Putin Is Well on His Way to Stealing the Next Election – The Atlantic

Jack Cable sat down at the desk in his cramped dorm room to become an adult in the eyes of democracy. The rangy teenager, with neatly manicured brown hair and chunky glasses, had recently arrived at Stanfordhis first semester of life away from homeand the 2018 midterm elections were less than two months away. Although he wasnt one for covering his laptop with strident stickers or for taking loud stands, he felt a genuine thrill at the prospect of voting. But before he could cast an absentee ballot, he needed to register with the Board of Elections back home in Chicago.

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When Cable tried to complete the digital forms, an error message stared at him from his browser. Clicking back to his initial entry, he realized that he had accidentally typed an extraneous quotation mark into his home address. The fact that a single keystroke had short-circuited his registration filled Cable with a sense of dread.

Despite his youth, Cable already enjoyed a global reputation as a gifted hackeror, as he is prone to clarify, an ethical hacker. As a sophomore in high school, he had started participating in bug bounties, contests in which companies such as Google and Uber publicly invite attacks on their digital infrastructure so that they can identify and patch vulnerabilities before malicious actors can exploit them. Cable, who is preternaturally persistent, had a knack for finding these soft spots. He collected enough cash prizes from the bug bounties to cover the costs of four years at Stanford.

Though it wouldnt have given the average citizen a moment of pause, Cable recognized the error message on the Chicago Board of Elections website as a telltale sign of a gaping hole in its security. It suggested that the site was vulnerable to those with less beneficent intentions than his own, that they could read and perhaps even alter databases listing the names and addresses of voters in the countrys third-largest city. Despite his technical savvy, Cable was at a loss for how to alert the authorities. He began sending urgent warnings about the problem to every official email address he could find. Over the course of the next seven months, he tried to reach the citys chief information officer, the Illinois governors office, and the Department of Homeland Security.

As he waited for someone to take notice of his missives, Cable started to wonder whether the rest of Americas electoral infrastructure was as weak as Chicagos. He read about how, in 2016, when he was a junior in high school, Russian military intelligenceknown by its initials, GRUhad hacked the Illinois State Board of Elections website, transferring the personal data of tens of thousands of voters to Moscow. The GRU had even tunneled into the computers of a small Florida company that sold software to election officials in eight states.

Out of curiosity, Cable checked to see what his home state had done to protect itself in the years since. Within 15 minutes of poking around the Board of Elections website, he discovered that its old weaknesses had not been fully repaired. These were the most basic lapses in cybersecuritypreventable with code learned in an introductory computer-science classand they remained even though similar gaps had been identified by the FBI and the Department of Homeland Security, not to mention widely reported in the media. The Russians could have strolled through the same door as they had in 2016.

From the January/February 2018 issue cover story: What Putin really wants

Between classes, Cable began running tests on the rest of the national electoral infrastructure. He found that some states now had formidable defenses, but many others were like Illinois. If a teenager in a dorm roomeven an exceptionally talented onecould find these vulnerabilities, they were not going to be missed by a disciplined unit of hackers that has spent years studying these networks, a unit with the resources of a powerful nation bent on discrediting an American election.

#DemocracyRIP was both the hashtag and the plan. The Russians were expecting the election of Hillary Clintonand preparing to immediately declare it a fraud. The embassy in Washington had attempted to persuade American officials to allow its functionaries to act as observers in polling places. A Twitter campaign alleging voting irregularities was queued. Russian diplomats were ready to publicly denounce the results as illegitimate. Events in 2016, of course, veered in the other direction. Yet the hashtag is worth pausing over for a moment, because, though it was never put to its intended use, it remains an apt title for a mission that is still unfolding.

Russias interference in the last presidential election is among the most closely studied phenomena in recent American history, having been examined by Special Counsel Robert Mueller and his prosecutors, by investigators working for congressional committees, by teams within Facebook and Twitter, by seemingly every think tank with access to a printing press. Its possible, however, to mistake a plot pointthe manipulation of the 2016 electionfor the full sweep of the narrative.

Events in the United States have unfolded more favorably than any operative in Moscow could have ever dreamed: Not only did Russias preferred candidate win, but he has spent his first term fulfilling the potential it saw in him, discrediting American institutions, rending the seams of American culture, and isolating a nation that had styled itself as indispensable to the free world. But instead of complacently enjoying its triumph, Russia almost immediately set about replicating it. Boosting the Trump campaign was a tactic; #DemocracyRIP remains the larger objective.

From the April 2020 issue: George Packer on how Trump is winning his war on American institutions

In the week that followed Donald Trumps election, Russia used its fake accounts on social media to organize a rally in New York City supporting the president-electand another rally in New York decrying him. Hackers continued attempting to break into state voting systems; trolls continued to launch social-media campaigns intended to spark racial conflict. Through subsidiaries, the Russian government continued to funnel cash to viral-video channels with names like In the Now and ICYMI, which build audiences with ephemera (Man Licks Store Shelves in Online Post), then hit unsuspecting readers with arguments about Syria and the CIA. This winter, the Russians even secured airtime for their overt propaganda outlet Sputnik on three radio stations in Kansas, bringing the networks drive-time depictions of American hypocrisy to the heartland.

While the Russians continued their efforts to undermine American democracy, the United States belatedly began to devise a response. Across governmentif not at the top of itthere was a panicked sense that American democracy required new layers of defense. Senators drafted legislation with grandiose titles; bureaucrats unfurled the blueprints for new units and divisions; law enforcement assigned bodies to dedicated task forces. Yet many of the warnings have gone unheeded, and what fortifications have been built appear inadequate.

Jack Cable is a small emblem of how the U.S. government has struggled to outpace the Russians. After he spent the better part of a semester shouting into the wind, officials in Chicago and in the governors office finally took notice of his warnings and repaired their websites. Cable may have a further role to play in defending Americas election infrastructure. He is part of a team of competitive hackers at Stanfordnational champions three years runningthat caught the attention of Alex Stamos, a former head of security at Facebook, who now teaches at the university. Earlier this year, Stamos asked the Department of Homeland Security if he could pull together a group of undergraduates, Cable included, to lend Washington a hand in the search for bugs. Its talent, but unrefined talent, Stamos told me. DHS, which has an acute understanding of the problem at hand but limited resources to solve it, accepted Stamoss offer. Less than six months before Election Day, the government will attempt to identify democracys most glaring weakness by deploying college kids on their summer break.

Despite such well-intentioned efforts, the nations vulnerabilities have widened, not narrowed, during the past four years. Our politics are even more raw and fractured than in 2016; our faith in governmentand, perhaps, democracy itselfis further strained. The coronavirus may meaningfully exacerbate these problems; at a minimum, the pandemic is leeching attention and resources from election defense. The president, meanwhile, has dismissed Russian interference as a hoax and fired or threatened intelligence officials who have contradicted that narrative, all while professing his affinity for the very man who ordered this assault on American democracy. Fiona Hill, the scholar who served as the top Russia expert on Trumps National Security Council, told me, The fact that they faced so little consequence for their action gives them little reason to stop.

The Russians have learned much about American weaknesses, and how to exploit them. Having probed state voting systems far more extensively than is generally understood by the public, they are now surely more capable of mayhem on Election Dayand possibly without leaving a detectable trace of their handiwork. Having hacked into the inboxes of political operatives in the U.S. and abroad, theyve pioneered new techniques for infiltrating campaigns and disseminating their stolen goods. Even as to disinformation, the best-known and perhaps most overrated of their tactics, they have innovated, finding new ways to manipulate Americans and to poison the nations politics. Russias interference in 2016 might be remembered as the experimental prelude that foreshadowed the attack of 2020.

When officials arrived at work on the morning of May 22, 2014, three days before a presidential election, they discovered that their hard drives were fried. Hours earlier, pro-Kremlin hackers had taken a digital sledgehammer to a vital piece of Ukraines democratic infrastructure, the network that collects vote tallies from across the nation. After finishing the task, they taunted their victim, posting photos of an election commissioners renovated bathroom and his wifes passport.

Relying on a backup system, the Ukrainians were able to resuscitate their network. But on election night the attacks persisted. Hackers sent Russian journalists a link to a chart they had implanted on the official website of Ukraines Central Election Commission. The graphic purported to show that a right-wing nationalist had sprinted to the lead in the presidential race. Although the public couldnt access the chart, Russian state television flashed the forged results on its highly watched newscast.

