Ethereum vs Tron: Comparing Data, Defi and Stablecoins from Both Chains After Viral Tweet – Bitcoin News

On February 7, Cold Card and Opendime creator, Rodolfo Novak (also known as NVK), tweeted a picture of himself with Tron founder Justin Sun and Blockstreams CEO Adam Back. Novak said Ethereum was over and the three had a plan to move Tron to Liquid, a network that leverages the BTC chain. Whether the tweet was a joke or not, the picture got the crypto community fired up and it initiated heated debates about the legitimacy of both Tron and Ethereum.

Also Read: IOTA, EOS, XLM, ADA 4 Bitcoin Contenders With Zero Use Cases and Barely Any Infrastructure

One could consider the crypto networks Tron (TRX) and Ethereum (ETH) competitors within the cryptoconomy. While the ETH network is older than TRX, they both have similar goals and do similar things. As Ethereum strives to be a world computer, Tron aims to accomplish this feat as well, but with more of a focus on entertainment. They both leverage concepts like decentralized finance (defi), decentralized apps (dapps) and permissionless systems for token creation (ERC20 & TRC20).

When Novak tweeted about moving TRX to the Liquid network, lots of people considered it a joke, while others took the tweet very seriously. Despite what people think about Tron or Ethereum, news.Bitcoin.com decided to look at the two networks to see how they both compare as far as onchain data, market statistics, development, funds locked in defi, and both projects social media ratings. We want to let our readers decide which project is better by weighing the pros and cons of each crypto without all the opinions.

On February 7, 2020, Coin Metrics data shows the BTC chain processed roughly 333,000 onchain transactions. ETH saw a total of 626,000 transactions in the 24 hour period while TRX did around 816,000 on Friday. While ETH has been consistently above BTC transactions per day, TRX has also been consistently above ETHs daily average.

Both Ethereum and Tron have tokens that represent the stablecoin tether (USDT), but the ETH chain has a whole lot more. Statistics from Tronscan on Saturday show that theres 814 million USDT held on the Tron network. Todays data stemming from Etherscan indicates theres a whopping 2.2 billion USDT leveraging the ETH chain.

As far as stablecoin usage is concerned, Ethereum outpaces Tron by a long shot, as the chain also has other stablecoin tokens like PAX, USDC, and TUSD. But its true that both networks have seen more tethers migrate to each blockchain during certain periods of 2019. In fact, as far as funds locked into defi, Ethereum takes the cake when it comes to decentralized finance and centralized finance (cefi) applications as well, with projects like Maker, Compound, and Instadapp. Defi applications on ETH touched a milestone on February 6, when the total value locked (TVL) surpassed $1 billion.

Where market action and fiat value are the focus, tron (TRX) is trading for $0.02 per coin and the cryptocurrency is still down 92% from its all-time high (ATH) of $0.30. Ethereum (ETH) is swapping for $224 per coin at the time of publication, which is 84% down from its ATH of $1,431. Against USD over the last 12 months, TRX is down 18% and against BTC the crypto is down 69%. With ETH the crypto has gained 86% against the U.S. dollar in a year but against BTC it is still down 30%.

Trade volume data from Messari shows the reported volume for TRX is around $203 million in the last 24 hours, but Messaris real volume index indicates theres only been $49 million in TRX trades. As far as ETH is concerned, reported trade volume on Saturday is roughly $3.5 billion, but again Messaris real volume index shows less at $349 million. Tallying up the aforementioned statistics shows that ETH was a better investment over the last year, it has more liquidity, and trade volume as well.

As far as yearly Github activity, coincheckup.com data shows that Tron has outpaced ETH development during the last 12 months in regard to tallied commits. The Coindesk social media benchmark shows ETH has around 451,000 Reddit subscribers and the same number of Twitter followers giving the project a 23% social rating.

Trons Reddit community has about 71,000 subscribers and Tron has around 497,000 Twitter followers giving the project a 9.7% social rating. ETH has around 2,000 Github watchers and roughly 445 developers contributing to the ETH codebase. Tron has about 309 Github watchers and 118 developers that have contributed to the TRX Github repository. While there are 9,200 forks of Ethereum, there are only 673 Tron forks.

The Ethereum project got a head start and Tron is not as old of a blockchain in comparison. They both have influential leaders at the helm with Justin Sun and Vitalik Buterin who are both still around to weigh in with opinions, unlike Satoshi. Both projects have a lot of investors who believe that either ETH or TRX will be dominant and there are definitely those that think both will serve a purpose. Either way, both exist in prominent market positions today as ETH and TRX are in the top 15 largest market capitalization list and might be for quite some time.

