerce platform have been resolved, the company said late Monday, bringing to an end a daylong glitch on the annual ‘Cyber Monday’ shopping day.

Some merchants that use Shopify’s service to sell goods online said they experienced issues with checkouts through the company’s point-of-sale system.

Businesses that run on Shopify also had trouble logging into their administrative portals.

In a statement, Shopify said: ‘We had a system degradation that has now been mitigated.’

Throughout the day, business owners posted angry messages directed at the company on X, where Shopify President Harvey Finkelstein had posted ‘HAPPY CYBER MONDAY! Let’s finish strong!’ earlier in the day, with an emoji of a flexed arm.

One business, Costack Spices, based in London, replied: ‘How??? [We] cannot fulfill orders or log on,’ with three red-faced emojis. In a follow-up, the company posted, ‘This is unbelievable.’

Another user wrote, ‘@ShopifySupport I haven’t been able to access it for the last couple hours.’

Shopify replied to most users on X with the same message: ‘We are aware of an issue with Admins impacting selected stores, and are working to resolve it.’

In 2024, merchants using Shopify services recorded $11.5 billion in sales from Black Friday through Cyber Monday, the company said, with more than 76 million customers buying from businesses powered by the platform.

Shopify provides website design tools, online checkout services and digital advertising products to businesses of all sizes. The company says that millions of merchants use its services.

While Shopify’s share of Cyber Monday sales may be limited, smaller businesses that rely on the company to process their transactions may have missed out on crucial sales at the start of the all-important holiday season.

Total Cyber Monday sales are expected to be more than $53 billion, according to Salesforce.

Shopify stock ended the trading day down 5.9%.

This post appeared first on NBC NEWS

President Donald Trump said Tuesday he still likes ‘Elon a lot,’ despite their high-profile split earlier this year over the One Big Beautiful Bill Act.

At the end of the administration’s monthly Cabinet meeting, FOX Business’ Edward Lawrence asked Trump whether Musk was ‘back in [his] circle of friends’ after their falling-out.

Trump responded:Well, I really don’t know. I mean, I like Elon a lot.’ He praised Musk’s endorsement during the 2024 campaign before noting their disagreement over electric-vehicle policy.

Musk was a fixture in the White House in the early days of the second Trump administration as he took on the role as the Department of Government Efficiency’s de facto leader. He served as a special government employee with the Trump administration to help lead DOGE, frequently attending Cabinet meetings and joining Trump during public events. Musk’s tenure with DOGE wrapped up at the end of May. 

Musk had also championed Trump during the 2024 election cycle, criss-crossing battleground states that ultimately all voted for the Republican candidate over former Vice President Kamala Harris. 

Trump repeatedly celebrated Musk for his efforts at DOGE to remove potential federal overspending, fraud and mismanagement – an effort assailed by government employees and Democrats who protested both the Trump administration and Musk repeatedly earlier this year. 

The cozy friendship fell to pieces in June, however, when Musk began publicly ridiculing the ‘One Big Beautiful Bill,’ which was a massive piece of legislation Trump signed into law in July that advances his agenda on taxes, immigration, energy, defense and the national debt. 

Musk railed against the legislation, which Trump had been rallying Republican lawmakers to pass since the beginning of his second term, posting on X that it would be the ‘BIGGEST DEBT ceiling increase in HISTORY’ and also claimed in a personal attack on Trump that ‘@RealDonaldTrump is in the Epstein files.’ 

Trump previously told the media that his relationship with Musk changed when he began discussing plans to eliminate the electic vehicle mandate, which would affect Musk’s signature electric company, Tesla. Trump signed a trio of congressional resolutions in June ending California’s restrictive rules for diesel engines and mandates on electric vehicle sales, with Trump celebrating that his signature ‘will kill the California mandates forever.’

The pair abruptly parted ways in June, with Musk weeks later offering some support to Trump’s presidential actions on social media, such as praising a ceasefire deal between Israel and Gaza in July.

Musk was seen physically back in Trump’s orbit in September during the memorial service for Charlie Kirk, Turning Point USA’s founder who was assassinated on Sept. 10. The pair was seen sitting next to each other and chatting during the ceremony. 

Musk most recently attended a Trump event on Nov. 18 at the White House for a dinner with Crown Prince Mohammed bin Salman of Saudi Arabia, as well as dozens of high-profile business leaders. 

Trump’s latest remarks on Musk unfolded during his Cabinet meeting, which marked his ninth such meeting since the start of his second administration and matched the total number of full Cabinet meetings former President Joe Biden held across his four-year tenure. 

