Showing posts with label computing. Show all posts
Showing posts with label computing. Show all posts

Tuesday, December 26, 2017

Amazon And Google Employees Busted In Asian Sex Trafficking Sting

Several Seattle employees of both Google and Amazon were busted after using their corporate accounts to send emails to local brothels and pimps looking to purchase services from sex workers trafficked from Asia, according to emails obtained by Newsweek.










"[E]mails obtained by Newsweek reveal another sordid corner of the tech sector’s treatment of women: a horny nest of prostitution “hobbyists” at tech giants Microsoft, Amazon and other firms in Seattle’s high tech alley." 



Many of the emails were swept up in a 2015 sting operation which targeted online chat rooms and message boards in which customers rate sex workers - resulting in the arrest of 18 of these "prostitution hobbyists," including several high level Amazon and Microsoft directors - two of which are currently scheduled for trial in March. 



Seattle brothels had been catering to Microsoft employees through several "backpage.com" ads located nearby the company"s Redmond, WA headquarters, in what is becoming a booming business. 








A study commissioned by the Department of Justice found that Seattle has the fastest-growing sex industry in the United States, more than doubling in size between 2005 and 2012. That boom correlates neatly with the boom of the tech sector there. It also correlates to the surge in high-paying jobs, since this “hobby” (the word johns use online to describe buying sex) can be expensive: some of these men spent $30,000 to $50,000 a year, according to authorities.


 


The tech sector has not only employed a significant number of men who pay for sex with trafficked women, it has also enabled traffickers to more easily reach customers and to hide their business from cops by taking it off the streets and into computers and ultimately, hotel rooms, motels or apartments. In one 24-hour-period in Seattle, an estimated 6,487 people solicited sex on just one of the more than 100 websites that connect buyers with sellers, according to a 2014 study.



Of note, Backpage.com shut down its adult sections in January, citing government pressure following a 2016 Senate report on commercial sex services fingered the website as a hotbed for criminal activity, and stating that "Backpage officials have publicly acknowledged that criminals use the website for sex trafficking, including trafficking of minors." 



Backpage.com CEO Carl Ferrer (Texas AG)


In October, 2016, Backpage CEO Carl Ferrer was arrested in Houston and the company"s Dallas headquarters searched. NPR reported at the time that Ferrer, 55, was charged with pimping a minor, pimping and conspiracy to commit pimping. Two controlling shareholders of Backpage — Michael Lacey and James Larkin — also are charged with conspiracy to commit pimping." 


The prostitutes trafficked from Asia typically don"t speak much English, relying on translation apps to offer services such as "girlfriend" experiences and "Nuru" (nude massage). Many of the women are working their way out of debt bondage, and feared for their lives or those of their families - according to one pimp interviewed during the 2015 sting.


A spokesman for Microsoft said of the emails "Microsoft has a long history of cooperating with law enforcement and other agencies on combating sex trafficking and related topics, and we have employees who volunteer their time and money specifically to combat this issue as well. The personal conduct of a tiny fraction of our 125,000 employees does not in any way represent our culture. No organization is immune to the unfortunate situation when employees act unethically or illegally. When that happens, we look into the conduct and take appropriate action. Microsoft makes it clear to our employees they have a responsibility to act with integrity and conduct themselves in a legal and ethical manner at all times. If they don’t, they risk losing their jobs."


Amazon told Newsweek it"s investigating the matter, and that "It is against Amazon"s policy for any employee or Contingent Worker to engage in any sex buying activities of any kind in Amazon"s workplace or in any work-related setting outside of the workplace, such as during business trips, business meetings or business-related social events." When Amazon suspects that an employee has used company funds or resources to engage in criminal conduct, the company will immediately investigate and take appropriate action up to and including termination. The company may also refer the matter to law enforcement."









NSA Whistleblower Snowden Launches Mobile App For Paranoid People

Famed NSA Whistleblower Edward Snowden has just launched Haven, an app for people to transform any Android smartphone into a high-tech security system for detecting intrusions.



Snowden, while currently on the run from the CIA, hiding somewhere in Moscow until 2020, has found enough time to launch his new mobile security app last Friday for the sufficiently paranoid person (e.g. activists, dissidents, journalists, & etc).



Haven is designed to be installed on any Android smartphone, particularly inexpensive and older devices. It operates like a home surveillance system, leveraging on-device sensors to provide surveillance of physical areas. Sensors within the Android phone monitor motion, sound, vibration and light, watching for unwanted guests to notify a user. Combining Haven with an array of sensors in any smartphone, coupled with the most secure communications technologies like Signal and Tor, the app is providing Snowden and other activists around the world with a mobile security system.


