Tag: cryptocurrency

“I Just Want To Sell Titty Pictures”: Sex Workers F**ked By Crypto

Sex workers – who frequently face financial discrimination, losing access to payment apps and banking apps such as PayPal, Venmo and CashApp due to their profession – began using cryptocurrencies such as Bitcoin as an alternative for payments, which bypass traditional banking systems and avoid service fees from platforms such as OnlyFans.

According to data by the Free Speech Coalition, 2/3 of sex workers have lost access to a bank account or financial service, with 40% having an account closed within the last year, Wired reports.

“I just want to sell titty pictures,” said Allie Eve Knox, a professional dominatrix and fetish performer. “I never wanted to be an expert in financial discrimination.”

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Given the systemic discrimination throughout the banking sector, many sex workers have turned to cryptocurrencies as a means of both storing wealth and accepting payment. For a while, things were great. Digital currencies allowed customers to pay discreetly without supplying personal information, while sex workers now had a way to bypass the banking system entirely.

Knox, for example, began accepting crypto in 2014 – holding up a QR code through which viewers could tip her in crypto.

Another sex worker, former escort-turned-porn star Lira Roux, told the outlet that she began to accept crypto in 2015 at the request of clients. Initially, she would exchange the crypto for dollars, however when new laws came into effect – after which many adult-friendly advertising sites were barred from accepting regular money – she began to pay for ads with crypto too.

“By and large, crypto is useful for people that aren’t being taken care of properly by the government,” Roux said. “For sex workers, who aren’t well-served by banks, it becomes a useful option.”

Now, thanks to regulatory scrutiny which has gone into overdrive since the collapse of crypto exchange FTX, sex workers are ‘bumping up’ against limitations – and are finding that ‘decentralized’ crypto is no more detached from the banking system than traditional currency – as sex workers are finding it increasingly difficult to convert crypto into dollars. Typically, this is done via an exchange, which then allows one to withdraw to a traditional bank account. Sex workers are now being banned from crypto exchanges.

“You get on an exchange for as long as you can, until they shut your ass down,” said Knox. “You quickly [run out of exchanges], so you sit on a lot of useless money. The whole ‘crypto is permissionless and censorship-resistant’ thing is a bunch of bullshit.”

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Kenya Kicks Eye-Scanning Worldcoin To The Curb — Refuses To Become ‘Data Harvesting Guinea Pigs’

The Kenyan Ministry of the Interior last week suspended the controversial tech firm WorldCoin and any similar entities from operating in the country.

Co-founded by OpenAI’s Sam Altman, WorldCoin offers free crypto tokens worth roughly $50 to people willing to have their eyeballs scanned by a device called the Orb.

“Relevant security, financial services and data protection agencies have commenced inquiries and investigations to establish the authenticity and legality of the aforesaid activities, the safety and protection of the data being harvested, and how the harvesters intend to use the data,” reads a statement from the Ministry issued last week.

Kenyan Cabinet Secretary Alfred Mutua was enraged over the technology, saying in a statement: “Let us support the stoppage of Kenyans being used as guinea pigs and their data being harvested.

“You have to ask yourself why your eyes are being scanned and information gathered. What does it mean and what will it mean to you and your offspring?“

Another CS, Kithure Kindiki, assured citizens that the government would undertake all measures to ensure public safety and the integrity of financial transactions involving so many citizens, according to Kenyans.co.ke.

Further, appropriate action will be taken on any natural or juristic person who furthers, aids, abets or otherwise engages in or is connected with the activities until the government deems WorldCoin is safe. 

Following the directive, police officers were deployed to disperse hundreds queuing at KICC, Nairobi for the exercise. 

The directive comes minutes after ICT Eliud Owalo had stated that the government was yet to kick out the international company as it had not broken any laws.

That said, WorldCoin technically hasn’t broken any Kenyan laws – which, we imagine, is one of the reasons it was rolled out there.

“There are security issues even though in relation to the current data laws, they have not breached anything. Our laws, regulations are not comprehensive,” said Owalo. “Within the existing legal framework today, there are no provisions in the law that the organisation has negated. However, there could be security and regulatory issues around it.”

In response to the ban, WorldCoin co-founder Alex Blania claimed that the company’s intentions are above board.

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Controversial Eyeball-Scanning Worldcoin To Allow Governments To Use Its Digital ID System

OpenAI CEO Sam Altman’s Worldcoin is a good example of private companies doing their bit to push and introduce digital ID schemes to as many people as possible – although this effort is usually done by governments, and supported by various lobbies.