This post appeared first on FOX NEWS

Senate Republicans are divided on their view of the deadly Sept. 2 strikes in the Caribbean as congressional inquiries into the matter mount, with some arguing that subduing suspected drug boats is the right move while others question the legality of the so-called double-tap attacks.

The Senate and House Armed Services committees are gearing up for hearings into the strikes after reports that Secretary of War Pete Hegseth, later confirmed by the White House, authorized a second strike to eliminate survivors on a suspected drug boat in the Caribbean.

But there is a growing tension among Republicans over what to do. Some support the desire of Senate Armed Services Committee Chair Roger Wicker, R-Miss., for stringent oversight of the incident, while others see the strikes as part of the Trump administration’s crackdown on drugs flowing into the country.

Sen. Bernie Moreno, R-Ohio, told Fox News Digital he was ‘very, very, very supportive of killing drug dealers. I think the more narco-terrorists that we kill, that we save American lives.’

‘I’m not concerned about killing people whose intent was to kill Americans at all,’ Moreno said.

White House press secretary Karoline Leavitt confirmed that Hegseth gave the green light for the second strike, but noted that it was Adm. Frank Bradley, the head of U.S. Special Operations Command, who ordered and directed it.

That confirmation came after a report from The Washington Post claimed Hegseth had ordered to ‘kill them all,’ which some on the Hill have disputed.

Sen. John Kennedy, R-La., said he read the article and charged that there ‘wasn’t an exact quote from Secretary Hegseth. There was an anonymous source paraphrased what the secretary allegedly said.’

‘So, here we’ve got a story in The Washington Post, which is known to hate Trump and Republicans, by a reporter who is citing an anonymous source that supposedly is saying that Hegseth said it before the strike even happened, but they don’t know exactly what he said,’ Kennedy said. ‘That is a waste of your time and mine.’

When pressed about Leavitt’s confirmation of the authorization, Kennedy said, ‘I don’t care what the White House press secretary said.’

Still, some Republicans want answers to what exactly happened.

Senate Majority Leader John Thune, R-S.D., reiterated that he believed that the Senate and House Armed Services committees’ impending probes into the matter was a ‘natural place’ to look at what happened with the strikes, but he stopped short of weighing in on whether a second strike was right or wrong. 

Well, I don’t know the particulars yet, and that’s why we’re gonna have the — we’ll look,’ Thune said. 

Sen. Thom Tillis, R-N.C., said that since the report came out, ‘We want to get to the facts.’

‘Obviously, if there was a direction to take a second shot and kill people, that’s a violation of an ethical, moral or legal code,’ Tillis said. ‘We need to get to the bottom of it. But right now, it could be, I think, was it Oxford that the word of the year is ‘rage bait’? Could be rage bait too. So we want to get to the facts.’

Senate Democrats are demanding a fulsome dive into the incident, and toeing the line of whether what transpired was a war crime.

Sen. Jack Reed, D-R.I., the top-ranking Democrat on the Senate Armed Services Committee, said he expected to have a briefing with Bradley this week.

When asked what questions he wanted to be answered, Reed said the top priority was to find out whether the strikes comported with ‘the law of war and [Uniform Code of Military Justice] and international law.’

‘I think one of the easiest ways to begin to dispel the question is to make public the video of the strikes,’ Reed said.

Sen. Tim Kaine, D-Va., has, time and again this Congress, remained a staunch critic of action taken in Iran and in the Caribbean and moved to curtail the administration’s actions through resolutions that would stymie President Donald Trump’s war powers.

He said lawmakers needed to get to the bottom of ‘whether a war crime has been committed.’

Sen. Mark Kelly, D-Ariz., was cautious not to fully paint the incident as a war crime before getting more facts, adding that he hoped the reports of the strikes were ‘not accurate.’

‘I will say, though you know as somebody who has sunk two ships myself, that folks in the military need to understand, you know, the law of the sea, the Geneva Conventions, what the law says,’ Kelly said. ‘And I’m concerned that if there were, in fact, as reported, you know, survivors clinging to a damaged vessel, that could be, you know, over a line. I hope it’s not the case.’

This post appeared first on FOX NEWS

The National Archives and Records Administration (NARA) is seeking to reform the funding structure for presidential libraries in an effort to reduce reliance on taxpayer funding for operational costs and allow NARA to focus more on preserving and providing access to records. 

Fourteen presidential libraries fall under the National Archives system, and that number is expected to jump to 16 for presidential libraries dedicated to Trump and former President Joe Biden. 

While NARA and the presidential foundations have their own individual agreements outlining cost-sharing burdens for these presidential libraries, taxpayer funding is going toward maintenance costs, including mowing lawns, painting walls and cleaning toilets at nearly all these buildings, according to NARA. 