The app was developed by Freedom of the Press Foundation, Guardian Project, and Snowden. According to the Guardian Project, the app’s prototype funding was provided by FoPF, and donations to support continuing work can be contributed through their site: https://freedom.press/donate-support-haven-open-source-project/.



According to the Guardian Project, this is how the app works,




Haven only saves images and sound when triggered by motion or volume, and stores everything locally on the device. You can position the device’s camera to capture visible motion, or set your phone somewhere discreet to just listen for noises. Get secure notifications of intrusion events instantly and access the logs remotely or anytime later.





On-device sensors monitor for disturbance, and then logs the data:


  • Accelerometer: phone’s motion and vibration

  • Camera: motion in the phone’s visible surroundings from front or back camera

  • Microphone: noises in the environment

  • Light: change in light from ambient light sensor

  • Power: detect device being unplugged or power loss

Further, the group explains why Haven is well suited for Android devices and does make the claim, a version for the iPhone is on the horizon.




While we hope to support a version of Haven that runs directly on iOS devices in the future, iPhone users can still benefit from Haven today. You can purchase an inexpensive Android phone for less than $100, and use that as your “Haven Device”, that you leave behind, while you keep your iPhone with you. If you run Signal on your iPhone, you can configure Haven on Android to send encrypted notifications, with photos and audio, directly to you. If you enable the “Tor Onion Service” feature in Haven (requires installing “Orbot” app as well), you can remotely access all Haven log data from your iPhone, using the Onion Browser app. So, no, iPhone users we didn’t forget about you, and hope you’ll pick up an Android burner today for a few bucks!




If one of the sensors was triggered, a notification would be sent to one of the following platforms:


  • SMS: a message is sent to the number specified when monitoring started

  • Signal: if configured, can send end-to-end encryption notifications via Signal


 



As for Snowden, he remains in an asylum somewhere in Moscow until 2020 when his residence permit expires.


With the launch of Haven, it seems as Snowden is attempting to change the calculus of risk for when US authorities come hunting for him once more.


If all else fails, Snowden might have just invented a baby monitor for the broke millennial. 









Monday, December 25, 2017

Assange"s Twitter Account Mysteriously Deleted, Reappears Hours Later

Update: as of 9:30am ET, the @JulianAssange accounts has returned, although it appears to be a truncated or restored one, which shortly after its reappearance shows just over 1,000 followers.



A "returned" Assange tweeted the following cartoon.



* * *


Julian Assange"s Twitter account was mysteriously deleted on Christmas Eve, leaving perhaps the most important witness in the Trump-Russia investigation cut off from the rest of the world while he sits in the Ecuadorian Embassy in London. 



Attempting to access Assange"s Twitter account results in the following message:



This page only appears when an account has been deleted, not suspended - by either Twitter or the account owner. 


It wasn"t clear whether the account was suspended or deleted by Twitter or Assange himself -- or why or for how long. Twitter wasn"t commenting


This tweet by the WikiLeaks Task Force - an official WikiLeaks handle, suggested that people shouldn"t jump to conclusions, as "haters and conspiracy theorists rush to post the usual attention seeking rubbish," before wishing everyone a Merry Christmas.  



The official Wikileaks Twitter account was still live but wasn"t mentioning the Assange account.


According to CBS, an account purporting to be an alternative Assange account was claiming Twitter had deleted his official one ahead of a blockbuster story he"s preparing to break. There was no confirmation that Assange was authoring that alternative account -- and that account has now been suspended by Twitter.


Meanwhile, Journalist Charles Johnson - who traveled with Rep. Dana Rohrabacher (R-CA) to London to meet with Assange in August, posted the following on Facebook after Assange"s Twitter account went down: 



Moreover, on December 1, WikiLeaks" official account tweeted "Merry Christmas from @WikiLeaks" with an embedded video referencing perpetual war, and the hashtags #Yemen #Libya #Iraq #Syria #Pakistan #Afghanistan #Somalia #Ukraine



Some have suggested that the events are part of some Christmas-linked plan, although so far there has been no confirmation. 


The account deletion comes on the heels of a break-in last Monday at the Madrid office of WikiLeaks lawyer Baltasar Garzon"s, in what police described as a "very professional" operation. Garzon told El Periodico and Ser magazine "They had not taken what they have been looking for," and client security "has not been affected," however police are analyzing his computer equipment to determine whether any files were taken or copied. 


