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Monthly Archives: February 2022
Cryptocurrency crime hits high as thieves track buzz, 2022 report shows – HT Tech
Posted: February 17, 2022 at 7:45 am
Cryptocurrency criminals made off like bandits as digital assets spiked in popularity, according to a 2022 cryptocurrency crime report.
Cryptocurrency criminals made off like bandits as digital assets spiked in popularity, according to a 2022 cryptocurrency crime report. Illicit transactions jumped nearly 80% to $14 billion, an all-time high, in 2021, according to blockchain analytics firm Chainalysis. Overall transaction volume jumped 567%, which shows legitimate transactions outpaced crime. Yet, illegal activity is tracking popular growth categories in crypto, including decentralized finance, or DeFi projects, the data show.
Scams and rug pulls proliferated in the year. Scamming revenue rose 82% to $7.8 billion worth of stolen cryptocurrency, with more than a third of that total procured from so-called rug pulls, according to Chainalysis. A rug pull is a type of scam in which developers of what seemed like legitimate projects merely set up wallets to take investors money and run.
DeFi saw the greatest year-over-year growth -- 1,964% -- for laundering illicit funds, the report showed; mining activity was second at less than 500%. Chainalysis attributes the growth of crime in DeFi to hype; outsize returns from tokens like Shiba Inu that drove speculative trading; and the ease with which new DeFi tokens can be created.
LONDON (Reuters) - Britain's financial watchdog said on Wednesday it had too few powers to stop Binance from accessing a key UK payments network despite its concerns about the cryptocurrency exchange.
Binance said on its website on Tuesday that users could deposit sterling via Faster Payments, a network that oversees payments and bank account transfers in Britain.
The move is likely to allow the world's biggest cryptocurrency exchange to reach more customers in Britain. A Binance spokesperson said it had partnered with payments company Paysafe to access Faster Payments.
The Financial Conduct Authority (FCA) warned last year that Binance posed a significant risk to consumers, ordering it to cease regulated activities.
"Our concerns about Binance remain," an FCA spokesperson said. "We received a notification of this business partnership but have limited powers to object to arrangements of this kind."
"Paysafe is aware of our concerns and is subject to close ongoing supervision consistent with our approach for firms of its size."
Britain's finance ministry is due to set out later this year how the hitherto largely unregulated crypto sector should be overseen.
In response to Reuters questions on the FCA's concerns, which were first reported by the Financial Times, a Binance spokesperson said it takes a "constructive and collaborative approach" to discussions with regulators.
Paysafe said it was "very impressed by Binance's commitment to grow as an evolving and maturing business." It said it took its regulatory obligations "extremely seriously" and that it had "performed thorough due diligence on Binance to ensure that they also comply with these high standards, as we do with all merchant partners."
"We closely monitor activities across all of the businesses we work with and if any suspicious activity occurs it is reported to the relevant authorities as a priority," it said.
Pay.UK, which owns Faster Payments, did not immediately respond to requests for comment.
Pay.UK sets rules for Faster Payments members but does not have the "legal or regulatory" authority to enforce them, it told Reuters last year.
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Cryptocurrency Front And Center In Revised IRS Voluntary Disclosure Practice – Forbes
Posted: at 7:45 am
The Internal Revenue Service announced today that the Voluntary Disclosure Practice Preclearance Request and Application has been revised. The IRSs Voluntary Disclosure Practice has been around for years, and it is the best way for taxpayers who have potential criminal exposure for tax compliance issues to come forward. According to the IRS, The updates reflect input from practitioners and stakeholders and take into account trends in the type of financial asset that taxpayers hold. Private tax practitioners welcomed the revised applications increased visibility into what kind of penalties would be assessed, but cautioned that some of the new requirements to disclose information, in particular disclosures that have to be made regarding cryptocurrency, require careful analysis.
An image of Bitcoin and US currencies is displayed on a screen as delegates listen to a panel of ... [+] speakers during the Interpol World Congress in Singapore on July 4, 2017. - The three-day conference on fostering innovation for future security challenges is taking place from July 4 to 6. (Photo by ROSLAN RAHMAN / AFP) (Photo by ROSLAN RAHMAN/AFP via Getty Images)
Who Should Disclose and Why?
The IRSs Voluntary Disclosure Practice is a way for people who fear criminal prosecution to come forward and disclose errors or omissions in tax reporting before the IRS gets to them. This is critically important, because if a taxpayer is already under audit, the taxpayer may not participate in the Voluntary Disclosure Practice. Taxpayers who made a mistake and dont fear criminal prosecution should find a different way to come forward, because the Voluntary Disclosure Practice is quite onerous, it requires full cooperation and carries stiff penalties.
This is an important form and process for people who recognize its better to step forward and address their tax situations head-on, before facing IRS enforcement action, said Doug O'Donnell, Deputy Commissioner Services and Enforcement. The revised form includes a number of updates, and we encourage people to review the guidelines and consult a trusted tax professional. The IRS encourages taxpayers to consult with professional tax or legal advisors in determining which option is the most appropriate. (I echo this advice and cannot stress it enough.)
What is different about the form and process now?
Megan Brackney, a partner at Kostelantz & Fink, LLP in New York, who handles federal and state voluntary disclosures and other tax controversies, welcomed the new form and instructions because it provides a lot more clarity on what the penalties taxpayers will face will be. We have been waiting for clarification on the penalty framework for situations other than taxpayers filing amended returns to report income tax and foreign assets.It is very welcome news to see the penalty framework for taxpayers who are using the voluntary disclosure to get caught up after years of not filing, and who have other compliance issues with tax other than income, such as estate, gift, and employment tax.The IRSs penalty framework in these areas is consistent with its approach in income tax cases, explained Brackney.
