Daily Archives: March 9, 2017

Legislators should support Second Amendment – Star-Gazette – Elmira Star-Gazette

Posted: March 9, 2017 at 2:58 am

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Thomas P. Greven 4:25 p.m. ET March 7, 2017

Concealed carry(Photo: Getty Images / iStockphoto)

It is estimated that more than 15 million American citizens have permits to carry concealed firearms. Add to that millions more in the 12 states that allow concealed carry without a state-issued permit or license.

In each case, citizens are required to under go federal background checks before purchasing a firearm. Liberal Democrats insist on passing strict firearms laws. As is the case with New Yorks SAFE Act, passed behind closed doors in the middle of the night by Gov. Andrew Cuomos liberal regime, it only hinders honest American citizens from availing themselves of their Second Amendment rights.

I know of no criminal who while committing a criminal act would be dissuaded from using a firearm because it violates the law. The only thing these laws do is to allow liberal politicians to give a false sense of security to the public. Chicago is a prime example of a Democrat-controlled city with strict gun control laws and one of the highest homicide rates in the country.

Without the Second Amendment, the rest of our constitutional rights are in jeopardy. Its time for the voters to elect representatives who support our Second Amendment and a national state reciprocity for those who legally and responsibly carry firearms.

THOMAS P. GREVEN

CORNING

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The State Of The First Amendment | The Daily Caller – Daily Caller

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2017 is certainly a year that has seen the First Amendment challenged from all sides, and it isnt even half way through March. Believe or not, the First Amendment protections that we have all come to enjoy are so far reaching that freedom of conscience debates can pop up in even the most unlikely of policy areas.

Sadly, though, even as the country is accepting the presidency of Donald Trump, the freedom of conscience for many is at risk. Merely, the term at risk is an understatement to an overt, outright attack on the literal definition of the very first components of our Constitutional rights.

The most obvious scene of where we can see many of these challenges is, of course, the American college campus. Public and private higher education institutions have succumbed to a soft despotism of political correctness and academic censorship that ruins the purpose of a college. Simply put, the college campus has become the breeding ground of the modern day narrative of triggered mentalities for Americas young people entering the work force.

Even more uncharacteristic is that the college campus has also become a breeding ground for identity political warfare dotted with safe spaces for both liberal and conservative students and professors refusing to engage in meaningful debate. As it is put, more crassly by many looking from the outside in, the art of civil discourse in the public square is all but lost.

Once you get away from the college campus, the realm of political debate on the national level has become relatively troubling, as well. When state legislatures and policy makers, all over the country, are continually threatening someones free speech, free exercise of religion, or right of association, something needs to be done.

One of the most rancid takeaways from the overall debate is, too often, that the First Amendment is discriminatory to protected classes (i.e. racial groups and the LGBTQ communities for example). By no means should a document protecting all of our rights, with equal application, be deemed defamatory or discriminatory based on the grounds of political disagreement. Though there is legal precedence to argue that anti-discrimination laws in the federal statutes and the First Amendment should not be at odds, the end result typically sees some form of reverse discrimination pushed on the group arguing on the opposition.

To clarify, the fact that reverse discrimination can occur against people wishing to exercise their freedom of conscience (faith, speech, association) is not the proper way to have equal protection under all laws.

One of the most evident sentiments that is often overlooked in the quest for rights befitting of all humans is the fact that having equal rights doesnt entitle a specific group additional rights above those.

In the end, the final remark is that someones self-endowed civil liberties should supersede those types of claims and scenarios. Civil liberties and civil rights should complement each other, not conflict.

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Letter: First Amendment was first for a reason – Amarillo.com

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Regarding the letter to the editor in Amarillo Globe-News (Letter: AGN needs to serve its conservative readers, Feb. 23, amarillo.com), I am astonished that a conservative (as the letter writer appears to be) would assault the First Amendment rights of the press or anyone else.

Once elected to public office, you are fair game for criticism.

