When the cops arrested scammer Evan Leslie McMahon in March 2019 they found a lot more than just the bootleg Netflix logins that enabled his clients to watch The Witcher on the cheap.
Also in the possession of the early-20s hacker were nine electronic wallets containing an alphabet soup of cryptocurrencies – bitcoin, bitcoin cash, ethereum, digibyte, XRP, stratis, bitcoin gold and litecoin – that he bought with the proceeds of his crimes.
McMahon escaped jail when he was sentenced in April last year for “providing a circumvention service” and “dealing with the proceeds of crime”, receiving an intensive correction order that allowed him to serve his two-and-a-half-month sentence in the community.
But he forfeited the crypto, which was initially worth $460,000, but by the time of his sentencing had risen to an estimated value of $1.2m, making it the biggest stash of tokens seized by the commonwealth to date.
To collect fees from customers of his websites, HyperGen, WickedGen, Autoflix and AccountBot, McMahon used 175 PayPal accounts held in fake names – aliases included Zac Kentish, Izabella Sjogren and Samuel Binns, according to court documents.
He then converted some of the proceeds into crypto, federal police said.
PayPal declined to comment when asked how McMahon had managed to open 175 accounts with the company and what this said about its anti-money laundering systems.
“We devote significant resources to identify, investigate and stop improper or potentially illegal activity on PayPal,” a spokesman said.
Crypto seizures on the rise
Australia’s financial security agency, Austrac, says the criminal use of cryptocurrency is no longer confined to online scammers like McMahon, who ran a series of websites selling logins to Netflix, Spotify and other subscription sites that he bootlegged using software that automatically generated the keys.
“As legitimate use of cryptocurrency increases, we’re seeing a sort of comparable increase in abuse,” says Austrac’s national manager of intelligence operations, Michael Tink, who runs teams at the agency concentrating on cybercrime, national security and money laundering.
“As an example, where a crime group might have previously been sending money offshore using the banking sector or a remittance dealer, in some cases – not a lot – we might see them trying to deposit criminal proceeds through a digital currency exchange provider and send money to a counterpart offshore using cryptocurrency itself,” he says.
Tink is keen to point out that using cryptocurrency to launder the proceeds of crime is still “fairly” niche – but it is on the rise.
While the seizure of McMahon’s wallets was the biggest crypto bust in Australia at the time, larger amounts have since been frozen by regulators investigating possible fraud.
In October last year, the Australian Securities and Investments Commission obtained federal court orders freezing bitcoin estimated to be worth between $7m and $22m that were allegedly related to what the corporate watchdog claims was an unlicensed superannuation investment scheme run by Gold Coast couple Aryn Hala and Heidi Walters. Asic alleged in court documents that at least $2.4m of investor money had been used to purchase crypto-assets. Asic’s investigation is continuing and no charges have been laid.
Overseas enforcement agencies have also seized large amounts of crypto. Last month, the US FBI seized 3,879 bitcoin, which it claims in documents filed in the American federal court system are the proceeds of a US$155m ($216m) fraud perpetrated against insurance company Sony Life by employee Rei Ishii. Ishii has been charged with fraud in Japan and is yet to face trial.
In another crypto seizure case before the US courts involving 9.881 bitcoin (about $590,000), authorities allege bitcoin was used to launder ill-gotten gains.
Between May 2019 and February 2021, suspected money launderer Fernando Berrocal, a businessman in the perfume industry, picked up bulk cash from locations both inside and outside the US of US$2.3m ($3.2m), a Homeland Security agent alleges in an affidavit filed in forfeiture proceedings in the federal court system.
This was made up of “$1m in illegal gambling proceeds and $1.3m in narcotics proceeds”, Homeland Security agent James Barden said in the affidavit.
In addition, bank accounts owned or controlled by Berrocal received “$1,789,628.40 in proceeds generated by various financial frauds, many targeting elderly US residents,” Barden said.
He accused Berrocal of controlling “multiple commercial and personal bank accounts and shell-companies in the United States and elsewhere”, as well as “multiple virtual currency accounts and/or Bitcoin addresses”, which were used to launder dirty money.
“Berrocal conducted numerous financial transactions, many involving virtual currency, specifically bitcoin, to launder and transfer criminally derived proceeds from the United States to individuals and organizations outside the United States,” Barden said.
