Daily Archives: August 9, 2017

The FBI Booby-Trapped a Video to Catch a Suspected Tor … – Motherboard

Posted: August 9, 2017 at 4:50 am

Malware and hacking tools are established parts of the Federal Bureau of Investigation's toolkit when it comes to unmasking criminal suspects on the Tor anonymity network. In a new case revolving around someone blackmailing children, FBI agents sent the suspect a digitally-poisoned movie file that obtained the target's real IP address.

Though the FBI has used hacking techniques in a wide, controversial manner, the tactic used here highlights how the bureau can identify suspects in a much more targeted way too.

Monday, prosecutors announced charges against Buster Hernandez, 26, of Bakersfield, California. Hernandez is charged with threats to use an explosive device and sexual exploitation of a child. He is suspected of using the moniker "Brian Kil."

Since 2015, Brian Kil has used social media, email, and VoIP to communicate with a number of underage female victims and extort sexual photos from them, according to the criminal complaint. Under duress, some victims sent explicit images and videos to Kil.

When Kil used sites like Facebook to harass victims, investigators found he was always hidden either behind an anonymous proxy or the Tor network, meaning authorities could not simply subpoena relevant companies for the suspect's IP address.

"Your time is running out. You though [sic] the police would find me by now but they didn't. They have no clue," Kil wrote to one of the victims. As the harassment, threats, and publication of sexually explicit photos continued, law enforcement even held a community forum at Plainfield High School in January last year to discuss the case. Kil allegedly forced one of his victims to attend and report back, according to the complaint.

On June 9, Magistrate Judge Debra McVicker Lynch authorized the use of a Network Investigative Technique (NIT), an FBI blanket term for malware, exploits, and hacking tricks. The idea, the complaint adds, was to obtain Kil's real IP address.

The complaint explains how the FBI's tactic worked.

In this case, the FBI was authorized to add a small piece of extra code to a video file produced by one of the victims. Posing as the victim, the FBI then sent the booby-trapped file to Kil via Dropbox.

"Uploading now. Did you get it," a message from the undercover FBI agent to Kil reads, according to text messages included in the complaint. (The video did not include any depictions of a minor engaged in sexually explicit activity, the complaint reads).

Judging by the complaint, the NIT was successful. "When Kil viewed the video containing the NIT on a computer the NIT disclosed the true IP address associated with the computer used by Kil," the document adds.

Armed with the IP address, investigators then filed an emergency subpoena with the relevant internet service provider and were given a physical address. After intercepting communications to and from that IP address, investigators found someone viewed a photograph of the Columbine killers, according to the complaint. Kil, it turned out, had posted the same photo when he threatened the Plainfield School District in 2015. Physical surveillance showed that resident Buster Hernandez was always present when Tor was being used in the home.

Several recent cases have shown the FBI using hacking tricks in a targeted manner. In May, Forbes reported on an investigation in which the FBI used a similar technique but with Word documents rather than a video file.

These stand in stark contrast to the agency's broader use of malware. Motherboard found the FBI used a Tor Browser exploit to hack over 8,000 computers in 120 different countries.

Although this latest case doesn't highlight any vulnerabilities in the Tor network itself, it does act as a reminder that there are ways of deanonymizing people in a targeted way using novel or unorthodox law enforcement techniques.

Got a tip? You can contact this reporter securely on Signal at +44 20 8133 5190, OTR chat at jfcox@jabber.ccc.de, or email joseph.cox@vice.com

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India Close to Finishing Work on Cryptocurrency Rule Proposals – CoinDesk

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India's government has reportedly completed work on a proposalthat outlinespossible steps for regulating cryptocurrencies.

According to local media sourceBusiness Line,the report, submitted by an intergovernmental body put together in April, has been delivered to the Indian Ministry of Finance.

It's contents are currently unknown, though media reports in recent weeks suggest that at least some of the panel's participants want to adopt a more restrictive stance. Other sources have indicated that India may ultimately move to establish some kind of tax policy for cryptocurrencies.

As previously reportedby CoinDesk, the committee was established in order to examine the current framework in for cryptocurrencies in the country. Startups in India that work with bitcoin or blockchain have called for an inclusive stance from the government, particularly in light of confusion among consumers about the tech's exact legal status.

It's not clear when the Indian Ministry of Finance will publishthe report or in what form that release will take.