Additionally, the government contracting process for quick repairs like broken door hinges filters through an approval process in Washington and can take weeks or months to be addressed, the agency said. 

As a result, NARA is in the process of negotiating with each presidential foundation on an individual basis so they can take greater ownership of the operational responsibilities for their specific library, Jim Byron, senior advisor to the archivist, told Fox News Digital.

‘Despite decades of well-intentioned oversight and stewardship of America’s presidential libraries by the National Archives, reality now dictates that operational changes can and should be made to ensure the long-term health of these American treasures,’ Byron said in a statement to Fox News Digital Monday. 

‘Presidential libraries have grown in scope and purpose, and with that growth — and with anticipated future additions to the system — comes increased expenditures to be borne by the American taxpayers.’ 

NARA spends $91 million annually on presidential libraries from appropriations, and the deferred maintenance costs across the entire library system total roughly $123 million. 

Under current negotiations that launched in the spring between NARA and the presidential foundations, shifting some of the costs to the presidential foundations is expected to save NARA $27 million. These funds will then be shifted toward NARA’s primary mission of preserving and sharing records, including digitizing and releasing more files, Byron said.

In the event that changes aren’t made to shift more operational costs to presidential foundations, NARA’s ability to focus on its mission will be jeopardized, according to Byron. 

‘The alternative is to do nothing and allow NARA’s appropriations to go to lawn care and toilet cleaning at the expense of FOIA processing, to close all presidential libraries when the government shuts down, to allow a deferred maintenance backlog to grow and to regret that presidential library structures were not addressed,’ Byron said. ‘The National Archives is committed to making sure that doesn’t happen while delivering for the American people.’

Luke Nichter, a history professor at Chapman University who said he averages 100 days annually for research and interviews with former government officials, told Fox News Digital that, given the constraints of the federal budget, it’s necessary for presidential foundations to shoulder more of the cost for upkeep of these presidential libraries.

‘It now takes about as much money to build a presidential library as it does to run for president — about a billion dollars,’ Nichter said in an email to Fox News Digital Tuesday. ‘The American taxpayer should not bear that. The administration deserves credit for starting an important conversation about the future of these cherished institutions.

‘In the future, the National Archives will have to focus more closely on what it does well — the preservation of federal and presidential records — and leave other functions to the presidential foundations.’ 

This most recent effort aligns with other initiatives underway at the National Archives aimed at redirecting efforts to the agency’s mission, including working with other agencies to release the John F. Kennedy, Martin Luther King Jr., and Amelia Earhart files. 

The presidential library structure varies, and NARA and each presidential foundation have their own separate public-private agreements. Typically, though, private funds are used to create a presidential library, which NARA then oversees using federal funding.

But this isn’t always the case. For example, the Obama Foundation is an entirely private entity and did not choose to construct a library for NARA to store documents, instead opting to build a private presidential center and private museum. As a result, NARA digitized and stored Obama presidential records at an existing NARA site and still oversees preserving and providing access to those records. 

Previous efforts to revamp the funding partnership between government and private entities successfully occurred in 2018, when NARA coordinated with each presidential foundation to discuss which operations it could take on amid increased budget constraints. Ultimately, those negotiations led to NARA and the George W. Bush Foundation securing a new deal splitting operational costs. 

This post appeared first on FOX NEWS

Secretary of War Pete Hegseth chastised the press following media reports that he signed off on a second strike against an alleged drug boat after the first one left survivors. 

The Trump administration has come under renewed scrutiny for its strikes in the Caribbean targeting alleged drug smugglers, after the Washington Post reported on Friday that Hegseth verbally ordered everyone onboard the alleged drug boat to be killed in a Sept. 2 operation. The Post reported that a second strike was conducted to take out the remaining survivors on the boat. 

On Monday, the White House confirmed that a second strike had occurred, but disputed that Hegseth ever gave an initial order to ensure that everyone on board was killed, when asked specifically about Hegseth’s instructions.

Hegseth said that he watched the first strike live, but did not see any survivors at that time amid the fire and the smoke — and blasted the press for their reporting.

‘This is called the fog of war. This is what you in the press don’t understand,’ Hegseth told reporters at a Cabinet meeting on Tuesday. ‘You sit in your air-conditioned offices or up on Capitol Hill and you nit pick, and you plant fake stories in the Washington Post about ‘kill everybody’ phrases on anonymous sources not based in anything, not based in any truth at all. And then you want to throw out really irresponsible terms about American heroes, about the judgment that they made.’ 