Hours after the break-in, Julian Assange published a tweet calling a Jimmy Dore video "Brilliant" - prominently featuring Assange"s interview with a Dutch television host in which the WikiLeaks founder strongly implies that slain DNC IT staffer Seth Rich was the source of emails published by WikiLeaks during the 2016 election.  (Assange clip at 21:30)



During the clip, Assange can be seen nodding his head in response to a question about Rich:



In August, Congressman Dana Rohrabacher travelled to London with journalist Charles Johnson for a meeting with Assange, where Rohrabacher said the WikiLeaks founder offered "firsthand" information proving that the Trump campaign did not collude with Russia, and which would refute the Russian hacking theory.


Rohrabacher brought that message back to Trump"s Chief of Staff, John Kelly, to propose a deal. In exchange for a presidential pardon, Assange would share evidence that would refute the Russian hacking theory by proving they weren"t the source of the emails, according to the WSJ. 








“The possible “deal”—a term used by Mr. Rohrabacher during the Wednesday phone call—would involve a pardon of Mr. Assange or “something like that,” Mr. Rohrabacher said. In exchange, Mr. Assange would probably present a computer drive or other data-storage device that Mr. Rohrabacher said would exonerate Russia in the long-running controversy about who was the source of hacked and stolen material aimed at embarrassing the Democratic Party during the 2016 election.”


 


‘He would get nothing, obviously, if what he gave us was not proof,’ Mr. Rohrabacher said.



When Trump was asked in late September about the Assange proposal, he responded that he"d "never heard" of it, causing Rohrabacher to unleash on John Kelly, who he blamed for blocking the proposal from reaching the President, Rohrabacher told the Daily Caller: 








“I think the president’s answer indicates that there is a wall around him that is being created by people who do not want to expose this fraud that there was collusion between our intelligence community and the leaders of the Democratic Party,” Rohrabacher told The Daily Caller Tuesday in a phone interview.


 


“This would have to be a cooperative effort between his own staff and the leadership in the intelligence communities to try to prevent the president from making the decision as to whether or not he wants to take the steps necessary to expose this horrendous lie that was shoved down the American people’s throats so incredibly earlier this year,” Rohrabacher said.



Contributing to the notion of deep-state interference, CIA director Mike Pompeo referred to WikiLeaks as a "hostile intelligence service" in April, calling Julian Assange "a fraud, a coward hiding behind a screen" for exposing information about democratic governments rather than authoritarian regimes. This quite the ironic statement, considering Pompeo used leaked emails from WikiLeaks as proof "the fix was in" against President Trump. 



 Let"s also not forget Donald Trump proclaiming "I Love Wikileaks!" less than a month before the 2016 election.



So Julian Assange - ostensibly the most important witness in the Russia hacking investigation, offered to prove that Russia was not the source of the leaked emails in exchange for a pardon. This proposition was conveyed through Rep. Dana Rohrabacher to White House Chief of Staff John Kelly, who Rohrabacher says never allowed the deal to reach Trump for consideration.  Months later, WikiLeaks attorney Baltasar Garzon"s office was raided in a "very professional" operation which is being labeled an attempted robbery. Hours after the break-in, Julian Assange tweets a Jimmy Dore video containing his own strong implication that Seth Rich was the source of the leaked emails, and six days later his Twitter account is gone. 


That said, tweets directly from the WikiLeaks urge not to jump to conclusions.


Assange"s account deletion also comes on the heels of several new Twitter rules rolled out on December 18, which many feared was the beginning of a "purge" of conservative accounts over user behavior both on and off the platform. The rules are aimed at people who associate with hate groups that "use or promote violence against civilians to further their causes" - however nothing Assange has done comes close to fitting that description.


So did Julian Assange delete his Twitter account - and if so, why? Was this yet another rogue Twitter employee lashing out on their last day, as was the case with President Trump"s temporary account deletion in early November? Or did Twitter delete the account of one of the most important figures in the 2016 election. 









Riding The Blockchain Train: These Companies Changed Their Name, And Their Stock Price Soared

Many others had done it, but nobody quite as blatantly as beverage maker Long Island Iced Tea Corp, which on Thursday became the latest to jump on the cryptocurrency bandwagon, bizarrely but profitably changing its name to Long Blockchain Corp, which sent its shares soaring by 500%.



In an ironic twist, we previewed LTEA"s hilarious "pivot" just one day earlier when - discussing a similar surge in microcap stock Net Element - we said:








Now that it is abundantly clear that for a stock to explode higher, all that is necessary - and sufficient - is a press release mentioning the company"s name and throwing in the word "blockchain" in the same sentence (see Riot Blockchain and LongFin Corp), other public microcaps have decided that if that"s all it takes, then by all means they will gladly take investors" money.



