Facebook’s Push for End-to-End Encryption Is Good News for User Privacy, as Well as Terrorists and Paedophiles – Nextgov

Facebook is planning end-to-end encryption on all its messaging services to increase privacy levels.

The tech giant started experimenting with this earlier this year. Soon, end-to-end encryption will be standard for every Facebook message.

But Australian, British and United States governments and law makers arent happy about it. They fear it will make it impossible to recover criminal conversations from Facebooks platforms, thus offering impunity to offenders.

For instance, this was a major concern following the 2017 London terror attacks. Attackers used WhatsApp (Facebooks end-to-end encrypted platform), and this frustrated police investigations.

But does Facebooks initiative place the company between a political rock and an ethical hard place?

What is end-to-end encryption?

End-to-end encryption is a method of communicating more securely, compared to non-encrypted communications.

It involves using encryption (via cryptographic keys) that excludes third parties from accessing content shared between communicating users.

When the sender wants to communicate with the receiver, they share a unique algorithmic key to decrypt the message. No one else can access it, not even the service provider.

The Real Incentive

Facebooks plan to enact this change is paradoxical, considering the company has a history of harvesting user data and selling it to third parties.

Now, it supposedly wants to protect the privacy of the same users.

One possible reason Facebook is pushing for this development is because it will solve many of its legal woes.

With end-to-end encryption, the company will no longer have backdoor access to users messages.

Thus, it wont be forced to comply with requests from law enforcement agencies to access data. And even if police were able to get hold of the data, they would still need the key required to read the messages.

Only users would have the ability to share the key (or messages) with law enforcement.

Points in Favour

Implementing end-to-end encryption will positively impact Facebook users privacy, as their messages will be protected from eavesdropping.

This means Facebook, law enforcement agencies and hackers will find it harder to intercept any communication done through the platform.

And although end-to-end encryption is arguably not necessary for most everyday conversations, it does have advantages, including:

1) protecting users personal and financial information, such as transactions on Facebook Marketplace

2) increasing trust and cooperation between users

3) preventing criminals eavesdropping on individuals to harvest their information, which can render them victim to stalking, scamming and romance frauds

4) allowing those with sensitive medical, political or sexual information to be able to share it with others online

5) enabling journalists and intelligence agencies to communicate privately with sources.

Not Foolproof

However, even though end-to-end encryption will increase users privacy in certain situations, it may still not be enough to make conversations completely safe.

This is because the biggest threat to eavesdropping is the very act of using a device.

End-to-end encryption doesnt guarantee the people we are talking to online are who they say they are.

Also, while cryptographic algorithms are hard to crack, third parties can still obtain the key to open the message. For example, this can be done by using apps to take screenshots of a conversation, and sending them to third parties.

A Benefit for Criminals

When Facebook messages become end-to-end encrypted, it will be harder to detect criminals, including people who use the platform to commit scams and launch malware.

Others use Facebook for human or sex trafficking, as well as child grooming and exploitation.

Facebook Messenger can also help criminals organise themselves, as well as plan and carry out crimes, including terror attacks and cyber-enabled fraud extortion hacks.

The unfortunate trade-off in increasing user privacy is reducing the capacity for surveillance and national security efforts.

End-to-end encryption on Facebook would also increase criminals feeling of security.

However, although tech companies cant deny the risk of having their technologies exploited for illegal purposes they also dont have a complete duty to keep a particular countrys cyberspace safe.

What to do?

A potential solution to the dilemma can be found in various critiques of the UKs 2016 Investigatory Powers Act.

It proposes that, on certain occasions, a communications service provider may be asked to remove encryption (where possible).

However, this power must come from an authority that can be held accountable in court for its actions, and this should be used as a last resort.

In doing so, encryption will increase user privacy without allowing total privacy, which carries harmful consequences.

So far, several governments have pushed back against Facebooks encryption plans, fearing it will place the company and its users beyond their reach, and make it more difficult to catch criminals.

End-to-end encryption is perceived as a bulwark for surveillance by third parties and governments, despite other ways of intercepting communications.

Many also agree surveillance is not only invasive, but also prone to abuse by governments and third parties.

Freedom from invasive surveillance also facilitates freedom of expression, opinion and privacy, as observed by the United Nations High Commissioner for Human Rights.