What do you think about these two cryptocurrencies? Do you think Tron is better than Ethereum or vice versa? Let us know what you think about this subject in the comments section below.

Disclaimer: Price articles and market updates are intended for informational purposes only and should not be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the money. Cryptocurrency prices referenced in this article were recorded on February 8, 2020.

Image credits: Shutterstock, Coin Metrics, Markets.Bitcoin.com, coincheckup.com, Coindesks social media benchmark, defipulse.com, Etherscan, Tronscan, Fair Use, and Pixabay.

Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

Jamie Redman is a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Redman has written thousands of articles for news.Bitcoin.com about the disruptive protocols emerging today.

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Ethereum vs Tron: Comparing Data, Defi and Stablecoins from Both Chains After Viral Tweet - Bitcoin News

Lightning Labs Raises $10M Series A to Be the ‘Visa’ of Bitcoin – CoinDesk

Lightning Labs has raised $10 million in Series A financing as it gears up to launch its first paid service for merchants looking to accept bitcoin payments.

Craft Ventures led the round, with Managing Director Brian Murray joining Lightning Labs board of directors. Other investors include Slow Ventures, former Goldman Sachs co-head of securities David Heller, Avichal Garg of Electric Capital and Ribbit Capital.

The funding round suggests some investors see the San Francisco-based startup as one of the few protocol-oriented firms with a prospective business model.

If bitcoin is going to reach its potential as a viable global currency, its going to need to scale beyond the base layer, Murray said. Similar to how Visa relieves banks from handling all fiat currency traffic, Lightning relieves the base bitcoin chain from handing all transactions, thus bring more speed and fee efficiency to the network.

Stepping back, Lightning Labs released a beta version of the scaling solution LND in 2018 and previously raised $2.5 million in a seed round from investors including Twitter CEO Jack Dorsey, Square executive Jacqueline Reses, litecoin creator Charlie Lee and former PayPal COO David Sacks. Lightning Labs also launched a mobile wallet app in June 2019, and as of today the company is offering a paid service called Lightning Loop.

Loop aims to help merchants manage their payment channels more effectively. Lightning payment channels need to have bitcoin in them in order to stay open, which is a problem for those who actually use these channels without a perfectly balanced in-and-out flow.

Loop in helps people put funds into their existing channel kind of like a prepaid debit card for a lightning account, Lightning Labs CEO Elizabeth Stark said. Loop out is currently the most popular product because it allows people to continue receiving funds on lightning.

This service, which will charge a small percentage of each full loop, helps merchants and exchanges maintain liquidity in the channels.

With nearly a dozen lightning startups sprouting up over the past two years, Stark said her startup will distinguish itself by becoming an infrastructure provider to other startups.

The first Lightning Conference in Berlin attracted 500 participants in 2019, so there may initially be a small pool of developers and service providers willing to pay for back-end support. The way I see it, there will be an aggregate of financial services, of which Loop is one, and you can batch all of those, Stark said. The blockchain becomes an anchor layer for other Layer 2 services on lightning.

One example might include the shopping app Fold, which processed roughly 1,600 lightning payments during the 2019 holiday shopping season.

"Were growing fast and Lightning Labs loop service makes it simple to manage our lightning nodes liquidity, letting our team focus on building out great user experiences that bring lightning to the world," Fold's Will Reeves told CoinDesk.

Infrastructure spending

Beyond Loop, Stark said her startup will focus on options for larger payment channels in 2020, both opt-in channels that can individually hold more than $1,500 and Atomic Multi-Path Payments, which break payments into smaller parts and are able to return the whole amount if all the small parts dont promptly arrive at the same recipient.

River Financial CEO Alexander Leishman said his exchange startup, which uses LND to offer users lightning liquidity and trading functions, said Lightning Labs and ACINQ are the only two startups in the space focused on the nitty gritty of protocol development.

If it allows us to support larger amounts [of bitcoin] off-chain, it improves the experience for our users. Weve already had users that are frustrated with the [Lightning Networks] limits, Leishman said. Services that would make [lightning transactions] easy for us are definitely of interest.

Stark, who is an adviser to Leishmans exchange, said her goal for Lightning Labs is to enable automated services so the network will just work without clients needing to tamper with channel allocation and flows. The peer-to-peer messaging app Sphinx also uses LND, which Murray said is only possible because of what Lightning Labs is building.

Lightning Labs is building the channels for bitcoin to fulfill its promise as a medium of exchange, a means of micropayment, as remittance infrastructure, and much more," investor Jill Carlson of Slow Ventures said in a press release.

