Eric Holder: Edward Snowden Performed ‘Public Service’

Eric Holder speaks at the Justice Department on March 4, 2015. Carolyn Kaster / AP, file

"We can certainly argue about the way in which Snowden did what he did, but I think that he actually performed a public service by raising the debate that we engaged in and by the changes that we made," Holder told former Obama White House adviser David Axelrod on an episode of

But the former attorney general was quick to add that Snowden who leaked explosive documents about American government surveillance programs while working as a contractor for the National Security Agency in 2013 acted in a way that was "inappropriate and illegal."

"I think he harmed American interests," Holder said. "I know there are ways in which certain of our agents were put at risk, relationships with other countries were harmed, our ability to keep the American people safe was compromised."

Holder called on Snowden, who has been living in exile in Moscow for the last three years, to come back to the United States to face the "consequence" of his actions.

"He's broken the law, in my view," Holder said. "He needs to get lawyers, come on back and ... see what he wants to do: Go to trial, try to cut a deal. I think there has to be a consequence for what he has done."

Holder added that a judge "could take into account the usefulness of having had that national debate" in deciding any "appropriate sentence" for Snowden.

Snowden claimed in an interview with the BBC late last year that he had "volunteered to go to prison with the (U.S.) government many times" but had not heard back from the American government.

The Department of Justice at the time would not confirm or deny that assertion.

The revelations contained in the material leaked by Snowden set off a national conversation about the give-and-take between national security and civilian privacy.

Holder served as attorney general from 2009 to 2015. He has since

See the original post:
Eric Holder: Edward Snowden Performed 'Public Service'

Eric Holder now says Edward Snowden performed ‘public service …

"We can certainly argue about the way in which Snowden did what he did, but I think that he actually performed a public service by raising the debate that we engaged in and by the changes that we made," Holder told David Axelrod on "The Axe Files," a podcast produced by CNN and the University of Chicago Institute of Politics.

"Now I would say that doing what he did -- and the way he did it -- was inappropriate and illegal," Holder added.

"He harmed American interests," said Holder, who was at the helm of the Justice Department when Snowden leaked U.S. surveillance secrets. "I know there are ways in which certain of our agents were put at risk, relationships with other countries were harmed, our ability to keep the American people safe was compromised. There were all kinds of re-dos that had to be put in place as a result of what he did, and while those things were being done we were blind in certain really critical areas. So what he did was not without consequence."

Snowden, who has spent the last few years in exile in Russia, should return to the U.S. to deal with the consequences, Holder noted.

"I think that he's got to make a decision. He's broken the law in my view. He needs to get lawyers, come on back, and decide, see what he wants to do: Go to trial, try to cut a deal. I think there has to be a consequence for what he has done."

"But," Holder emphasized, "I think in deciding what an appropriate sentence should be, I think a judge could take into account the usefulness of having had that national debate."

At a University of Chicago Institute of Politics event earlier this month, Snowden -- appearing via videoconference from Russia -- said he would return to the U.S. if he could receive a fair trial.

"I've already said from the very first moment that if the government was willing to provide a fair trial, if I had access to public interest defenses and other things like that, I would want to come home and make my case to the jury," Snowden told University of Chicago Law Prof. Geoffrey Stone. "But, as I think you're quite familiar, the Espionage Act does not permit a public interest defense. You're not allowed to speak the word 'whistleblower' at trial."

White House Press Secretary Josh Earnest on Tuesday said President Barack Obama does not believe Snowden has performed a public service.

"What Mr. Holder is articulating there is the view of the administration, which is specifically that Mr. Snowden has been charged with serious crimes," Earnest said. "He should return to the United States, he should be afforded due process and that's essentially how this situation should be handled. But Mr. Snowden has not done so."

"I don't think there's any question about that," Holder told Axelrod. "The fact that he questioned the legitimacy of President Obama by questioning where he was born, what he's said about Mexicans...I think there's a race-based component to his campaign. I think he appeals too often to the worst side of us as Americans."

CNN's Allie Malloy contributed to this report.

Read more:
Eric Holder now says Edward Snowden performed 'public service ...

Eric Holder says Edward Snowden performed ‘public service …

Edward Snowden appears on a live video feed broadcast from Moscow at a 2015 event. Photograph: Marco Garcia/AP

The former US attorney general Eric Holder has said the National Security Agency whistleblower Edward Snowden performed a public service by starting a debate over government surveillance techniques.

Related: How the Pentagon punished NSA whistleblowers | Mark Hertsgaard

Speaking on a podcast hosted by David Axelrod, a former campaign strategist for Barack Obama, Holder emphasized, however, that Snowden must still be punished.

We can certainly argue about the way in which Snowden did what he did, but I think that he actually performed a public service by raising the debate that we engaged in and by the changes that we made, Holder said, in an hourlong discussion on The Axe Files.

Now, I would say that doing what he did and the way he did it was inappropriate and illegal.

In June 2013, in one of the biggest document leaks in American history, Snowden revealed to media outlets including the Guardian that the NSA conducted indiscriminate bulk surveillance of US citizens. The agency said this mass data collection had been kept secret in order to protect Americans.

Holder, who led the justice department during the document leak, said Snowden harmed American interests by releasing the files.

I know there are ways in which certain of our agents were put at risk, relationships with other countries were harmed, our ability to keep the American people safe was compromised, Holder told Axelrod.

There were all kinds of re-dos that had to be put in place as a result of what he did, and while those things were being done, we were blind in certain really critical areas. So what he did was not without consequence.