She further explained, This new guidance gives taxpayers much more certainty about their penalty exposure in estate, gift, and employment tax matters.I believe that this increased predictability will cause more taxpayers to make voluntary disclosures.However, the voluntary disclosure process has been very slow in the past few years, with some taxpayers waiting for more than a year to receive preclearance and other taxpayers waiting years to resolve their cases.Hopefully, the IRS will work through those issues so that the voluntary disclosure process can move more quickly, which is a benefit for the IRS and taxpayers.
Brackneys experience that the IRS disclosure practice is slow moving is not unique, and I have encountered the same frustrating slow moving process as well. This is another area in which taxpayer service would be improved by increasing IRS funding.
How does this impact me if I have unreported cryptocurrency?
John Colvin, a partner with Colvin + Hallett cautions taxpayers to think carefully before reporting cryptocurrency. According to Colvin:
The new IRS voluntary disclosure form substantially increases the volume of information that tax cheats will have to provide about their cryptocurrency holdings upfront if they want absolution from the tax man.Not only are taxpayers required to list non-compliant cryptocurrency assets, but also are required to disclose whether they used `mixers or `tumblers, and explain why such devices (which obfuscate the origin of the funds) were used.As illegal source income does not qualify for the voluntary disclosure process, professionals will have to be very careful in evaluating whether the mixer or tumbler was employed to disguise illegal sourced income.
With various mixers playing a prominent role in the recent Bitfinex theft complaint (US v Lichtenstein & Morgan, D.DC. Case No. 1:22-mj-00022), and in the Bitcoin Fog Mixer complaint (US v Sterlingov, D. DC Case No. 1:32-mj-0040), both of which were investigated by IRS-CI, the IRS is clearly targeting the providers of these services.What better way to identify mixer/tumbler providers than to have their former customers rat them out.
Of particular concern to some practitioners and their clients may be the requirement to specifically tell the IRS where all of the cryptocurrency is located and the identifying information regarding that cryptocurrency. The IRS has updated the form to include more specific focus on virtual currency.The IRS has expanded the information that a taxpayer has to provide in requesting preclearance, now requiring the taxpayer to state from the asset all noncompliant virtual currency that the taxpayer owned, controlled, acquired, or disposed during the disclosure period.Taxpayers may be surprised that they have to provide this much detailed information up front.From my experience, however, the IRS can be trusted to use this information only to determine whether the taxpayer is eligible to make a voluntary disclosure.It does require some faith, however, explained Brackney.
The fact that cryptocurrency is specially mentioned on the form, however, is no surprise. At this point I think we would be surprised not to see crypto specifically addressed in this expansion, said Andrew Strelka, former Senior White House Tax Counsel in the Biden administration.Whether its NFTs or Dogecoin, the blockchain is here and this Treasury Department understands that.This is an important step in bringing this industry out of the cold.
What About NFTs?
The Voluntary Disclosure Practice Form does not mention NFT, Fungible, or Token anywhere. The definition of what constitutes Virtual Currency, which is how the IRS refers to cryptocurrency, is broad: Virtual Currency is a dynamic area, and for purposes of this form the term encompasses assets beyond what many define as virtual currencies.
Colvin doubts NFTs are required to be reported as virtual currency. At least the NFTs that I am familiar with do not fall within the definition of cryptocurrency as they are unique assets and not fungible (like currency) in any real sense.I suppose at some point if someone were to offer 1,000 or 10,000 limited editions of an NFT that were absolutely identical, you might be moving towards fungibility/cryptocurrency status.
However, if any taxpayer had unreported income from an NFT, that income would absolutely be required to be reported on a voluntary disclosure practice application. An application that fails to completely, truthfully and accurately disclose all unreported income would not only fail to accomplish the goal of coming clean to the IRS, it would constitute a new felony in and of itself.
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Cryptocurrency Taxes: What Advisors Need to Know – Barron’s
Posted: at 7:45 am
Tax season is here and advisors with clients who sold crypto in 2021 will probably get plenty of questions. The tax laws can be complex and fuzzy.
Heres what you need to know:
Is cryptocurrency taxable? Since 2014, the IRS has considered cryptocurrency to be property, not a virtual currency. This means that a transaction can result in a taxable gain or loss.
What is a cryptocurrency capital gain or loss? It is similar to a stock transaction. The gain or loss is the price you sold the cryptocurrency for, minus the cost basis.
For example, suppose you buy one Ethereum coin for $2,500. After a few months, the value soars to $3,500. You exchange your Ethereum coin for $3,500 of another cryptocurrency. In this case, you will have a capital gain of $1,000.
This is a short-term gain because you held onto the Ethereum coin for less than a year, and your taxes will be at your ordinary income tax rates. If you held for over a year, the transaction would have been taxed as a long-term capital gain, which has a maximum rate of 23.8%.
You can subtract your total losses from the total gains each year, thereby reducing gainsand taxes on gains. And you can deduct up to $3,000 in net losses against your ordinary income. If you have losses above this amount, you can carry them forward to future years.
How do you report a transaction on your tax return? Some cryptocurrency exchanges send you a 1099-B that lists the cost basis and net gains and losses from your transactions. With this information, you will fill out Schedule D and Form 8949 for your 1040 return. If an exchange does not issue a 1099-B, then you will need to track the information using your own records.
This can easily get complicated. For example, suppose you spend $100,000 on cryptocurrency. Then during the yearas the price appreciatesyou sell some to buy a Tesla, some other cryptocurrencies, fast food, clothes, and so on. All these are likely taxable transactions.
Any new rules? President Bidens $1.2 trillion infrastructure bill includes provisions to require exchangesby 2023to report cryptocurrency transactions and include them on 1099-B forms. The goal is to generate $28 billion in tax revenues during the next decade.
The bill also will require exchanges to report identifying information about crypto sellers for amounts over $10,000. The provision will go into effect in 2024.
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Should clients be worried about the IRS? Definitely. The 2021 Form 1040 has the following question: At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency? In other words, the IRS is getting more aggressive with enforcement. The agency has already had success in obtaining client information from exchanges.