Indeed, as the value of Bitcoin has skyrocketed in recent months, companies previously focused on making fitness apparel, bras, cigars and beverages (and many other unrelated things) have rebranded themselves as virtual currency or blockchain companies of one sort or another. In this light, what Long Island Ice Tea Blockchain did was the culmination of what to many is clear mania beahvior, as many obscure companies have pivoted operations or simply changed their names to cash-in on the cryptocurrency wave, a trend reminiscent of the dotcom boom. As profiled previously, a barrage of companies have seen their shares sky-rocket, largely on words such as “crypto” or “blockchain” in their names.


And investors have cheered them on, pushing their stock prices up, forcing countless microcaps to ride the "Blockchain train"



Artist"s impression of The blockchain train


Courtesy of the NYT, below is a list of companies that have moved into crypto or blockchain businesses, or changed their names. The list also captures the surge in market value since the close on Oct. 11, a day before bitcoin crossed the $5,000 mark.


* * *


BEFORE: Long Island Iced Tea Corp.
AFTER: Long Blockchain Corp.


Long Island Iced Tea made iced teas in flavors including peach and lemon, as well as lemonades. On Thursday, the company, based in Farmingdale, N.Y., said it was shifting its corporate focus to the blockchain.


In the company"s own words:“We view advances in blockchain technology as a once-in-a-generation opportunity, and have made the decision to pivot our business strategy in order to pursue opportunities in this evolving industry.” (December 21)   



* * *


BEFORE: Vapetek Inc.
AFTER: Nodechain Inc.


Vapetek made batteries and liquid for electronic cigarettes. In September, it rolled out a candy flavored e-liquid called Rock Kandi. This month, the Nevada-based company renamed itself and said it would shift to mining virtual currencies.


In the company’s words: “We are confident that cryptocurrency mining and blockchain technology has a large market opportunity in the coming years and we look forward to growing the company and creating shareholder value, while helping to innovate the future of global currency.”  (December 20)       



* * *


BEFORE: Bioptix Inc.
AFTER: Riot Blockchain Inc. 


Bioptix was a pharmaceutical company until this year. In October, the Colorado company said it was changing its name, making an investment in a Canadian virtual currency exchange and creating operations to mine Bitcoin and other virtual currencies. 


The company said that alongside its virtual currency business, it will continue to pursue “products for cattle, equine and swine for the assistance and facilitation of reproduction.” (October 4)   



* * *


BEFORE: On-line PLC
AFTER: On-line Blockchain PLC


On-Line was a small British company that previously incubated internet businesses. This fall, the company said it was renaming itself and shifting to focus on virtual currency technology.


The company said: “Blockchain technology and cryptocurrencies are a new and exciting area we have been working on for some time to provide systems to support the roll out of these technologies across a range of applications.” (October 26)



* * *


BEFORE: Croe Inc.
AFTER: The Crypto Company


To become a public company, The Crypto Company acquired a small existing public company, Croe, which previously developed women’s fitness clothing.


The company said this summer that its “core services include consulting and advising companies regarding investment and trading in the digital asset market and investing in a manner that diversifies exposure to the growing class of digital assets.” (June 9)


After the change, the Securities and Exchange Commission, concerned by the company’s actions, suspended trading of its stock. More such companies are sure to follow.


* * *


BEFORE: Rich Cigars Inc.
AFTER: Intercontinental Technology Inc. 


Rich Cigars previously produced cigars. But the Florida company said this month that it was changing its name, getting out of the cigar business, moving to Colorado and creating  subsidiaries to mine for virtual currencies.


The company said it will be pursuing “the development of a unique cryptocurrency mining business for Bitcoin and other cryptocurrencies which will operate on a 24/7 basis.” (December 14)


* * *


BEFORE: SkyPeople Fruit Juice Inc
AFTER: Future FinTech Group Inc


Formerly SkyPeople Fruit Juice was "engaged in developing agricultural plantations and produces and markets fruit juice concentrates, fruit beverages, and other fruit related products in China and overseas markets.


The company changed its name “to reflect commitment to e-commerce and agricultural commodities trading”.


* * *


BEFORE: 360 Capital Financial
AFTER: 360 Blockchain Inc.


360 Capital Financial provided financial services to companies. In October, the Canadian company announced it would change its name and ticker symbol and begin investing exclusively in blockchain-based companies.


The company said: “We are taking an all-round view to the 360 Blockchain Inc. business plan; with a mission to empower blockchain technologies with capital and experience to create exponential value.” (October 4)


* * *


BEFORE: Leeta Gold Corp.
AFTER: Hive Blockchain Technologies


Leeta Gold was focused on mineral exploration in Canada, though with little apparent success. This summer, the company said it was acquiring a Bitcoin mining company, Genesis, with facilities in Iceland and renaming itself.