Presidents Barack Obama and George W. Bush were caricatured as big-eared monkeys or elfin creatures, and most public figures have drawn criticism in print and editorial cartoons.

I hope AGN will continue to furnish their readers with timely and entertaining news and commentary, including the brilliant observations of (syndicated editorial) cartoonist Jeff Stahler and others.

The First Amendment was first for a reason.

When an individual in this society can tell someone else what to think, and tell the press what to print, we are in trouble.

Steve Close

Amarillo

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Amazon releases Echo data in murder case, dropping First Amendment argument – PBS NewsHour

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The Amazon Echo, a voice-controlled virtual assistant, is seen at its product launch for Britain and Germany in London, in 2016. Photo by Peter Hobson/Reuters

After several months of pushback, Amazon has agreed to release user data from an Amazon Echo device involved in a high-profile Arkansas murder trial.

The device, a popular, hands-free artificial intelligence assistant named Alexa that responds to human directives, contains audio recordings that prosecutors say could could provide information in the murder of Victor Collins, 47, who was found dead in his hot tub on Nov. 22, 2015, in Bentonville, Arkansas.

James Bates, 31, was charged with first-degree murder and tampering with evidence in the case.

Benton County Prosecuting Attorney Nathan Smith wrote in an email that prosecutors were pleased with Amazons decision.

I am pleased that we will have access to the data from the Defendants Echo device since the Defendant consented to its release, Smith said. As with any case, our obligation is to investigate all of the available evidence, whether the evidence proves useful or not.

Smith said he could not provide details on the recordings or if they would be used in court because the case is still under investigation.

Amazon had argued against the datas release in February, saying the Echo recordings were protected under the First Amendment. According to a court order, Bates consented to the disclosure, which then prompted Amazon to agree to the release of the data March 3.

Amazon declined to comment for this story, but did provide the official court order to the NewsHour, acknowledging the defendants consent.

Kathleen Zellner, Bates legal counsel, said in a statement to the NewsHour: Because Mr. Bates is innocent of all charges in this matter, he has agreed to the release of any recordings on his Amazon Echo device to the prosecution.

This case depicts yet another legal battle over the use of technology-based evidence and privacy laws. Other similar cases include Apples toe-to-toe with the FBI over the hack of San Bernardino shooter Syed Rizwan Farooks iPhone.

Carrie Leonetti, an associate law professor at the University of Oregon, said the Bates case highlights an important ongoing open issue in the field of constitutional criminal procedure.

In my mind, as well as the minds of a lot of other privacy experts, the Echo has been a ticking constitutional time bomb, along with a lot of other features of smart homes and the internet of things, Leonetti, who teaches criminal and constitutional law, said.

The same issue has arisen with the NSAs pattern analysis of Americans telephony metadata, cell-site location tracking of suspects via subpoenas to the phone company, and GPS cell-phone tracking, she added.

A hearing set for today on the Amazon Echo case is now canceled following the defendants consent.

READ MORE: How can I stop my TV from spying on me?

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Montgomery County Settles First Amendment Lawsuit with Photographer – BethesdaMagazine.com

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Mannie Garcia sued the county after he was arrested while photographing police officers making an arrest in 2011

Published: 2017.03.08 03:30

Montgomery County announced Wednesday it has reached a settlement with photographer Mannie Garcia in a long-running First Amendment lawsuit in which Garcia claimed his civil rights were violated when county police officers detained him while he was taking photos of what he believed to be excessive force applied during an arrest.

The county agreed to pay Garcia $45,000 to settle the case, which was filed in U.S. District Court in Greenbelt in 2012. However, the federal court still must consider how much the county should pay Garcias attorneys fees and costs in the case, according to the settlement agreement.

The parties believe it is in their best interests, and those of the citizens of Montgomery County, to bring finality to the case to achieve certainty as to its resolution, a joint statement from Garcia and the county said.

Garcia, 63, is an award-winning photographer with more than 30 years of experience who is based in Washington, D.C. and is known for taking the photo of Barack Obama that artist Shepard Fairey later used to create the Hope poster that became an iconic image of the 2008 presidential campaign. Garcia filed the lawsuit after he was arrested in Wheaton on June 16, 2011.