If you do not properly report your crypto gains, you could be subject to back taxes, interest, penalties and even jail time.
What about wash sales? The wash-sale rule prevents investors from engaging in short-term stock trading to harvest tax losses. For example, if you sell a stock at a loss and then quickly buy it back, the IRS will deny the deduction. You have to wait at least 30 days to buy back the same stock or a security that is substantially similar.
A loophole exempted cryptocurrency transactions from the wash rule. This could change in 2022, according to pending legislation.
Tom Taulli is a freelance writer, author, and former broker. He is also an enrolled agent, which allows him to represent clients before the IRS.
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RCMP identify dozens of financial, crypto accounts tied to convoy protests – The Globe and Mail
Posted: at 7:45 am
The RCMP has provided the countrys financial institutions with a list of individuals it says have ties to anti-government protests, instructing banks and cryptocurrency exchanges to cease transacting with them.
The move comes after the federal government brought in emergency measures in a bid to end protests that have jammed the core of the nations capital for weeks.
A letter sent to banks names fewer than 20 people the national police service has identified as being involved in illegal acts related to the demonstrations, according to a source who has reviewed the document. It describes the RCMPs first disclosure of information to financial institutions and includes pictures and summaries with details about the people, some of whom are identified as main organizers of the protests.
The Globe and Mail is not identifying the source because they are not authorized to discuss correspondence with the RCMP.
A separate letter to several cryptocurrency exchanges obtained by The Globe notes that the RCMP and the Ontario Provincial Police are investigating cryptocurrency donations in relation to illegal acts falling under the scope of the Emergencies Act.
The letter tells the exchange operators to cease facilitating any transactions with more than 30 specific cryptocurrency wallet addresses that it lists, adding: Any information about a transaction or proposed transaction in respect of these address(es), is to be disclosed immediately to the Commissioner of the Royal Canadian Mounted Police.
The federal government invoked the Emergencies Act on Monday, giving law enforcement additional powers to respond to continuing blockades and protests against pandemic restrictions. An emergency order published on Tuesday night expanded financial institutions authority to freeze accounts and cut off financial services to those involved in the blockades without obtaining a court order. The standoff put greater scrutiny on Canadas cryptocurrency sector after supporters of the protests turned to alternative forms of fundraising.
The Canadian Bankers Association (CBA) confirmed that the RCMP sent letters to financial institutions on Wednesday that name people the police service identifies as designated persons the legal term the governments emergency order uses for those participating in illegal acts blocking roads, bridges and other critical infrastructure.
Although the letters put pressure on the financial institutions to act, it is up to each one to decide whether any particular client meets that threshold, and whether to freeze funds or block transactions.
All financial service providers, including banks, covered by the federal Emergencies Act will need to diligently implement the required measures, as stipulated by the government in the corresponding Emergency Economic Measures Order, which are not expected to impact the vast majority of customers, the CBA said in a statement.
An RCMP spokesperson declined to comment.
The temporary emergency measures the government imposed require financial institutions, including banks, credit unions and insurance companies, to cease dealing in financial services or facilitating transactions for people participating in activity deemed illegal under the Emergencies Act. The order also covers a broad swath of the financial sector that includes securities dealers, payment providers and crowdfunding platforms.
Each company must determine on a continuing basis whether they are holding property or funds for a designated person, the order says. Financial institutions must disclose those customers banking details and transaction records to the RCMP or the Canadian Security Intelligence Service, but can act on their own to freeze accounts and cut off services.
That leaves financial institutions trying to pull off a delicate balancing act: They must meet their duties under the emergency order and show government they are helping crack down on the illegal flow of funds, but avoid the perception that they are overreaching in choking off access to money for a subset of their customers.
On Wednesday, senior officials at Canadas largest banks huddled in meetings to determine what their specific obligations are and how to fulfill them. But there was still confusion and several unanswered questions about how they should proceed even after the emergency measures took effect.
Torstein Braaten, chief compliance officer and head of regulatory affairs at Toronto-based cryptocurrency exchange Bitbuy, said the platform does not have an opinion on whether criminal activity is going on, but it intends to comply with the request from law enforcement.
We are very concerned when an address gets identified as potentially associated with criminal activity. Its just unacceptable for us to be involved in that, Mr. Braaten said.
He noted, however, that people can easily create new cryptocurrency wallets. If the criminals know that their bitcoin address is known, then they will arguably just spin out another address, he said.
Justin Hartzman, chief executive officer of CoinSmart Financial, a publicly listed crypto trading platform that received regulatory approval last year, said the compliance orders are indiscriminately targeting the whole cryptocurrency ecosystem.
It is unfortunate, Mr. Hartzman said in an e-mailed statement. But the addresses associated with this alert have been widely disseminated to the entire crypto community here in Canada.
Erica Pimentel, a professor in the Smith School of Business at Queens University who studies cryptocurrency and blockchain, described the move as heavy-handed.
If the exchanges are in a custodial relationship where they effectively hold a clients bitcoin for them, then this is tantamount to freezing someones bank account. It seems like an overreach to be able to freeze a persons account, she said.
Prof. Pimentel said she questions the effectiveness of asking cryptoexchanges to stop facilitating transactions with certain accounts. She said clients can simply turn to international companies, which are unfettered by the Canadian Emergencies Act.
The client holds their own crypto, and the exchange is simply a vehicle that is being used to change one crypto for another, Prof. Pimentel said.
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RCMP identify dozens of financial, crypto accounts tied to convoy protests - The Globe and Mail
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Cryptocurrency to be Accepted by Cosmetic and Implant Dentist in NY – Dentistry Today
Posted: at 7:45 am
One of Manhattans leading Upper East Side General and Cosmetic Dental Office, now accepts Cryptocurrency as payment. In keeping up with its name, Upper East Dental Innovations brings yet another innovation, with its launch of Cryptocurrency acceptance as a form of payment. Upper East Dental Innovations PLLC. (UEDI) is said to be the first Cosmetic and General Dental office in Manhattan, to accept cryptocurrency as payment for dental services.