In a world where debate is polarised by social media, Facebook and similar platforms are caught amid the politics of security.

Its hard to say how a perfect balance can be achieved in such a multifactorial dilemma.

Either way, the decision is a political one, and governments - as opposed to tech companies - should ultimately be responsible for such decisions.

Roberto Musotto is a Cyber Security Cooperative Research Centre postdoctoral fellow at the Edith Cowan University and David S. Wall is a professor of criminology at the University of Leeds

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Facebook's Push for End-to-End Encryption Is Good News for User Privacy, as Well as Terrorists and Paedophiles - Nextgov

The decline of passwords, the rise of encryption and deepfakes cybersecurity predictions for 2020 – BetaNews

It's the time of year again where the great and good of the tech sector like to consult the tea leaves, gaze into the crystal ball, read the runes -- and of course draw on their industry knowledge -- to give their predictions for the year ahead.

So, what do they think is in store for cybersecurity in 2020?

The decline of the password has been on the horizon for a while, but Ben Goodman, CISSP and SVP of global and corporate development at ForgeRockbelieves 2020 will mark the beginning of the end. "Consumers already log in to dozens of protected resources everyday: from email, banking and financial accounts, social media, healthcare, government accounts, and beyond. Even when tools like TouchID are leveraged each of these resources currently still have an associated username and password that can be attacked. To save time and remember their credentials for all these sites, consumers reuse the same username and password across several sites. As a result, the user's exposure from any one security breach on one of those profiles dramatically increases the odds that additional accounts can be compromised as well, allowing attackers to access far more sensitive information."

This is echoed by Clayton Calvert, a consultant at IT security and risk assessment firm netlogx. "With passwordless authentication, IT reclaims its purpose of having complete visibility over identity and access management. Reuse and sharing are common issues in password-based authentication. Without passwords, there is nothing to phish, share, or reuse. The user is no longer a wild card in an organization's access scheme. It is this crucial element that gives passwordless solutions their security advantage. As an added benefit, GDPR prefers that companies use passwordless authentication to eliminate the storing and securing of passwords exchanged over the network. While consumers have used this technology for a number of years in Apple and Samsung products, companies are beginning to do so as well. Sixty percent of large enterprises and nearly all of midsize organizations will use passwordless authentication by 2020."

With the decline of the password though the rise of deepfakes becomes a greater concern. CEO of Jumio, Robert Prigge says, "With a reported 50 percent of consumers using the same credentials across multiple accounts, automated account takeover attacks will continue to run rampant in 2020. As the industry abandons outdated authentication methods that are easily susceptible to fraud, like SMS-based 2FA and knowledge-based authentication, and turn to more advanced, biometric-based authentication methods as a secure alternative, the rise of deepfake technology will become a larger concern. A deepfake superimposes existing video footage or photographs of a face onto a source head and body using advanced neural network powered AI -- and are relatively easy to create. In 2020, we will see an increase in deepfake technology being weaponized for fraud as biometric-based authentication solutions are widely adopted. Even more concerning is that many digital identity verification solutions are unable to detect and prevent deepfakes, bots and sophisticated spoofing attacks."

Deepfakes raise other concerns too according to Optiv Security, "There has been much publicity around the potential to impact elections using deepfakes (AI-doctored videos that enable individuals to make it appear people said things they never said). However, not enough attention has been paid to how cybercriminals can make money using deepfakes against businesses. This will change in 2020 as we expect to see the first deepfake attacks designed to impact stock prices, by having CEOs, financial analysts, Federal Reserve leaders or other powerful economic figures make phony statements that will cause stock market movements. Cybercriminals will use these videos to make quick killings in the market."

2020 is also set to be the year of encryption according to Peter Galvin, vice president strategy and marketing at nCipher Security. "In the US, lawmakers on Capitol Hill have re-energized a push for encryption backdoors, an initiative that is seeing bipartisan support. Internationally, the UK and Australian governments (in addition to the US government) are pressuring Facebook to scrap plans for end-to-end encryption of Facebook Messenger. Galvin adds, Consumers, meanwhile, want more control and privacy over their data yet are often left confused about what that really means and how to make it a reality. Also factoring into the encryption conversation is the protection of voter information leading up to the US election and advancements in facial recognition software."