If the attack on Ukraine represented something like all-out digital war, Russias hacking of the United States electoral system two years later was more like a burglar going house to house jangling doorknobs. The Russians had the capacity to cause far greater damage than they didat the very least to render Election Day a chaotic messbut didnt act on it, because they deemed such an operation either unnecessary or not worth the cost. The U.S. intelligence community has admitted that its not entirely sure why Russia sat on its hands. One theory holds that Barack Obama forced Russian restraint when he pulled Vladimir Putin aside at the end of the G20 Summit in Hangzhou, China, on September 5, 2016. With only interpreters present, Obama delivered a carefully worded admonition not to mess with the integrity of the election. By design, he didnt elaborate any specific consequence for ignoring his warning.

From the March 2017 issue: Franklin Foer on how Vladimir Putin became the hero of nationalists everywhere

Perhaps the warning was heeded. The GRU kept on probing voting systems through the month of October, however, and there are other, more ominous explanations for Russias apparent restraint. Michael Daniel, who served as the cybersecurity coordinator on Obamas National Security Council, told the Senate Intelligence Committee that the Russians were, in essence, casing the joint. They were gathering intelligence about the digital networks that undergird American elections and putting together a map so that they could come back later and actually execute an operation.

What sort of operation could Russia execute in 2020? Unlike Ukraine, the United States doesnt have a central node that, if struck, could disable democracy at its core. Instead, the United States has an array of smaller but still alluring targets: the vendors, niche companies, that sell voting equipment to states and localities; the employees of those governments, each with passwords that can be stolen; voting machines that connect to the internet to transmit election results.

Matt Masterson is a senior adviser at the Department of Homeland Securitys freshly minted Cybersecurity and Infrastructure Security Agency, a bureau assigned to help states protect elections from outside attack; its where Jack Cable will work this summer. I asked Masterson to describe the scenarios that keep him up at night. His greatest fear is that an election official might inadvertently enable a piece of ransomware. These are malicious bits of code that encrypt data and files, essentially placing a lock on a system; money is then demanded in exchange for the key. In 2017, Ukraine was targeted again, this time with a similar piece of malware called NotPetya. But instead of extorting Ukraine, Russia sought to cripple it. NotPetya wiped 10 percent of the nations computers; it disabled ATMs, telephone networks, and banks. (The United States is well aware of NotPetyas potency, because it relied on a tool created byand stolen fromthe National Security Agency.) If the Russians attached such a bug to a voter-registration database, they could render an entire election logistically unfeasible; tracking who had voted and where theyd voted would be impossible.

But Russia need not risk such a devastating attack. It can simply meddle with voter-registration databases, which are filled with vulnerabilities similar to the ones that Cable exposed. Such meddling could stop short of purging voters from the rolls and still cause significant disruptions: Hackers could flip the digits in addresses, so that voters photo IDs no longer match the official records. When people arrived at the polls, they would likely still be able to vote, but might be forced to cast provisional ballots. The confusion and additional paperwork would generate long lines and stoke suspicion about the underlying integrity of the election.

Given the fragility of American democracy, even the tiniest interference, or hint of interference, could undermine faith in the tally of the vote. On Election Night, the Russians could place a page on the Wisconsin Elections Commission website that falsely showed Trump with a sizable lead. Government officials would be forced to declare it a hoax. Imagine how Twitter demagogues, the president among them, would exploit the ensuing confusion.

Such scenarios ought to have sparked a clamor for systemic reform. But in the past, when the federal government has pointed out these vulnerabilitiesand attempted to protect against themthe states have chafed and moaned. In August 2016, President Obamas homeland-security secretary, Jeh Johnson, held a conference call with state election officials and informed them of the need to safeguard their infrastructure. Instead of accepting his offer of help, they told him, This is our responsibility and there should not be a federal takeover of the election system.

After the 2016 election, the federal government could have taken a stronger hand with localities. Unprecedented acts of foreign interference presumably would have provided quite a bit of leverage. That did not happen. The president perceives any suggestion of Russian interference as the diminution of his own legitimacy. This has contributed to a conspiracy of silence about the events of 2016. A year after the election, the Department of Homeland Security told 21 states that Russia had attempted to hack their electoral systems. Two years later, a Senate report publicly disclosed that Russia had, in fact, targeted all 50 states. When thenDHS Secretary Kirstjen Nielsen tried to raise the subject of electoral security with the president, acting White House Chief of Staff Mick Mulvaney reportedly told her to steer clear of it. According to The New York Times, Mulvaney said it wasnt a great subject and should be kept below his level.

From the April 2019 issue: William J. Burns on how the U.S.-Russian relationship went bad

This atmosphere stifled what could have been a genuinely bipartisan accomplishment. The subject of voting divides Republicans and Democrats. Especially since the Bush v. Gore decision in 2000, the parties have stitched voting into their master narratives. Democrats accuse Republicans of suppressing the vote; Republicans accuse Democrats of flooding the polls with corpses and other cheating schemes. Despite this rancor, both sides seemed to agree that Russian hacking of voting systems was not a good thing. After the 2016 election, Democratic Senator Amy Klobuchar, from Minnesota, partnered with Republican Senator James Lankford, from Oklahoma, on the Secure Elections Act. The bill would have given the states money to replace electronic voting machines with ones that leave a paper trail and would have required states to audit election results to confirm their accuracy. The reforms would also have had the seemingly salutary effect of making it easier for voters to cast ballots.

The Secure Elections Act wouldnt have provided perfect insulation from Russian attacks, but it would have been a meaningful improvement on the status quo, and it briefly looked as if it could pass. Then, on the eve of a session to mark up the legislationa moment for lawmakers to add their final touchesSenate Republicans suddenly withdrew their support, effectively killing the bill. Afterward, Democrats mocked Senate Majority Leader Mitch McConnell as Moscow Mitch, an appellation that stung enough that the senator ultimately agreed to legislation that supplied the states with hundreds of millions of dollars to buy new voting systemsbut without any security demands placed on the states or any meaningful reforms to a broken system. McConnell made it clear that he despised the whole idea of a legislative fix to the electoral-security problem: Im not going to let Democrats and their water carriers in the media use Russias attack on our democracy as a Trojan horse for partisan wish-list items that would not actually make our elections any safer. For McConnell, suppressing votes was a higher priority than protecting them from a foreign adversary.

To raise the subject of John Podestas email in his presence is a callous act. But I wanted his help tabulating a more precise toll of Russian hackinghow it leaves a messy trail of hurt feelings, saps precious mental space, and reshapes the course of a campaign. After repeatedly prodding him for an interview, I finally met with Hillary Clintons old campaign chief in his Washington office, which stares down onto the steeple of the church Abraham Lincoln attended during the Civil War. Dressed in a plaid shirt, with a ballpoint pen clipped into the pocket, Podesta rocked back and forth in a swivel chair as he allowed me to question him about one of the most wince-inducing moments in recent political history.

Months before WikiLeaks began publishing his emails, Podesta had an inkling that his Gmail account had been compromised. Internal campaign documents had appeared on an obscure website, and he considered the possibility that they had been lifted from his computer. Still, the call from a member of the campaigns communications team on October 7, 2016, left him gobsmacked. As he finished a session of debate preparation with Clinton, he learned that Julian Assange intended to unfurl the contents of his inbox over the remaining month of the campaign. Its a familiar if much-ignored maxim in politics that no email should ever contain content one wouldnt want to see on the front page of The New York Times. This was now Podestas reality.

On the 10th floor of the Clinton campaigns headquarters, in Brooklyn, a team of 14 staffers quickly assembled. They covered a glass door in opaque paper to prevent voyeurs from observing their work and began to pore over every word of his 60,000 emailsevery forwarded PDF, every gripe from an employee, even the meticulous steps of his risotto recipe. The project would consume the entirety of the month. Every day, Podesta set aside time to meet with emissaries from the 10th floor and review their findings. I willed myself not to feel pain, he told me.

The material that WikiLeaks eventually posted created some awkward moments. Podesta had received snarky emails from colleagues, and had sent a few himself. To repair relationships, Podesta found himself apologizing to co-workers, friends, former Cabinet secretaries. Even when the contents of the leaked messages seemed innocuous, new annoyances would arise. WikiLeaks hadnt redacted the correspondence to protect privacy, leaving the cellphone numbers of campaign staffers for the world to view. In the middle of meetings, staffers would find their devices vibrating incessantly; strangers would fill their voicemails with messages like I hope youre raped in prison. Identity thieves quickly circled Podesta, attempting to claim his Social Security benefits and applying for credit cards in his name. Despite a political career that has permitted him to whisper into the ears of presidents, the legendarily frugal Podesta had commuted to New York on Vamoose, a discount bus line. A fraudster exploited the hack to steal the points he had accumulated in the Vamoose rewards program.