It is owned and operated by Dr. Sharde Harvey DDS. MS. FICOI, who has been in practice for almost 20 years. Dr. Harvey is a Cosmetic and Implant dentist and a huge proponent of modern technologies and its utilization in dentistry, for the improvement of peoples lives and lifestyle.
She has long been an innovator in her field, being one of the first dentists to implement same day crowns, trademarked, The Lunchtime Crown; utilize Cone Beam Computed Tomography technology for optimum dental diagnosis as well as Stem Cell Dentistry in the care of her patients.
If you have watched the evolution of currency, you will see that we have moved from barter to paper money, from credit cards to digital wallets, and now Cryptocurrency has arrived! More and more other small businesses are accepting cryptocurrency as payment, exactly as credit cards have become a way of life today. I can see the future of currency in cryptocurrency, because its faster, more efficient, more cost effective and actually more secure. In keeping up with Technology, one of the cornerstones of our practice, we are proud to now offer the convenience of cryptocurrency as a form of payment for dental services.
And while McDonalds may not yet accept Dogecoin, Upper East Dental Innovations will now accept Dogecoin, Bitcoin and Ethereum as payment for dental services.
For a limited time, come in for a dental appointment and win free dogecoins!
For more info, Check out http://www.uedi.nyc.
Upper East Dental Innovations is located at 121 East 60th Street, Suite 1B New York, NY 10022
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NRL cashes in on cryptocurrency boom as Bunker gets new sponsor – Sydney Morning Herald
Posted: at 7:45 am
The company employs about 200 people - and has another 100 positions open as it tries to keep up with demand for cryptocurrency users, who can trade in more than 300 digital currencies.
And its foray into the NRL - which will hand naming rights to the codes multimillion-dollar Bunker for try reviews from 2023 - will expose Swyftx to a much larger market.
According to sources familiar with the deal, the Australian Rugby League Commission was approached about a partnership with a cryptocurrency firm at the same time as the AFL, and undertook weeks of due diligence on whether to enter into an agreement with the ASIC-registered Swyftx.
Swyftx has already entered into domestic partnerships with the AFLs Brisbane Lions and their coach Chris Fagan, Adelaide Strikers in the Big Bash League and Supercars driver Jordan Cox. Overseas, cryptocurrency firms have already signed deals with major sports such as the NBA, Formula One and UFC.
We cant build the things we want to deliver to our customers fast enough, Swyftx chief executive Ryan Parsons said. This is a really great opportunity for Swyftx to introduce itself and cryptocurrency to millions of NRL fans.
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NRL chief executive Andrew Abdo said there were no immediate plans to pay employees or players in cryptocurrency, a la Australian Baseball Leagues Perth Heat, and the agreement with Swyftx was purely for brand perspective.
Abdo and ARL Commission chairman Peter Vlandys have turned around the codes financial plight despite another COVID-affected season last year, with a surge in grants from government partnerships and betting on matches contributing to a massive surplus.
The NRL increased its revenue from $419 million in the 2020 financial year to $575 million in 2021, despite being forced to play a historic grand final at Suncorp Stadium instead of the larger Accor Stadium in Sydney. The Queensland governments COVID restrictions also reduced Suncorp Stadiums crowd capacity to 75 per cent.
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It’s time to abolish the death penalty in Nevada – The Nevada Independent
Posted: at 7:44 am
Clark County ranks fifth in the nation for counties with the highest number of new death sentences in the last five years (2017-2021). The death penalty is being aggressively pursued while at the same time, nationally, new executions, new death sentences, and public opinions of the practice are at record lows and the practice itself continues to erode.
Virginia has executed more people than any other state in the nation and is the most recent to abolish the death penalty. Most U.S. states have either abolished the death penalty (23) or have an official moratorium (10), while another 10, including Nevada, have not had an execution in at least 10 years.
Eleven people were executed in the United States in 2021 the fewest of any year since 1988. We are told that the death penalty is necessary for the worst of the worst, yet the data demonstrate these individuals were among the most vulnerable or impaired. According to the non-profit Death Penalty Information Center, 10 out of the 11 people executed suffered from one or more of the following impairments: serious mental illness (5); brain injury, developmental brain damage, or an IQ in the intellectually disabled range (8); chronic serious childhood trauma, neglect, and/or abuse (9). This does not excuse their actions. However, along with well-documented racial bias regarding who both the offender and victim are, it does point to systemic issues in how and when the death penalty is pursued and carried out.
Death penalty abolition has bipartisan political support. Republican legislators in our neighboring state of Utah previously announced plans to introduce an abolition bill in the 2022 legislative session. District attorneys in Utah two Democrats and two Republicans wrote an open letter advocating for death penalty abolition, citing that the practice has an inherently coercive impact on plea negotiations. They allege that A defendants need to bargain for ones very life in todays legal culture gives already powerful prosecutors too much power to avoid trial by threatening death.
These statements raise questions about why Clark County is so aggressively pursuing the death penalty, out of step with other jurisdictions. During Nevadas 2021 legislative session, Assembly Bill AB395 which would have abolished the death penalty in Nevada passed in the House along party lines but could not even get a vote in the Senate. Notably, two Senators responsible for hearing the bill, Nicole Cannizzaro and Melanie Scheible, work for the Clark County District Attorney.
The last two years in Nevada have had no shortage of social problems that require strong governance to address, including the COVID-19 pandemic, an affordable housing crisis, and volatile employment, among others. Yet the state has used its limited resources to proactively pursue executing Zane Floyd, who like others who have recently died at the hands of governments, has organic brain damage and PTSD.