We can also expect to see more attacks aimed at critical infrastructure and governments according to Alex Heid, chief research officer at SecurityScorecard. "Malicious nation-state actors will continue to focus on malware and ransomware attacks. Nation-state actors don't just want to sell cardholder data on the Dark Web, theyre targeting critical infrastructure such as electricity and water companies.

"In August of 2019, emails sent to US utilities companies contained a remote access trojan as part of a spear phishing campaign. The advanced persistent threat is another in a long line of attacks targeting critical infrastructure.

"With at least thirteen global presidential elections scheduled for 2020, we can expect to see more malware and ransomware attacks attempting to undermine voters confidence."

The ongoing skills shortage will add to problems says Bret Fund, head of cybersecurity at training specialist Flatiron School, "While the average pay for cybersecurity positions in North America is $90,000, pay levels in some areas -- such as local and federal government -- is below what's needed to attract and retain skilled talent. With healthcare, financial services and other large enterprises making it more lucrative for qualified cybersecurity professionals to work in their organizations, local government will be faced with a great cybersecurity skills shortage. Local government agencies will have to think creatively about how they can re-skill their current employee base to meet their cybersecurity needs."

Healthcare is set to come under attack too says Mike Riemer, chief security architect at Pulse Secure, "It is already well-understood that the healthcare industry struggles to secure its trove of sensitive data. But, even as widely discussed as this issue is, the healthcare industry has been slow to adopt effective security measures and quick to embrace an even greater influx of data during digital transformation efforts. As healthcare continues to evolve towards the convenient, self-service model that todays digital-first consumer demands, there will be serious security implications as companies try to control the release of data and information. For example, telemedicine is making patient care extremely convenient, but is the doctor-patient communication secured and encrypted? If not, anyone can intercept the data and communication in transit. How do you secure that information stored on the end-user's phone? The security of any network is only as strong as the weakest link. In this service model, the end-point device is most likely to be compromised and healthcare organizations need to ensure they are meeting all the security and regulatory requirements."

Are there other trends that you think will affect cybersecurity in 2020? Let us know.

Photo Credit: vinzstudio/Shutterstock

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The decline of passwords, the rise of encryption and deepfakes cybersecurity predictions for 2020 - BetaNews

Hardware-based Full Disk Encryption Market Executive Summary, Introduction, Sizing, Analysis and Forecast To 2025 – Market Research Sheets

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Hardware-based Full Disk Encryption Market Executive Summary, Introduction, Sizing, Analysis and Forecast To 2025 - Market Research Sheets

With Elections over the Head and Facebook’s Message Encryption and Election Security Many Questions are raised – Digital Information World

The U.S. Presidential elections of 2020 are just around the corner and regulatory and government bodies are all over the tech giants. Facebook, is the special concern of everyone due to the ongoing challenges it is facing related to message encryption, political ads and more.

Facebooks only concern right now is to enhance security on the platform to avoid the claws of the officials. Its hard to say that Facebook might come out of it, but there are chances if they act right.

The officials are trying to put Facebook on the back foot to avoid any mishaps from happening. Here are the top concerns that are becoming a nightmare for Zuckerberg.

For me or you, its normal. What about drug suppliers, child abusers, child traffickers and more? It might turn into a Christmas gift for them.

In October, UK Home Secretary Priti Patel, US Attorney General Bill Barr, acting US Homeland Security Secretary Kevin McAleenan, and Australian Minister for Home Affairs Peter Dutton published a letter in which they demanded Facebook abandon their project of full encryption.

Legally speaking, they are concerned about the well-being of people. End-to-end encryption feature will turn into a hub for terrorists, child sexual exploiters, abusers and more a place to carry on their secret conversations.

The government officials are demanding this to reduce the risk of serious harms that can affect countries. If not abandon the idea, then officials asked Facebook to provide a back door or an access point to law enforcement to maintain some transparency.

Facebook has commented that they will not be abandoning the idea of encryption nor will they provide any access point. As expected, Facebook responded that giving access point to one means opening doors for others as well. It is for sure that other actors will try to take advantage of this access point that can also bring major harm.

By rejecting this idea, Facebook is well aware that it has attracted more eyes to hawk on it. The scrutiny will increase and the criticism against Facebook will only touch new heights. However, Facebooks fully encrypted chat will bring more privacy-savvy users to the platform.