Hegseth said that after watching the first strike, he left for a meeting and later learned of the second strike. The White House said Monday that Hegseth had authorized Adm. Frank ‘Mitch’ Bradley to conduct the strikes, and that Bradley was the one who ordered and directed the second one. 

At the time of the Sept. 2 strike, Bradley was serving as the commander of Joint Special Operations Command, which falls under U.S. Special Operations Command. He is now the head of U.S. Special Operations Command.

According to Hegseth, carrying out a subsequent strike on the alleged drug boat was the right call. 

‘Admiral Bradley made the correct decision to ultimately sink the boat and eliminate the threat,’ Hegseth said Tuesday. 

Meanwhile, reports of the second strike have attracted even more scrutiny from lawmakers on both sides of the aisle on Capitol Hill and calls for greater oversight, amid questions about the strikes’ legality. 

‘This committee is committed to providing rigorous oversight of the Department of Defense’s military operations in the Caribbean,’ Reps. Mike Rogers, R-Ala., and Adam Smith, D-Wash., who lead the House Armed Services Committee, said in a statement on Saturday. ‘We take seriously the reports of follow-on strikes on boats alleged to be ferrying narcotics in the SOUTHCOM region and are taking bipartisan action to gather a full accounting of the operation in question.’

Hegseth said Tuesday that although there has been a pause in strikes in the Caribbean because alleged drug boats are becoming harder to find, the Trump administration’s campaign against the influx of drugs will continue. 

‘We’ve only just begun striking narco-boats and putting narco-terrorists at the bottom of the ocean because they’ve been poisoning the American people,’ Hegseth said. 

The Trump administration has carried out more than 20 strikes against alleged drug boats in Latin American waters, and has bolstered its military presence in the Caribbean to align with Trump’s goal to crack down on the influx of drugs into the U.S.

This post appeared first on FOX NEWS

President Donald Trump announced in a Truth Social post on Tuesday that he would ‘fully and completely’ terminate any documents signed by former President Joe Biden’s autopen, including pardons and commutations.

‘Any and all Documents, Proclamations, Executive Orders, Memorandums, or Contracts, signed by Order of the now infamous and unauthorized ‘AUTOPEN,’ within the Administration of Joseph R. Biden Jr., are hereby null, void, and of no further force or effect,’ Trump wrote.

‘Anyone receiving ‘Pardons,’ ‘Commutations,’ or any other Legal Document so signed, please be advised that said Document has been fully and completely terminated, and is of no Legal effect. Thank you for your attention to this matter!’

This post appeared first on FOX NEWS

Secretary of War Pete Hegseth chastised the press following media reports that he signed off on a second strike against an alleged drug boat after the first one left survivors. 

The Trump administration has come under renewed scrutiny for its strikes in the Caribbean targeting alleged drug smugglers, after the Washington Post reported on Friday that Hegseth verbally ordered everyone onboard the alleged drug boat to be killed in a Sept. 2 operation. The Post reported that a second strike was conducted to take out the remaining survivors on the boat. 

On Monday, the White House confirmed that a second strike had occurred, but disputed that Hegseth ever gave an initial order to ensure that everyone on board was killed, when asked specifically about Hegseth’s instructions.

Hegseth said that he watched the first strike live, but did not see any survivors at that time amid the fire and the smoke — and blasted the press for their reporting.

‘This is called the fog of war. This is what you in the press don’t understand,’ Hegseth told reporters at a Cabinet meeting on Tuesday. ‘You sit in your air-conditioned offices or up on Capitol Hill and you nit pick, and you plant fake stories in the Washington Post about ‘kill everybody’ phrases on anonymous sources not based in anything, not based in any truth at all. And then you want to throw out really irresponsible terms about American heroes, about the judgment that they made.’ 

Hegseth said that after watching the first strike, he left for a meeting and later learned of the second strike. The White House said Monday that Hegseth had authorized Adm. Frank ‘Mitch’ Bradley to conduct the strikes, and that Bradley was the one who ordered and directed the second one. 

At the time of the Sept. 2 strike, Bradley was serving as the commander of Joint Special Operations Command, which falls under U.S. Special Operations Command. He is now the head of U.S. Special Operations Command.

According to Hegseth, carrying out a subsequent strike on the alleged drug boat was the right call. 

‘Admiral Bradley made the correct decision to ultimately sink the boat and eliminate the threat,’ Hegseth said Tuesday. 

Meanwhile, reports of the second strike have attracted even more scrutiny from lawmakers on both sides of the aisle on Capitol Hill and calls for greater oversight, amid questions about the strikes’ legality. 