And now, Worldcoin has announced that it will be even more helpful to governments, by allowing them to use the system of biometric scanning it employs to sign users up. Other companies will be given the same privilege.

The intention is clearly to get as many people as possible on board, hence the “generosity” with sharing the iris scanning tech, as well as that designed to verify people’s identity.

And it’s no secret: “We are on this mission of building the biggest financial and identity community that we can,” is how Tools for Humanity (a company behind Worldcoin) executive Ricardo Macieira put it.

The mission marches on despite concerns not only from privacy focused non-profits and advocates, but also institutions in various countries that are tasked with protecting data privacy.

People – and the number mentioned in reports these days is 2.2 million so far – sign up to Worldcoin by giving up biometric data contained in their eyes, i.e., irises.

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The Government Wants to Turn Blockchain Firms into Servants of the State

In recent years, blockchain surveillance (BS) companies have become increasingly important players in the cryptocurrency industry. Their business model consists in developing proprietary software that collects and interprets public data available on public blockchains and in selling their services to governments, banks, exchanges, and others that need access to this data. Usually, governments are interested in collecting information about financial crimes, while other institutional players use BS companies for compliance, especially with regard to customer due diligence. This article argues that BS companies can be understood as governmentalities.

Michael Rectenwald deploys this term to “refer to corporations and other non-state actors who actively undertake state functions.” The partnership between the state and BS companies threatens cryptocurrency users’ privacy and their ability to transact freely, away from the prying eyes of unwanted third parties.

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Worldcoin isn’t as bad as it sounds: It’s worse

Worldcoin — a new financial system connected to sensitive biometric information, mostly harvested from poor people — sure sounds like a terrible idea.

“Terrible” doesn’t do it justice.

Worldcoin will need to assemble a vast database of iris data. But not everyone is eager to gaze into an Orb. In the bootstrapping phase, at least, you had to pay people to scan their eyes. And so Worldcoin turned to the global south — home to the cheapest eyeballs — and played a dark game of ‘what will people do for money?’

Incredibly, Worldcoin was unprepared for an obvious consequence of this rollout strategy: A black market for verified credentials. You can now seemingly buy a World ID for as little as $30. Anyone, then, with more than $30 on hand can command more than one digital identity (although Worldcoin is aware of this issue and has proposed solutions to resolve it). Connecting real people to digital identities is a thorny puzzle. 

Worldcoin does not fix this. And it’s unlikely it ever can, since nothing in the design can stop professional sybil attackers farming eyeballs on the ground level through nefarious means.

This does not inspire trust in the system or its designers. And yet trust is what they demand. Worldcoin’s promotional materials are full of promises — to delete sensitive biometric information, or keep it hidden from view, or not use it in nefarious ways. One blog post (quoted here; the original appears to have been changed since initial release) put it this way: “During our field-testing phase, we are collecting and securely storing more data than we will upon its completion… We will delete all the biometric data we have collected during field testing once our algorithms are fully-trained.”

“Trust us,” in other words. “We’ll totally delete the eyeball database.”

But when it comes to sensitive information, promises aren’t enough. And the very people who insist that you trust them are the ones who should command the most suspicion. The fact that Worldcoin’s co-founder Sam Altman also heads up OpenAI — a firm currently being sued over allegations of dubious uses of large data sets — asks more questions than it answers.

Sometimes Worldcoin’s privacy promises are conjoined with dazzling technical details. Zero-knowledge proofs, we’re told, will save the day, and allow users to prove humanity without connecting any particular financial activity to a World ID or other associated transactions.

There’s a grain of truth here. Zero-knowledge proofs can generate impressive privacy guarantees. But in the case of Worldcoin marketing, they’re more theater than substance. Taking off your shoes at the airport makes it look like important precautions are being taken (but doesn’t actually make you any safer); and long blog posts about zero-knowledge proofs distract from, but don’t in fact address, the problem of Worldcoin asking for users’ trust.

Linking immutable biometric traits to money could have dystopian consequences.

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Missing millionaire crypto influencer found dismembered in suitcase

Police have launched a murder investigation after the dismembered remains of missing millionaire Fernando Pérez Algaba, 41, were discovered by a group of children in Argentina over the weekend.

The grisly case came to light after the kids found a red suitcase filled with body parts while playing by a stream in the town of Ingeniero Budge, Buenos Aires Province, on Sunday, Jam Press reported.