The agent said Berrocal admitted that the bitcoin was the proceeds of his criminal activity “during a consensual interview with law enforcement” in March last year. No charges have been laid and the investigation continues.
The regulators are watching
Cryptocurrencies had another of their moments in the sun last year, with the Commonwealth Bank announcing it would allow customers to buy, hold and transfer tokens through its app, ads for trading platforms dominating bus stops and the treasurer, Josh Frydenberg, talking about bringing exchanges – which are prone to collapse – into Australia’s regulatory system.
But sceptics reckon the hype conceals a terrible truth: cryptocurrencies are fantastic for speculators but, despite many attempts, not much use as a means of exchange unless you are buying something you shouldn’t be.
“Paying for things the government doesn’t want you to buy was the first actual payment use case for cryptos – the Silk Road drug market – and it’s still about the only one,” says David Gerard, the author of two books on cryptocurrencies and a keen and critical observer of the sector.
“People only use crypto for payments when they can’t use good money for some reason, so they use this stuff instead. That’s expanded into large-scale ransomware. Ransomware existed before crypto, but not at this scale – that’s 100% on cryptos.”
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Meanwhile, dirty cash from crime continues to wash into a crypto ecosystem electrified by speculative investment that, despite frequent crashes, has driven the price of bitcoin up from a few hundred dollars in 2015 to close to $60,000 today.
“The crypto system is not, technically, a Ponzi scheme – it just works like one,” Gerard says.
“Early buyers can only be paid out with money from later buyers. The whole purpose is to sell magic beans to people for real money, and convince them that these objects are the future of anything other than getting skinned.
“The general answer is: there’s no such thing as a get rich quick scheme, magic doesn’t happen, if there’s ever ‘one weird trick’ then it’s one weird trick for picking your pocket.”
Austrac has limited visibility of what goes on inside this booming market. Currently, exchanges that register with it only have to report suspicious or large movements of cash into their coffers or payments out – not transfers of crypto that occur between market participants.
However, Tink says the idea that transactions occurring on the blockchain – the distributed ledger that records crypto transactions – are completely anonymous is wrong.
“Our analysts also have access to other open source commercially available and more classified tools and data sets that help them track transactions as they occur through the blockchain and also link that to other data and criminal intelligence holdings,” Tink says.
He points out that one advantage of the blockchain technology underlying cryptocurrencies is that the data is publicly available.
“You might not always know who is behind a particular coin address, but it allows you to track transactions through with other data sets. It allows analysts to look at attributing wallet addresses to real world people.”
Open Source Software (OSS) Supply Chain, Security Risks And Countermeasures
OSS Security Risks And Countermeasures
The software development landscape increasingly hinges on open source components, significantly aiding continuous integration, DevOps practices, and daily updates. Last year, Synopsys discovered that 97% of codebases in 2022 incorporated open source, with specific sectors like computer hardware, cybersecurity, energy, and the Internet of Things (IoT) reaching 100% OSS integration.
While leveraging open source enhances efficiency, cost-effectiveness, and developer productivity, it inadvertently paves a path for threat actors seeking to exploit the software supply chain. Enterprises often lack visibility into their software contents due to complex involvement from multiple sources, raising concerns highlighted in VMware’s report last year. Issues include reliance on communities to patch vulnerabilities and associated security risks.
Raza Qadri, founder of Vibertron Technologies, emphasizes OSS’s pivotal role in critical infrastructure but underscores the shock experienced by developers and executives regarding their applications’ OSS contribution. Notably, Qadri cites that 95% of vulnerabilities surface in “transitive main dependencies,” indirectly added open source packages.
Qadri also acknowledges developers’ long-standing use of open source. However, recent years have witnessed heightened awareness, not just among developers but also among attackers. Malware attacks targeting the software supply chain have surged, as demonstrated in significant breaches like SolarWinds, Kaseya, and the Log4j exploit.
Log4j’s widespread use exemplifies the consolidation of risk linked to extensively employed components. This popular Java-based logging tool’s vulnerabilities showcase the systemic dependency on widely used software components, posing significant threats if exploited by attackers.