On that day, according to the complaint, Garcia was leaving a restaurant with his wife and a friend when he saw county police officers arresting two young Hispanic men near the corner of Hickerson Drive and Georgia Avenue. Garcia stopped because he was concerned the officers were using too much force.

He began taking photos of the ongoing arrest and when an officer approached him, Garcia identified himself as a member of the press. Despite having done so, according to the complaint, the officer tried to place Garcia under arrest and then placed him in a chokehold and reportedly dragged him across the street to a police cruiser. While he was standing next to the cruiser, an officer swept Garcias legs out from under him, causing the photographer to hit his head against the car before he was placed inside and taken to jail, according to the complaint.

Garcia was charged with disorderly conduct, but was later found not guilty in December 2011 by a Montgomery County District Court judge.

The settlement in the federal case eliminates the need for a trial, which was scheduled to take place this month.

The county had denied Garcias allegations in a response to the complaint. However, the countys police department updated its policies after the Garcia incident to specifically note that the public has a right to record and photograph police officers.

"I think this case helps clarify the law," Garcia's attorney Robert Corn-Revere, said Wednesday. "It makes clear the First Amendment does protect both photojournalists and normal citizens when they document the actions of police in public places."

He added, "Ultimately the county will pay our attorney fees, which underscores the lesson that violating First Amendment rights is not free."

He said the court will determine the amount the county must pay, but he expects it to exceed six figures.

Garcias case also affected national policy. In 2013, the Department of Justice urged the federal court not to dismiss his case after Montgomery County filed a motion to do so.

At the time, the department wrote to the court, The United States is concerned that discretionary charges, such as disorderly conduct, loitering, disturbing the peace and resisting arrest, are all too easily used to curtail expressive conduct or retaliate against individuals exercising their First Amendment rights . Core First Amendment conduct, such as recording a police officer performing duties on a public street, cannot be the sole basis for such charges.

Since Garcias case was filed, video recordings of police made by people using cell phones and other devices have become commonplace. Some videos showing what appears to be police officers using excessive forcein a few cases resulting in fatal shootingshave sparked a national conversation about police brutality and civil rights.

Garcia told the National Press Photographers Associationabout the settlement: Im extremely relieved that its come to fruition after five and a half years. I think this lawsuit has given attention to the fact that police departments need to pay attention in regards to individuals rights.

Incident happened Monday in Howard County, police said

Plus: Electronics and appliance retailer to close in Rockville; Bethesda financial firm celebrates 30th anniversary

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Community Voices: Protecting our First Amendment rights – The Bakersfield Californian

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For 250 years, the First Amendment has protected religious freedom in the United States. Its vital to protect these rights for every citizen of any religion, both in the majority and the minority, not just because of a bleeding heart philosophy or calls for empathy or compassion, but because of simple, un-partisan self-interest. To not do this, even when we feel most divided or most fearful, puts everyones rights at risk.

Sustaining our rights, we know, does not come without a price. There are inherent dangers tied to living in a free society, and in our dangerous and uncertain world, accommodating rights can sometimes seem almost too burdensome. Its tempting, especially when national security risks grow more prevalent, to hand the government greater control of these rights, including those enshrined in the First Amendment. Its more tempting still if its not your own religion or members of your own religion who are the targets of current suspicions, or whose rights to practice without government interference might be most affected.

But if its easier for the government to limit the practice of one religion, or treat its members as a separate class, or effectively, if not overtly, keep people out of the country based on their practice of that religion, it will be easier for it to do the same to members of any other religion in the future, given the right circumstances or excuses.

As a Catholic, Im well aware that members of my religion have also been the targets of discrimination and fear-mongering and active political campaigning against them. The Know-Nothing Party of the mid-1800s believed Catholics intended to take over the United States and gained power, in part, by campaigning for private sector business to only employ true Americans, not Catholics; the Ku Klux Klan largely based its resurgence in the 1920s on its opposition to Catholic and Jewish immigrants, calling for one hundred percent American as an antidote to what they saw as American decay.