Though Holder said Snowden should return to the US to face trial, he added that any judge who tried him should account for his contribution to the debate about mass surveillance.

I think in deciding what an appropriate sentence should be, I think a judge could take into account the usefulness of having had that national debate, Holder said.

I think that he actually performed a public service by raising the debate that we engaged in

Snowden has said repeatedly that he would return to the US if he could get a fair trial.

But, as I think youre quite familiar, the Espionage Act does not permit a public interest defense, Snowden told a University of Chicago event earlier this month. Youre not allowed to speak the word whistleblower at trial.

Snowden, who was a contractor for the NSA, has lived in Russia in the years following the leaks. Russia first granted him temporary asylum, then in 2014 gave him a three-year residency.

Snowden responded to Holders comments on Twitter on Monday night.

The frontrunners in the 2016 presidential race, Hillary Clinton and Donald Trump, have said Snowden should be punished, though they disagree in how serious that punishment should be.

In a Democratic debate in October, Clinton said Snowden should return and be put on trial. Bernie Sanders, now the only other Democratic contender, agreed, though he said he thought Snowden played a very important role in educating the American public.

In 2013, Trump implied that Snowden should be executed. In March, he said the US should get Snowden back from Russia because he is a spy. The Kremlin said it would not entertain such a plan.

Related: CIA ex-boss: secretive spooks tolerated in UK more than in US

Holder has shown some leniency toward Snowden before, but his use of the phrase public service turned heads.

In January 2014, Holder told an audience at the University of Virginia that the government could accept a plea deal with Snowden if he were to return to the US and plead guilty to criminal charges.

He reiterated the possibility of a plea deal last year, after stepping down from his post as the countrys top law enforcement officer in April 2015 and returning to private practice with the Washington law firm Covington & Burling.

I certainly think there could be a basis for a resolution that everybody could ultimately be satisfied with, Holder told Yahoo News in July 2015. He added that the disclosures spurred a necessary debate.

Link:
Eric Holder says Edward Snowden performed 'public service ...

Former AG Holder Says Edward Snowden’s Leak Was A ‘Public …

Former National Security Agency contractor Edward Snowden speaks via video conference at Johns Hopkins University in February. Juliet Linderman /AP hide caption

Former National Security Agency contractor Edward Snowden speaks via video conference at Johns Hopkins University in February.

Former Attorney General Eric Holder says Edward Snowden's leak was "inappropriate and illegal" but "I think that he actually performed a public service by raising the debate that we engaged in and by the changes that we made."

Holder, who was attorney general when Snowden leaked highly sensitive documents that detailed some of the work of the National Security Agency, made the comments in an interview with former Obama adviser David Axelrod.

Holder went on to say: "He harmed American interests. I know there are ways in which certain of our agents were put at risk, relationships with other countries were harmed, our ability to keep the American people safe was compromised. There were all kinds of re-dos that had to be put in place as a result of what he did, and while those things were being done we were blind in certain really critical areas. So what he did was not without consequence."

After leaking the documents to The Guardian and other publications, the former NSA contractor fled, ending up in Russia where he remains exiled.

In the past, Snowden has said he is willing to return to the U.S. if he is afforded a fair trial. Snowden is charged with espionage and theft.

Yesterday, Snowden tweeted:

In his interview, Holder also said that it's time for Snowden to make a decision.

"I think that he's got to make a decision," Holder said. "He's broken the law in my view. He needs to get lawyers, come on back, and decide, see what he wants to do: Go to trial, try to cut a deal. I think there has to be a consequence for what he has done."

Holder continued: "But I think in deciding what an appropriate sentence should be, I think a judge could take into account the usefulness of having had that national debate."

See more here:
Former AG Holder Says Edward Snowden's Leak Was A 'Public ...

Obama doesnt share Holders view of Edward Snowden | New …

President Obama doesnt agree with his former attorney general that classified-info leaker Edward Snowden performed a public service when he leaked classified data to the media.

The president has had the opportunity to speak on this a number of times, and I think a careful review of his public comments would indicate that he does not, White House spokesman Josh Earnest said Tuesday of whether Obama shared ex-AG Eric Holders view of Snowden.

His statement came a day after Holder said during the podcast The Axe Files that the debate over secrecy and privacy sparked by the Snowden case was a positive development.

Hes broken the law, in my view. He needs to get lawyers, come on back and decide, see what he wants to do: go to trial, try to cut a deal, Holder told former Obama aide David Axelrod.

He added, I think there has to be a consequence for what he has done. We can certainly argue about the way in which Snowden did what he did, but I think that he actually performed a public service by raising the debate that we engaged in and by the changes that we made.

Earnest said Obama would agree with much of that sentiment but would not characterize Snowdens alleged crimes as a public service.

I would point out that even Mr. Holder pointed out in that interview that Hes broken the law, in my view, Earnest said.

Snowden, 32, turned to Twitter to mockingly compare the evolving schools of thought on his leak.

2013: Its treason! 2014: Maybe not, but it was reckless 2015: Still, technically it was unlawful 2016: It was a public service but, he wrote.

Snowden leaked classified information as a contractor for the National Security Agency in 2013.

He fled to Hong Kong and then Russia, where he lives under the protection of strongman Vladimir Putin.

More here:
Obama doesnt share Holders view of Edward Snowden | New ...