Meanwhile, efforts to examine the regulatory environment for the tech continue to expand.

CoinDesk reported earlier this week that theSecurities and Exchange Board of India (SEBI) has unveiled a broad advisory committee that will research blockchain and other technologies. The goal, according to SEBI, is to see whether the tech could be applied to its own regulatory processes.

India temple image via Shutterstock

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The Ethereum of China Is Now a Top 10 Cryptocurrency and Creating a Smart Economy – Inc.com

Posted: at 4:49 am

NEO, formerly known as AntShares, is generally known as the "Ethereum of China." But an even more accurate description of the project would be "China's public blockchain," according to the company. NEO made news this week when it went from being a top 15 cryptocurrency to a top 10 cryptocurrency as of the time of this writing. NEO's token value surged from sub-$10 to more than $20, and its market cap to more than $900 million.

NEO's platform is similar to Ethereum's but has some clear advantages and a different overall mission. First of all, it provides various advanced languages for its compiler, such as Python and Go. Second, and more important, its NEO Contract (which is run through a NEO Virtual Machine) supports various commonly used programming languages, such as C# and Java, which is a major advantage. This makes its barrier to entry for new developers much smaller than other platforms', as they do not need to learn new languages to code.

The big move for NEO is creating an entire smart economy. It has incorporated digital assets, smart contracts, and a digital identity that can be used for real-world applications and become integrated into the real economy. China could (and may) be a candidate for that first real-world application and integration.

NEO is in a spot similar to Ethereum's in early 2017, both cryptocurrency value wise and launch phase wise. Its product is fully operational and does a few things differently from Ethereum, including execution of C# code, which allows NEO to do more things with the platform and attract more developers.

The platform is also primed for running initial coin offerings (ICOs). And I wouldn't be surprised if it continues to be the go-to platform for upcoming Chinese ICOs. As we saw this year with Ethereum, when ICOs launch demand for the token that is hosting them goes up drastically.

I personally am excited to see how NEO's smart economy will start incorporating into the real world. If it's able to integrate physical assets and even intentionally involve government in China, that could be a good thing for the growth of NEO's project, in this case.

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Indian Inter-Disciplinary Committee Submits Cryptocurrency Report – ETHNews

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News world

An inter-disciplinary committee that was formed to assess blockchain-based currencies has submitted its report to government officials.

The world now watches as Indian members of a government-appointed inter-disciplinary committee have released a report to Finance Minister Arun Jaitley on cryptocurrency regulatory standards, according to a report made August 7, 2017, from New Delhi.

As recently as this April, the committee convened to conduct an all-inclusive review of all blockchain-based currencies. After accepting public comments on the subject during the month of May, the group met to deliberate in June, as reported by ETHNews. While the findings in the report have not been made public, it is very likely that they will have an influence on the country's future stance.

Zebpay, which is a founding member of the Digital Assets and Blockchain Foundation of India (DABFI), is pushing for a solution that allows DABFI to act as "a self-regulatory" organization.

Saurabh Agrawal, co-founder and CEO of Zebpay, highlighted a need for oversight and licensing of crypto-exchanges. "We are for some form of a task force or a controlling body that will be monitoring the activities of exchanges," said Agrawal. "We want ultimately exchanges to get licences just as banks are granted licences."

Once the report is made public, ETHNews will provide additional coverage of its regulatory ramifications.

Jeremy Nation is a writer living in Los Angeles with interests in technology, human rights, and cuisine. He is a full time staff writer for ETHNews and holds value in Ether.

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Sophie Aroesty – Tablet Magazine

Posted: at 4:49 am

With ten percent of its earnings going to tzedakah, the new Russian start-up advertises itself as the first kosher currency of the digital age

August 8, 2017 3:00 PM

Move over, Bitcoin: Theres a new digital currency in town, and its taking its cues from the priests who once served in the ancient Temple in Jerusalem. BitCoen, a new online currency startup, was created by Russian entrepreneur Vyacheslav Semenchuk. Advertised as the first kosher cryptocurrency, BitCoen boasts all the advantages of the digital world combined with the values and customs of the ancient foundations in the framework of Jewish law. The Jewish law theyre referencing is the practice of giving ten percent of your income to tzedakah. To this effect, BitCoen will give the Jewish community a tenth of its earnings in the form of the coins, according to the Russian publication CNews. The company will also give tzedakah by giving members of the system interest-free loans.