According to the company: “This transaction positions HIVE as a leading cryptocurrency miner in an attractive jurisdiction, Iceland, with low energy costs.” (June 14)


* * *


Other companies have been less blatant about their "pivot", and instead changing their name, they acquired or announced expansion plans involving various "blockchain"-linked buzz words.


Digital Power Corp


The power system solutions provider has launched cryptocurrency mining operation.


  • Market cap as of Oct. 11: $10.98 mln

  • Market cap as of Dec. 21: $97.2 mln

* * *


Marathon Patent Group


Shares in the intellectual property licensing and management company have zoomed after announcing a deal to buy cryptocurrencies miner Global Bit Ventures Inc.


  • Market cap as of Oct. 11: $17.8 mln

  • Market cap as of Dec. 21: $54.5 mln

* * *


Social Reality


The internet advertising firm in October said it planned an Initial Coin Offering of Blockchain Identification Graph tokens (BIGtokens). Most recently, the firm said it would offer a cryptocurrency dividend.


  • Market cap as of Oct. 11: $28.4 mln

  • Market cap as of Dec. 21: $52.2 mln

* * *


Nova LifeStyle Inc


The furniture maker launched a blockchain-enabled unit, called “I Design Blockchain Technology Inc” on Wednesday and said it planned to accept bitcoin and other cryptocurrencies on the platform.


  • Market cap as of Dec. 19: $60.8 mln

  • Market cap as of Dec. 21: $78.6 mln

Source: Reuters, NYT









"My Eyes Popped Out Of My Head": Ohio Woman Receives $284 Billion Electric Bill

The ‘Nightmare Before Christmas’ has nothing on this.


Due to a processing error made by her local power company, one Ohio woman discovered earlier this month – to her abject horror – that she owed Penelec, her power provider, $284 billion, a figure that’s larger than the combined national debts of Hungary and South Africa.


According to The Eerie Times News, Mary Horomanski discovered the error while she was checking her bill online. Initially, she wondered if the hefty charge was due to her Christmas decorations.


“My eyes just about popped out of my head,” said Horomanski, 58. “We had put up Christmas lights and I wondered if we had put them up wrong."


There was, of course, one small silver lining: According to her bill, Horomanski didn’t have to pay the entire $284,460,000 sum until November 2018. Her minimum payment for December was a relatively paltry $28,156. And Penelec hadn’t turned off her electricity – yet.



Fortunately for Horomanski, the issue was quickly resolved when she texted her son, who contacted the power company and told them about the bill. They confirmed that the sum was an error, and that Horomanski owed much, much less. Her online statement was quickly fixed to the correct amount: $284.46.


A spokesman for the power company said he doesn’t know how the error occurred but that it was obviously the result of somebody accidentally moving a decimal point nine digits to the right.


“I can’t recall ever seeing a bill for billions of dollars,” Durbin said. “We appreciate the customer’s willingness to reach out to us about the mistake."


The incident, Horomanski said, prompted her to ask for a different gift from her son this year.


“I told him I want a heart monitor,” she said.


And with that, the Horomanski’s Christmas was saved.  
 









Sunday, December 24, 2017

Social Media Platforms Need To Be Regulated! NYU Prof Sees "Dangerous Issues For Society"

Authored by Vasant Dhar, NYU Sterm Professor, op-ed via CNBC,



Unregulated social media platforms pose significant societal risks. That"s what we found out after the 2016 election, when it became clear that social media had been used for political mass manipulation in the world"s oldest democracy.



We should not be surprised. Despite a large scale scientific study conducted by Facebook in 2012 demonstrating that users" moods could be manipulated via messages fed to them, it continued to maintain a position of "algorithmic neutrality" on content. Given what we"ve witnessed, this won"t do going forward.


The Facebook study of 2012 had sparked outrage and concern around the use of data for social experimentation without consent of human subjects. It was worrisome that data usage policies of virtually all digital platforms had become increasingly rapacious over the years, allowing them to do what they please with the data they collect assiduously. Facebook"s social experiment wouldn"t have been approved by an Institutional Review Board (IRB) for university research involving human subjects.


But the outrage has resulted in little thus far. There was no regulatory body and there still isn"t one that addresses unethical or harmful uses of platform data even though the implications are arguably as serious as those involving national security. The very real possibility that a party with meager resources can potentially influence a democratic election represents an incalculable "externality" imposed on us through a trust vulnerability in our social media ecosystem.


Because trust is so important when it comes to our money, we have historically held banks and financial firms to much higher standards of compliance and control than other businesses. Financial institutions are required to follow well-defined processes with oversight and failsafe plans aimed at minimizing risk and maximizing public trust.