As Podesta revisited these painful moments, he claimed that hed stoically persisted in their face: I kept going on television. I kept raising money. I kept traveling with Hillary and President Clinton. I kept doing everything that I had been doing. But these were the closing weeks of an election that would turn on fewer than 80,000 votes spread across three states. For a campaign that arguably didnt invest its resources properly in the final stretch, the question must be asked: How badly did the Russians throw the campaign off its game? The least visible damage of the hack might have been the most decisive.

In the years since the Podesta hack, Microsofts Tom Burt has continually battled its perpetrators. As the man charged with safeguarding the security of Windows, Word, and his companys other software, he has developed a feel for the GRUs rhythms and habits. Through Microsofts work with political parties and campaigns around the worldthe company offers them training and sells them security software at a discountBurt has accumulated lengthy dossiers on past actions.

What hes noticed is that attacks tend to begin on the furthest fringes of a campaign. A standard GRU operation starts with think-tank fellows, academics, and political consultants. These people and institutions typically have weak cybersecurity fortifications, the penetration of which serves dual purposes. As the GRU pores through the inboxes of wonks and professors, it gathers useful intelligence about a campaign. But the hacked accounts also provide platforms for a more direct assault. Once inside, the GRU will send messages from the hacked accounts. The emails come from a trusted source, and carry a plausible message. According to Burt, It will say something like Saw this great article on the West Bank that you should review, and its got a link to a PDF. You click on it, and now your campaign network is infected. (Although Burt wont discuss specific institutions, he wrote a blog post last year describing attacks on the German Marshall Fund and the European offices of the Aspen Institute.)

Podesta fell victim to a generic spear-phishing attack: a spoofed security warning urging him to change his Gmail password. Many of us might like to think were sophisticated enough to avoid such a trap, but the Russians have grown adept at tailoring bespoke messages that could ensnare even the most vigilant target. Emails arrive from a phony address that looks as if it belongs to a friend or colleague, but has one letter omitted. One investigator told me that hes noticed that Russians use details gleaned from Facebook to script tantalizing messages. If a campaign consultant has told his circle of friends about an upcoming bass-fishing trip, the GRU will package its malware in an email offering discounts on bass-fishing gear.

Many of these techniques are borrowed from Russian cybercrime syndicates, which hack their way into banks and traffic in stolen credit cards. Burt has seen these illicit organizations using technologies that he believes will soon be imported to politics. For instance, new synthetic-audio software allows hackers to mimic a voice with convincing verisimilitude. Burt told me, In the cybercrime world, youre starting to see audio phishes, where somebody gets a voicemail message from their boss, for example, saying, Hey, I need you to transfer this money to the following account right away. It sounds just like your boss and so you do it.

What the Russians cant obtain from afar, they will attempt to pilfer with agents on the ground. The same GRU unit that hacked Podesta has allegedly sent operatives to Rio de Janeiro, Kuala Lumpur, and The Hague to practice what is known as close-access hacking. Once on the ground, they use off-the-shelf electronic equipment to pry open the Wi-Fi network of whomever theyre spying on.

The Russians, in other words, take risks few other nations would dare. They are willing to go to such lengths because theyve reaped such rich rewards from hacking. Of all the Russian tactics deployed in 2016, the hacking and leaking of documents did the most immediate and palpable damagedistracting attention from the Access Hollywood tape, and fueling theories that the Democratic Party had rigged its process to squash Bernie Sanderss campaign.

In 2020, the damage could be greater still. Podesta told me that when he realized his email had been breached, he feared that the hackers would manufacture embarrassing or even incriminating emails and then publish them alongside the real ones. Its impossible to know their reasoning, but Russian hackers made what would prove to be a clever decision not to alter Podestas email. Many media outlets accepted whatever emails WikiLeaks published without pausing to verify every detail, and they werent punished for their haste. The Podesta leaks thus established a precedent, an expectation that hacked material is authenticperhaps the most authentic version of reality available, an opportunity to see past a campaigns messaging and spin and read its innermost thoughts.

In fact, the Russians have no scruples about altering documents. In 2017, hackers with links to the GRU breached the inboxes of French President Emmanuel Macrons campaign staffers. The contents were rather banal, filled with restaurant reservations and trivial memos. Two days before these were released, other documents surfaced on internet message boards. Unlike the emails, these were pure fabrications, which purported to show that Macron had used a tax haven in the Cayman Islands. The timing of their release, however, gave them credibility. It was natural to assume that they had been harvested from the email hack, too. The Macron leaks suggested a dangerous new technique, a sinister mixing of the hacked and the fabricated intended to exploit the electorates hunger for raw evidence and faith in purloined documents.

In the spring of 2015, trolls in St. Petersburg peered at the feed of a webcam that had been furtively placed in New York City. Sitting in front of a computer screen on the second floor of a squat concrete office building, the trolls waited to see if they could influence the behavior of Americans from the comfort of Russian soil.

The men worked for a company bankrolled by Yevgeny Prigozhin, a bald-headed hot-dog vendor turned restaurateur, known to the Russian press as Putins chef. In the kleptocratic system that is the Russian economy, men like Prigozhin profit from their connections to Putin and maintain their inner-circle status by performing missions on his behalf. The operation in St. Petersburg was run by the Internet Research Agency, a troll farm serving the interests of the Kremlin. (Prigozhin has denied any involvement with the IRA.)

The IRA is an heir to a proud Russian tradition. In the Soviet Unions earliest days, the state came to believe that it could tip the world toward revolution through psychological warfare and deception, exploiting the divisions and weaknesses of bourgeois society. When it was assigned this task, the KGB referred to its program by the bureaucratic yet ominous name Active Measures. It pursued this work with artistic verve. It forged letters from the Ku Klux Klan that threatened to murder African athletes at the 1984 Summer Olympics in Los Angeles. It fomented conspiracies about the CIAthat the agency had orchestrated the spread of the AIDS virus in a laboratory and plotted the assassination of President John F. Kennedy. Some of these KGB schemes were harebrained. But as one defector to the West put it, more Americans believed the Soviet version of JFKs murder than the Warren Report.

The IRA has updated the principles of Active Measures for the digital age. On social media, disinformation can flourish like never before. Whereas the KGB once needed to find journalistic vehicles to plant their storiesusually the small-audience fringes of the radical pressFacebook and Twitter hardly distinguished between mainstream outlets and clickbait upstarts. And many of the new platforms were designed to manipulate users, to keep them engaged for as long as possible. Their algorithms elevated content that fueled panic and anger.

With the New York webcam, the IRA was testing a hunch: that, through the miracle of social media, it could now toy with Americans as if they were marionettes. As the political scientist Thomas Rid recounts in his powerful new history, Active Measures, a post on Facebook promised that free hot dogs would be available to anyone who arrived on a specific corner at a prescribed time. Back in St. Petersburg, IRA employees watched as New Yorkers arrived, looked at their phones in frustration, and skulked away.

The ruse was innocuous, but it proved a theory that could be put to far more nefarious ends: Social media had made it possible, at shockingly low cost, for Russians to steer the emotions and even movements of Americans. No study has quantified how many votes have been swayed by the 10 million tweets that the IRA has pumped into the digital world; no metric captures how its posts on Facebook and Instagram altered Americas emotional valence as it headed to the polls in 2016. In the end, the IRAs menagerie of false personas and fusillades of splenetic memes were arguably more effective at garnering sensationalistic headlines than shifting public opinion. For their part, the IRAs minions immodestly credited themselves with having tilted the trajectory of history. The U.S. government obtained an email from an IRA employee describing the scene at the St. Petersburg office on Election Night: When around 8 a.m. the most important result of our work arrived, we uncorked a tiny bottle of champagne took one gulp each and looked into each others eyes We uttered almost in unison: We made America great.

Having run a noisy operation in 2016, the IRA has since learned to modulate itself. Its previous handiwork, much of which was riddled with poor syntax and grammatical errors, hardly required a discerning eye to identify. These days, the IRA takes care to avoid such sloppiness. Now, when they want to, IRA trolls can make themselves inconspicuous.

Relying on this quieter approach, the IRA has carried the theory of its hot-dog experiment into American political life. When white supremacists applied for a permit to hold a march in 2018 to commemorate the first anniversary of their protests in Charlottesville, Virginia, a Facebook group organized a counterprotest in Washington, D.C. The group was called the Resisters. Its administrators, who went by the names Mary and Natasha, recruited a coterie of enthusiastic organizers to promote the rally. When Facebook took down the Resisters pagenoting its ties to IRA accounts, and implying that Mary and Natasha were fictitious creationsAmerican leftists were shocked to learn that they had apparently been hatching plans with foreign trolls. According to The New York Times, they were also furious with Facebook: Whether or not the page was a Russian ploy, it had become a venue for real Americans to air their real grievances. In fact, it was hard to pinpoint where the Active Measures ended and the genuine action beganthe sort of tradecraft that the KGB would have admired.