For that reason, Im also aware of the importance that religious freedom rights be lifted above temporary societal conditions and public opinion. Even if the majority calls for government to reduce or these amend rights, the power of the majority cannot be absolute, because what happens if you find yourself in the minority? Or your children find themselves in the minority? Or your childrens children?

Weakening these protections subjects the rights of all people of all religions to the whims of majority rule and government favor, subject to change depending on demographic shifts and who comes into power, as it was in the Europe from which our nations founding ancestors fled. Of course, fear is a powerful motivator for making this trade: possible limits on rights in exchange for a greater feeling of safety.

And there are, at present, very serious conversations to be had about national security. But allowing fear, over reason and calm logic, to govern those conversations endangers both rights and security. In a nation governed by laws, those laws should neither be created by fears nor fuel them, otherwise its citizens are, in effect, governed by fear, leaving them vulnerable to a government or officials in that government to increase or stoke those fears for increased control or leeway over citizens rights.

Religious liberty, a fundamental American right and ideal, requires the highest level of scrutiny and must be handled with caution and nuance. If we want our rights preserved, its our job as citizens to demand this from our leaders in their treatment of all religions, not just our own.

In his farewell address, George Washington urged citizens to guard our nation and all its liberties with jealous anxiety, and reject the first dawning of every attempt to alienate any portion of our country from the rest, or to enfeeble the sacred ties which now link together the various parts.

Dividing the nations citizens and limiting the rights of some weakens us all. A threat to one persons rights is a threat to everyones rights. The break might not be immediate, but still it will linger, like a small crack in a windshield, more vulnerable to any future blow. Its prudent to guard against those cracks.

Alyssa Morones was born and raised in Bakersfield. She holds a degree in political science.

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Jitsi Meet – Android Apps on Google Play

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Jitsi Meet lets you stay in touch with all your teams, be they family, friends, or colleagues. Instant video conferences, efficiently adapting to your scale.

* Unlimited users: There are no artificial restrictions on the number of users or conference participants. Server power and bandwidth are the only limiting factors. * No account needed. * Lock-protected rooms: Control the access to your conferences with a password. * Encrypted by default. * High quality: Audio and video are delivered with the clarity and richness of Opus and VP8. * Web browser ready: No downloads are required of your friends to join the conversation. Jitsi Meet works directly within their browsers as well. Simply share your conference URL with others to get started. * 100% open source: Powered by awesome communities from all over the world. And your friends at Atlassian. * Invite by pretty URLs: You can meet at the easy to remember https://MySite.com/OurConf of your choice instead of joining the hard to remember rooms with seemingly random sequences of numbers and letters in their names.

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Tor Browser Review & Rating | PCMag.com

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Need to hire an assassin, buy some contraband, view illegal porn, or just bypass government, corporate, or identity thief snooping? Tor is your answer. Tor, which stands for "The Onion Router" is not a product, but a protocol that lets you hide your Web browsing as though it were obscured by the many layers of an onion. The most common way to view the so-called Dark Web that comprises Tor sites is by using the Tor Browser, a modded version of Mozilla Firefox. Using this Web browser also hides your location, IP address, and other identifying data from regular websites. Accessing Tor has long been beyond the ability of the average user. Tor Browser manages to simplify the process of protecting your identity onlinebut at the price of performance.

What Is Tor? If you're thinking that Tor comes from a sketchy group of hackers, know that its core technology was developed by the U.S. Naval Research Lab and D.A.R.P.A.. The Tor Project non-profit receives sizeable donations from various federal entities such as The National Science Foundation. The Tor Project has a page listing many examples of legitimate types of Tor users, such as political dissidents in countries with tight control over the Internet and individuals concerned about personal privacy.