The terror attacks of 2001 ushered in stringent Know Your Customer (KYC) regulations requiring such institutions know their customers in great detail. The 2008-2009 crisis resulted in further regulation aimed at mitigating economic instability and curbing the use of funds for financing terrorism and other illicit activity.


In contrast, the news industry is expected to largely regulate itself. We pride ourselves on our freedom of the press, and the freedom of expression. Indeed, one of the wonders of the Internet era is the empowerment of individuals as publishers on digital platforms.


However, unlike news organizations whose reputations ultimately depend on careful verification, we have allowed digital platforms like Facebook and Twitter to function without much regard to the risks of propaganda and bias they create. They are now promising us they will do better in the future by employing more people for fact checking. Would we have trusted the bankers with such a promise after the financial crisis and left them alone to regulate themselves?


An important lesson learned from the rise of digital platforms is that they disrupt industries by blurring the boundaries between them. Which industry does Amazon belong to? What about Google? Facebook? Apple? The answers are increasingly vague. And yet regulation continues to be siloed largely by industry, like finance, retail, and telecommunication despite their increasing irrelevance in classifying some of our largest and most powerful businesses.


KYC is critical to finance because every industry uses financial services. Since digital platforms are becoming similarly ubiquitous to virtually every industry, KYC requirements should be considered for them, similar to those for financial institutions.


Advertisements on mass media are plain for everyone to see, and political ads require disclosing who paid for them. Yet in the narrowcasting world of digital targeting it is possible for parties to target individuals with customized hate speech ads completely under the radar without the public or regulators ever noticing, or even without the platform designers being aware of their algorithms being used in ways they had never envisioned or intended!


Requiring KYC requirements on digital platforms is not new. Airbnb already does an automated KYC in real time through verification of government issued IDs. Social media platforms could be required to do something similar but with the added restriction of requiring foreign publishers to obtain legitimate U.S. issued IDs to advertise in the U.S. This would pre-empt the use of legitimate identities issued by governments who may be sponsors of illicit activity or harmful propaganda.


Secondly, we need better guidelines around the ethical use of data, especially around profiling and social manipulation. Business should follow IRB policies around the use of human subjects for social experimentation similar to university researchers, regardless of their stated data usage policies which most individuals don"t even read let alone understand.


For too long, regulators have turned a blind eye to the use of data, emboldening digital platforms to do as they please with no oversight. We need something more proactive approach, where social platforms disclose broadly their data mining goals and policies and demonstrate that they are not violating the implicit intentions of users who entrusted them with their data. These points are not intended to be critical of Facebook and Twitter, but a warning that social media platforms in general pose risks that need to be considered seriously by regulators in free societies.


There are no easy answers, but turning a blind eye to this new Internet phenomenon will continue to expose us to considerable peril in the future. The U.S. government and our regulators need to understand how digital platforms can be weaponized and misused against its citizens, and equally importantly, against democracy itself.


*  *  *


Scared yet... you should be... you"ll be begging for governemnt to regulate the freedom of speech out of social media soon enough... because it"s for your own security... or democracy itself is at stake - right? </sarc..>









Will Ethereum Be The Next Facebook?

Authored by Kenneth Tan via Hackernoon.com,


2017 has been an amazing year for Ethereum.


Prices has hit an all time high of $800, and it is now the processing nearly double the number of transactions of bitcoin at a million a day.


As we enter 2018, I think Ethereum will be the next Facebook due to the massive amount of use cases that i am finding in major industries that benefit greatly from decentralization & transparency.


Ethereum is basically the app store for blockchain.


It allows creators to build and run apps without having to worry about the underlying “operating” system just like Apple.


Here are some of the areas to look out for:


Fundraising and ICOs


ICOs are the largest real world use case for ethereum. Traditionally, to fund your idea, you would have to borrow money from a bank, give up a lot of equity to a VC, or get an expensive loan from people lending sites. Basically, ICOs is a kickstarter on steroids.


As the founder of fundyourselfnow.com, I have worked with entrepreneurs all over the world on their product to get it ready for their ICOs. Many come from developing nations such as Indonesia (EagleCoin) and India (WandX) where it would have been extremely hard to raise significant funding for their idea due to lack of local investors.


ICOs are democratizing funding and spawning the next wave of innovation from young hungry entrepreneurs all over the world who will eventually contribute back to their local communities for a better future.


Payments & Lending


Currently, the crypto-currencies are quite hard to spend. Crypto credit card companies such as TenX, Monaco, Tokencard are stepping in to fill in the gap. All of them are built on the ethereum network. I personally hold a TenX Card and have used it to spend on daily goods and services using bitcoin.