Although the IRA might practice stealth when the operation demands, in other circumstances it will deploy raw bluster. Starting in 2017, it launched a sustained effort to exaggerate the specter of its interference, a tactic that social-media companies call perception hacking. Its trolls were instructed to post about the Mueller report and fan the flames of public anger over the blatant interference it revealed. On the day of the 2018 midterm elections, a group claiming to be the IRA published a grandiloquent manifesto on its website that declared: Soon after November 6, you will realize that your vote means nothing. We decide who you vote for and what candidates will win or lose. Whether you vote or not, there is no difference as we control the voting and counting systems. Remember, your vote has zero value. We are choosing for you.

The claim was absurd, but the posturing had a purpose. If enough Americans come to believe that Russia can do whatever it wants to our democratic processes without consequence, that, too, increases cynicism about American democracy, and thereby serves Russian ends. As Laura Rosenberger, a former National Security Council staffer under Obama who runs the Alliance for Securing Democracy, put it, They would like us to see a Russian under every bed.

Judging by this years presidential-primary campaign, they have been successful in this effort. When the Iowa Democratic Party struggled to implement new technology used to tally results for the states caucus, television panelists, Twitter pundits, and even a member of Congress speculated about the possibility of hacking, despite a lack of evidence to justify such loose talk. American incompetence had been confused for a plot against America.

As the outlines of the IRAs efforts began to emerge in the months following the 2016 election, Facebook at first refused to acknowledge the problem. The companys defensiveness called attention to its laissez-faire attitude toward the content that it elevated in peoples News Feeds. Facebook found itself flayed by congressional committees, its inner workings exposed by investigative journalists. Ostensibly it had been Alex Stamoss job to prevent the last attack, and now he faced another wave of disinformation, with midterm elections fast approaching. Stamos worried that, in the absence of an orchestrated defense, his company, as well as the nation, would repeat the mistakes of 2016.

In the spring of 2018, he invited executives from the big tech companies and leaders of intelligence agencies to Facebooks headquarters in Menlo Park, California. As he thought about it, Stamos was surprised that such a summit hadnt been organized sooner. What shocked him more was a realization he had as the meeting convened: Few of these people even knew one another. People who ran different agencies working on foreign interference met for the first time at Menlo Park, even though they were 10 Metro stops away in D.C., he told me. The normal collaborative process in government didnt exist on this issue.

Stamoss summit succeeded in spurring cooperation. Prior to the meeting, one tech company would identify and disable Russian accounts but fail to warn its competitors, allowing the same trolls to continue operating with impunity. Over the course of 2018, the tech industry gradually began acting in concert. The lead investigators on the threat-intelligence teams at 30 companiesincluding Facebook, Verizon, and Redditjoined a common channel on Slack, the messaging platform. When one company spies a nascent operation, it can now ring a bell for the others. This winter, Facebook and Twitter jointly shut down dozens of accounts associated with a single residential address in Accra, Ghana, where the Russians had set up a troll factory and hired local 20-somethings to impersonate African Americans and stoke online anger.

Yet this remains a game of cat and mouse in which the mice enjoy certain advantages. Despite the engineering prowess of the social-media companies, they havent yet built algorithms capable of reliably identifying coordinated campaigns run by phony Russian accounts. In most instances, their algorithms will suggest the inauthenticity of certain accounts. Those data points become a lead, which is then passed along to human investigators.

Facebook has several dozen employees on its threat-intelligence team, many of them alumni of the three-letter agencies in Washington. Still, the tech companies rely heavily on law enforcement for tips. Facebook and Twitter have frequent check-ins with the FBI. Without the bureau, Facebook might have missed an IRA video filled with lies about Russian tampering in the midterm elections. After a heads-up from the government, Facebook blocked the IRA from uploading the video before it ever appeared on its site, using the same technique that it deploys to suppress Islamic State snuff videos and child pornography. Rising from their denialist crouch, the social-media companies have proved themselves capable of aggressive policing; after treating the IRA as a harmless interloper, they came to treat it with the sort of disdain they otherwise reserve for terrorists and deviants.

Devising strategies for thwarting the last attack is far easier than preventing the next one. Even if Russian disinformation can be tamped down on social mediaand the efforts here, on balance, are encouragingthere are other ways, arguably more consequential, to manipulate American politics, and scant defense against them.

On an early-March afternoon, I typed the Federal Election Commission as a destination into Uber and was disgorged at a building the agency hasnt occupied for two years. The antiquated address placed me on course to arrive half an hour late for an appointment with Ellen Weintraub, the longest-serving and most vociferous member of the commission nominally assigned to block the flow of foreign money into political campaigns. When I called her office to inform her of my tardiness, her assistant told me not to worry: Weintraubs schedule was wide open that afternoon. In fact, for the past six months the FEC hadnt conducted much official business. Only three Senate-approved commissioners were installed in their jobs, even though the agency should have six and needs four for a quorum.

Weintraub, a Democrat, has an impish streak. Near the beginning of the FECs hibernation, she called out a fellow commissioner who had blocked the publication of a memo that seemed to criticize the Trump campaign for its 2016 meeting with a Russian lawyerthen posted the memo in a 57-part thread on Twitter. Weintraub has grown accustomed to her colleagues ignoring her questions about the presence of Russian and other illicit money in American campaigns. When the commission received a complaint suggesting that the FBI was investigating the National Rifle Association as a conduit for Russian money, she asked her fellow commissioners for permission to call the FBI, to, as she put it, see if they have interesting information they want to share. But they said, Were not going to call the FBI. They didnt want to do anything.

Outside Weintraubs office, the subject of Russias illicit financing of campaigns hardly provokes any attention. The Alliance for Securing Democracy was the only organization I could find that comprehensively tracks the issue. It has collected examples of Russian money flowing into campaigns around the world: a 9.4-million-euro loan made to the French nationalist Marine Le Pens party; operatives arriving in Madagascar before an election with backpacks full of cash to buy TV ads on behalf of Russias preferred candidate and to pay journalists to cover his rallies.

Or take a case closer to home: Lev Parnas and Igor Frumanthe Soviet-born Americans who worked with Rudy Giuliani in his search for politically damaging material to deploy against former Vice President Joe Bidenwere charged with conspiring to funnel money from an unnamed Russian into American campaigns. Some of the cases cited by the Alliance for Securing Democracy are circumstantial, but they form a pattern. Since 2016, the group has identified at least 60 instances of Russia financing political campaigns beyond its borders. (The Kremlin denies meddling in foreign elections.)

When I asked Weintraub if she had a sense of how many such examples exist in American politics, she replied, We know theres stuff going on out there, and were just not doing anything. Since the Supreme Courts 2010 Citizens United decision, which lifted restrictions on campaign finance, hardly any systemic checks preclude foreigners from subsidizing politicians using the cover of anonymous shell companies. With that decision, the high court opened the door for Russia to pursue one of its favored methods of destabilizing global democracy. By covertly financing campaigns, the Russians have helped elevate extremist politicians and nurture corrosive social movements. Everyone knows there are loopholes in our campaign-finance system, Weintraub said. Why would we think that our adversaries, who have demonstrated a desire to muck around in our democracy, wouldnt be using those loopholes, too?

Problems of inattention, problems of coordination, and deep concerns about Novemberthese themes came up over and over in my interviews for this story. Indeed, at times everyone seemed to be sounding the same alarm. H. R. McMaster, who briefly served as Donald Trumps national security adviser, sounded it when he proposed a new task force to focus the governments often shambolic efforts to safeguard the election. Adam Schiff, the chairman of the House Intelligence Committee, sounded it when he realized how poorly the bureaucracy was sharing the information it was gathering about the Russian threat.

There was a moment that crystallized Schiffs sense of this disjointedness. In the summer of 2018, he attended a security conference in Aspen, Colorado, where Tom Burt revealed that Microsoft had detected Russian phishing attacks targeting Democratic senatorial candidates. When I went back to Washington, Schiff told me, I asked agency heads within the [intelligence community] whether they were aware of this. The answer was no. That the chairman of the House Intelligence Committee had to learn this elemental fact about his own branch of government at a public gathering is troubling; that the people charged with protecting the country didnt know it is flabbergasting.

The sprawling federal bureaucracy has never been particularly adept at the kind of coordination necessary to anticipate a wily adversarys next move. But there is another reason for the governments alarmingly inadequate response: a president who sees attempts to counter the Russia threat as a personal affront.