Chelsea Manning | Courage Foundation

Preparing for military appeal, Manning needs international support

Chelsea Manning is one of the most well known political prisoners of our time, whose actions exposed war crimes, helped fuel the Arab Spring uprisings, and led to the US withdrawing most of its forces from Iraq in 2011. The 28-year-old former Army intelligence analyst disclosed hundreds of thousands of classified documents to WikiLeaks in order to reveal war crimes and human rights violations, give a clearer picture of the Iraq and Afghanistan Wars to the public and shed light on the way the United States conducts diplomacy around the world. Manning is serving 35 years in jail, the longest sentence for a whistleblower in US history, after being convicted on several counts of the Espionage Act, the Computer Fraud and Abuse Act and military violations.

WikiLeaks first major release from Mannings disclosures, on 5 April 2010, was Collateral Murder, a video depicting U.S. helicopter gunners shooting Iraqi civilians in Baghdad, among them two Reuters journalists and a van of people whod stopped to help the initial victims.

Later in 2010, WikiLeaks released the Iraq and Afghanistan War logs, comprising daily reports of casualties and other notable incidents from both war zones. These diaries documented 15,000 previously uncounted killings of innocent civilians, American complicity in torture, contractors abuses, among countless more revelations.

The Iraq logs undermined the Obama Administrations attempt to keep troops in Iraq beyond 2011. Upon seeing the logs, Iraqi officials declined to provide US troops the immunity they requested, troop talks then broke down and the US was forced to leave.

In November 2010, WikiLeaks released 250,000 State Department cables, ranging from unclassified to Secret, exposing, in Mannings words, how the first world exploits the third. With reports penned by American officials from embassies around the world, the documents gave new light to backroom dealings, detailing how the United States interacts with its allies and adversaries behind closed doors. These diplomatic releases, by exposing rampant corruption and abuse not only by the United States but also by those it dealt with, helped fuel the Arab Spring, the wave of grassroots uprisings that roiled North Africa and the Middle East in the following years. Tunisian activists set up TuniLeaks to highlight locally relevant disclosures and spread awareness of the corruption of their government.

Finally, in April 2011, WikiLeaks released the Guantanamo Bay Files, largely revealing that prisoners held there were known to not pose a threat but were held instead due to their intelligence value.

Though separate from the larger caches, WikiLeaks also released two CIA Red Cell memos in 2010, CIA report into shoring up Afghan war support in Western Europe and Memorandum on United States exporting terrorism. At her trial, Manning said, The content of two of these documents upset me greatly.

Manning was arrested on 27 May 2010 in Iraq and shipped to Kuwait, where she endured brutal treatment in a metal cage, while awaiting transfer to a military prison. She was brought to the Quantico Marine Brig, where her abusive treatment, including forced isolation and nudity, incurred international outrage, condemnation from the UN Special Rapporteur on Torture, diplomatic protests and the resignation of Hillary Clintons spokesperson P.J. Crowley. Judge Denise Lind ruled that her treatment was improper and awarded Manning 112 days off of her sentence.

Manning was precluded from defending her actions as a whistleblower at trial, because the Espionage Act does not provide for a public-interest defense a conviction only requires the prosecution to show the potential for harm. Manning plead guilty to some of the counts against her and altered versions of some of the others, in part in order to make the very public interest arguments that the legal process had barred.

In her statement, Manning said,

I felt that we were risking so much for people that seemed unwilling to cooperate with us, leading to frustration and anger on both sides. I began to become depressed with the situation that we found ourselves increasingly mired in year after year. The [war logs] documented this in great detail and provide a context of what we were seeing on the ground.

I believed that if the general public, especially the American public, had access to the information contained within the [Iraq and Afghan War Logs] this could spark a domestic debate on the role of the military and our foreign policy in general as well as it related to Iraq and Afghanistan.

On 21 August 2013, Manning received the harshest conviction in any whistleblower case in US history, 35 years in prison.

The day after her sentence, Manning, formerly Bradley, announced her decision to live publicly as a woman, as Chelsea. Since then, she has been embattled in a fight with the US Army for rights as a transgender prisoner, including to medically necessary hormone therapy.

Since her imprisonment, Manning has been a vocal member of the global debate over war, secrecy and transparency, and transgender rights. She has a column in the Guardian, blogs at Medium.com and dictates tweets to be sent out at @xychelsea.

On 19 May 2016, Mannings legal team formally filed its appeal of her conviction to the US Army Court of Criminal Appeals. Her defence decries perhaps the most unjust sentence in the history of the military justice system and suggests Mannings sentence be substantially reduced, if not dismissed outright.

The Courage Foundation has always supported Chelsea Mannings actions and fight for freedom and justice and is now officially making her a beneficiary, so we can raise funds for her legal team throughout Europe ahead of the appeal, which should come to a courtroom in 2017.

More:

Donate to Chelsea Mannings legal defence fund here.

Follow this link:
Chelsea Manning | Courage Foundation

WikiLeaks, and the Past and Present of American Foreign …

On April 5, 2008, a small coterie of Republican senators and diplomats John Barrasso, Saxby Chambliss, Mitch McConnell, and James Risch, among othersheld a quiet meeting with then Egyptian President Hosni Mubarak at the Heliopolis Palace in Cairo.

The setting was regal. Designed in the early twentieth century by a Belgian architect, the one-time luxury hotel had been remade as Mubarak's home and workplace in the 1980s. Blending Arabic, European, and Persian architectural styles, the complex embodied purposefully Egypt's place at the crossroads of the pan-Islamic and pan-European worlds.