Even though Facebook might be right in their decision, but the current situation with the government does not support their stance on full message encryption.

Many saw Islamophobic posts and more on the Facebook, but Facebook requested that it is as per their Community Standards Hey Facebook, I surely wanna know about this community!

With so many users on Facebook, it is certainly impossible to regulate everything as per standards. Facebook is one of its kind when it comes to having a social impact and millions of users. Believe it or not, Facebook actually has a social impact on people.

People do get influenced by Facebook and such posts only feed into their thoughts. With Presidential Elections coming, that is the least that Facebook would want!

Marc Owen Jones, a Professor has identified that the political activists are using bots to flood misinformation. Using such tactics only leads to fueled counter-movements and arguments that could cause bias pretty easily.

Targeting influential local groups is a note-worthy strategy to reach to major national ones. First, leave the bacteria in one place and the disease will travel everywhere. These posts get a lot of engagement, which can make the word travel faster among other groups.

In the end, even some high profiles engage in such false and fake content, which is beyond Facebooks control!

On such a large scale, even Facebook might be unable to control the content flowing on the internet. If Facebook stops people, they will move to another social media platform. You see, its the people, not the Facebook!

Photo: JasonDoiy via Getty Images

Read next: Frequent Facebook Use Leads to Higher Number of Ad Preferences

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With Elections over the Head and Facebook's Message Encryption and Election Security Many Questions are raised - Digital Information World

Future of Encryption Software Market Reviewed in a New Research Study 2019-2025 – Daily News Reports 24

A leading research firm, Zion Market Research added a latest industry report on "Global Encryption Software Market" consisting of 110+ pages during the forecast period and Encryption Software Market report offers a comprehensive research updates and information related to market growth, demand, opportunities in the global Encryption Software Market.

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Future of Encryption Software Market Reviewed in a New Research Study 2019-2025 - Daily News Reports 24

Edward Snowden must give government money from book because ex-intelligence contractor didn’t get approval first, judge says – CNBC

Former intelligence contractor Edward Snowden poses for a photo during an interview in an undisclosed location in December 2013 in Moscow, Russia.

Barton Gellman | Getty Images

Newly released "Permanent Record" by Edward Snowden is displayed on a shelf at Books Inc. on September 17, 2019 in San Francisco, California.

Justin Sullivan | Getty Images

O'Grady's ruling noted that all three agreements Snowden signed required him to protect information and material of which he had knowledge from unauthorized disclosure.

They also required him to submit for review any writings or other presentations he prepared which related to intelligence data or protected information.

Snowden's book, which was published in September in the United States by Macmillan Publishing Group, details CIA and NSA intelligence-gathering activities, including classified programs.

Snowden did not get clearance from either agency for the book. Nor did he get clearance for intelligence-related materials he displayed during talks he gave for various public events, which included at least one slide "marked classified at the Top Secret level," the ruling said.

In his defense of the lawsuit, Snowden argued that the government had breached the secrecy agreements "by indicating it would refuse to review Snowden's materials in good faith and within a reasonable time," O'Grady noted in his ruling.

Snowden also argued that the suit "is based on animus toward his viewpoint," and that the government only selectively enforced secrecy agreements, the judge said. And finally, Snowden maintained that the agreements did not support the government's claim against him.

But in his ruling, O'Grady said "the contracts at issue here" the secrecy agreements "are unambiguous and clear."

And the judge said there is "no genuine dispute" that Snowden breached the agreements.

A spokeswoman for the U.S. Justice Department did not immediately respond to requests for comment by CNBC about O'Grady's ruling.

Brett Max Kaufman, a lawyer on Snowden's legal team, said, "It's farfetched to believe that the government would have reviewed Mr. Snowden's book or anything else he submitted in good faith."

"For that reason, Mr. Snowden preferred to risk his future royalties than to subject his experiences to improper government censorship," said Kaufman, who is an attorney with the American Civil Liberties Union's Center for Democracy.

"We disagree with the court's decision and will review our options, but it's more clear than ever that the unfair and opaque prepublication review system affecting millions of former government employees needs major reforms."