True to its Jewish roots, the company will be seen by a Sanhedrin of sorts, with Semenchuk calls The Council of Six. And while hes not revealing who these mysterious people are, the company has shared that theyll each represent a different economic area: business, politics, finance, technology, public work, and culture. BitCoen advertises this on their website with a circle of icons for each sector, connected bywhat elsea Jewish star.

Judging by the local Jewish communitys response, BitCoen has a bright future. We expect that the cryptocurrency will cover all Jewish communities around the world, Mikhail Lidogaster, Press Secretary of the Chief Rabbi of Russia, told Russian publication Inc. The main guarantor of stability here is the fact that the keys to managing the cryptocurrency will be in the hands of the most respected members of the community, and not in the hands of some programmers.

Sophie Aroesty is an editorial intern at Tablet.

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South Africa to Take Balanced Approach to Bitcoin and Cryptocurrency Regulations – Bitcoin News (press release)

Posted: at 4:49 am

Recent South African parliamentary discussions have revealed Finance Minister Gigabas desire to adopt a balanced approach with regards to bitcoin and cryptocurrency regulations.

Also Read:South Africa Will Begin Testing Bitcoin and Crypto Regulations

In response to a question from the opposition party regarding the governments position regarding the regulation of South Africas emerging cryptocurrency economy, Finance Minister Gigaba has revealed many of the governments intentions and positions regarding cryptocurrency legislation.

Minister Gigaba reaffirmed that while virtual currencies currently sit out of the governments regulatory apparatus, while a number of institutions are currently exploring the matter and are yet to deliver their determinations. As noted, the relevant authorities continue to monitor and assess the use of virtual currencies and consult with private sector stakeholders in this regard. Further guidance or regulations may be issued, should the need arise, Finance Minister Gigaba said.

The National Treasury together with the SARB, FIC, and FSB have also established an Intergovernmental Fintech Working Group in December 2016, to develop an approach and potential revised policy stance towards fintech, including crypto-currencies, and to deal with fast-emerging fintech matters in the financial sector, like crowdfunding, robo-advice, machine learning and alternate payment platforms.

Minister Gigaba stressed that a balanced approach is being taken to the development of bitcoin and cryptocurrency regulations. Gigaba stated that the government wishes to develop a juridical apparatus that is supportive of the objectives of enhanced innovation, competition and financial inclusion in the financial sector, while also reviewing risks related to financial customer protection, money laundering and financial stability. The desire to develop regulations that balance the fostering of innovation with the protection of consumers was echoed by South Africas opposition party.

Finance Minister Gigaba also stated the governments intention to explore potential applications for blockchain technology beyond the circulation of digital tokens. The underlying blockchain technology also has a lot of potential to be used for purposes other than creating cryptocurrency. Blockchain technology is a cheap, effective and increasingly safe way to do transactions as well as to transfer money from one person or institution to another.

Do you think that the South African government will be able to strike an effective balance between fostering innovation and creating consumer protections in its development of bitcoin and cryptocurrency regulations? Share your thoughts in the comments section below!

Images courtesy of Shutterstock

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Bitcoin climbs to record, nearly three times the price of gold – CNBC

Posted: at 4:49 am

At Tuesday's price, the digital currency has more than tripled for the year, versus gold's nearly 10 percent rise.

"I think bitcoin is going to have increasing institutional sponsorship given the pending trading of bitcoin options and bitcoin futures," Fundstrat said.

Both derivatives products are expected to launch later this year or in early 2018.

That said, gold is far from disappearing as a store of value.

Lee pointed out that the overall size of the gold market at about $7.5 trillion dwarfs that of bitcoin. At Tuesday's prices, bitcoin had a market capitalization of roughly $57 billion, around the size of Charles Schwab.

In that case, Lee and other analysts have noted that even a small percentage of fund flows out of gold into bitcoin could send the digital currency's price sharply higher, potentially into the tens of thousands of dollars in the next few years.

Other digital currencies also rose Tuesday. The one-week-old bitcoin offshoot "bitcoin cash" rebounded from weekend lows near $200 to trade near $338.25, according to CoinMarketCap.