Murray agreed, adding he strongly believes the infrastructure behind popular mobile apps will take a different shape over the next decade because it will enable direct payments between peers instead of reliance on a third-party provider that monetizes user data.

In the meantime, Stark is optimistically curious about the ability to send small amounts of data and have payments attached to them.

Speaking more broadly of the batched services Lightning Labs will offer by this time in 2021, she concluded: These are lightning-native financial services that help improve the network.

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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Lightning Labs Raises $10M Series A to Be the 'Visa' of Bitcoin - CoinDesk

US Marshals Will Auction $40M in Bitcoin This Month – Coindesk

The U.S. Marshals Service is auctioning nearly $40 million in bitcoin, the first such auction since the end of 2018.

The Marshals will auction "approximately" 4,040 bitcoin, worth $37.7 million at press time, according to CoinDesk's Bitcoin Price Index, to registered bidders on Feb. 18, the press release said. Potential bidders must register by Feb. 12.

"The auction will take place during a six-hour period Feb. 18. Bids will be accepted by email from pre-registered bidders only," the release said.

Bidders will also be required to make a $200,000 deposit before being able to bid. Participants who do not win their bids will receive these back.

The bitcoin will be sold in four lots, with 2,500, 1,000, 500 and 40.54069820 bitcoin each. The first three lots are further split into blocks, each with their own set number of bitcoin.

The bitcoin for this month's auction come from more than 50 administrative forfeitures and legal cases, according to the Marshals' website.

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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US Marshals Will Auction $40M in Bitcoin This Month - Coindesk

There’s No Such Thing as Tainted Bitcoins – Bitcoin News

All bitcoins are created equal. But in the eyes of blockchain forensics firms, some bitcoins are more equal than others. If these companies are to be believed, coins that have been used in criminal transactions are tainted, destined to be forever linked with nefarious activity. The reality, however, is far different, for taint is solely in the eyes of the beholder and most beholders arent Chainalysis.

Also read: Chainalysis Report Sheds Light on Darknet Markets and the Need for Onchain Privacy

Its long been known that freshly minted bitcoins can command a premium because there is no transactional history attached to them. If you want true onchain anonymity, mine some coins and then lock them away. The fewer times those coins turn over onchain, the fewer clues there are pointing to their current owner. The notion that coins might acquire taint, however, that makes them undesirable or potentially even unlawful to receive is a wholly subjective phenomenon. Its one thing to flag a particular wallet address as being associated with phishing or hacking, as many block explorers do, but quite another to flag assets that pass through such wallets as being indelibly associated with criminality.

Just as offense to a risqu tweet is taken not given, the same is true of taint when applied to coins. It is an interpretation rather than an inherent characteristic. Despite this, blockchain forensics firms and their surveillance partners are desperate to advance a narrative that certain UTXOs are sullied through their past association with illicit deeds. By the same reasoning, that $20 bill in your wallet is tainted because three transactions ago, it was robbed from a 7/11.

Blockchain forensics software can map the number of hops a transaction is removed from one suspected of being criminal, such as an exchange hack. Proving that those coins are still in the hackers control, and havent been sold to an innocent third party, however, is virtually impossible.

As the site 6102bitcoin.com notes, a tainted coin is only such because the address of the scammer is known to the analyst. Suppose that the analyst doesnt know this vital piece of information, would the coin still be tainted? It should be clear that the degree to which coins can be classified as tainted depends on the level of information available to the person doing the classifying.

Despite the fact that bitcoin cannot be intrinsically tainted, that hasnt prevented KYC-kissing companies from discriminating on those grounds. As a result, bitcoiners using these firms are unable to send and receive coins through mixers with impunity. For so long as cryptocurrency gatekeepers flag coins as pure or dirty, users will be forced to jump through hoops in order to appease them.

One of the great ironies about the taint game is that to clean ones coins involves passing them through a mixer, only to be discovered having used one is to risk having your funds frozen by centralized exchanges. Because there is no practical way for bitcoiners to verify how coins that come into their possession were used in the past, they are powerless to contest forensics software that decrees their UTXOs to be dirty.

In Dr Seusss The Sneetches, half of the creatures on an island have a green star on their bellies that marks them out as privileged. Then an entrepreneur named Sylvester McMonkey McBean shows up with a machine that can add and remove stars at will. Pretty soon, the islanders cant tell who had stars to begin with and who didnt.