After McMaster was fired, having made little if any progress on Russia, the director of national intelligence, Dan Coats, took up the cause, installing in his office an election-security adviser named Shelby Pierson. This past February, Pierson briefed Schiffs committee that the Russians were planning to interfere in the upcoming election, and that Trump remained Moscows preferred candidate. Anyone who follows the president on Twitter knows this is a subject that provokes his fury. Indeed, the day after Piersons testimony, the president upbraided Coatss successor, Joseph Maguire, for Piersons assessment. A week later, he fired Maguire and installed in his place the ambassador to Germany, Richard Grenell, a loyalist with no intelligence experience. Grenell immediately set about confirming the wisdom behind Trumps choice. Three weeks into his tenure, a senior intelligence official in the Office of the DNI informed the Senate that Piersons assessment was mistaken.

Trump had graphically illustrated his recurring message to the intelligence community: He doesnt want to hear warnings about Russian interference. Mark Warner, the highest-ranking Democrat on the Senate Intelligence Committee, told me, A day doesnt go by that I dont hear from someone in the intelligence community saying, Oh my gosh, were worried about integrity, were worried about morale, were worried about willingness to speak truth to power. I asked Warner whether he could still trust the intelligence about Russia he receivedwhether he has faith that the government will render an accurate portrait of the Russian threat to the upcoming presidential election. As he considered his answer, he leaned toward me. I dont know the answer to that, he replied, and that bothers me.

Vladimir Putin dreams of discrediting the American democratic system, and he will never have a more reliable ally than Donald Trump. A democracy cant defend itself if it cant honestly describe the attacks against it. But the president hasnt just undermined his own countrys defenseshe has actively abetted the adversarys efforts. If Russia wants to tarnish the political process as hopelessly rigged, it has a bombastic amplifier standing behind the seal of the presidency, a man who reflexively depicts his opponents as frauds and any system that produces an outcome he doesnt like as fixed. If Russia wants to spread disinformation, the president continually softens an audience for it, by instructing the public to disregard authoritative journalism as the prevarications of a traitorous elite and by spouting falsehoods on Twitter.

In 2020, Russia might not need to push the U.S. for it to suffer a terrible election-year tumble. Even without interventions from abroad, it is shockingly easy to imagine how a pandemic might provide a pretext for indefinitely delaying an election or how this president, narrowly dispatched at the polls, might refuse to accept defeat. But restraint wouldnt honor Russias tradition of Active Measures. And there may never be a moment quite so ripe for taking the old hashtag out of storage and giving it a triumphalist turn. #DemocracyRIP.

This article appears in the June 2020 print edition with the headline The 2016 Election Was Just a Dry Run.

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Putin Is Well on His Way to Stealing the Next Election - The Atlantic

The CoinDesk 50: Bitmain, the Behemoth of Bitcoin Mining – CoinDesk

Founded in 2013, the Beijing-based Bitmain Technology remains at the center of the crypto economy. With its flagship AntMiner bitcoin mining equipment still dominating the hardware market and its mining pools accounting for about a quarter of the Bitcoin networks computing power, it retains a uniquely powerful place in the ecosystem of by far the largest cryptocurrency and blockchain project.

Thats not to say it isnt also controversial. Its vocal support for a Bitcoin hard fork (Bitcoin Cash) in 2017, following contentious community disagreement, won the company, and its masterminds, many enemies.

This post is part of the CoinDesk 50, an annual selection of the most innovative and consequential projects in the blockchain industry. See thefull list here.

Over the years, Bitmain has been involved in many controversial developments to the point that the Chinese crypto community refers to its foes as the mining avengers. In 2017, Bitmain filed a lawsuit against Yang Zuoxing, the former design chief behind Bitmains AntMiner S9 who started a rival miner manufacturer MicroBT, over patent infringement. But Bitmain lost the case eventually.

Then in 2018, it brought another lawsuit over non-compete violation against the former creators of Bitmans mining pool BTC.com, who left the company to start a rival service PoolIn, which has become the worlds top two bitcoin mining pool by total hash rate.

Bitmains story started with Wu Jihan, one of the earliest bitcoin evangelists in China, translating Satoshi Nakamotos white paper to Chinese in 2011.

He invested in probably the worlds first known bitcoin-denominated initial public offering in 2012. It was a project started by Jiang Xinyu, a.k.a Friedcat., who was crowdfunding bitcoin to roll out an application-specific integrated circuit just for bitcoin mining.

The hardware sold well initially and sensational success followed. In 2013, Wu, with a finance and psychology degree from Chinas prestigious Peking University, decided to start his own company to manufacture mining hardware. He was joined by Zhan Ketuan, his partner on the technology side, who, in six years, would find himself ousted from the company in a coup started by Wu.

Bitcoins last halving event in the summer 2016 marked the beginning of two years of extraordinary growth at Bitmain.

In 2017 alone, still only four years old, it made $1 billion in profits. It made another $1 billion for the first six months in 2018 and then went on a high-profile fundraise in the summer, netting $700 million from external shareholders with a bet. The deal is this: if Bitmain cant go public within five years since the fundraise at an agreed term, external investors could require the company to redeem all of their investment with an interest.

At that time, Bitmain was boasting a hardware market share of nearly 80 percent. So the agreed term for the IPO was nothing but ambitious: raising at least $500 million at a valuation of no less than $18 billion.

So much has changed in 2019, since its first IPO attempt failed in March in Hong Kong.

Its rising rival, MicroBT, whose founder won over Bitmains patent infringement lawsuit, is seriously undermining Bitmains market dominance.

In 2019, Bitmains mining pools BTC.com and Antpool lost the top two spots to F2Pool and Poolin, the latter of which still has an ongoing case with Bitmain over alleged non-compete violation.

When Wu Jihan returned in a coup in November 2019 to kick out his founding partner Zhan, he told his people hes back to save the sinking ship. Whether his tough comeback will work as he expected is yet to be proven, although it appears prepared to roll out more powerful equipment to weather the upcoming halving.

It remains to be seen if Bitmain can replicate the sensational success it once had following the 2016 bitcoin halving.

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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The CoinDesk 50: Bitmain, the Behemoth of Bitcoin Mining - CoinDesk

Zcash Alliance Aims to Bring Privacy Tech to Bitcoin, Cosmos and Ethereum – CoinDesk

A handful of big names in crypto want in on the privacy features offered by Zcash.

It is humbling and inspiring that such a strong group of builders is leaning in to push that mission forward and help guide the future of Zcash, privacy coin co-founder Zooko Wilcox said in a press statement.

The Electric Coin Company (ECC) announced Monday the launch of the Zcash Developers Alliance (ZDA), an invite-only working group that includes the Lightning Network startup Bolt Labs, the cross-chain technology startup Thesis, the Ethereum conglomerate ConsenSys and two leading startups working on the Cosmos project, Agoric and Iqlusion, just to name a few.

The ZDA is an attempt to introduce a way to collaborate with the ECC, and the Zcash ecosystem, which focuses around other peoples priorities, Iqlusion founder Zaki Manian said. Product-market fit is other people [beyond fans and founders] actually caring about it.

Manian said the Zcash anonymity set is a valuable public good, describing how the privacy coin allows shielded transactions and the construct that allows individual transactions to get lost in the metaphorical crowd.

It feels like its time for a Zcash-Ethereum bridge, ConsenSys CEO Joseph Lubin said in a press statement.

Basically, other blockchains can connect to the Zcash ecosystem to enable, say, Cosmos users to enter and exit the staking system without revealing personally identifying information, just like Zcash users can shield their information while making payments. The more people tapping into this shared anonymity set, the more effective it is at anonymizing data.

Zcash Foundation researcher Henry de Valence said his team is helping bring the Zcash shielded pool to Cosmos, although the nonprofit hasnt been invited to the ZDA.

If you think privacy is important in order to have fungibility, then networks should have a privacy layer. So were going to add a privacy layer to Cosmos in such a way that the anonymity set from Cosmos users is joined up with the anonymity set of all the Zcash users, de Valence said.

The Ethereum Foundation is already researching ways to use these privacy options for Eth 2.0, the networks overhaul to Proof-of-Stake (PoS). Bolt Labs founder Ayo Akinyele has been working to enable some of Zcashs privacy features on Bitcoins Lightning Network since 2019. And yet, the alliance is about more than formalizing the work startups were already doing. Its about ECC shouldering the organizational burden, Akinyele said, so that other companies can focus on building tools related to the Zcash protocol.

Its not just about having the best anonymous crypto, Manian added. You have to have enough users of the anonymous crypto so that your anonymity set is sufficiently large that it can provide meaningful privacy.

Cypherpunk model

Agoric CEO Dean Tribble, an original member of cypherpunk mailing lists and community groups in decades past, said the ZDA is more like those hacker groups than it is like the Libra Association or JavaScript Foundation, or even Microsoft industry alliances.