Further, it is unclear whether the state of Nevada even has a legal mechanism for carrying out executions. In July 2020, the American Bar Association (ABA) reported that Nevada returned its unused supply of lethal injection drugs in response to a lawsuit brought upon by drug manufacturers. State law dictates that all executions must be carried out by lethal injection. Nevadas response has been to propose experimental drug cocktails made up of unauthorized drugs, inevitably leading to more lawsuits.
Nevada should join the trend of abolishing the death penalty once and for all. It is costly and biased. Only four counties in the U.S. have had more new death sentences in recent years. At the same time, prosecutors outside of Nevada allege that the death penalty is used as a tool to coerce defendants into plea deals to avoid going to trial. Nevada has not had an execution since 2006. Our elected officials should use state resources to address ongoing challenges residents face, not to spend tax dollars and time pursuing executions.
Katie Durante, Ph.D., is an Assistant Professor in the Department of History, Law, and Society at Nevada State College where she teaches in the Criminal Justice and Social Justice programs.
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TN abolitionist’s work lives on, grave remains a mystery – WBIR.com
Posted: at 7:44 am
Northerners get much of the credit for pushing to abolish slavery in the United States.
But it was an East Tennessean, four decades before the Civil War, who took the extraordinary step of publishing the first newspaper in the world dedicated to ending the slave trade.
"It is something paradoxical that a man should refuse to buy a stolen sheep, or to eat a piece of one that is stolen, and should not have the same scruples respecting a stolen man," Jonesborough's Elihu Embree declared in his self-financed "The Emancipator" newspaper in 1820.
It's also paradoxical, to quote the publishing pioneer, that he should be the one to seek an end to slavery because Embree, 38, held owned slaves himself in Washington County, Tennessee. In fact, it was his wish in death that one of his slaves and her five children finally get their freedom.
Embree's life is the story of a man of some means determined in his day to right a wrong. But he was also a man who wrestled with his own internal and material conflicts.
"I think it just speaks to how deeply complicated the history and issue of slavery was," said historian Anne Mason, executive director of the Heritage Alliance of Northeast Tennessee and Southwest Virginia, who has studied Embree's life.
Two hundred years later, many have forgotten his deeds. Indeed, no one can say for certain just where Embree's remains now rest.
History is rarely simple or etched in black and white.
Embree's family, led by pastor Thomas Embree, moved to East Tennessee in the late 1700s when Embree, born in 1782, was a young man. They were prominent, operating an iron mining business that helped Washington County thrive into the 19th century.
They were also Quakers, a Christian movement that started in England and spread into the New World in the 1600s. Among the Quaker edicts, God exists in all of us, every human being. And people don't enslave other people.
Most of the family moved on in the early 1800s, heading for Ohio. But Elihu stayed back and continued to run the business. His brother, Elijah, who would marry Gov. John Sevier's granddaughter and enjoy an affluent life, joined him.
Elihu had two wives, the first of whom died after they had two girls together. His second wife was a slave owner. Embree himself acquired slaves.
Along with mining, Embree got into the shipping business, mostly to major northeastern cities like Philadelphia and Boston, Mason said.
He'd grown distant from his Quaker faith, but his business contacts proved influential in drawing him back into the teachings of the Religious Society of Friends as it was more formally known, said Mason.
Toward the end of his life, Embree would free most, but not all, of his slaves. He used a woman named Nancy and her five children as collateral in a land deal. So he wasn't in a legal position to free them when he died, Mason said.
Embree got involved in what was called the manumission movement, which sought the legal release of people currently enslaved. He joined the Manumission Society of Tennessee, an anti-slavery group that started in Jefferson County in 1815.
One of their objectives: Amend the Tennessee Constitution to outlaw slavery. At the time, one could openly challenge the norm of slavery. By the 1840s, it would no longer be acceptable as the nation rumbled closer to war, Mason said.
Embree first got involved in printing the society's newspaper, which championed eliminating slavery but also ran other news. It was called the Manumission Intelligencer.
According to the Tennessee Encyclopedia, published by the Tennessee Historical Society, the society's constitution required that everyone approve what went into the newspaper. They didn't meet very often, and that affected the publishing schedule.
A frustrated Embree ended up leaving the society, deciding to publish his own newspaper devoted exclusively to the abolition of slavery.
He called it The Emancipator. He prepared it in Jonesborough and took it down Main Street to a printer named Jacob Howard for a press run. The first edition appeared in April 1820 with an annual subscription price of $1 a year.
Mason suspects Embree may have had some health problems and sensed he needed to hurry up and get the paper out.
"This paper is especially designed by the editor to advocate the abolition of slavery, and to be a repository of tracts on that interesting and important subject," Embree wrote.
He'd spent several thousand dollars of his own money to get started, he told readers.
The paper printed what news he could find in the world about slavery and the slave trade as well as letters from readers, to which Embree would respond.
He made sure to send the paper to Southern governors, some of whom didn't appreciate his publication, scolding him for trying to "divide" the country, Mason said.
By issue No. 5, Embree was ready to reveal a surprising piece of information about himself.
A letter writer named "G.M." from the Nashville area alerted Embree that someone was going around telling people that Embree previously had owned slaves.
And of course, the letter writer stated, he couldn't see how that was true. Right?
"...for I know you are engaged in a work, which exposes you to censure, calumny and implacable hatred; but there are some no doubt who feed on this report with as much pleasure as a Buzzard would on Carrion," G.M. wrote.
Sadly, Embree replied, it was true. He had owned slaves.
"To my shame be it also said, I have denied for years the truth of the christian (sic) religion; and during these years I became possessed of slaves," he wrote.
He continued: "...I repent that I ever owned one."
Embree recognized and regretted his mistakes, Mason said.
"He says, the time may come where if you have messed up like I have, you may not be celebrated anymore. And he said, that's OK. Because it means we've gotten better, hopefully. So he was just really honest about what the future may look like and his own shortcomings," she said.
It was Embree's goal to publish the paper once a month for many years to come. But after his seventh edition, he could do no more.