In April, the ACLU and the Knight First Amendment Institute at Columbia University filed a lawsuit on behalf of five former public servants challenging the prepublication review system that affects former intelligence-agency employees such as Snowden and military personnel.

The suit argues that the system violates the Constitution's First and Fifth Amendments.

The case was filed for former employees of the Office of the Director of National Intelligence, a former CIA employee, a former Marine, and an ex-employee of the Naval Criminal Investigative Service.

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Edward Snowden must give government money from book because ex-intelligence contractor didn't get approval first, judge says - CNBC

Teen crook hacked into 75 phones and stole $1M in cryptocurrency: authorities – New York Post

An alleged teen crook stole the identities of 75 people and swiped $1 million in cryptocurrency all from the comfort of his Brooklyn apartment, authorities said.

Yousef Selassie, 19, used a sophisticated SIM-swapping scheme to take over the phones of people in 20 different states between Jan. 20 and May 19, 2019, according to the Manhattan District Attorneys Office.

He allegedly transferred his victims phone numbers to his own iPhones, enabling him to reset their passwords and gain access to their Gmail, cryptocurrency and other accounts. Meanwhile, his victims phones would suddenly go offline.

The stolen $1 million came from just two victims, authorities said. Selassie was arrested Dec. 5 in Corona, California, and extradited to New York.

He was arraigned Wednesday in Manhattan Supreme Court, where he pleaded not guilty to 87 counts of grand larceny, identity theft and other charges. Justice Mark Dwyer ordered him to surrender his passport and check-in weekly with a supervised-release program. The judge did not set bail.

Authorities executed search warrants on Selassies Brooklyn and California residences, where they seized half a dozen iPhones, two Rolex watches, a monogrammed Gucci wallet and numerous pieces of high-end jewelry, according to court papers.

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Teen crook hacked into 75 phones and stole $1M in cryptocurrency: authorities - New York Post

Cryptocurrency treated as property in freezing order – Lexology

The High Court has granted a freezing order over GBP1.5million worth of Bitcoin and Ethereum cryptocurrency against a trading platform and its directors, in only the second known example of the court treating cryptocurrency as property. The question of whether cryptocurrency is property is relevant to determining competing rights parties may have in it: Elena Vorotyntseva v Money-4 Limited t/a Nebeus.Com, Sergey Romanovskiy, Konstantin Zaripov [2018] EWHC 2596 (Ch)

Until recently, Robertson v Persons Unknown was thought to be the first time that the English High Court had engaged with the question of whether cryptocurrency is property for the purposes of making a proprietary order. However, that was preceded by the present case, a decision from September 2018 only published in November 2019. The claimant, Elena Vorotyntseva (EV), had transferred to Money-4 Limited (trading as Nebeus.Com) (Nebeus) a significant amount of Bitcoin and Ethereum cryptocurrency (the Cryptocurrency) to be held on Nebeus trading platform. The Cryptocurrency was valued at the time at around GBP1.5m.

Funds were transferred to Nebeus on the understanding that it would hold and deal with the Cryptocurrency on EVs behalf. When EV became concerned that the Cryptocurrency may have been dissipated, she sought confirmation from Nebeus that it was still in Nebeus possession. In the absence of any such confirmation, EV applied for a freezing order against Nebeus and its two directors (the Respondents).

Risk of dissipation

The Respondents were represented at the hearing, having been given very short notice of the application the night before. Nebeus offered an undertaking to maintain the Cryptocurrency pending further order, but EV wanted confirmation that she still had control of the Cryptocurrency. The Respondents produced two screenshots at the hearing, one in relation to each form of cryptocurrency. The court accepted EVs submission that the Bitcoin screenshot was insufficient to establish that Nebeus still held EVs Bitcoin. The Ethereum screenshot was even more problematic, since it appeared to have been altered to make it look as if EVs name appeared on the screenshot, when in fact it did not.

The Respondents failed to produce evidence to demonstrate that Nebeus still held the Cryptocurrency, and the questionable nature of some of the evidence bore out EVs concern about the risk of dissipation. Satisfied that there was a real risk of dissipation of the Cryptocurrency, Mr Justice Birss granted a freezing order against the Respondents to prohibit their disposal of the relevant quantities of Bitcoin or Ethereum.