Even for bitcoiners who dont use centralized services, increasing the fungibility of ones coins is desirable. If everyone routinely used mixing services such as Coinjoin and Cashshuffle, blockchain forensics firms would lose the ability to flag all such transactions as suspicious. The more coins that pass through mixing machines, the harder it will be for anyone to discriminate.

Do you think taint is a genuine classification that can be applied to bitcoins? Let us know in the comments section below.

Op-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the authors own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.

Images courtesy of Shutterstock.

Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see whats happening in the industry.

Kai's been manipulating words for a living since 2009 and bought his first bitcoin at $12. It's long gone. He's previously written whitepapers for blockchain startups and is especially interested in P2P exchanges and DNMs.

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There's No Such Thing as Tainted Bitcoins - Bitcoin News

Bitcoin Starts Convincing Rally To $10K After Short Term Correction: Here Are Key Hurdles – newsBTC

Bitcoin price remained well bid above $9,000 and rallied to a new 2020 high against the US Dollar. BTC is now trading nicely above $9,500 and signaling a strong increase to $10,000.

Recently, there was a downside correction in bitcoin from the $9,600 area against the US Dollar. BTC traded below the $9,400 and $9,300 levels, before the bulls took a stand above $9,000.

A swing low was formed near $9,079 and the price started a fresh increase above the $9,200 resistance area. The bulls gained pace and pushed the price above the 100 hourly simple moving average and the $9,500 resistance area.

Finally, there was a break above the $9,600 resistance area and the price traded to a new 2020 high at $9,764. Bitcoin is currently correcting lower below the $9,700 level.

It traded below the 23.6% Fib retracement level of the recent rally from the $9,076 low to $9,764 high. However, the previous resistance near the $9,500 and $9,520 levels is acting as a strong support area.

More importantly, there is a major bullish trend line forming with support near $9,460 on the hourly chart of the BTC/USD pair. On the upside, there are short term hurdles near the $9,700 and $9,750 levels.

Bitcoin Price

A successful break above the $9,750 level is likely to set the pace for a larger upward move. The main target could be $10,000, followed by $10,200.

On the downside, there are many key supports for bitcoin bulls near the $9,500 area. The next key support is seen near the $9,420 level. It coincides with the 50% Fib retracement level of the recent rally from the $9,076 low to $9,764 high.

Any further losses may perhaps lead the price towards the $9,340 level and the 100 hourly SMA, where the bulls are likely to take a stand.

Technical indicators:

Hourly MACD The MACD is about to move back into the bullish zone.

Hourly RSI (Relative Strength Index) The RSI for BTC/USD is currently rising and it is well above the 55 level.

Major Support Levels $9,500 followed by $9,420.

Major Resistance Levels $9,700, $9,750 and $10,000.

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Bitcoin Starts Convincing Rally To $10K After Short Term Correction: Here Are Key Hurdles - newsBTC

Whatever happened to Edward Snowden? – Grunge.com

While working for the CIA and NSA, Snowden learned firsthand that Uncle Sam is scarily adept at tracking people. So when he stole somewhere between 200,000 and 1.7 million NSA documents, leaked them to journalists, admitted that he did it, and even showed his face on camera, it must have seemed inevitable that the U.S. would hunt him down like a high-tech bloodhound and throw him in prison for decades. Yet somehow Snowden outfoxed what's possibly the most advanced surveillance apparatus on the planet and flew to Russia before authorities could catch him. What's more, for three years almost no one knew how he did it.

The story of Snowden's escape starts in Hong Kong, where he shared highly classified information with the Washington Post's Barton Gellman, the Guardian's Glenn Greenwald, and filmmaker Laura Poitras. As Vice detailed, he initially stayed at a hotel, but once he turned himself into a walking bull's-eye, he needed to split like a frightened banana. Aided by a lawyer, he snuck into Hong Kong's slums and lived with refugees. According to Quartz, he shared a bedroom with two people and survived on a diet of McDonald's, cakes, and other junk food. After 12 days he was whisked away to Russia. Unfortunately for the refugees who helped Snowden, they've reportedly faced persecution by agencies meant to protect them.

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Whatever happened to Edward Snowden? - Grunge.com

COLUMN: Licensed journalism happened before. It was called the Editor’s Law – Pipeline News

On Feb. 2, I saw, in horror, how Heritage Minister Steven Guilbeault said the federal government should license the news media.

The next day, I saw the enormous snap back from the media and opposition parties. PostMedia columnist Brian Lilley called it, one of the fastest reversals of government policy that Ive ever seen.

There was plenty of talk about how a licensed press could never be free, and how dare they consider this?