Moreover, injection of malware into repositories like GitHub, PyPI, and NPM has emerged as a growing threat. Cybercriminals generate malicious versions of popular code to deceive developers, exploiting vulnerabilities when components are downloaded, often without the developers’ knowledge.
Despite OSS’s security risks, its transparency and visibility compared to commercial software offer certain advantages. Qadri points out the swift response to Log4j vulnerabilities as an example, highlighting OSS’s collaborative nature.
Efforts to fortify software supply chain security are underway, buoyed by multi-vendor frameworks, vulnerability tracking tools, and cybersecurity products. However, additional steps, such as enforcing recalls for defective OSS components and implementing component-level firewalls akin to packet-level firewalls, are necessary to fortify defenses and mitigate malicious attacks.
Qadri underscores the need for a holistic approach involving software bills of materials (SBOMs) coupled with firewall-like capabilities to ensure a comprehensive understanding of software contents and preemptive measures against malicious threats.
As the software supply chain faces ongoing vulnerabilities and attacks, concerted efforts are imperative to bolster security measures, safeguard against threats, and fortify the foundational aspects of open source components.
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— By John Elf | Science, Technology & Business contributor VoiceOfEU.com Digital
Choco: Revolutionizing The FoodTech Industry With Innovation & Sustainability | EU20
By Clint Bailey
— In the rapidly evolving world of food technology, European startup Choco has emerged as a pioneering force. With its website, Choco.com, this Berlin-based company is transforming the way food industry professionals operate by leveraging innovative digital solutions. By linking restaurants, distributors, suppliers, and producers on a single platform, Choco is streamlining the supply chain process while promoting sustainability.
Let’s explore the journey of Choco.com and its impact on the overall foodtech industry.
Company: Choco Technologies GmbH
Website: www.Choco.com
Head Office: Berlin, Germany
Year Established: 2018
Founders: Choco was co-founded by Daniel Khachab, Julian Hammer, and Rogerio da Silva.
Industry: Choco operates in the foodtech industry, specifically focusing on digitizing the supply chain for the food industry.
Funding: Choco has secured significant funding rounds from investors, including Bessemer Venture Partners & Coatue Management.
Market Presence: Choco has a strong presence in several European cities, including Berlin, Paris, London & Barcelona.
Mission: Choco aims to revolutionize the food industry by leveraging technology to simplify supply chain management, promote sustainability, and reduce food waste.
Simplifying Supply Chain Management
One of the core focuses of Choco is to simplify supply chain management for food businesses. Traditionally, the procurement process in the food industry has been cumbersome and inefficient, with numerous intermediaries and manual processes. Choco’s digital platform replaces the traditional paper-based ordering system, allowing restaurants and suppliers to communicate and collaborate seamlessly.
Choco’s platform enables restaurants to place orders directly with suppliers, eliminating the need for phone calls, faxes, or emails. This not only saves time but also reduces the likelihood of errors and miscommunications.
By digitizing the ordering process, Choco improves transparency, making it easier for restaurants to compare prices, track deliveries, and manage inventory efficiently.
Streamlining Operations For Suppliers & Producers
Choco’s impact extends beyond restaurants. The platform also provides suppliers and producers with valuable tools to streamline their operations. By digitizing their product catalogs and integrating them into the Choco platform, suppliers can showcase their offerings to a wide network of potential buyers.
Suppliers benefit from increased visibility, enabling them to reach new customers and expand their market presence. Moreover, Choco’s platform helps suppliers manage their inventory, track orders, and plan deliveries effectively. These features enhance operational efficiency, reduce waste, and ultimately contribute to a more sustainable food system.
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Promoting Sustainability & Reducing Food Waste
Choco recognizes the critical importance of sustainability in the food industry. According to the United Nations, approximately one-third of the world’s food production goes to waste each year. By digitizing the supply chain and enabling more efficient ordering and inventory management, Choco actively works to combat this issue.
Choco’s platform facilitates data-driven decision-making for restaurants, suppliers, and producers. By analyzing purchasing patterns & demand, Choco helps businesses optimize their inventory levels, reducing overstocking and minimizing food waste. Additionally, Choco supports local sourcing, enabling businesses to connect with nearby suppliers & promote sustainable, community-based practices.