Monaco in particular, has gotten official approval from VISA to issue cards to Singapore residents. Expect to see a huge increase in actual cryptocurrency spending & adoption 2018 as many of these crypto-card companies get official approval from VISA or MasterCard.


There has also been a rise of ethereum based lending solutions, such as SALT lending and ETHLend. The interest rates are expected to be fairer than getting from a bank, and people globally can gain access to financing even without a bank account.


I expect that 2018 will be the year where we will help lot of the unbanked get included in this new digital world.


Gambling


The gambling industry is ripe for disruption. 2017 started off with a very simple dice game, etheroll. You send ether to a smart contract and winnings are sent to you in a matter of minutes. Etheroll has over 260,000 ethers wagered so far (Around 2000m USD), which is incredible considering how simple and basic the game is.


Keep an eye out on Edgeless and Funfair in 2018 as one of them could potentially grow to become the largest online global casino. They have significant advantages over traditional real world casinos:


  1. There is no capital controls

  2. Anonymous, money doesn’t flow through the banking system

  3. Trustless smart contract to process payouts and ensure fairness of game.

Gaming


The virtual nature of gaming lends itself incredibly well for the blockchain. Many successful gaming companies have started to include tokens in their games/product to fund their gaming ecosystem.


Here are some of the interesting ways tokens are used (not exhaustive):


Decentraland?—?Buy Land in their virtual world. Virtual worlds has been around since 2003 with Second Life and Ethereum might be the fuel that makes it finally takes off


Engin Coin?—?Used to create virtual goods that people that can on their marketplace. Instead of using “gold” in most games, expect games in 2018 to require you to use their own Ethereum game token to make & trade items.


CryptoKitties?—?Tokens represents a digital cat in the blockchain. Over 17m worth of cats were transacted since they launched early Dec , with the most expensive cat sold for more than 100k USD.


What more interesting is that with the use of Ethereum tokens for games, this could potentially mean that you could eventually trade items across games. For example, you can trade an Enjin Coin Item for land in decentraland through decentralized exchanges using the ENJ/MANA trade pair. Virtual worlds economies which are currently “silo-ed” could potentially change with the ability to “trade” across worlds.


Final Words


I see the money flowing into Ethereum and the overall cryptocurrency market as a positive. The technology underpinning Ethereum has a lot of real world usage that has yet to be unlocked and money is being funneled into innovative ethereum projects via ICOs at an incredible rate.


Mark Zuckerburg started facebook at the young age of 20 about 13 years ago, and it has completed changed the way we interact with our friends and family.


Vitalik, founder of Ethereum, started Ethereum also at the young age of 20 too about 3 years ago. I strongly believe that within the next 10 years, Ethereum will radically change the we interact with our world.









Saturday, December 23, 2017

Facebook Handing Over More Info To US Government: "This Is What Facebook Was Designed To Do"

Authored by Mac Slavo via SHTFplan.com,


Every year, Facebook gets tens of thousands of requests for data from governments worldwide, including search warrants, subpoenas, or calls to restrict certain kinds of content. And, according to a new report, those requests are increasing at an alarming rate.



According to QZ.com, in the United States, the requests rose by 26% from the last six months of 2016 to the first six months of 2017, while globally, requests increased by about 21%. Since 2013, when the company first started providing data on government requests, the US number has been steadily rising - it has roughly tripled in a period of four years.


This is alarming many and causing a concern about privacy.  Joe Joseph, from the Daily Sheeple, isn’t sugarcoating the reality of Facebook either.  “Duh. This is exactly what Facebook was designed to do,” says Joseph.



“You have to remember that Zuckerberg had “seed money” and that seed money came from CIA front companies that put a lot of resources into this and…basically think about it as like, sowing seeds; if you will. They knew that Facebook was gonna bear fruit.


 


I don’t think they realized just how big it would become. But I can tell you that they get so much information and intel from social media:  I don’t think that it would go away even if we wanted it to.”



The government keeps requesting the information, and Facebook continues to comply with the government’s demands. 


In the first six months of 2013, it granted the government - which includes the police - 79% of requests (“some data was produced” in these cases, the company says); in the first six months of 2017, that share rose to 85%. “We continue to carefully scrutinize each request we receive for account data — whether from an authority in the U.S., Europe, or elsewhere — to make sure it is legally sufficient,” Chris Sonderby, the company’s general counsel, wrote in a post. “If a request appears to be deficient or overly broad, we push back, and will fight in court, if necessary.”


But Joseph thinks Facebook is just trying to pacify the easily manipulated sheeple of society.