Tor won't encrypt your datafor that, you'll need a Virtual Private Network (VPN). Instead, Tor routes your Internet traffic through a series of intermediary nodes. This makes it very difficult for government snoops or aggressive advertisers to track you online. Using Tor affords far more privacy than other browsers' private (or Incognito) modes, since it obscures your IP address so that you can't be tracked with it. Standard browsers' private browsing modes discard your cached pages and browsing history after your browsing session. Even Firefox's new, enhanced private browsing mode doesn't hide your identifiable IP address from the sites you visit, though it does prevent them tracking you based on cookies.

Starting Up Connecting to the Tor network entails more than just installing a browser and firing up websites. You need to install support code, but luckily, the free Tor Browser bundle streamlines the process. Installers are available for Windows, Mac, and Linux. Tor Project recommends installing the browser on a USB drive for more anonymity and portability; the drive needs to have 80MB free space.

We tested a standard Windows installer, with choices to create desktop icons and run the browser immediately. The browser itself is a heavily modified version of Firefox 38.5 (as of this writing), and includes several security plug-ins as well as security tweaks such as not caching any website data. For a full rundown of the PCMag Editors' Choice browser's many features, read our full review of Firefox.

Before merrily browsing along anonymously, you need to inform Tor about your Web connection. If your Internet connection is censored, you configure one way, if not, you can connect directly to the network. Since we live in a free society and work for benevolent corporate overlords, we connected directly for testing. After connecting to the Tor relay system (a dialog with a progress bar appears at this stage), the browser launches, and you see the Tor project's page.

Interface The browser's home page includes a plea for financial support to the project, a search box using the anonymized Disconnect.me search, and a Test Tor Network Settings link. Hitting the latter loads a page that indicates whether you're successfully anonymized. We recommend taking this step. The page even shows your apparent IP addressapparent because it's by no means your actual IP address. We verified this by opening Microsoft Edge and checking our actual IP address on Web search sites. The two addresses couldn't have been more different, because the Tor Browser reports the IP address of a Tor node.

The browser interface is identical with Firefox, except with some necessary add-ons installed. NoScript, a commonly used Firefox add-on, is preinstalled and can be used to block most non-HTML content on the Web. The green onion button to the left of the address bar is the Torbutton add-on. It lets you see your Tor network settings, but also the circuit you're using: Our circuit started in Germany and passed through two different addresses in the Netherlands before reaching the good old Internet. If that doesn't suit you, you can request a new circuit, either for the current session or for the current site. This was one of our favorite features.

One thing we really like about the Tor Browser is how it makes existing security and privacy tools easier to use. NoScript, for example, can be a harsh mistress, who can be difficult to configure, and can break websites. But a security panel in the Torbutton presents you with a simple security slide. At the lowest, default setting, all browser features are enabled. At the highest setting, all JavaScript and even some image types are blocked, among other settings. This makes it easy to raise or lower the level of protection you need, without having to muck around in multiple settings windows.

Everything you do in the browser is tested for anonymity: When we tried full-screening the browser window, a message told us that that could provide sites a way to track us, and recommended leaving the window at the default size. And the project's site specifically states that using Tor alone doesn't guarantee anonymity, but rather that you have to abide by safe browsing guidelines: don't use BitTorrent, don't install additional browser add-ons, don't open documents or media while online. The recommendation to only visit secure HTTPS sites is optionally enforced by a plug-in called HTTPS Everywhere.

Even if you follow these recommendations, though, someone could detect the simple fact that you're using Tor, unless you set it up to use a Tor bridge relay. Those are not listed in the Tor directory, so hackers (and governments) would have more trouble finding them.

One thing we noticed while browsing the standard Web through Tor was the need to enter a CAPTCHA to access many sites. This is because your cloaked URL looks suspicious to website security services such as CloudFlare, used by millions of sites to protect themselves. It's just one more price you pay for anonymity.

We also had trouble finding the correct version of websites we wished to visit. Directing the Tor Browser to PCMag.com, for example, took us to the Netherlands localization of our website. We could not find any way to direct us back to the main URL, which lets you access the U.S. site.