Embree fell ill and in December 1820, he died. "Bilious fever" was the cited reason, often a reference to what we know as typhoid or malaria.
He was 38. By then, the paper had a national distribution of about 2,000, sizeable for its time.
It was Embree's wish in his final will, to be carried out by brother Elijah, that the slave woman known as Nancy and her children be freed.
Whether that really happened scholars including Mason just don't know. What happened to Nancy, who was close in age to Embree, also is unknown.
Mason last year wrote a play about Nancy, offering her interpretation about who she was and what may have happened to her.
Why Embree took pains to look out for Nancy and the children, we don't know. Is it possible he fathered one or more of the children? Mason has thought of that but can't confirm it.
Embree left behind a struggling business, a big family and a lot of debt.
Today, he is remembered by the Heritage Alliance in a museum in downtown Jonesborough.
There's also a push happening right now by Boston University and The Boston Globe to reimagine The Emancipator, to restart the conversation about race in America and give voice to those who have gone unheard in the past.
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TN abolitionist's work lives on, grave remains a mystery - WBIR.com
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Our view: Telling the stories of the enslaved | Opinion | salemnews.com – The Salem News
Posted: at 7:44 am
We should all know the story of Deliverance Symonds.
Dill, as she was called, was enslaved in 1766 and freed in 1783, when she moved from Danvers to Salem.
As researcher Sheila Cooke-Kayser told reporter Taylor Ann Bradford, Dill was an excellent cook and poet. Married twice, she had six children, six grandchildren and several great-grandchildren. Eleven men in her family sailed on Salem ships between 1790 and 1855, when that city was one of the busiest ports in the world. One grandson, William Fowler, served in the U.S. Navy during the Civil War.
Her legacy carries on to this day.
Something that I was amazed to find was that she has living descendants today, Cooke-Kayser said. That is something I never thought we would find.
Cooke-Kayser, a former National Park Service employee, was scheduled to share her findings with the public Wednesday night at a forum sponsored by the Danvers Historical Society.
We should also know the story of Brutus Julius Mozambique, an African who was bought in Brazil, taken to Beverly, and trained as an indentured servant. And of Lucy Foster, born into slavery in Boston in 1767, and given to Hannah Foster of Andover at the age of 4 as a wedding gift.
Their stories are our stories. And we are hearing them thanks to the hard work and fearlessness of local historians.
While Cooke-Kaysers presentation was part of the observance of Black History Month, the contributions of the Danvers and other local historical societies and museums has not been limited to the month of February. Rather, they are playing a vitally important role in ensuring the regions complicated past isnt lost to time. For example:
The Marblehead Museum has launched The Free and Enslaved People of Color in Marblehead, an online database that shares the stories of Black and Indigenous residents of the town through the 19th century.
The Museum of Newbury in Newburyport is a driving force behind the Newburyport Black History Initiative, which looks to bring the citys Black history to light through interpretive signs, lectures, panel discussions, and workshops.
In Gloucester, the Cape Ann Slavery and Abolition Trust, which grew out of the Unitarian Universalist congregations in Rockport and Gloucester, manages a website of its own, Cape Ann Slavery & Abolition, which documents how the nations oldest seaport benefitted from the slave trade.
And the Beverly Historical Societys exhibition, Set at Liberty: Stories of the Enslaved in a New England Town, lays bare how many of the towns founding fathers built their fortunes, and thus their lasting reputations, aided by generations of slavery. As Set at Liberty details, the 1754 census of Negro Slaves that found Beverly had 28 slaves, 12 males and 16 females over the age of 16.
Why are these stories important, some 150 to 200 years later? The murders of George Floyd and Ahmaud Arbery and the death of Breonna Taylor brought several months of protests by Black Lives Matters activists and a long-overdue reckoning with racism in America.
For those of us in the seemingly progressive Northeast, it is easy to see those events as happening somewhere else, in places with histories fraught with discrimination and outright oppression. The work of local historians is a bracing rebuke to the notion that our history is somehow kinder and gentler. We owe them our thanks, this and every month.
We are making critical coverage of the coronavirus available for free. Please consider subscribing so we can continue to bring you the latest news and information on this developing story.
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Bonded in Labour – A Life in Hell – The Citizen
Posted: at 7:44 am
On February 9, Tamil Nadu observed the Bonded Labour Abolition Day for theto mark the anniversary of the Bonded Labour System Abolition Act that was passed on the same day in 1976.
For the last few years, there has been a demand for the observance of this day, particularly from The Released Bonded Labour Association (RBLU), an organisation with a presence in several states like Tamil Nadu, Andhra Pradesh, Karnataka and Odisha. It was formed by survivors of bonded labour to help each other.
However, it is only now in 2020that the Tamil Nadu government decided to designate a day to the cause. Government officials pledged to end bonded labour, and all stakeholders collaborated to raise awareness about this issue.
The Tamil Nadu Labour Welfare and Skill Development Department also issued the amended Standard Operating Procedure for bonded labour. The TN government claims to have made significant progress in the last one year, rescuing 201 bonded labours in 28 rescue operations through collaborations with NGOs across the state.
The Citizen takes a look at the big picture, how the bonded labour system works, how they are rescued, rehabilitated and what are the legal provisions that deal with bonded labour.
A maximum number of bonded labourers are found in brick kilns, sheep grazing and goat grazing units, packaging units, agriculture units, coir making units, domestic servitude, tree cutting industries and textiles. .
The ones who are targeted are usually those from the most vulnerable communities, those who are uneducated and those who have no other source of income. The offenders, who are owners of these units are usually bigwigs with political connections and influence on the police. They have middlemen who work for them and go to rural areas to bring labourers.