The ZDA is invite-only, with the requirement being that members need to actively build privacy technology. This isnt a group for promoting token adoption or formalizing standards for specific products or services. Members are building wildly different tools, hoping to use the same privacy solution. As such, Akinyele said the ZDA has bi-annual meetings and private communication channels so projects can leverage resources across the group.

Were not building different solutions. We want to build one solution that can be adapted to multiple chains, Akinyele said. His startup launched a Zcash-inspired testnet for bitcoin in April called zkChannels. It works like the Lightning Network, in that it offers an additional layer for more complex features. While Lightning channels offer speed and reduced transaction fees, the Zcash-inspired channels offer privacy.

Its a way for a customer to establish a zkChannel with a merchant or a service and the merchant wont be able to link transactions on that channel to the identity of the customer, Akinyele said. In the case of [wallets], the provider just knows that two users paid each other.

He aims to have a beta version live this year, but it wont be connected to the Lightning Network quite yet. That will come in 2021, Akinyele said, when additional work enables both layers to be used at the same time. For now, imagine that people must choose between chocolate or vanilla frozen yogurt, privacy or speed. In the future, bitcoiners will be able to choose a chocolate-vanilla swirl swirl without diluting either feature.

The anonymity set is going to be tied to the number of channels the provider youve communicated with already has, Akinyele said, offering an example of a merchant with 10,000 channels. A customer using zkChannels is anonymized because the merchant cant see which of the 10,000 customer channels is the buyer.

Akinyeles startup is working on a Lightning-inspired scaling layer for Zcash as well. But tokens require different techniques than bitcoin, especially when it comes to privacy. This is why such different crypto companies joined ZDA.

We all have independent reasons to start that interoperability, said Tribble, whose team is focused more on smart contracts than payments. Agoric also plans to eventually launch its own token.

We dont believe theres going to be one winning chain, so getting the mainstream world online with added privacy requires the cooperation of a lot of chains, Tribble said.

Privacy perks

Despite the ZDAs cypherpunk roots, this is still an industry alliance focused on business, not rebels.

Theres often an inaccurate conflation of such privacy features with criminal intent. But a Rand Corporation survey commissioned by the ECC found only 1% of illicit darknet operations accepted zcash (the publicly auditable bitcoin is still the dominant cryptocurrency on the darkweb). Someday, consumers may choose ZDA member services to shop online at regular websites, without being constantly tracked for affiliate marketing profiles they have no control over.

We have to look at technology as a neutral, that it could be used for a wide variety of applications, Rand Europe analyst Erik Silfversten told Forbes.

Likewise, the ZDA aims to identify business needs and shift resources to making the Zcash protocol useful for companies that may not transact directly with the namesake privacy coin.

Other organizations may join the alliance in the future, like the Zcash Foundation or Interchain Foundation, if they get involved in industry projects, not research.

For me, the future state is in a year or two to be able to use zcash, or wrapped zcash, on Cosmos or Ethereum, said ECC CTO Nathan Wilcox. Were certainly thinking about folks that didnt make it in the first batch.

Over at the foundation, de Valence said the nonprofits goal is less token-centric and more focused on infrastructure, a privacy layer for the entire cross-chain ecosystem.

Our goal is to leverage the unique properties of Zcash particularly the strong network effects of its anonymity set to provide privacy to all of these projects, de Valence said.

One goal the nonprofit shares with the new alliance, ZDA, is both of them see diversifying Zcash stakeholders and developers as the top priority.

The focus for this year is interoperability, Nathan Wilcox 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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Zcash Alliance Aims to Bring Privacy Tech to Bitcoin, Cosmos and Ethereum - CoinDesk

Bitcoin poised to shine as governments print more money: report – Decrypt

The unprecedented reaction from governments around the world to do whatever it takes to keep their economics afloat in response to the coronavirus pandemic could drive a flight to Bitcoin.

Thats the principal takeaway from the latest report by Bitcoin research firm Delphi Digital. The exhaustive documentcovering everything from the macro financial climate to Bitcoins on-chain datalooks at a mixture of historical precedent and Bitcoins current data trends to presage what the rest of the year may look like for the cryptocurrency.

The report began with a rosy reminder that the worlds economy is basically on debt-based life support. The amount of monetary and fiscal relief thats been pledged [by central banks in 2020] equates to more than $10 trillion globally, it stated.

But as governments print more money, Bitcoin (as evidenced by yesterdays successful halving) is going to tick on with a decreased inflation rate.

This activity will benefit Bitcoin in the long run, according to Delphi Digital. But it will take some time. Using the limited data they have for Bitcoins 11 year existence, the team asserted that, historically, it is notable that prior BTC cycles tended to peak when major central bank asset growth began to decelerate.

Continuing to evaluate the risk currency debasement poses for poorer populations, Delphi noted that Bitcoin is already performing well against the monies of troubled states. For instance, its up 44% against the Russian ruble, 74% against the Brazilian real, and 52% against the Mexican peso among others.

We expect the demand for non-sovereign safe haven assets to rise considerably as the risk of broad-based currency debasement increases, Deplhi reported, adding that gold has a place here among Bitcoin, which it expects to grow in market cap.

Perhaps this growth isnt so far-fetched when we crunch some on-chain numbers. The number of addresses holding fewer than 1 Bitcoin trends upwards over the last five years, while addresses holding larger amounts of Bitcoin has trended downwards. This is typically considered to be an indication that Bitcoins investor base is growing among retail (though, its important to note that multiple addresses could belong to a single, privacy-minded user).

Moreover, this recent rally following Marchs precipitous price drop was led by the spot market, typically made up of low-capitalized retail investors. But the January rally preceding the Black Thursday crash was largely institution-driven.

This level of spot volume hasn't really been seen since last summer; it's tough to know who exactly to attribute it to (holder size wise), but I definitely agree that it's bullish, Yan Liberman, co-founder of Delphi Digital, told Decrypt.

As retail volume booms, the amount of Bitcoin held on exchanges is dwindling, experiencing previously unseen outflows, according to the report.

Delphi ended its report with a nod to the previous halving, and compared how the current holder base stacks up to Bitcoins second halving four years ago.

The current composition of the underlying holder base looks nearly identical to the one leading into the second halving, the report noted. It added that, at the moment, the percentage of holders who havent moved coins for at least one year or three years is only a single digit percentage point off the figures from 2016.

22% of the network hasnt moved in 5 years, and 7.7% hasnt moved in a decade, Delphi said in its report. Adding to these findings, Liberman told Decrypt that these holders basically represent the portion of the base that's in it for the long haul, and don't care as much about short-term moves.

In other words, hardcore Bitcoiners are creating a bedrock of support as the networks so-called holders of last resort. At the very least, as Delphi said in a tweet when it released its report, the data makes one thing clear: Dismissing Bitcoin is no longer an option.

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Bitcoin poised to shine as governments print more money: report - Decrypt

Bitcoin could hit above $100000 by August 2021 – Nairametrics

The Chief Executive Officer of Chapel Hill Denham, Bolaji Balogun, said that though the Coronavirus pandemic has caused numerous health and economic challenges Nigerians should always remember that crises also create opportunities.

He disclosed this during a Q&A session at the Workshift online conference organised by Liberty Church, London, as he laid emphasis on available opportunities for Small and Medium Enterprises (SMEs) amid the pandemic.

According to him, this is the right time for business owners to reflect inwards, carry out some critical analysis of their businesses, and answer some important questions. Some of these questions include the following:

He then focused on the last question by giving numerous examples of how businesses can reinvent in order to adapt during this period. For instance, companies that primarily make clothes may consider switching over to sowing clothe masks which are in serious demands right now. Such companies can also consider producing bedsheets for hospitals because almost certainly, at a time like this, hospitals arent going to be using and re-using bedsheets. They will be using bedsheets and disposing of them because if the highly-infectious nature of the virus.

I think the first thing is to recognise that every Crisis must not be wasted and in every crisis, there is an opportunity. I dont necessarily subscribe to the people who have turned themselves to opportunists who started off n95 masks at N2000 and are now selling those same n95 masks at N5000 to N6000. I think that is a bit of opportunism at the wrong time. And that is not something which, in itself, brings sustainable prosperity, he said.

He also spoke more on cutting down on costs, stressing that it is absolutely essential at this point. He did, however, note that for SMEs (which are a large source of employment in Nigeria), this may be a difficult time to manage costs. This is because there are really no existing support systems for these SMEs. Even the palliatives announced by the government are not enough.