‘This committee is committed to providing rigorous oversight of the Department of Defense’s military operations in the Caribbean,’ Reps. Mike Rogers, R-Ala., and Adam Smith, D-Wash., who lead the House Armed Services Committee, said in a statement on Saturday. ‘We take seriously the reports of follow-on strikes on boats alleged to be ferrying narcotics in the SOUTHCOM region and are taking bipartisan action to gather a full accounting of the operation in question.’

Hegseth said Tuesday that although there has been a pause in strikes in the Caribbean because alleged drug boats are becoming harder to find, the Trump administration’s campaign against the influx of drugs will continue. 

‘We’ve only just begun striking narco-boats and putting narco-terrorists at the bottom of the ocean because they’ve been poisoning the American people,’ Hegseth said. 

The Trump administration has carried out more than 20 strikes against alleged drug boats in Latin American waters, and has bolstered its military presence in the Caribbean to align with Trump’s goal to crack down on the influx of drugs into the U.S.

This post appeared first on FOX NEWS

The Department of Justice (DOJ) on Friday charged five men from across the U.S. with running an online ‘child exploitation enterprise’ called ‘Greggy’s Cult,’ that allegedly used Discord servers to terrorize, blackmail and coerce minors into ‘horrific acts of self-harm.’

The indictment unsealed by federal prosecutors charges five individuals with ‘conspiracy to produce child pornography, conspiracy to receive and distribute child pornography, and conspiracy to communicate interstate threats.’

Hector Bermudez, 29, of Queens, New York; Zachary Dosch, 26, of Albuquerque, New Mexico; Rumaldo Valdez, 22, of Honolulu, Hawaii; David Brilhante, 28, of San Diego, California; and Camden Rodriguez, 22, of Longmont, Colorado, were arrested Tuesday will be arraigned in the Eastern District of New York at a later date, according to the DOJ.

Prosecutors described a ‘nightmarish platform on the internet,’ alleging that ‘Greggy’s Cult’ carried out ‘depraved conduct’ that included ‘repeatedly encouraging victims to kill themselves or encouraging them to insert household objects into their genitals or anus.’

‘These five defendants allegedly targeted vulnerable children and others via online platforms – they exploited, threatened, and harassed them, and encouraged horrific acts of self-harm,’ FBI director Kash Patel said in a statement. ‘The FBI is sending a message to those individuals involved in criminal activity through violent online networks: you can’t hide in the shadows hovering over a keyboard – we will find and hold accountable those who participate in these illegal and heinous acts.’

The indictment stated that the defendants allegedly engaged in the ‘production and distribution of child sex abuse material’ between January 2020 and January 2021, and also participated in other forms of ‘exploitation and harassment’ of both minors and adults.

According to prosecutors, the defendants and other members of ‘Greggy’s Cult’ met on Discord servers and ‘directed minor victims, who had joined a video call on either Discord or another video conferencing platform, to engage in sexually explicit or other degrading conduct.’

The group is also accused of finding victims on gaming platforms such as Roblox and Counter-Strike: Global Offensive.

The cult members allegedly captured screenshots and screen recordings of the ‘sexually explicit conduct’ before sharing it to other Discord servers and with each other, according to the DOJ.

Attorney General Pam Bondi reacted to the indictment, stating that ‘no child should ever be terrorized or exploited online, and no online platform should give refuge to predators.’

‘The Department of Justice will continue to protect children, support survivors, and hold accountable anyone who preys on the vulnerable – online or offline – with every tool we have,’ Bondi added.

Prosecutors also accused the defendants of extorting their targets, alleging that they tried to frame the adult victims as pedophiles or send malware to minor victims, which was then used as ‘leverage to get the victims to engage in degrading acts on camera.’

The defendants were allegedly able to convince victims to commit acts of ‘degradation,’ including having them be ‘owned’ by a member of the cult to demonstrate loyalty, or writing the names of cult members on their bodies, which prosecutors referred to as ‘fansigning.’

Acting Assistant Attorney General Matthew Galeotti of the DOJ’s Criminal Division said in a statement that the defendants were charged with an ‘unspeakable act of coercing and blackmailing children and adults to engage in self-harm and other degrading acts.’

U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York called the alleged conduct ‘monstrous,’ adding that children were ‘at times driven to the brink of suicide.’

The DOJ stated that ‘Greggy’s Cult’ formed before the emergence of the ‘764’ network, another online child-exploitation group that the FBI has launched an intensified effort to take down.

Members of ‘764’ allegedly use popular online platforms such as Discord, Telegram and Roblox to recruit and manipulate minors.

This post appeared first on FOX NEWS