The trap
Once they identify the most vulnerable people, who are often desperately in need of money they offer an advance. The vulnerable people immediately accept the offer as they have no other choice. The minute they do, they are trapped. The sharks then tell the targets that in order to pay off their debts, they would have to come work for him. Initially, it sounds like a good plan. Sometimes, the middle men bring single men, sometimes they bring the whole family, so that they don't have a reason to leave. The advance amount is the main hold on them because they become liable to pay it back.
Life in bonded labour
After coming to the site of work, the labourers realise that nothing that was promised has happened. For instance, in the brick kilns, they are told they would get a certain sum every week, depending on how many bricks are made. But when it's payday, they are given a meager amount of around Rs 300 per week. When they question the owner about it, he says he has deducated it from the advance.
Gradually, days turn into months and months to years, and they still continue working for the same wages, not knowing when they will be able to clear the debts. Whenever they try to question the owner about how much debt is remaining, he increases the amount saying he needs to include the interest. Because the labourers are illiterate and don't understand the concept of interest or know how to calculate, they are taken advantage of. They are made to believe that they are liable to stay and work.
There are often trigger situations, for instance, when there is a family function or a funeral in the family. When they ask the owner for permission to visit their hometown, they are denied permission. In rare cases where they are allowed to go, the owner keeps their children or family with him so that he has some hold and assurance that the labourer will return.
Sometimes, the labourers experience verbal and physical abuse. The owners also scare them saying the police and politicians are on their side. If anyone tries to escape, they beat them up and show them as an example to others.
In Tamil Nadu, these labourers are mostly from the Irula tribe. They are physically strong people. They do hard labour - backbreaking work for almost 18 hours. In many cases, there are generations of bonded labour. The children are not allowed to go to school. They are also asked to help their parents work in order to reduce the pay off time. The owners know that if someone is educated, they will definitely fight back.
Since they are not allowed outside, they are also denied medical attention. They use their own traditional healing methods. The owners do not let them go to the hospital, even for delivery. There are some cases where the babies have died because of no medical attention. After delivery, mothers are required to get back to work immediately.
The Rescue process
The ultimate authority is the Revenue Divisional Officer. He decides whether it is a legitimate case of bonded labour or not. The information comes to him through different sources. Sometimes, it's through someone who's managed to escape and knows about others who are still trapped, sometimes it's through NGOs and sometimes the victims themselves call or approach.
Once the information is received, the RDO goes to the site to inspect. There are certain SOPs to be followed once it is decided that it's a bonded labour case. The RDO questions the labourers. The SOP requires that the labourer cannot be questioned in front of the owner, so he uses police protection to separate the owner and labourer and also has a social worker nearby to facilitate communication and help them understand that they are indeed there to help. The officer keeps all information confidential. This is how it should be, but most of the time is not.
In the few cases when the survivors are actually rescued, they undergo medical tests. Their statements are recorded by the authorities. The RDO then gives them certificates as proof that they have been released from bonded labour. This is crucial because they have no other identification documents. It is the release certificate that helps them open bank accounts, apply for ration cards. They are then entitled to all government provisions. They are sent back to their villages and local police are informed, as often they need protection from those who had kept them bonded. For the next few years, they are given survival training and rehabilitated with the help of NGOs.
"I worked for three years, but the debt was not settled"
Vasantha Elumalai, a mother of two and a survivor recalls her life in a brick kiln. " I grew up in Kavaniyathur, Thiruvanamalai in a thatched house. It was falling apart and I needed money to build it. My father was not keeping well either. So I went looking for loans. I was told that the foreman gives out loans. So I approached him and he gave me a loan of Rs 20,000. I must have been 16 years old at the time. I took the money, built a shed and took my father to the hospital. I also had a little baby then. The foreman told me that in order to pay off the debt, I would have to work for him, along with my family. He told me a bus would come to pick us up after Diwali. So we, along with five other families from my village went to work for him in a town called Ponneri."
"It was a brick kiln. There was no house, just an asbestos sheet. The place was filthy. We tidied it up and got some vegetables to start cooking. The routine was challenging. In the morning, the men wet the sand, after that I would finish cooking and other house work and then the women joined the men at work. Again at around 2am in the night, we left, along with our children,for the site. They would pay the whole family just Rs 300 per week. If we ask them for more, they'll say they have reduced it because of the advance we have taken. We also thought it's ok because anyway we would have to pay the sum later, so it's better they take it from our wages."
"Meanwhile, my father's condition worsened. My mother told me to come visit him. I asked the owner if I could go. He told me that there was a lot of work to do and he couldn't afford to let me go. My father passed away and I couldn't even meet him. It was heartbreaking. When I asked him to at least let me go for the funeral, he said I could go alone, leaving my husband and children there. He didn't give me any money to travel. I had an old gold earring. I sold that and came for the funeral."
"I thought to myself, even when my own father died, the owner didn't let me go. I wondered if I would ever be able to leave. The situation at the site was unbearable. We used to keep one day's food for two to three days. We even faced abuse. When my husband asked him permission to go to the funeral, he beat him up back and blue. I worked for three years, but they kept saying the debt was not paid. He kept talking about other expenses that they have paid on our behalf. They never explained it to us properly and we were afraid to ask."
"It was then that we heard about some people who escaped earlier. They gave us some contacts. We were afraid the owner would come to know if we made the call. But we gave it a try and told them everything. It was during monsoon. The heavy rains had damaged our roof. The six families huddled up, trying to protect ourselves from the heavy rain. Suddenly, we saw that an officer had come. We were curious, but the owner told us that he didn't come for us and shooed us away. The officer and the advocate with him saw us and said that they had indeed come to see us. It was like seeing God. All of us rushed to him, fell at his feet and begged him to take us away from there. If he didn't come that day, we don't know if we would even be alive."
"We weren't sure if we would ever be able to get out of there or ever see our loved ones. The day we were released, we were taken to the RD office and given biryani. That's the first time we tasted biriyani. They told us that all our debts have been extinguished."