The conversation slid naturally to current events as the group settled down to talk.

After a brief back-and-forth about Israel, Mubarak turned to Iraq. "My dear friends," he began, "democracy in Iraq equals killing. The nature of those people is completely different. They are tough and bloody, and they need a very tough leader. They will not be submissive to a democratic leader."

Stability required an authoritarian fist.

"As I told Secretary of Defense Gates last year," Mubarak continued, "the only solution [to America's desire to leave Iraq] is to strengthen the military and security forces, arm and train them, wait for the emergence of some generals, don't oppose them, then stay in your camps in the desert and don't interfere. The military will control Iraq like the ayatollahs control Iran."

Twenty-eight years in power, and Mubarak's worldview amounted to a simple adage: never "mix democracy and tribalism."

The transcript drips with irony when read from the present.

It was sent to the Department of State by U.S. Ambassador Margaret Scobey on April 8, 2008. It allegedly comes to us via Private First Class Bradley Manning, who sits now in a U.S. military prison, awaiting trial for passing along 251,287 such cablesonly 2,000 of which are available online currentlyto the media organization known as WikiLeaks.

Manning's fate and the imbroglio surrounding Julian Assange, the controversial figure who shared the cables with the world, has faded somewhat from the headlines in recent months. Yet the WikiLeaks communiqus reveal much about America's role in today's world.

In the words of author Timothy Garton Ash, the documents are a "historian's dream" and a "diplomat's nightmare"a spigot of information from the contact points of American power, where powerbrokers and diplomats go daily through the motions of statecraft.

Leaks, Yesterday and Today

In the United States, politicians have hyperventilated over the WikiLeaks story since it broke in 2010.

Despite the fact that most foreign leaders quickly dismissed the material as blas, American leaders have framed Assange and Manning as unambiguous enemies of the international community.

Internal dissentvoiced notably by (now former) State Department spokesman P.J. Crowley, who criticized the U.S. government's imprisonment of Manninghas been cast as inexcusable and irresponsible.

But the American ship-of-state has long been a leaky boat.

George Washington reprimanded Alexander Hamilton for passing material to the British during the 1794 Jay Treaty negotiations, and James Madison castigated his secretary of state for giving administration secrets to members of the opposing Federalist Party.

There has been no shortage of leak-related precedents since then.

In 1848, as the United States' war with Mexico drew to a close, Senate investigators placed a journalist under house arrest for the first time because he refused to disclose how he obtained details about the not-yet-complete peace treaty.

At the height of the First World War, lawmakers considered making it illegal to leak state information to the public, but changed their minds because of first amendment concerns, opting instead for legislation that criminalized the act of relaying defense secrets to the enemy during wartime.

The most notorious leak in U.S. history came in the early 1970s, when Daniel Ellsberga Princeton-educated analyst who worked for Secretary of Defense Robert McNamara during the 1960sdelivered a 7,000-page Pentagon report to The New York Times, and later The Washington Post.

Unprecedented in scope, the collection of top-secret materials revealed that Lyndon Johnson's White House had lied systematically to the public about the rationale behind America's involvement in Vietnam.

Richard Nixon tried to use an injunction to stop the material's publication in 1971, setting another historical precedent in the process, but failed at the Supreme Court.

The ethics of leaking have never been straightforward. Nixon's own contradictions were on full display as he and his advisors formulated their response to Ellsberg:

Nixon: "Let's get the son of a bitch into jail." Henry Kissinger: "We've got to get him." Nixon: "We've got to get him ... Don't worry about his trial. Just get everything out. Try him in the press ... Everything ... that there is on the investigation, get it out, leak it out."

Such conviction, of course, facilitated Nixon's undoing, but the implications were clear and the sentiment was probably felt widely among American elites: leaking was bad when it violated the interests of power.

Or, as columnist David Corn said once, there are leaks "that serve the truth, and those that serve the leaker."

The second Bush administration blurred this line frequently.

White House staff members gave the identity of CIA agent Valerie Plame to columnist Robert Novak after her husband, Ambassador Joseph Wilson, criticized the rationale for the 2003 Iraq invasion.

Bush himself passed along (selectively chosen) top-secret documents to reporter Bob Woodward for the 2002 book, Bush at War.

Wheat from the Chaff

Each of these leaks tells a different historical story.

The Plame affair underscored the politicization of information in our fractured age, when partisans compete with cynical glee to mold Washington's weekly narrative.

Ellsberg's papers exposed the contradictions of an earlier epoch, highlighting the tenuous underpinnings of the global Cold War, particularly in Southeast Asia.

Controversies from the nineteenth and early twentieth centuriessharpened often by war and codified through lawoffer windows into the rise of the modern state, and highlight how the U.S. government came to police its inner correspondence.

And the experiences of the founding fathers hint at an era now long past, when leaders navigated questions of secrecy with little consideration of bureaucratic power.

So given this long leaky history, what makes the WikiLeaks material so interesting?

Size mattersthere is a lot of information in the 251,287 cablesbut the documents differ from previous leaks.

For one, they draw on different source material.

Unlike Ellsberg, Manning did not have access to top-secret reports. Most of the information he downloaded from his desk at a military base in Iraq never reached the Oval Office. It is likely that few of his cables even made their way to the seventh floor of the U.S. State Department, where America's top statesmen manage the daily business of U.S. foreign relations.

Moreover, the documents do not lend themselves to a Plame or Ellsberg-like controversy.