Conservative Leader Andrew Scheer had ones of the best lines, saying George Orwells 1984 was supposed to be a cautionary tale, not an instruction manual.

My thoughts on all this were a little different, and I didnt see a reference to it in any of the other commentary.

You see, this has been tried before.

It was called the Editors Law.

And it was enacted very soon after the National Socialist German Workers Party (Nazi) came to power in the 1930s in Germany. Indeed, they didnt waste any time enacting it, putting it in place Oct. 4, 1933. This was nine months, four days after Adolf Hitler was appointed chancellor. But dont worry, the Nazis set up the Dachau concentration camp, outlawed other parties and started burning books before they got around to regulating the media.

This is how the United States Holocaust Memorial Museum website described it: The Editors Law (Schriftleitergesetz) forbids non-Aryans to work in journalism.

The German Propaganda Ministry(through its Reich Press Chamber)assumed control over the Reich Association of the German Press, the guild which regulated entry into the profession. Under the new Editors Law, the association kept registries of racially pure editors and journalists, and excluded Jews and those married to Jews from the profession. Propaganda Ministry officials expected editors and journalists, who had to register with the Reich Press Chamber to work in the field, to follow mandates and specific instructions handed down by the ministry. In paragraph 14 of the law, the regime required editors to omit from publication anything calculated to weaken the strength of the Reich abroad or at home.

What words in those last two sentences ring like a clarion call, when considered against what the Canadian federal Liberal government was considering?

Replace Propaganda Ministry with CRTC or Heritage Ministry, for instance. Doesnt had to register equate getting a federal licence?

The morning of Feb. 3 I was covering court, and one of the lawyers made joking comments that they didnt want me covering their clients. I countered that what this barrister truly didnt want is the alternative, where there isnt a free press monitoring what happens in the court, to those very clients.

All of this is very eerie, as Ive just finished a book called How America Lost its Secrets: Edward Snowden, the Man and the Theft, telling the tale of Edward Snowden in a very critical manner. I also just went through Snowdens own book, Permanent Record, talking about his motivations and criticisms of the persistent surveillance state.

What happens when we combine all this together? Courts that arent monitored, but people who are, and a suggestion by a federal minister, no less, that the news media under the heel of some sort of federal licensure and regulation? Thats a lot to digest in 24 hours.

During a break time in the courtroom I pointed out that every phone in that room was likely monitoring everything that was being said. A few people seemed incredulous, at least until I told the tale of how, a while back, I had a Facebook ad show up on my phone, in the passenger seat of my wifes truck, advertising transmission fluid. This was not three minutes after I had told my wife that I needed to change the tranny fluid on my SUV.

We are being monitored in every way, shape and form, from the security video cameras present not just in businesses, but traffic signals and photo radar. People are purposely putting smart speakers throughout their homes, which is, in fact, continual surveillance.

What happens when this level of persistent surveillance is combined with a government that wants to limit free expression? When a government wants to, oh, I dont know, regulate the free press?

How free are we then?

What if the people who, in 1933, started licensing editors, had the surveillance tools available to corporations and governments now?

This is precisely the type of stuff Snowden wrote about. And Im not entirely a big fan of a guy who sold out his country (and ours, and every other allied nation of the U.S. who shares intelligence with them) to the Russians and likely the Communist Chinese, too.

This Heritage Minister should be sacked, with cause. Im not one who believes in cancel culture. But youre damned right I would cancel a future Joseph Goebbels.

Im still wondering when theyre going to come for me.

Brian Zinchuk is editor of Pipeline News. He can be reached at brian.zinchuk@sasktel.net

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COLUMN: Licensed journalism happened before. It was called the Editor's Law - Pipeline News

As Vault 7 trial begins, Joshua Schulte’s attorneys will argue he’s a whistleblower – CyberScoop

Written by Jeff Stone Feb 3, 2020 | CYBERSCOOP

Nearly three years after WikiLeaks began publishing secret CIA hacking tools, the legal team for the former agency employee who allegedly stole those files will try to convince a jury he did so in order to reveal the governments methods for breaking into widely used consumer technology.

Based on the evidence, it will shape up to be a difficult argument.And thats before you consider the current environment, in which the U.S. justice system has taken a hard-line approach to those who go public with classified information.

Its also a fresh strategy for the defense. The U.S. has charged former CIA software engineer Joshua Schulte with transmitting files detailing the agencys arsenal of hacking tools, but until now his lawyers have given no indication that he acted out of conscience. Government prosecutors, meanwhile, will introduce evidence starting Monday that Schulte, now 31, was motivated by nothing more than revenge for what he perceived to be mistreatment by a colleague and management at the agency.