The children’s parents notified the Buenos Aires police, who inspected the package and reportedly found the victim’s legs and forearm inside, discovering another whole arm in the stream.

On Wednesday, authorities discovered the missing head and torso, El País reported.

The body parts were cleanly amputated, suggesting the work of a professional, local media reported.

Meanwhile, a subsequent autopsy revealed that the victim had been shot three times before the dismemberment.

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Worldcoin May Have a Biometric Data Black Market Problem

Worldcoin, the digital identity and financial services crypto project that verifies people by scanning their irises, has found itself amid controversy after reports alleging that fraudsters are buying iris scans from the black market to register on the platform.

The project, which is headed by OpenAI CEO Sam Altman, is currently preparing to launch and has been registering users across the world with the help of its physical imaging device called the Orb. The project aims to give everyone on the planet some of its Worldcoin crypto token after registration while their accounts are anonymized.

The lure of free crypto that may be exchanged for real money in the future seems to have been too strong for some people. According to Chinese blockchain-focused outlet Blockbeat, fraudsters have been offering iris scans from Know Your Customer (KYC) merchants in Cambodia for less than $30. Other iris scan may come from African countries such as Kenya.

Blockbeat did not clarify whether the back market iris scans were genuine or whether they were successfully used for registration for Worldcoin.

In response to Gizmodo, Worldcoin said that the platform did not have an issue with iris scans on the black market but it did detect several hundred cases of fraud involving its digital passport World ID, the verification protocol used to determine real identities. The World IDs are being sent to a third-party World app on the black market. The company claims it has taken steps to increase security and create a new recovery process for users’ World ID.

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Biden proposes 30% climate change tax on cryptocurrency mining

The White House is trying to persuade Congress to pass a 30% tax on the electricity used in cryptocurrency mining in the next federal budget in order to minimize the nascent industry’s impact on climate change.

“Cryptominers’ high-energy consumption has negative spillovers on the environment, quality of life, and electricity grids where these firms locate across the country,” the president’s Council of Economic Advisers (CEA) argues in a blog post that will appear on the White House website on Tuesday, to which Yahoo News gained advance access. The post will lay out the case for the Digital Asset Mining Energy (DAME) excise tax, which the CEA writes is an “example of the Administration’s efforts to fight climate change and reduce energy prices.”

“Currently, cryptomining firms do not have to pay for the full cost they impose on others, in the form of local environmental pollution, higher energy prices, and the impacts of increased greenhouse gas emissions on the climate,” the CEA writes in its post. “The DAME tax encourages firms to start taking better account of the harms they impose on society.”

Burning fossil fuels to create electricity accounts for 25% of annual U.S. greenhouse gas emissions and releases harmful air pollutants such as nitrogen oxides and particulate matter.

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US House Committee publishes draft bill that would call for the exploration of CBDCs

The House Financial Services Committee has published a draft bill that would regulate stablecoins. The bill proposes a moratorium on stablecoins backed by other crypto assets until a study is conducted and requests a study on a central bank digital currency (CBDC).

The bill follows two major incidents involving stablecoins over the past year. The first was the fall of terraUSD (UST), which was backed by the LUNA token, and the second was the USD coin (USDC) temporarily not being backed by the dollar.

The moratorium on stable coins would last until a study is conducted.

The bill also calls for confidential briefings on, “implications for CBDCs, foreign and potentially from the United States, of the engagement of these organizations and governments in developing the standards being used or to be used for CBDCs.”

The bill further states that “the Secretary shall consider the following standards,” and one of those is, “interoperability among CBDCs and other public and private elements of the financial system.”

Finally, it adds that the “convertibility and availability for users, including methods by which users will hold and use CBDCs,” should also be explored.

We obtained a copy of the draft bill for you here.

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2022 Biggest Year Ever For Crypto Hacking with $3.8 Billion Stolen, Primarily from DeFi Protocols and by North Korea-linked Attackers

2022 was the biggest year ever for crypto hacking, with $3.8 billion stolen from cryptocurrency businesses.

Hacking activity ebbed and flowed throughout the year, with huge spikes in March and October, the latter of which became the biggest single month ever for cryptocurrency hacking, as $775.7 million was stolen in 32 separate attacks.

Below, we’ll dive into what kinds of platforms were most affected by hacks, and take a look at the role of North Korea-linked hackers, who drove much of 2022’s crypto hacking activity and shattered their own yearly record for most cryptocurrency stolen. 

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