There are embarrassing tidbits here and theregossipy assessments of foreign leadersand heart-wrenching details from the battlefields in Afghanistan and Iraq. But Washington's foreign officers come across mostly as professionals.

As commentator Fareed Zakaria opined, "Washington's secret diplomacy is actually remarkably consistent with its public diplomacy" this time around, unlike during the Vietnam War, U.S. diplomats are undeniably "sharp, well informed, and lucid."

What emerges from the WikiLeaks material is a story that features not the great men and women of Washington but the mid-level officials who work in U.S. outposts around the world.

These are the individuals who conduct American diplomacy on the ground. Their correspondence is dominated by neither turf battles nor policy debates, but rather a continual effort to collect accurate information, analyze trends, and advance U.S. interests in the world.

Looking through the eyes of such individuals reveals much about U.S. foreign relations, especially in the American hinterlandthat zone of exchange at the outskirts of Washington's political influence.

The WikiLeaks documents showcase the common priorities of the officials who enact American policy in this region, and they tell scholars something about the challenges of U.S. foreign affairs in the early twenty-first century.

Things have changed certainly since the end of the Cold War, but they haven't changed as much as one might suspect.

Small States, Big Allies

Washington's global influence today is deeply contested. To a degree that might surprise both boosters and detractors of America's foreign policy, negotiation is the motif of the WikiLeaks documents.

Whether dealing with special friends or political afterthoughts, U.S. diplomats rarely dictate the terms of international exchange. They are caught instead in a continual two-way conversation that often obfuscates the asymmetrical nature of Washington's military and economic resources.

The examples are almost endless.

Take Yemen: residing at the outskirts of the Arab world with a harsh climate and a small population, there is little reason the country should possess any leverage over the U.S. policymaking establishment. Unlike Saudi Arabia, it possesses few oil reserves or regional cloutonly the strategic port city of Aden, which provides access to the waters between the Red Sea and the Indian Ocean.

Read the original post:
WikiLeaks, and the Past and Present of American Foreign ...

New lawsuit against Bitcoin miner manufacturer alleges fraud, negligence

New lawsuit against Bitcoin miner manufacturer alleges fraud, negligence
For months now, Butterfly Labs has faced anger regarding delayed orders.

http://arstechnica.com/tech-policy/2014/02/new-lawsuit-against-bitcoin-miner-manufacturer-alleges-fraud-negligence/

One of the world’s most mysterious Bitcoin-related companies is now facing its first civil lawsuit in a United States federal court, with many more likely on the way.

Last summer, Ars reported on Butterfly Labs (BFL), which makes ASIC-based Bitcoin miners. In other words, BFL builds little boxes with specialized chips that do nothing but compute hashes in the Bitcoin blockchain—a process which can lead to real money for the miners. Given that the value of Bitcoin has skyrocketed in recent months (hovering around $820 per bitcoin as of this writing), mining coins when their value is lower is clearly profitable.

Martin Meissner, a German-Polish man who lives in China, placed an order for a BFL miner back in March 2013 but ultimately never received his order. He alleges that he spent over $62,000 to order two 1500 gigahash-per-second Bitcoin miners. To date, he has not received a refund for his payment. His lawsuit, filed in December 2013, accuses BFL of breach of contract, fraud, and negligent representation.

Neither BFL nor its attorney, James M. Humphrey, responded to Ars’ repeated requests by phone and e-mail for comment.

Meissner’s attorney, Robert Flynn, told Ars that he has already been contacted by “multiple” people, including other local attorneys with similar complaints, although this is the first suit that he’s filed. If Meissner’s case is successful, it appears likely that it could pave the way for future litigation against BFL.

On Tuesday, BFL filed a motion to dismiss the complaint “for failure to state a claim on which relief can be granted,” adding that “Plaintiff is not entitled to consequential damages as a matter of law because they are too speculative.” Further, because Meissner paid via his own company’s bank account, he personally lacks standing under the Kansas Consumer Protection Act.

“I first contacted BFL and asked for a delivery date, and a long time passed without any response,” Meissner told Ars. “So I went ahead and requested a refund. When BFL responded to the request and rejected the refund, I saw no other way out than to seek an attorney’s help.”

Meissner’s attorney, Robert Flynn, told Ars that he recently spent days trying to arrange for a settlement on behalf of his client.

“I offered an opportunity to reach a settlement before things really ramp up and they made an offer, but it’s clear that they’re not serious about reaching a settlement so we’re going to push ahead with the lawsuit,” he said, declining to name a precise figure. “I can tell you that [the settlement amount] was less than the refund of what my client paid, which is like: ‘Come on man!’ Just [as it says in] the complaint, we’re asking for consequential damages. My client isn’t money grubbing. This isn’t the McDonald’s coffee case, trying-to-get-rich lawsuit. He was trying to get a refund in October [2013] and the response was not responded to and so we filed a lawsuit.”

Butterfly Labs previously lost a civil case by default in Kansas’ Johnson County Court in late November 2013. The plaintiff, a Californian named William Lolli, won a judgement of over $13,000 but told Ars that he had not yet collected the award.

“WTF is wrong with you?”

While Meissner and other customers have been extremely frustrated at the lack of communication and lack of shipment from Butterfly Labs, the Kansas-based startup did send Ars one of its low-end boxes. Ars editor Lee Hutchinson successfully used the box to mine what then amounted to around $600 in bitcoins. Hutchinson then sold them for a US money order and cashed out. (We donated the entire sum to the Electronic Frontier Foundation.)