Unlike former U.S. National Security agency contractor Edward Snowden, who leaked details about NSA surveillance programs after complaining internally, Schulte has not demonstrated that he actually had any ethical concerns with the CIAs work. Government employees who follow the proper procedure for filing complaints can still be prosecuted if they go public with classified information. But pointing to a documented history of moral concerns could help a defendant portray themselves as a whistleblower motivated by his sense of morality, said Bradley Moss, an attorney specializing in national security whistleblowing at the Washington law firm Mark Zaid P.C.

During more than a year of pre-trial wrangling, Schultes defense team has given no indication that he allegedly provided CIA hacking tools to WikiLeaks for any reason other than that he did not get along with his boss.

Theyre throwing st at the wall, Moss said.

While much of the governments evidence hasnt been revealed, a series of courtroom maneuvers and legal filings have provided a glimpse into the case prosecutors will present when the trial begins.

As a CIA employee, Schulte is accused of abusing his access to start stealing classified documents during the spring of 2016. The files ultimately would make their way to WikiLeaks, which spent much of 2017 publishing the Vault 7 files, one of the largest ever disclosures of classified intelligence community information.

Publication of documents detailing the governments ability to spy on mobile operating systems, web browsers, smart TVs and an array of other systems immediately exposed U.S. adversaries like Russia and China to American cyber-warfare strategies, allowing them to take defensive measures, and making it possible for common hackers to replicate nation-state activities against any targets they chose.

The disclosure also came amid a digital arms race between nations as the U.S. government realized that hackers tied to the Russian government had stolen emails from the Democratic National Committee, then used WikiLeaks to boost Donald Trumps candidacy. All the while, prosecutors have said, Joshua Schulte was leaving clues about his role in the breach.

Schulte began to have significant problems as a CIA employee during the summer of 2015, prosecutors wrote in a long court filing made public in November. He began feuding with an unnamed employee, who complained to superiors that Schulte behaved in an abusive manner, including regularly making racist remarks.

Then, in February 2016, prosecutors wrote, Schulte grew agitated with managements decision to hire a contractor to do some of the work Schulte had been assigned. He forced his way into a meeting between a CIA manager and the contractor to suggest the contractor might jeopardize the security of CIA tools and operations.

After the meeting, Schulte sent emails complaining about the situation, and he told others that he was going to cause problems because of it, including by filing a complaint with the CIAs Inspector General, the filing states.

At roughly the same time, though, Schultes problems with his unnamed co-worker escalated. The co-worker convinced CIA management to reassign Schultes work to another employee, at which point Schulte responded by claiming the employee had threatened him. Schulte then accused management of being indifferent toward his claim, while an investigation was ongoing.

During this time, prosecutors wrote, Schulte was moved to an intern desk, while his co-worker had been moved to a prestigious desk with a window.

Within weeks, according to the government, CIA higher-ups revoked Schultes administrative privileges, and he moved forward with a plan to steal hacking tools.

Schulte was first arrested in August 2017 for allegedly possessing and transmitting thousands of pictures and videos depicting child pornography. The Justice Department waited until June 2018 to charge him with the theft and disclosure of classified material. Then, in October 2018, prosecutors alleged Schulte also was using contraband cell phones from behind bars at Manhattans Metropolitan Correctional Center.

In notebooks discovered in Schultes cell, law enforcement officials say they found a diary where Schulte detailed plans to provide WikiLeaks with more information, and carry out a covert Information War against the government. The journals include Schultes description of his motive, intent preparation and planning for a leak, the government has argued, and seem to include the equivalent of a written confession. (Days before trial, Judge Paul Crotty ruled the government will be allowed to introduce key elements parts of the notebooks to the jury.)

Schultes attorneys has spent much of the past year arguing that prosecutors have not provided the defense team with sufficient evidence, that too much of the evidence is classified and taken issue with the idea that current CIA officials who might be called as witnesses would testify under pseudonyms. The defense recently argued that Schulte should not be tried under the Espionage Act, calling it unconstitutional, and that they have not had enough time to prepare for trial, despite multiple delays.

Few of these tactics have been successful. Judge Paul Crotty of the Southern District of New York dismissed challenges to the constitutionality of the Espionage Act, for example, and did not appear sympathetic during a recent hearing when attorney Sabrina Shroff said the defense, with less than two weeks before trial, had not had the opportunity to research potential witnesses.

Moving forward, Schultes lawyers appear to be arguing that he nothing more than a concerned citizen. Shroff recently asked the court whether potential jurors might have an opinion on language like whistleblower or leaker, given the national headlines in recent months.