What this means, therefore, is that businesses must watch their costs. He warned against spending money on things that are not necessary. He said:

It should also be recognised that this is a time when everybody should watch their costs. So, absolutely dont spend money on things that are unnecessary. This is also not a time to be investing, unless you are investing in technology that allows you to do your business, or investing in data. This is absolutely not a time to be investing. Slow down on investment. Keep cash as much as possible.

Its also a time when you have to look at your people and make some honest decisions. And those honest decisions require a lot of open communication with your people. There will be many scenarios where people will tell you that you know what hat, it may be easier for all of us to take 50% pay cut rather than firing 30% to 40% of the workforce.

You may watch the rest of the CEOs comments by clicking here.

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Bitcoin could hit above $100000 by August 2021 - Nairametrics

Craig Wright: Bitcoin truth versus the ‘turd that is fake news’ – CoinGeek

Dr. Craig Wright has continued to vent at some of the digital asset industrys bad actors. In his latest blog post, he trained his sights on those peddling misinformationabout Bitcoins structure and incentives, digital asset investments, and those who use their media platforms to damage his own reputation. Combating fake news, he said is one of the reasons I invented Bitcoin.

Dr. Wright named several well-known identities in the Bitcoin and digital asset space, including John McAfee, Ira Kleiman, Peter McCormack, and Greg Maxwell. These people, he said (some of whom are engaged in ongoing disputes with Wright) have used online media and their own platforms to spread false information by citing each others words and creating a self-feeding cycle of confusion for the public.

Forbes and YouTube Flim-Flam

The post begins with a look at Forbes and other famous-name online media outlets that publish unpaid contributor articles. These articles, Dr. Wright said, are not properly vetted for accuracy and exist only to drive eyeballs and clicks to site ads. Destroying the internets ad-based model, he added, is one of the reasons he invented Bitcoin.

The fact is, such burnishing of the truth does nothing to create integrity in journalism. It is merely adding a gloss to a turd that is fake news.

Access to brand-name media through contributions (sometimes unpaid) has allowed both unqualified and outright deceptive individuals to publish investment advice with a veneer of legitimacy. YouTube, he said, has also been an open platform for those promoting digital asset pump and dumpsincluding BTC. He called technical analysis trading YouTube channels unscientific flimflam that forever promise big price gains, while their hosts often make the opposite moves they advise their viewers to make.

Wright noted that, even though Google has recently taken stricter action against content it regards as misinformation, Forbes and other contributors continue their free run with digital currency investment promotion.

(We should note that Googles censorship dragnet has also ensnared several legitimately informative content producers, such as the BSV Channel.)

Some examples: misinformation about Bitcoin

Price isnt the only topic the fake news media promotes. The nature of Bitcoin itself is often misrepresented, which either demonizes truth-tellers or deflects criticism away from guilty parties.

Dr. Wright gave the example of Bitcoin transaction malleability being responsible for the loss of 850,000 BTC from the Mt. Gox exchange in the years leading up to its 2014 collapse. Even though that myth was debunked at its outset, the phrase continues to appear. Most serious investigators believe the Mt. Gox debacle was caused by embezzlement and theft by those with inside knowledge, not a technical issue with Bitcoin.

The structure of Bitcoins own network is misunderstood (accidentally or deliberately) due to phrases like mesh network and relay nodesneither of which are relevant to the way Bitcoin should function, he added. Believing they are true, or somehow important, creates incorrect impressions about what Bitcoin is for and makes networks like BTC less secure.

Misinformation about Dr. Craig Wright

Given Dr. Wrights outspoken nature, knowledge of Bitcoin and willingness to challenge some of BTCs biggest proponents, its natural they see him as a threat to their interests. Efforts to smear his character began from the instant he was outed as Satoshi Nakamoto in late 2015, but have ramped up since he took back control of the Bitcoin project with BSV.

Wright gave a few examples: Ira Kleiman and his lawsuit claiming ownership of early Bitcoins; Peter McCormacks claims that Wright is not Satoshi Nakamoto, and Greg Maxwells more technical takes against Wright and on Bitcoin history.

Easily debunked

Though Kleimans lawsuit purportedly concerns ownership of Dr. Wrights (and/or Satoshi Nakamotos) early Bitcoins and company IP, it serves also as a means to generate plenty of headlines and misleading news articles that attack Wrights reputation. Thats something Kleiman, who works in the area of search engine optimisation (SEO), would understand, he wrote.

Misleading reports about Dr. Wrights past actions resulting from the case have suggested he fled Australia for the United Kingdom, has plagiarized research, and is under investigation by the Australian Tax Offices criminal investigations unit (which does not exist).

Like the ATO claim, such myths are easily debunked, but lazy reporters dont bother to check them and neither do gullible readers. Wright said his U.K. visa showed clear intent to travel there in late 2015. Moreover, the U.K. is hardly a useful destination for anyone trying to escape the law in Australia.

Falsifying documents, he added, has been the domain of his attackers rather than himself. He claimed his own signature was forged multiple times either to make accusations and even to launch the infamous 2015 raid on his property (which coincided with his outing as Satoshi). He called the latter example a case of swatting; where bad actors make a false report with the intent to prompt law enforcement action on another individual.

Dr. Wright said Ira Kleiman was perhaps being used by other forces, and was not smart enough to know when he is being played.

Plagiarism claims show lack of academic understanding

In another example, Dr. Wright referred to BTC developer and former Blockstream employee Greg Maxwell, who he said publishes articles under his own name and several pseudonyms. Maxwell has long been a Wright adversary with antagonism between the two preceding Bitcoin by years.

Maxwell has in the past accused Wright of plagiarizing research, particularly in a recent hit piece article that referenced Wrights legal cases against both Kleiman and McCormack.

The article concerned mathematical concepts like random forests and decisions, which the article suggested Wright had plagiarized a medical paper whose data was incorporated into a training and example package that researcher John Maindonald created. Maindonald used the original paper to create a CRAN R statistical package, while Wright did not use the original paper and instead took his graph from the courseware. Wright said Maxwells lack of academic experience and training had caused him to misunderstand the nature of references in his patent applications, he said. Speaking to CoinGeek, Dr. Wright said:

John is one of the authors of the original R package and incorporated much of the original statistical work into common packages people have now. This included the particular piece of data that that image came from. Ironically, Ill probably not terribly ironically I dont think Greg Maxwell has a clue when it comes to academic work, it is referenced. When youre referencing academically, you dont actually put different papers if its not from a different paper. This particular diagram comes from statistical notes and processes and courseware developed by John Maindonald.

You see they dont care about investigating truth. The fact that Ive actually referenced a document by saying its notes from the forthcoming publication does not mean its not referenced, it is referenced as part of a statistical software package and it is the image derived from that. Then, if Mr Greg Maxwell had done any statistical training using the CRAN R package before going into calling himself paintedfrog, he would have probably recognised the source, it is a very common one that is used in many statistical programming training courses around the world. Dr Maindonald was one of the original authors of the CRAN R statistical package and I learnt from him before this was popular or well-known.

All these accusations, and misinformation about Bitcoin, echo through online media and causes both accidental confusion and deliberate damage. Dr. Wright said reporters hadnt bothered to investigate their own stories thoroughly, and his own critics chose to attack the man rather than address them as technical debates.

What they and other detractors failed to understand, he said, is that he personally has plenty of patience to wait for real facts to emergesomething he attributed to his Aspergers spectrum condition.

Other people may stop, I dig in deeper. I bide my time.

It sounds like it is going to be a rocky road on the horizon for Wrights distractors.

New to Bitcoin? Check out CoinGeeksBitcoin for Beginnerssection, the ultimate resource guide to learn more about Bitcoinas originally envisioned by Satoshi Nakamotoand blockchain.

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Craig Wright: Bitcoin truth versus the 'turd that is fake news' - CoinGeek

Analysing Bitcoin’s revival: CoinMarketCap notes cautious optimism amid Covid-19 – as halving arrives – The Block – The Block

The most recent quarter has been turbulent to say the least across all global economies but while Bitcoins performance naturally fell, according to CoinMarketCaps most recent analysis, it still outperformed global benchmarks for equities.

In its Q1 assessment of crypto market and user trends, CoinMarketCap argued that, amid the Covid-19 pandemic, crypto markets have regained a good portion of their March losses, but warns there was still some way to go before they fully recover.

Bitcoin reached a high of $10,500 and total market cap of $305 billion in February, before touching a low of $3,900 on March 12, dropping 43%. Its year-to-date performance based on January 2 to March 31 saw a drop in price of 10.52%. This was better than the MSCI World Index, which fell 20.65% over the quarter, and the S&P 500 Index (-19.42%).

Since March 31, where Bitcoins price was at $6,445, there has been a gradual revival, with many seeing it as a comparative safe haven amid the crisis. The currency touched $10,000 again, in line with positive comments hedge fund manager Paul Tudor Jones made, saying it was a great speculation.