Prior to getting involved with ASICs, BFL had some experience in the Bitcoin mining business; it had previously made and sold around 2,300 slower Field-Programmable Gate Array (FPGAs) miners from September 2011 to September 2012, earning at least $1.6 million in revenue. In June 2012, BFL started taking orders on the ASIC-based boxes, which ranged in price and capability from $274 for a 5GH/s (gigahashes per second) unit to $22,484 for a 500GH/s machine.

Soon after, new orders for the next-generation machines flooded in. The privately held company won’t say how many orders it received, but if one site inviting customers to add their orders to a public list is to be believed, BFL has taken in at least 7,600 orders worth $10.3 million—and the actual numbers may be higher.

But then, over a year after the first orders were placed, hundreds of angry comments and reddit threads and tweets flooded in. (Example: “WTF is wrong with you? You can't deliver shit yet u take more $$? Stop fucking delaying Singles on purpose!!”) BFL shipped its first machines in early June 2013. One customer tweeted in December 2013: “Sent 2 emails, left 2 VM's. Looking at the replies, I'm not alone. Unacceptable. Emailing [Better Business Bureau] & Consumerist next.”

That frustration has continued through to the present day.

“BF Labs believed it had received payment for a non-existent order”

According to Meissner’s original complaint, the dispute comes from a strange circumstance during which Meissner made a March 25, 2013 wire transfer payment from his company, TradeMost Enterprises Ltd. This apparently confused BFL, which did not acknowledge his order. When he inquired further on May 2, the company responded to him by e-mail:

We received your money but the bank tells us only “Trademost Enterprises Ltd” so we were not able to match your payment to your order until we got your email. I have received your payment and sent a copy of your invoice for your records. Your order is processing (paid).

However, Meissner never received his order.

While BFL appears to not have made any public statements concerning this lawsuit, one of its managers responded in late January 2014 in a “Declaration of Support,” outlining the company’s perspective.

That 55-page document, authored by David McClain, the “Large Accounts Manager” at BFL, states that the company “reserved the right to handle refund requests on a case-by-case basis.” It says:

As is the case with most technology, new generations of products are introduced over time with more advanced capabilities. In the case of the product generation (65nm) that Plaintiff pre-ordered, BF Labs experienced technical delays in its development that held up manufacturing the new technology at commercial scale.

When BF Labs had resolved the issues and was ready to commit the orders to the final stages of manufacture, an email notice was sent to customers advising that orders would be shipped as produced and that if anyone was unwilling to endure the wait, they had a final opportunity to cancel their order and receive a full refund.

This notice was sent May 1, 2013 to customers with fully paid up orders, and after May 1, 2013, anyone who placed a new order viewed an on-screen “pop-up” message that advised them of these terms.

In this case, Plain filled out an online order form on March 25, 2013 but did not follow through with his promised payment, effectively abandoning his potential order.

Thirty days after Plaintiff abandoned his potential order, on April 24, 2013, after the price of Bitcoins had risen significantly and BF Labs had increased its device prices, TradeMost Enterprises, Ltd. remitted payment of $62,598 but failed to place any order number on the memo in the wire-transfer as instructed by BF Labs. As a result, BF Labs believed it had received payment for a non-existent order and had to wait for TradeMost to contact it to resolve the unmatched payment.

But Flynn, Meissner’s lawyer, finds this explanation baffling.

“I think it’s pretty disingenuous to say it’s [Meissner’s] fault,” he told Ars. “If he had never e-mailed, what were they going to do? Were they the kind of people that were going to keep $63,000? It’s funny, the blame-shifting game they’re playing. I find it distasteful, the lack of responsibility.”

Love in the Time of Cryptography – Backchannel

Ill tell you this much about him: He has soft eyes and a wonderful smile. Hes taller than me. Hes very good with computers. His accent in English is terrible. He likes his privacy.

In 2016, after several years of a simple and warm love affair, we hit a snag. We had decided to live together, and that I would emigrate to Europe. But to do this, we had to prove our relationship to the government. The instructions on how to do this skewed toward the modern forms of relationships: social media connections; emails; chats; pictures of the happy couple. He read through this, and showed it to me. We both laughed. Our relationship had left few traces in the digital world. We had none of these things.

We met a few years before at a drinks night for a hacker collective. A mutual friend introduced me by name, and him by handle. I liked him instantly. We chatted for a few moments, but I had to run. I set up a time to meet up with him later that weekend, and then missed it after falling ill.

Oh well, I thought, so much for that.

We bumped into each other a few weeks later on a public IRC channel, and I recognized his handle. IRC (Internet Relay Chat) is a massive chat system, like a command-line version of Slack. In fact, Slack is a fancy interface for IRC with added features, but no added privacy. An IRC server knows everything you say on it, just as the Slack servers do. I told him that Id still love to chat, but he warned me that he didnt come to IRC much. I gave him my Jabber address, and suggested that we continue our conversation privately. This time, we managed to chat.

Jabber is different from most chat protocols in that its decentralized. Theres no Jabber-the-company with only Jabber servers, like there is in the cases of Google or WhatsApp. This meant we could use servers run by whomever, in whichever country we liked. My only contact for this mysterious man (whom I hadnt been able to stop thinking about) was this Jabber address, which he had configured to refuse any unencrypted messages. Jabber itself doesnt encrypt messages, but another protocol called OTR (Off-The-Record) creates a layer of encryption inside other communication systems. It would be as if I called you, but the conversation were in a secret language only we knew. Someone could tap the line and listen, but they wouldnt understand us. OTR has another property, called Perfect Forward Secrecy. With Perfect Forward Secrecy, new encryption keys are created for every session, so that even if one is broken, its only broken that one time. It doesnt give an interloper any more access to messages in the future, or past. It would be as if when I called you, we invented a new language to communicate every time we spokea new language we both understood instantly, every time.