Cryptocurrency as property

This decision is notable for the courts willingness to grant a proprietary injunction as part of the freezing order. This prohibited the disposal of the relevant quantities of Bitcoin or Ethereum (rather than their sterling equivalent value). Birss J was satisfied that the court could make a proprietary order in this case, noting only that there was no suggestion that the Cryptocurrency did not belong to EV, nor any suggestion that cryptocurrency cannot be a form or property or that a party amenable to the courts jurisdiction cannot be enjoined from dealing in or otherwise disposing of it.

The decision does not shed light on the basis on which the court held that Bitcoin and/or Ethereum should be treated as property, but Birss Js readiness to do so is noteworthy.

Comment

This decision will provide further reassurance, alongside Robertson, of the English courts willingness to deal with cryptocurrency as property (albeit both are interlocutory decisions). Although the orders and legal tests the court considered in this case and Robertson (where an Asset Preservation Order was granted in respect of stolen Bitcoin) were different, both decisions required the court to proceed on the basis that cryptocurrency could be personal property. In neither case did the court directly address on what legal basis cryptocurrencies could be property.

This direction of travel was also reflected in the Legal statement on cryptoassets and smart contracts recently published by The UK Jurisdiction Taskforce (UKJT) of the LawTech Delivery Panel. The UKJT pronounced that cryptoassets are capable of being property. Being decentralised, intangible and not fitting within a classification as either chose in possession or action should not, in the UKJTs view, disqualify them. The UKJT proposed that they be recognised not as choses in possession or choses in action but as some other intangible assets.

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Cryptocurrency treated as property in freezing order - Lexology

Executive dies, taking investor cryptocurrency with him. Now they want the body exhumed – ZDNet

The former Quadriga CX CEO Gerald Cotten died suddenly this year, taking the keys required to access cryptocurrency funds belonging to investors with him.

Now, these same traders, devoid of millions in investment, have requested that the body of the firm's former CEO be exhumed to confirm his death.

The story of Cotten's passing exploded in February when it emerged the former executive was the only one in possession of the passwords required to access Quadriga CX cold wallets, containing roughly $250 million in cryptocurrency.

Once the owner passed away in India due to reported complications with Crohn's disease, the assets were deemed lost, leading to the Canadian cryptocurrency exchange to file for Companies' Creditors Arrangement Act (CCAA) protection -- and later instigate bankruptcy proceedings.

"We did not enter into this decision lightly," Quadriga CX said. "We have worked extensively to address our liquidity issues, which include locating our very significant cryptocurrency reserves held in cold wallets required to satisfy customer cryptocurrency balances on deposit and sourcing a financial institution to accept the bank drafts being transferred to us. Unfortunately, these efforts have not been successful."

The company was able to continue operating for a number of weeks after the chief executive passed away, but once the news was made public by his widow, Jennifer Robertson, the exchange's operations rapidly unraveled.

Ernst & Young is now overseeing liquidation proceedings.

The cold wallets were only accessible through Cotten's laptop, and while attempts were made to obtain access including hiring external IT specialists and an extensive search for a paper copy of the credentials, none have borne fruit.

Reddit subthreads mentioning the cryptocurrency exchange are alight with conspiracy theories and it appears that some former traders do not believe that the former CEO is dead -- suggesting that instead, Cotten is still alive and is living off the proceeds of an unusual form of exit scam.

Investors are now demanding concrete proof of his passing.

In a letter (.PDF) dated 13 December, representatives of the users that have lost access to their cryptocurrency as appointed by the Supreme Court of Nova Scotia -- where Quadriga CX used to call home -- lawyers from Miller Thomson LLP and Cox & Palmer have asked that the Royal Canadian Mounted Police (RCMP) perform an exhumation of his body.

See also:DoJ arrests Ponzi operators planning to retire 'RAF' through cryptocurrency scam

No autopsy was requested at the time of Cotten's death. Now, a post-mortem examination has been requested to confirm the body belongs to Cotten, who died aged 30, as well as his cause of death.

The representative counsel says the procedures should take place "given the questionable circumstances surrounding Mr. Cotten's death and the significant losses of affected users."

In addition, the letter says there is a need for certainty "around the question of whether Mr. Cotten is in fact deceased."

The legal team hopes the exhumation and autopsy can be completed by early 2020, as noted by The New York Times. The lawyers claim time is of the essence, citing "decomposition concerns."