Ethereum traded nearly 5 percent higher at $280, about 12 percent higher for the month, according to CoinDesk.

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This Putin Ally Wants to Get in on the Bitcoin Mining Craze – Fortune

Posted: at 4:49 am

A company co-owned by one of President Vladimir Putins internet advisers plans to raise the cryptocurrency equivalent of as much as $100 million in a push to help Russian entrepreneurs challenge China in bitcoin mining.

Russian Miner Coin is holding a so-called initial coin offering, where investors will use units of ethereum or bitcoin to buy new RMC tokens. These new tokens will have rights to 18 percent of the revenue earned with the companys mining equipment, according to a presentation posted on its website.

RMC plans to use semiconductor chips designed in Russia for use in satellites to minimize power consumption in computers for crypto-mining, Putins internet ombudsman, Dmitry Marinichev, said at at a news conference in Moscow.

Russia has the potential to reach up to 30 percent share in global cryptocurrency mining in the future," Marinichev said, adding that $10 million from the proceeds of the ICO may be spent developing the processors.

More and more startups are offering tokens as a way to raise money upfront for digital assets in ICOs. Unlike a traditional IPO in which buyers get shares, a startups ICO nets you virtual tokens unique to the issuing company or network that grow in value only if the business proves viable.

The U.S. Securities and Exchange Commission last month warned that ICOs may be considered securities and signaled greater scrutiny of the sector, though it stopped short of suggesting a broader clampdown.

Todays bitcoin mining requires special computers based on chips with minimized power consumption. Chinas Bitmain Technologies Ltd. is one of the leading producers of such equipment and also runs Antpool, a processing pool that combines individual miners from China and other countries. Rival Bitfury Group, founded by Valery Vavilov, a Russian-speaking native of Latvia, produces equipment for mining virtual currencies and runs large-scale centers in Georgia and Iceland.

Russia has 20 gigawatts of excess power capacity, with consumer electricity prices as low as 80 kopeks (1.3 cents) per kilowatt hour, which is less than in China, RMC said in the presentation. The company initially plans to locate mining computers based on Bitfury chips in individual Russian households to challenge Bitmain by using Russias lower power prices.

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Space Station Robot Installs Neutron Star Explorer: Watch the Time-Lapse Video – Space.com

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By Tariq Malik, Space.com Managing Editor | August 8, 2017 08:14am ET

NASA'sNeutron star Interior Composition Explorer (NICER) was installed on the International Space Station in June 2017. This time-lapse video was created using cameras on the orbital lab and shows the orbital outpost's Special Purpose Dexterous Manipulator (SPDM), aka Dextre, transporting NICER.

NICER launched to the space station on June 3 aboard a SpaceX Dragon cargo ship. The experiment is designed to studyneutron stars, the densest observable objects in the universe, NASA officials have said. NICER officially began science operations in July.

"No instrument like this has ever been built for the space station," NICER principal investigator Keith Gendreau of NASA's Goddard Space Flight Center in Greenbelt, Maryland said in a statement. "As we transition from an instrument development project to a science investigation, it is important to recognize the fantastic engineering and instrument team who built a payload that delivers on all the promises made."

Note: Space.com senior producerSteve Spaletacontributed to this report.

Email Tariq Malik at tmalik@space.com or follow him@tariqjmalik.Follow us@Spacedotcom,FacebookandGoogle+. Original article onSpace.com.

Tariq joined Purch's Space.com team in 2001 as a staff writer, and later editor, covering human spaceflight, exploration and space science. He became Space.com's Managing Editor in 2009. Before joining Space.com, Tariq was a staff reporter for The Los Angeles Times. He is also an Eagle Scout (yes, he has the Space Exploration merit badge) and went to Space Camp four times as a kid and a fifth time as an adult. He has journalism degrees from the University of Southern California and New York University. To see his latest project, you can follow Tariq onGoogle+,Twitterand onFacebook.

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Found in Space: Zero Robotics Kids compete – The Suburban Times

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TACOMA, Wash. NASA astronaut Jack Fischer will be in the hot seat on the International Space Station on Friday, Aug. 11. He will be under the scrutiny of dozens of American and Russian middle school children watching from Earth, as he referees a microgravity game of program your robot to grab the most floating objects in the finals of the international Zero Robotics tournament.