"Now, we live in a community built exclusively for released bonded labourers. There are about 100 houses in Thiruvanamalai. Here, we have jobs like charcoal making, cow farm, petrol bunk, etc. We were bonded there, but now we own our own businesses. We are so much happier here. Even our children get to go to school."
Muniappan P, who was taken away from his village when he was just about 13 years old. Muniappan used to live with his grandmother and go to school in Thiruvanamalai. But his parents were bonded labourers in a tree cutting unit. One day, he received news that his father had suddenly died while at work. The cause of death was not revealed. It was summer vacation time and the owner of the tree cutting unit sent a middleman to get him.
They told him he could help his handicapped mother out by spending the vacation there and helping with work. Although he was hesitant, he went because his mother pushed him to accept the offer as there was no other way for her to pay off my father's debts. The job required him to move from place to place. He worked for close to three months and his school was about to reopen. He was excited and mentioned it to the owner. That's when he realised he was trapped. The owner told him he would not let him go. He said he would have to pay off the debts first.
Muniappan says, "Both my mother and I didn't know how much advance my father had taken. We just kept working. I worked for about six years. We got about 300 rs per month. The owner used to give us rice infested with worms. We would clean it up and eat. If I asked him how much of the debt was left, he would beat me up. Meanwhile, my mother got me married to a relative who lived nearby. After the wedding, the owner told my wife that she would also have to work for him. My in-laws came to visit once. The owner asked who they were. Then, he told us that they would not be allowed to visit us unless they also work there. So they left."
"When my wife was six months pregnant with our first child, we asked him if we could go to the hospital. He said you are all Irulas, your women deliver at home, why do you need to go to the hospital all of a sudden. I was shocked. A few months later, my mother in law died. She had wanted to see her daughter till the day before she died, but when my wife approached the owner, he asked her sarcastically, 'can the dead pay off your debts?' Anyway, he let us go on the condition that we leave my mother behind. So we did."
"When we returned, out of the three families that were with us, one couple had tried to escape. But the owner caught him, brought him back, tied him to a tree and beat him up so badly to set an example for us. There was someone outside our shelter to keep a watch on us all the time, so that they could alert the owner in case we tried to escape."
"Finally, one day, our freedom came when, out of the blue, the RDO came to the site, rescued us and brought us back to Thiruvanamalai. After coming to my hometown, everyone looked at us with suspicion because the owner had told them we complained against him. But gradually they understood we were the victims and started being happy for us. We got all our identification documents like Aadhaar and ration card. We were happy for two years. Then suddenly one day, we were told that there's a case against us by the owner. We were really scared if we'd have to go back to that life. But we spoke to the NGO that was helping us and they told us that we were just called to give a testimony against the owner."
"After that, till today, we haven't had any problems. We are able to send our child to school, meet medical expenses, the children even have a park to play nearby. I feel like I am reborn now. We even have solar power. Our life has literally and metaphorically turned from darkness to light."
Legal provisions
Speaking about the legal provisions that deal with bonded labour, advocate Rajkumar explained, "The predominant act to address this issue is the Bonded Labour System Abolition Act 1976. This act defines bonded labour and makes the district administration responsible. In Tamil Nadu, it is the Revenue Divisional Officer or collector. They are responsible to identify and rescue bonded labourers under section 10 and 11 of the act."
"Another important part is the definition clause, it deals with the definition of bonded labour, which is usually a debt system. For the purpose of exploitation, if someone is paying an advance, or if there are other obligations like caste, community, or customary obligations, it is bonded labour. When these obligations are there, they will forfeit some rights like the right to receive minimum wage, freedom of employment, right to move freely throughout India or the right to sell goods at market value. If any of these components are violated, it comes under bonded labour."
The maximum punishment is three years for the ones who are exploiting, but there are many IPC offenses that can be considered too. For instance, when there is exploitation, it comes under trafficking, under IPC section 370. So that has at least 10 years imprisonment or even life imprisonment. In cases of physical offense (IPC 323, 326) will cover it and wrongful restrainment will be covered by section 341."
"When the act was promulgated in 1976, immediately, all the debt pending before the owners was extinguished at the stroke of the signature of the President. Now, if someone is giving such an advance, it will be treated as illegal advance and is also punishable under section 17."
"Under this act, two vigilance committees must be formulated by the district administration. One is under the chairmanship of the collector or officers nominated by the collector. The other is the sub divisional committee which comprises the RDO, social workers and bank managers for the rehabilitation process. These people monitor the implementation of the act."
"In 1992, the Supreme Court said payments less than minimum wage amounts to forced labour. If they can get a better wage outside, but they still stay there, it means there is a force, even if there is no gate or wall. There's another judgement which encourages the role of NGOs."
Challenges
"There are some challenges in the provisions of this act. For instance, when the owners don't pay the advance upfront. There is a promise of advance, but it's never given. In such cases, it cannot be covered under the act. In the textile industry, they promise that if you work for a certain period, a lump sum will be given at the end.
So, parents of young people who have dropped out of school in areas like Dindigul, Coimbatore and Tirupur, the textile belt, think it is a good option to save up for their marriage. But once they start working, they are exploited. They work for 12-18 hours a day with no additional wages. This cannot be covered under the bonded labour system abolition act because the advance is only promised, it's not given."
"Another challenge is the rehabilitation process. The scheme provided by the central government was initially Rs 1000 for the initial amount and Rs 20,000 for the final amount. Now they have increased it considerably to Rs 1 lakh for an adult male and Rs 2 lakh for an adult female. The initial amount that is provided on the day of release is also increased to Rs 30,000. However, the problem is that the remaining amount is only paid after proof of bondage. This is usually debated in parliament, in the TN assembly. And as you know, criminal trials can take several years, so when will these people be rehabilitated? It should not be like this because many SC judgements say that if an offence has been committed, if the prosecution takes time to prove the offence, why must the victim suffer. That aspect needs to be addressed.
Photograph credit: Joshua Joel Prakash
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