The trial comes after a court in 2018 sentenced Reality Winner, a former NSA translator who pleaded guilty to leaking a classified government report on Russian hacking, to more than five years in prison. At 26 years old, Winner was the first person to be sentenced under the Espionage Act during the Trump administration, though the Obama Justice Department pursued a number of similar investigations.

A former senior official in the Department of Treasury pleaded guilty on Jan. 13 to conspiring to unlawfully disclosing financial transactions that included information about the Trump presidential campaigns dealings with Russia.

Its a hot topic lately, Shroff said during a recent pre-trial hearing.

In order to qualify as a whistleblower under federal law, said Bradley Moss, government employees must submit a formal complaint to the relevant inspector general, which under the right circumstances would forward the complaint to congressional intelligence committees. Even if a government worker goes through that process, then makes classified information public, they are still breaking the law, he added.

The way this trial is going is the same way Snowdens would be going if he came back to the U.S., said Moss. He would throw up a bunch of pretrial motions about the Espionage Act, and it would lose every time.

The goal of a whistleblower defense, even if it doesnt meet the definition under the law, would be to sway a jurors in favor of jury nullification, Moss added. Depending on the jurisdiction, jurors may think a defendant is guilty of a crime, but find them not guilty because of jurors moral objections to the law.

Youre just doing what you can do, Moss said of the technique.

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As Vault 7 trial begins, Joshua Schulte's attorneys will argue he's a whistleblower - CyberScoop

Republican Senator Lindsey Graham introduces bill that threatens end-to-end encryption – World Socialist Web Site

Republican Senator Lindsey Graham introduces bill that threatens end-to-end encryption By Kevin Reed 8 February 2020

Republican Senator Lindsey Graham is circulating a discussion draft bill that would use the enforcement of laws against distribution of child sex abuse material (CSAM) as a means of shutting down end-to-end encryption services provided by the big tech companies.

The bill, which is also reportedly being worked on by Senator Richard Blumenthal (Democrat of Connecticut), would create a 15-member bipartisan National Commission on Child Exploitation Prevention that would be responsible for establishing the rules and overseeing the removal of CSAM content from the internet. The law would make the Attorney General the chairman of the commission and give him or her the authority to modify any of its recommendations.

Called the Eliminating Abusive and Rampant Neglect of Interactive Technologies (EARN IT) Act of 2019, the bill would make technology companies liable for state prosecution and civil lawsuits for child abuse and exploitation content unless they follow best practices outlined by the commission.

On January 30, Bloomberg published a draft of the bill noting, The draft bill from Graham, the South Carolina Republican who chairs the Senate Judiciary Committee, mounts a double attack against encrypted services such as Apple Inc.s iCloud and Facebook Inc.s WhatsApp chat. It jeopardizes technology companies immunity to lawsuits by victims for violating child exploitation and abuse statutes and it lowers the standard to bring such cases.

At the heart of the proposed law is an attack on what is known as Section 230 of the Communications Decency Act which protects providers of computing devices, apps and internet services from liability for content copied or posted by users onto their products. Companies that refuse to follow the commissions best practices will lose their Section 230 protections for any content deemed to violate the content rules set by the commission.

Although the draft bill does not specify any of the rules, it is transparently obvious that it would require law enforcement immediate and unfettered access to devices, communications and cloud accounts. As has been explained by technology experts, the bills references to law enforcement identifying, categorizing, and reporting material related to child exploitation or child sexual abuse would be impossible to do on devices and services with end-to-end encryption.

End-to-end encryption is the popular method used by the consumer technology corporations of protecting electronic communications and data stored on computer devices by using cryptographic keys to block eavesdropping, surveillance and interception of information. The use of end-to-end encryption by the public, corporations and other organizations has been on the rise since the exposures by Edward Snowden in 2013 that the US government was capturing and storing the mobile phone and email communications of the entire population in a massive and illegal electronic dragnet.

Companies such as Apple and Facebook have been deploying end-to-end encryption in their products by default for several years now. Apple has battled publicly with the Justice Department several times since 2014 over demands by the FBI for back-door access to the encrypted iPhones of mass shooters.

In the most recent of these incidents, the shooting at the naval base in Pensacola, Florida, on December 6, it emerged that Apple had actually begun to cave into the demands from Attorney General William Barr and President Donald Trump for law enforcement access and a backdoor to encrypted data and communications.