Expanding Reach & Impact
Since its founding in 2018, Choco has experienced rapid growth and expansion. The startup has successfully secured significant funding rounds, allowing it to scale its operations and establish a strong presence across Europe and other global markets. Today, Choco’s platform is used by thousands of restaurants and suppliers, revolutionizing the way they operate.
Choco’s impact extends beyond operational efficiency or sustainability. By connecting restaurants, suppliers & producers on a single platform, Choco fosters collaboration & encourages the exchange of ideas. This collaborative approach strengthens the overall foodtech ecosystem and creates a supportive community of like-minded aiming to drive positive change within the industry.
Future Of FoodTech
Choco’s rise to prominence in the foodtech industry exemplifies the reach of sustainability, innovation, and community. Through its user-friendly platform, Choco simplifies supply chain management, streamlines operations for restaurants & suppliers, and actively promotes sustainable practices. By harnessing the potential of digital, Choco is disrupting the future of the food industry, making it more efficient and transparent.
As Choco continues to expand its impact and reach, its transformative influence on the foodtech sector is set to inspiring, grow other startups, and established players to embrace technology for a better and more sustainable food system.
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— Compiled by Clint Bailey | Team ‘Voice of EU’ — For More Info. & News Submissions: info@VoiceOfEU.com — For Anonymous News Submissions: press@VoiceOfEU.com
The Implications Of Controlling High-Level Artificial Super Intelligence (ASI)
Artificial Super Intelligence (ASI)
By Clint Bailey | ‘Voice of EU’
The notion of artificial intelligence surpassing humanity has long been a topic of discussion, and recent advancements in programs have reignited concerns. But can we truly control super-intelligence? A closer examination by scientists reveals that the answer is highly unlikely.
Unraveling The Challenge:
Controlling a super-intelligence that surpasses human comprehension necessitates the ability to simulate and analyze its behavior. However, if we are unable to comprehend it, creating such a simulation becomes an impossible task. This lack of understanding hinders our ability to establish rules, such as “cause no harm to humans,” as we cannot anticipate the scenarios that an AI might generate.
The Complexity Of Super-Intelligence:
Super-intelligence presents a distinct challenge compared to conventional robot ethics. Its multifaceted nature allows it to mobilize diverse resources, potentially pursuing objectives that are incomprehensible and uncontrollable to humans. This fundamental disparity further complicates the task of governing and setting limits on super-intelligent systems.
Drawing Insights From The Halting Problem:
Alan Turing’s halting problem, introduced in 1936, provides insights into the limitations of predicting program outcomes. While we can determine halting behavior for specific programs, there is no universal method capable of evaluating every potential program ever written. In the realm of artificial super-intelligence, which could theoretically store all possible computer programs in its memory simultaneously, the challenge of containment intensifies.
The Uncontainable Dilemma:
When attempting to prevent super-intelligence from causing harm, the unpredictability of outcomes poses a significant challenge. Determining whether a program will reach a conclusion or continue indefinitely becomes mathematically impossible for all scenarios. This renders traditional containment algorithms unusable and raises concerns about the reliability of teaching AI ethics to prevent catastrophic consequences.
An alternative approach suggested by some is to limit the capabilities of super-intelligence, such as restricting its access to certain parts of the internet or networks. However, this raises questions about the purpose of creating super-intelligence if its potential is artificially curtailed. The argument arises: if we do not intend to use it to tackle challenges beyond human capabilities, why create it in the first place?
Urgent Reflection – The Direction Of Artificial Intelligence:
As we push forward with artificial intelligence, we must confront the possibility of a super-intelligence beyond our control. Its incomprehensibility makes it difficult to discern its arrival, emphasizing the need for critical introspection regarding the path we are treading. Prominent figures in the tech industry, such as Elon Musk and Steve Wozniak, have even called for a pause in AI experiments to evaluate safety and potential risks to society.
The potential consequences of controlling high-level artificial super-intelligence are far-reaching and demand meticulous consideration. As we strive for progress, we must strike a balance between pushing the boundaries of technology and ensuring responsible development. Only through thorough exploration and understanding can we ensure that AI systems benefit humanity while effectively managing their risks.
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— By Clint Bailey, Team ‘THE VOICE OF EU‘
— For Information: Info@VoiceOfEU.com
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