“This is pretty troubling when you think about what you put out there, what they collect, and Facebook only being one of the many avenues that they have,” Joseph says.


 


“The United States is collecting your data. Whether you like it or not. They are scooping up everything. And they’re taking it and they’re storing it in their facility at Bluffdale, Utah which has the capacity at this time to store every communication on the face of this earth for the next one hundred years.”


 


“It’s unbelievable,” Joseph continues.  “This is stuff that is unacceptable to me, but I’m sure, to a lot of you. And these companies have really gone too far…they can reconstruct your life and make anyone they want a patsy.”










Panic-Selling Turns To Buying-Scramble As Cryptocurrencies Recover Dramatically

Update 1600ET: Thanks to some serious dip-buying, the landcape across cryptocurrencies is not as completely devastating as it appeared this morning...



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Update 1300ET: Bitcoin prices have somewhat stabilized for now around $13,000...



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Update 1245ET: GDAX is down...



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Update 1220ET: Mike Novogratz has shelved plans to launch his fund, warning that: "We didn’t like market conditions and we wanted to re-evaluate what we’re doing...I look pretty smart pressing the pause button right now."


Warning traders that Bitcoin may drop as low as $8,000 in the near-term... but the bull market isn"t over.


Bitcoin prices are higher since his announcement...



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Update 1202ET: Coinbase is down...



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Update 1045ET: Andrew Left of Citron Research has covered his GBTC (Bitcoin Trust) short.. as the arbitrage spread to futures has roundtripped...



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Update 1025ET: Bitcoin Futures have resumed trading and the BTFD"ers are in control - ramping Bitcoin back above $13,000 from near $10,000 lows...



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Update: 0950ET - CME"s Bitcoin Futures Contract was halted limit-down (down 20%) at $12,265 at 0945ET...



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Following the most aggressive drop in Bitcoin in almost three years (plunging 37% from its highs in 5 days)... Bitcoin is now down over $9000 from its highs...


Back to a $10,000 handle...



And then it was suddenly ripped $2000 higher...



Every bounce is sold...



However, today"s collapse isn’t even particularly eye-catching on a logarithmic scale, used to compare relative percentage-point sizes of moves.


At least three times since 2010, the first year for which Bloomberg prices are available, bitcoin has retreated more than 70 percent from record highs. Caveat emptor.



Surveying the damage this morning is nothing short of a bloodbath...



Source


If one looks carefully, one can find a few glints of green - Tether, NXT, Komodo, Bitcoin Dark, and SmartCash but they are all microcap.


Futures and spot fell together with various circuit-breakers kicking in...



Some have argued that this was a key technical breakdown of the exponential uptrend...



These kind of drops are not entirely unusual, Bitcoin has crashed by over 30% in every quarter since its inception...



 


In fact, drawdowns are very much business as usual...



As Reuters notes, for the week, it was down around a third - its worst performance since April 2013.


“A manic upward swing led by the herd will be followed by a downturn as the emotional sentiment changes,” said Charles Hayter, founder and chief executive of industry website Cryptocompare in London.


 


“A lot of traders have been waiting for this large correction.”


 


“With the end of the year in sight a lot of investors will be taking profits and saying thank you very much and closing their books for the holiday period,” he added.



Ethereum is also getting crushed...



Interestingly, Ripple, the third-biggest, has more than quadrupled in price since Monday.


“A lot of the capital is flowing from bitcoin into alternative coins,” said Shane Chanel, equities and derivatives adviser at ASR Wealth Advisers in Sydney.



But it"s not just the underlying cryptocurrencies that are bloodbathing. Various companies that have changed their names in recent days/weeks to try and capitalize on crypto"s rise are in trouble this morning...


Riot Blockchain, Long Island Iced Tea (Blockchain), Net Element, and LongFin are all crashing in pre-market...



...Meanwhile, the newly christened Long Blockchain revealed in an SEC filing on Friday that it had secured a new loan agreement with Court Cavendish, a lender trying to expand its technology portfolio, according to the filing. The company received a $2 million loan, with the option of increasing it to $4 million with the consent of the lender.


The loan is secured with warrants...


 



 


Stephen Innes, head of trading in Asia-Pacific for retail FX broker Oanda in Singapore, said that there have also been moves out of bitcoin into Bitcoin Cash, a clone of the original cryptocurrency. Oanda does not handle trading in bitcoin.


“Most of it is unsophisticated retail traders getting burned badly,” Innes said on bitcoin’s recent retreat.



Finally, many are noting the recoupling ion the relationship between Bitcoin and Gold...



Which comes first? Bitcoin $10k or Gold $1300?