The Dark Web You can use Tor to anonymize browsing to standard websites, of course, but there's a whole hidden network of sites that don't appear on the standard Web at all, and are only visible if you're using a Tor connection. You can read all about it in our feature, Inside the Dark Web. If you use a standard search engine, even one anonymized by Disconnect.me, you just see standard websites. By the way, you may improve your privacy by switching to an anonymous search provider such as DuckDuckGo or Startpage.com. DuckDuckGo even offers a hidden search version, and Sinbad Search is only available through Tor. Ahmia is another search engine, on the open Web, for finding hidden Tor sites, with the twist of only showing sites that are on the up-and-up.

Tor hidden sites have URLs that end in .onion, preceded by 16 alphanumeric characters. You can find directories of these hidden sites with categories resembling the good old days of Yahoo. There's even a Tor Links Directory page (on the regular Web) that's a directory of these directories. There are many chat and message boards, but you even find directories of things like lossless audio files, video game hacks, and financial services such as anonymous bitcoin, and even a Tor version of Facebook. Many onion sites are very slow or completely downkeep in mind that they're not run by deep-pocketed Web companies. Very often we clicked an onion link only to be greeted with an "Unable to Connect" error. Sinbad helpfully displays a red "Offline on last crawl" bullet to let you know that a site is probably nonfunctional.

Speed and Compatibility Webpage loading time under Tor is typically far slower than browsing with a standard Internet connection. It's really not possible to state definitively by how much your browsing will be slowed down if you use Tor, because it depends on the particular relay servers your traffic is being routed through. And this can change every time for every browsing session. As a very rough rule of thumb, however, PCMag.com took 11.3 seconds to load in Firefox and 28.7 seconds in the Tor Browser, at the same time, over the same FiOS connection on the open Web. Your mileage, of course, will vary.

As for browser benchmarks, the results hew to Firefox's own performance, with near-leading performance on all the major JavaScript tests, JetStream and Octane, for example. On our test laptop, the Tor Browser scored 20,195 on Octane, compared with 22,297 for standard Firefoxnot a huge difference. The Tor network routing is a far more significant factor in browsing performance than browser JavaScript speed. That is, unless you've blocked all JavaScript.

Keep in mind, though, that the Tor Browser is based on the Firefox Extended Support Release versions, which updates less frequently so that large organizations have time to maintain their custom code. That means you don't get quite the latest in Firefox performance and features, but security updates are delivered at the same time as new main versions.

There's a similar story when it comes to standards compatibility: On the HTML5Test.com site, which quantifies the number of new Web standards supported by a browser, the Tor Browser gets a score of 412, compared with 468 for the latest Firefox version. You may run into incompatible sites, though. For example, none of the Internet speed connection test sites performed correctly in the Tor Browser.

Tor, Browser of Thunder With the near complete lack of privacy on today's Web, Tor is becoming more and more necessary. It lets you browse the Web knowing that all those tracking services aren't watching your every move. Most of us have experienced how an ad follows you from site to site, just because you clicked on, or searched for a product or service once. All that goes away.

Of course, you pay a price of extra setup and slower performance with the Tor Browser, but it's less onerous than you may think. And the included support for fine-grain privacy and security protection is excellent. If you take your online privacy seriously, you owe it to yourself to check out the Tor Browser. For standard, full-speed Web browsing, however, check out PCMag Editors' Choice Web browser, Firefox.

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Child porn case dropped as US refuses to show software weakness it exploited – Chicago Tribune

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Federal prosecutors have dropped child pornography charges against a Washington teacher after the U.S. Justice Department refused to disclose information about a software weakness it exploited during an investigation last year.

Charges against Vancouver, Washington, teacher Jay Michaud in U.S. District Court in Seattle were dismissed Monday.

In 2015, Michaud was arrested and accused of downloading child pornography. During the child porn investigation, the FBI allowed a secret child porn website on the largely anonymous Tor network to run for two weeks while it tried to identify users by hacking into their computers.