A lawyer for his widow told the publication Robertson was "heartbroken" to learn of the request.

In June, the Federal Bureau of Investigation (FBI) sent out a request asking former QuadrigaCX users to fill out a questionnaire as part of an investigation into the firm, conducted with the Internal Revenue Service Criminal Investigation (IRS-CI), the United States Attorney's Office for the District of Columbia, and the Department of Justice (DoJ).

TechRepublic:Survey: Customers want integration and strategic support from security vendors

An Ernst & Young report into the financial workings of Quadriga CX has also raised some troubling issues. According to the monitor, the cryptocurrency exchange's operating infrastructure was "significantly flawed," with Mr. Cotten "failing to ensure adequate safeguard procedures were in place to transfer passwords and other critical operating data to other Quadriga representatives should a critical event materialize."In addition, Ernst & Young was unable to find any accounting or basic corporate records separating company and investor funds.

CNET:How we evaluate and review VPNs

Last month, cryptocurrency trading platform Upbit revealed the theft of $48.5 million in Ethereum (ETH) from the organization's hot wallet. Upbit has pledged to cover the stolen funds, and after the suspension of trading for several weeks, normal services have begun to resume.

Have a tip? Get in touch securely via WhatsApp | Signal at +447713 025 499, or over at Keybase: charlie0

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Executive dies, taking investor cryptocurrency with him. Now they want the body exhumed - ZDNet

Cryptocurrencies Are Still the World’s Best Performing Asset Class This Year – CoinDesk

As the year and decade come to an end, cryptocurrencies once again outperform other major asset classes.

Despite trading significantly down from their record highs of late December 2017, large-cap cryptocurrencies had a phenomenal year and remain one of the greatest investment success stories of the decade.

Cementing themselves as the worlds leading asset class for yearly performance, cryptocurrencies have risen well above annualized returns of the U.S. equities, commodities and bond markets for 2019.

Ryan Alfred, President and co-founder of Digital Assets Data said large-cap crypto assets possess significantly higher returns versus traditional markets for this year.

Looking back at the performance of the top ten large-caps (Bitwise 10) in comparison to other major asset classes, we can see their special signature, Alfred said.

Crypto versus traditional assets

As seen in the chart above, research provided by Digital Assets Data shows how this years performance of the top 10 cryptos by market capitalization fared against other major asset classes such as gold, oil and equities.

Of course, 2019 didnt start out that way. Back in February, the top 10 crypto began a fairly dismal run, resting well below all other traditional asset classes when viewing their return on investment figures. However, sentiment began to pick up significantly in March and by mid-year, cryptocurrencies were far out ahead of other the other assets.

That gap has begun to narrow as stocks, bonds and commodities begin to increase their lead. Yet cryptocurrencies remain significantly ahead of all other asset classes as the year comes to a close.

Much of this rally is courtesy of bitcoin (BTC). The world's first cryptocurrency is currently up 100 percent since the year began. Meanwhile, Ether, the worlds second-largest crypto is up 35 percent year-to-date, though XRP is down 25 percent from where it traded on Jan. 1.

The big picture: Cryptos success story

In the year before the decade began, the world was in the throes of a financial crisis. Since then, stocks have rebounded. From its March 2009 market meltdown lows to now, the S&P 500 has gained a respectable 369 percent. Similarly, the Dow Jones Industrial Average has also had a good run, up 326 percent in that same time period.

However, BTC has blasted those figures, rising well above a staggering 12 million percent (yes, you read that correctly) over a one-year-shorter time frame, beginning March 2010. Thats when the price of 1 BTC was around $0.05, data taken from Messari shows.

Cryptos success can likely be attributed to its most defining characteristics: high volatility and liquidity, allowing market participants to quickly and easily trade between digital and fiat currencies.

Lorenzo Pellegrino, CEO of Skrill, a cross-border payments platform utilizing crypto, said digital assets resembled a nascent market. Prices bouncing around in a frantic manner enable the asset class to outperform all others based on irrational sentiment and low barriers to entry.

As it (crypto) matures we should start to see increased stability and the core fundamentals will become more apparent," Pellegrino said.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Cryptocurrencies Are Still the World's Best Performing Asset Class This Year - CoinDesk