Among the faces watching the livestream at the Museum of Flight: 18 schoolchildren from Tacoma and Gig Harbor whose team beat out three regional rivals to face off on the big day against 12 other finalist teams from the United States and Russia.

The local group of seventh- and eighth-grade students are participants in University of Puget Sounds Summer Academic Challenge, a science and math-based enrichment program run by the colleges Access Programs for underrepresented students from Tacoma Public Schools.

Astronaut Scott Kelley plays with the SPHERES on the International Space Station (Photo credit: NASA/ISS)

The annual Zero Robotics game on the space station is led by NASA and MIT Space Systems Laboratory, with Schools Out Washington coordinating the Washington state competition. The game challenges schoolchildren from across the country and overseas to design a robotics program to solve a problem of genuine interest to NASA and MIT.

The Puget Sounders team from University of Puget Sound came first in the state by designing the best program to control NASAs colorful sphere-shaped robots or SPHERES (Synchronized Position Hold, Engage, Reorient, Experimental Satellites). Their program, in a real-life scenario, potentially could pick up spacecraft spare parts or broken satellite items that are floating in space and bring them to the space station.

The 13 finalist student teams will be watching their robots in action, via a livestream feed, in venues from Massachusetts to Alabama to California. The Puget Sounders team will view the tournament at 8:20 a.m. on August 11 from the Space Gallery of the Museum of Flight in Tukwila, just south of Seattle. You can watch it live on University of Puget Sound Access Programs Facebook page.

The kids got five weeks to train and experiment with a graphical simulator, which has on-screen elements that look rather like a puzzle, and that have their movements translated into computer code, said Joseph Coln 10, Puget Sound Access Programs coordinator. They had to come up with a strategy for collecting high-value objects floating in the station that would also give them the scope to defend their own bin of objects or to try to grab competitors objects.

On the big day, each teams computer code will be loaded on to computers on the space station. The team that scores the most points for collecting objects will win. All teams participating in the program receive trophies to recognize their work.

Amy Gerdes, the Access Programs teacher guiding the Puget Sounders, said the Zero Robotics experience in coding and its real-world application help prepare the students for studies and careers in the sciences, math, computer technology, and engineering.

Win or lose, the code will be archived by Zero Robotics and potentially used in the future by space agencies on missions to Mars or for ongoing cleanup of Earths atmosphere, she said. Thats pretty special.

WHAT: The Zero Robotics competition finals, involving 13 student teams (12 in the U.S.; one in Russia) will be held on the International Space Station. There will be four Washington state teams, including the state winner, the Puget Sounders, watching the contest via a livestream feed. The media are invited.

WHEN: Friday, August 11, 8 a.m.11 a.m. Tournament starts at 8:20 a.m.

WHERE: Museum of Flight (Space Gallery), 9404 E. Marginal Way S., Seattle, WA 98108

The Puget Sounders team members: Adrianna Pettway, Aunya Crow, Gabriela Lizarraga, Gabrielle Mullen, Jasmine Chhang, Jasmine Jackson, Jenica Truong, Joseph Irish, Lavina Polk, Micah Long, Miguel Angel Davila, Mikyla Fowler, Monee Dubose, Nicholas Yeun, Quienten Miller, Quinton Pettison, Tyler Budd, and Yahbi Kaposi.

The Zero Robotics Middle School Summer Program provides students with a five-week curriculum introducing them to computer programming, robotics, and space engineering. It is provided through a partnership between the MIT Space Systems Lab, Innovation Learning Center, and Aurora Flight Sciences. It is sponsored by NASA, the Center for the Advancement of Science in Space (CASIS), and the Northrup Grumman Foundation.

University of Puget Sounds Summer Academic Challengeis run by the colleges Access Programs, which promote academic excellence for middle and high school students, in partnership with Tacoma Public Schools. The Summer Academic Challenge is a tuition-free summer math and science enrichment program that helps underrepresented students prepare for their next academic year. The program is an integral component of University of Puget Sounds commitment to diversity and its strategic goal to increase the enrollment of individuals from underrepresented minoritized groups, to improve structural diversity, and to promote students retention and success.

Schools Out Washingtonsmission is to ensure all young people have safe places to learn and grow when not in school. The nonprofit group is dedicated to building community systems to support quality afterschool, youth development, and summer programs for Washingtons children and youth ages five through young adulthood.

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