The child porn website, called Playpen, operated on Tor, which provides users anonymity by routing their communications through numerous computers around the globe, and it had more than 150,000 members. The Tor browser is based on Firefox. While the network is used for various reasons including circumventing free-speech restrictions in some parts of the world it has also provided sanctuary for child pornography, drug trafficking and other criminality.

After arresting Playpen's operator in Florida in early 2015, the FBI let the website continue running for two weeks while trying to identify users, a move the agency said was necessary to apprehend those posting and downloading images of children being sexually abused. Defense attorneys criticized the tactic as unethical.

A magistrate in Virginia issued a search warrant allowing the agency to deploy what it calls a "network investigative technique": code that prompted the computers that signed into Playpen to communicate back to the government certain information, including IP addresses, despite the anonymity normally afforded by Tor.

The FBI then obtained further warrants to search suspects' homes. At least 137 people were charged. Defendants have challenged the FBI's hacking on numerous grounds.

A federal judge in Washington state threw out the government's evidence against Michaud last year, saying that unless the FBI detailed the vulnerability it exploited, the man couldn't mount an effective defense.

The DOJ said previously the information is not relevant. Defendants have been offered or provided all the evidence they need, including limited source code and data streams showing what the program did, the FBI has argued.

Michaud's lawyer, Colin Fieman, said in an email to The Associated Press that they are relieved and grateful his case is done but that many unanswered questions remain about the FBI's investigation, known as Operation Pacifier.

"Mr. Michaud maintained his innocence from the outset, and the dismissal is a result of the FBI's overreaching and misuse of its computer hacking capabilities, including its operation of the world's largest child pornography web site and attacks on computers in over 120 countries," Fieman said. "It remains to be seen whether the FBI will ever be held fully accountable for those aspects of its investigation that put core privacy rights at risk and violated common standards of decency when it comes to how law enforcement agencies do their job."

A school district spokeswoman says Michaud hasn't returned to work, KGV-TV reported.

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China’s Top Bitcoin Exchanges Extend Suspension of Withdrawals – Bloomberg

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Chinas three largest bitcoin exchanges have extended a self-imposed moratorium on all coin withdrawals for an indefinite period, as they seek regulatory approval for a crypto-currency thats gained popularity with local investors as an alternative to the yuan.

BTC China, Huobi and OKCoin said in separate statements Wednesday that the suspension will lift only after regulators approve internal compliance upgrades. The three temporarily halted withdrawals last month, citing central bank requirements to re-tool such systems. Huobi and OKCoin have said it will take about a month to adjust to the new guidelines. BTC China didnt give a time.

Bitcoin prices were down 2.6 percent at 5:58 p.m. local time, paring a loss of as much as 6 percent earlier. The price recovery began soon after the exchanges made their announcements around 4 p.m.

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The digital currency, which last week passed the price of an ounce of gold for the first time, has come under increased scrutiny by Chinese authorities worried about money laundering and capital flight. Wednesdays move suggests Chinese authorities are sticking to their hard-line stance on the cryptocurrency.Peoples Bank of China official Zhou Xuedong told Bloomberg News on Tuesday that bitcoin regulation introduced previously wasnt temporary.

China has taken a central role in the bitcoin market in recent years as its citizens became leading traders and miners, deploying the vast computing power needed to make transactions with the cryptocurrency possible. Their interest was fueled by a hunt for alternative assets, zero exchange fees and the low cost of electricity to run mining computers.Demand from investors in Asias largest economy, home to most of the worlds bitcoin trades, has fueled a three-fold increase against the dollar over the past year.

But the authorities are concerned, among other things, that bitcoins being used to spirit money out of the country, undermining official efforts to clamp down on capital outflows and prop up the yuan.The PBOC told nine bitcoin exchanges during a meeting in Beijing last month that it will close exchanges that violate rules on foreign exchange management, money laundering, payments and settlement.

With assistance by Gary Gao, and Benjamin Robertson

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