Alongside that, this week has seen the latest Bitcoin halving, whereby the reward for unlocking a new block has been cut from 12.5 new coins to 6.25. The event, approximately once every four years, has its supporters and detractors within the industry. Supporters of Bitcoin see it as a protection part of ensuring only 21 million Bitcoins will ever exist while others see it as a potential disincentive for miners. Stephen Innes, from AXI Corp, told the BBC that miners will probably switch to more profitable cryptocurrencies.

Within the cryptomarket itself, according to CoinMarketCap, some cryptoassets most notably Ethereum (+3.29%), Bitcoin Cash (BCH, +10.48%) and Bitcoin SV (BSV, +76%) saw a solid quarter, with market caps of $14.74bn, $4.11bn and $3.08bn at the end of the quarter respectively. As a result of these gains, BSV and BCH both reside in the top 10 most viewed cryptoassets on CoinMarketCap. Bitcoin naturally remains on top, with Ethereum nudging XRP into second place. Litecoin also moved into the top 10 this quarter.

Among the reports other interesting findings was that the number of female Bitcoin users had increased significantly. Led by countries such as Greece, Romania, Colombia and Venezuela, there was a 42.34% quarterly growth worldwide. CoinCorner, a UK-based Bitcoin exchange, said in a note that it had seen a similar rise, with women accounting for more than one in five (22.8%) of all sign-ups in Q1.

CoinMarketCap concluded its report with the most cautious of optimism, noting that while the strongest hype around concepts like ICOs has almost certainly died off, the solid figures elsewhere show opportunities for growth do not rest solely on Bitcoin.

From the 2017 boom of initial coin offerings to exchange-led fundraising in initial exchange offerings, the viability of raising capital via the issuance of tokens is now at a trough, the company noted. That said, there is much untapped potential in the blockchain revolution.

You can read the full analysis here.

Photo byClifford PhotographyonUnsplash

Interested in hearing more in person?Find out more at theBlockchain Expo World Series, Global, Europe and North America.

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Analysing Bitcoin's revival: CoinMarketCap notes cautious optimism amid Covid-19 - as halving arrives - The Block - The Block

There’s Still a Non-Trivial Chance of a Ban on Bitcoin – Kraken CLO – Cryptonews

Source: Adobe/Alexey Novikov

Even today, there is a non-trivial chance that governments try to ban Bitcoin (BTC), according to Marco Santori, the recently appointed Chief Legal Officer (CLO) of major crypto exchange Kraken.

I dont think its a 20% or 30% chance in the next five years, but I think its real. And its up to us to do everything that we can to give this stuff realand maybe this is where this starts to get a little controversialreal functional use that people in government can appreciate as something more than just what they see oftentimes as a casino, he said during the Kraken Block Drop VR Halving Party on Sunday.

Santori noted that its important for crypto lobbying organizations like Coin Center to be on the front lines to make sure that the Overton window, which is the range of ideas that the general public is willing to accept from politicians, never opens far enough for a ban on Bitcoin to ever come close to a possibility.

That said, Santori tries to remain practical in terms of the potential for a ban.

I still operate every day as if it is a non-trivial possibility [Bitcoin could be banned], and I think folks who are regulated and subject to laws are wise to think that as well, said Santori. There was a time where I wouldnt have described it as non-trivial . . . I would have described it as maybe a 20% chance [or] 30% chance.

According to the CLO, his views on the potential for an outright ban on Bitcoin were altered by the release of FinCENs (Financial Crimes Enforcement Networks) guidance regarding cryptocurrencies like BTC in 2013.

When the government first said, Okay Bitcoiners. Youre under our thumb. You have to follow the rules like everybody else. I think a lot of people reacted negatively to that, but just as many people reacted positively, explained Santori. They thought, Oh my goodness. This is the government recognizing the legitimacy of this thing. They said something for the first time about Bitcoin and it wasnt that its bad and illegal.

Before joining Kraken, Santori served as President and Chief Legal Officer for Blockchain.com, a major crypto wallet provider, and is known as the Dean of Digital Currency Lawyers for his work in litigating, advising on and creating new law in the crypto industry.

In April, he argued that the courts, not the lawmakers, will likely be the ones that'll make "new sources of law" for the crypto industry within the next couple of years.

Meanwhile, during the same discussion on Sunday, Coin Center Director of Research Peter Van Valkenburgh, said that preventing a government ban has been easier than youd think.

Government is just a bunch of people, and they all have their specific interests, said Van Valkenburgh.

From his perspective, people at the Securities and Exchange Commission are mostly interested in protecting mainstream investors from penny stocks and certain initial coin offerings, FinCEN just wants to make sure illicit money isnt flowing through the regulated financial system, and the Internal Revenue Service just wants Americans to pay their taxes.

Maybe the taxes thing is where things start to break downwhere if you had widespread tax evasion because of Bitcoin wed see a different tone, youd see government unify under one interest (they all want to make sure they still get paid as a government), Van Valkenburgh added. But right now, you have a bunch of fractured interests, and you dont have an existential threat to the government. So, there really hasnt been a widespread call here in the US amongst anyone in Congress or the agencies to sort of ban this thing.

According to Van Valkenburgh, the United States has a long history of not just accepting new technologies but also embracing and promoting them to the point where politicians want to take credit for these advancements. The Coin Center director of research pointed to Al Gores infamous claim (which he didnt actually make) that he invented the internet as supporting evidence for this phenomenon.

The internet created a whole new suite of potential vulnerabilities and issues for American society, but our reaction wasnt to get rid of it, said Van Valkenburgh.

He added that for every congressperson or regulator who gets loud about the perceived negative aspects of Bitcoin there are one or two people in government who are excited about the technology and think its cool.____

Learn more:As US Seized Gold in 1933, Is There a Threat to Bitcoin in the 2020s?This Is How G20 Might Keep Crypto And Stablecoins at BayIndia's Crypto Ban Overruled, But the Battle is Far From OverUS Congressman Wants to Outlaw Crypto, Cryptoverse Fires Back

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There's Still a Non-Trivial Chance of a Ban on Bitcoin - Kraken CLO - Cryptonews

Telegram shuts down its cryptocurrency operation – The Verge

After years of drama with the SEC, Telegram is calling it quits on its crypto-focused subsidiary, Telegram Open Network (TON).

Telegrams active involvement with TON is over, wrote Pavel Durov, founder and CEO, in an announcement on his channel. You may see or may have already seen sites using my name or the Telegram brand or the TON abbreviation to promote their projects. Dont trust them with your money or data.

TON was a blockchain platform designed to offer decentralized cryptocurrency to anyone with a smartphone, in a similar fashion to Facebooks Libra project (which has also faced significant scrutiny).

Last October, the SEC ordered Telegram to halt sales of its cryptocurrency (called Gram) after it failed to register an early sale of $1.7 billion in tokens prior to launching the network. The funds were raised in a series of what Telegram billed as pre-ICO offerings back in 2018, though the company ended up canceling the much-hyped ICO due (in part) to increased SEC scrutiny.

Durov spoke out against the ruling in his announcement, arguing that American courts shouldnt have the power to stop the sale of cryptocurrency beyond US borders, and he urged others to take up the decentralization fight in Telegrams stead. This battle may well be the most important battle of our generation, he wrote. We hope that you succeed where we have failed.

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Telegram shuts down its cryptocurrency operation - The Verge

Oregon FBI’s Tech Tuesday: COVID-19 and cryptocurrency scams – KTVZ

Crime And Courts

PORTLAND, Ore. (KTVZ) -- This week, the Oregon FBIs Tech Tuesday segment discusses building a digital defense againstcryptocurrencyscams.

Fraudsters are leveraging increased fear and uncertainty during the COVID-19 pandemic to steal your money and launder it through the complex cryptocurrency ecosystem.

Developments in technology and an increasing number of businesses accepting it as payment have driven the growing popularity and accessibility of cryptocurrency. There are numerous virtual asset service providers online as well asthousands of cryptocurrency kiosks located throughout the world whichcriminals exploitto facilitate their schemes.

Here are somecryptocurrency fraud schemes related to COVID-19:

A number oflegitimate charities, investment platforms, and e-commerce sites accept payment in cryptocurrency these days. But, if a person or organization is pressuring you to use a virtual currency, you should consider that a red flag and proceed cautiously.

Here are someotherwaystoprotect yourself fromcryptocurrencyfraud:

As always, if you have been victimized by a cyber fraud, you can report it to the FBIs Internet Crime Complaint Center at http://www.IC3.gov.

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Oregon FBI's Tech Tuesday: COVID-19 and cryptocurrency scams - KTVZ