We started a conversation this wayintimate, privatein our textual world for two; its a conversation that is still going. Most Jabber clients are smart enough to realize that if youre encrypted, you dont want to log conversations, and that was our case as well. Those chats in the early days are gone. Some live in my memory, some in his, but most are as lost and fragmented as conversations in the rain.

I do remember I complained to him a lotabout journalism, sources, stories, writing; about trying to do something important. He always seemed to listen and care, in the strange body language that lives in chat pauses. He was sensible, positive, and encouraging. I remember that I told him I was frustrated with being a woman trying to write longform subjective journalism, and that I felt there was so much I wasnt socially allowed to do. He asked me about it more, and I listed out all the ways I felt my gender was limiting my writing. He was quiet for a moment, and then reposted my list to me in our chatbut as a to-do list. I looked at my computer and took a deep breath. I wanted to cry, but I also felt like it was time. I took that to-do list, and turned it into my final, longest, and best piece of journalism for Wired. But he doesnt remember this, and has to trust me that it happened. In an age in which every relationship is automatically documented, this one has remained ephemeral, contained in the shifting sands of our human memorythe way all relationships used to be.

I feel like what we keep in our minds is more important, he wrote to me over WhatsApp recently. The accuracy of it ismah. This is his disdain for this digital accuracy, and it captures something. Theres an obvious, almost legalistic veracity of moment-to-moment logging, but that loses a truth that the impressionism of memory catches better. I didnt fall in love with him word by word or sentence by sentence. I fell in love with him slowly and steadily through time, in the spaces between the words, held up by the words. Losing the words sometimes feels frustrating, but that forgetting also removes the scaffolding from a finished pasta past that was never really containable in a logfile.

As those first weeks stretched into months, he became my imaginary friend, the person who no one else knew was there. We spoke every day, usually on OTR, always encrypted. When we passed files using unencrypted file sharing programs and websites, wed first encrypt them with command line tools and share decryption passwords in our OTR chats.

These were not easy to use, and required long and esoteric commands, such as:

> openssl aes-256-cbc -a -salt -in for-you.mp3 -out for-you.mp3.enc

This meant that though our communications were on the open internet, they were just meaningless blobs of text without the password wed shared over chat. I read him poems into a microphone and sent them to him. I sent him pictures. I dont remember many specifics, and I cant look them up now, but I remember I loved it.

I wanted a way to communicate on the phone. We used TextSecure and RedPhone (which later became Signal). We sent pictures to each other usually me to him, and usually pictures of funny things Id seen in my day. I found myself in London, and jokingly (not at all jokingly) tried to get him to come visit me. He demurred, but countered that I could come visit him a bit later in Luxembourg. A few weeks later I was in Paris Gare de lEst, cash-bought ticket in hand, boarding an express train to the main station in Luxembourg City.

I still didnt know this mans legal name. I didnt even realize that Luxembourg was a different country. We had a lovely weekend. I told him, I want to show you a movie to help you understand my culture and my people, and I showed him a John Carpenters Big Trouble in Little China. We sat, side by side on a couch with a laptop balanced across our thighs, and watched it. He told me at the end that he liked it very much. We walked around the city in the daytime, sitting in parks and eating takeout food together. We talked about the internet, activism, journalism, and computers. By the end of the weekend I knew his name, but I still called him by his handleI was used to it.

Everything was still platonic, but I knew I didnt want it to be.

Several months later, we went together to Berlin. Standing on a friends balcony in the middle of the night, I asked if I could kiss him, and he said yes.

Not long after, I came to the attention of a media storm after being struck by a tragedy. My life imploded, and between grieving and dealing with media controversy, my days became a sickening tragicomedy I couldnt turn off. He became my refuge; his apartment became the only place I felt safe. He looked after me, made sure I was eating, held me, walked with me, and let me cry on him. At the moment when we might have become more public as a couple, he didnt want any part of my media ordeal. If a reporter calls me, I will be very mean with them, he told me. I laughed and agreed. I didnt want any part of it either. But when I was away, he was still with me, checking in over the encrypted links wed built. I dont remember much of that terrible time, but I remember the sense that he was there, quietly present, from thousands of miles away.

There are few pictures of us together. Very few were taken by us; neither of us are much for selfies. Those that do exist, we ask our friends to keep offline.

We know that the vague and soft anonymity of our relationship probably wont last forever. And I doubt there will ever be a surfeit of digital connections between us. Our phones trace the paths we walk together, existing in telecom databases (and more recently, in WhatsApps logfiles) long after weve moved on. Their cell tower and GPS logs are like a pair of maze paths with no walls, lines coming together and parting, and coming together again. But what we said on those walks is lost, even to us. Only the feelings, memories, and paths remain.

Those paths have traced across three continents now, traveling together, often visiting friends. We are not at all a secret couple. Our friends and communities know us as a couplewith something of an information security bent. Introducing him to my friends and family (first by handle, then later by name) has been one of my great joys. Im intensely proud of him, and still a bit giddy that I get to spend time with him.