As reported by Reuters at the time, Apple did in fact turn over the shooters iCloud backups in the Pensacola case, and said it rejected the characterization that it has not provided substantive assistance. Behind the scenes, Apple has provided the U.S. Federal Bureau of Investigation with more sweeping help, not related to any specific probe by dropping plans to offer consumers the ability to fully encrypt their iCloud backups.

Clearly, Senator Graham, the US Justice Department and others are attempting to exploit public fears and concerns about child sexual abuse as a means of pushing through their agenda for the abolition of encryption that has been underway for five years. As Riana Pfefferkorn of the Center for Internet and Society at Stanford Law School explained, This bill is trying to convert your anger at Big Tech into law enforcements long-desired dream of banning strong encryption. It is a bait-and-switch. Dont fall for it.

Gizmodo, the technology and science site, wrote on January 31, It doesnt take a genius to see where this is going. The federal government, and especially the DOJ, have wanted tech companies to build surveillance backdoors into their end-to-end encrypted messaging services for years. They insist that they are only interested in preventing major crimes like terrorism or sex trafficking, but in reality, building those backdoors would create a convenient pipeline for domestic surveillance.

The technique of exploiting the public disorientation caused by terrorist violence and other criminality by the state to attack fundamental democratic rights has been employed increasingly by the political, law enforcement and national intelligence establishment since the events of September 9, 2001.

The provisions of Section 230 of the Communications Decency Act were adopted in 1996 (also known as Title V of the Telecommunications Act of 1996) which state, No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider. This section of the 1996 legislation was, in part, a response to the growth of the internet and has been frequently referred to as a key to the flourishing of the World Wide Web and sometimes as The Twenty-Six Words That Created the Internet.

The intensifying assault on end-to-end encryption is part of the ongoing drive by the state to censor and regulate content on the internet. Democrats, in particular, have led the campaign against big tech with Senator Elizabeth Warren, Democrat of Massachusetts and candidate for the partys 2020 presidential nomination, campaigning since March 2019 for a break up of the tech monopolies.

There has also been a steady campaign conducted by the New York Times, under the guise of the fight against so-called surveillance capitalism, to utilize the egregious privacy violations carried out by the tech monopolies to mobilize the public behind government censorship of online content. Significantly, none of these initiatives warn the public about the role of the state and military-intelligence apparatus in utilizing artificial intelligence and the communications infrastructure to spy on the entire population.

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Republican Senator Lindsey Graham introduces bill that threatens end-to-end encryption - World Socialist Web Site

Freedom of expression and cybercrime case controversy in Brazilian court – MercoPress

Saturday, February 8th 2020 - 11:29 UTC Judge Ricardo Soares Leite for now, has held off on accepting cybercrimes charges against U.S. journalist Glenn Greenwald.(Pic)

A Brazilian judge indicted six people accused of hacking the phones of prosecutors in the countrys biggest corruption case on Thursday but held off for now on accepting cybercrimes charges against U.S. journalist Glenn Greenwald.

The judge, Ricardo Soares Leite, said the Supreme Court had to rule first on an earlier injunction shielding Greenwald from investigation before he could decide on the indictment, which charges Greenwald, editor of news website The Intercept, with allegedly abetting the hacking as it published leaked information.

I decline, for now, to receive the complaint against Glenn Greenwald, due to the controversy over the extent of the injunction granted by Minister Gilmar Mendes, the judge wrote.

The damaging leaks showed then-judge Sergio Moro, who is now justice minister, advising prosecutors in the graft case against former leftist President Lula da Silva, who was jailed for corruption but released 18 months later.

Intercept Brasil, edited by Greenwald, published the leaked conversations that pointed to collusion between the judge and the prosecuting team. He was charged last month with criminal association with the group of six people accused of hacking the phones of members of the prosecutors team in the so-called Car Wash investigation.

Greenwald welcomed the judges decision not to proceed with the charges, but said it was insufficient to guarantee the rights of a free press.

This is not enough. We seek a decisive rejection from the Supreme Court of this abusive prosecution on the grounds that it is a clear and grave assault on core press freedoms, he said in a statement.

Greenwald, a resident of Brazil and fierce critic of far right President Jair Bolsonaro, is best known for his work on the disclosures of Edward Snowden, the American former National Security Agency contractor who leaked secret documents about U.S. telephone and internet surveillance in 2013.

Greenwalds lawyers argued that he should not have been charged because an injunction by Supreme Court Justice Gilmar Mendes had barred prosecutors from investigating him for information published in the media.

Mendes cited Greenwalds constitutional right to the protection of journalistic sources.

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Freedom of expression and cybercrime case controversy in Brazilian court - MercoPress