My love affair has taught me that the age of data makes time solid in a way that it didnt used to be. I have a calendar and email archive that nails down the when/where/who of everything Ive done. I know when my kid was here; the last time I saw a friend in New York; exactly what my last email exchange with my mother was. Not so with my lover. Time is a softer thing for us. Sometimes it seems like hes always been there, sometimes it seems like were a brand new thing. Every other relationship in my life is more nailed down than this one.

Every time I look at an old mail, I feel weird, like I prefer the memory I have of a thing than the accurate recording, he told me.

He doesnt mean an email from me. We have never exchanged email.

Ill tell you a little more about him: He tolerates no nonsense. He expects clear and timely communication and honesty. He rarely sees the point of being subtle, especially on important matters. We make things plain to each other. Over the years, inside our little tunnels of encryption, we told our stories, explained ourselves to each other. We became quiet voices in each others minds. In the absence of a perfect record, we settled for trust.

So it was, in 2016, we had to document our relationship to the satisfaction of the modern nation-state. At the bottom of the government instructions for how we could do this, there was one old-fashioned option left to usletters from friends and family attesting to our love. So thats what we gathered.

One friend wrote in his letter:

Another wrote:

I dont know if anyone in the government actually read the lettersgovernments these days have a flawed love for metadata over actual informationbut we did. Having your friends and community testifying to your love beats all the selfies in the world.

Either way, I received my Carte de Sjour, the governments permission to live with my lover in Europe, and I moved to be with him.

In May of last year we went back to Berlin. I took him, naturally, to the Stasi museum. When we got to the directors old office, I took a deep breath and proposed to him. Instead of a ring, I gave him a USB key. (Bought with cash, and Im not telling you what was on it.)

He said yes.

Then he looked at me quizzically, and asked, Is this why youve been so nervous this week?

Yes! Its incredibly nerve-wracking! I said, and we went for coffee. So thats how it all happened.

But youll have to take my word for it.

Visit link:
Love in the Time of Cryptography - Backchannel

No Incentive? Algorand Blockchain Sparks Debate at Cryptography … – CoinDesk

"Can you say anything about incentives in Algorand?"

That question was directed to Silvio Micali, an MIT professor who had just delivered a keynote on his theoretical proof-of-stake (PoS) system at the Financial Cryptography and Data Security conference in Malta, yesterday. And the Turing-award winner's answer set a few back on their heels.

"Incentives are the hardest thing to do," Micali said.

In 30 years as a cryptographer, he had spent the last 10 working on just that issue.

As he explained, when you put incentives out there, people learn how to use those incentives for making money in ways that are nearly impossible to predict. He pointed to bitcoin as a prime example, saying its creator probably never imagined bitcoin'sincentive structure would lead toindustrial-scale mining pools.

Micali also argued that users do not need to be rewarded for trivial computations. And that while bitcoin miners are compensated for their work, validators, who in contrast do not have to invest in expensive equipment and electricity, are not rewarded.

Hesaid:

"We must use incentives as a last resort. I believe I can [make Algorand work without incentives], but I have no formal proof that I can, because these formal proofs are much harder than the proofs of Algorand."

Intended as a public blockchain, Algorand contains a novel version of Byzantine agreement with nine steps, where players are replaced in each round of communication. The protocol tolerates one-third bad actors, and Micali said he assumes the majority of the system's users are honest.

Yet, the idea of a consensus algorithm that offers no incentives runs counter to the thinking of many, including those working on the decentralized application network ethereum, a blockchain projectworking on a PoS system of its owncalled Casper.

"We basically explicitly put incentives front and center," said Vitalik Buterin, founder of ethereum. He described ethereum's approach as fundamentally about how much money stakeholders can lose, as opposed tothe approach taken with Algorand.

"One thing I would be concerned about, is if you have no incentives at all, then that means you have no incentive not to just be lazy and go offline,"Buterin told CoinDesk.

Ethereum developer Vlad Zamfir, who is heavily invested in building Casper, had stronger words. He stated he simply did not think such a system would work.

"My whole perspective on the space is, like, polar opposite. I don't believe the 'majority of people are honest' assumption," he said, adding:

"There is a small number of people who control most of the coins in most [PoS] systems. It is not that hard for people to coordinate to undermine protocol guarantees.

Cornell associate professor Emin Gn Sirer, also questioned the idea Micali put forth.

Sirer pointed out that, while it'strue bitcoin's participants are not always fully incentivized, a lot of people run full nodes altruistically.

"But to go from that and to say, since bitcoin works and it is not fully incentivized, ergo, any system will work that is not incentivized. There is a gap there," he said.

But some had an altogether different take on the matter.

Charles Hoskinson, CEO of blockchain technology firm IOHK, pointed to BitTorrent as an example of a system that works just fine while not being incentivized at all. No token exists and you aren't paid anything to share files on the network.

Another example he points to is [emailprotected], where thousands of people freely donate idle processing power for disease research.

"It is an open question of whether you need incentives or not, and I dont think it can be determined in an academic model. It is actually going to be determined by evidence. You launch something and you see what happens," he said.

The comments nonetheless suggest that Algorand's eventual launch could be one to watch, especially for those who question whether the platform's incentive plan will work or not.

Correction:This article has been revised to reflectEmin Gn Sirer's title.

Disclaimer:CoinDesk received a subsidy to attend the Financial Cryptography and Data Security conference from the event's organizers.

Image via Amy Castor for CoinDesk

AlgorandIncentivesProof-of-Stake

More:
No Incentive? Algorand Blockchain Sparks Debate at Cryptography ... - CoinDesk