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Branson sews cash parachute for Virgin Atlantic with $300m Virgin Galactic share sale • The Register

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Richard Branson last week offloaded 10.4 million shares of Virgin Galactic, worth US$300M, to prop up his other businesses including pandemic-damaged airline Virgin Atlantic.

It is the third time Branson’s shifted millions of dollars of Virgin Galactic’s shares since it listed on the New York Stock Exchange in 2019. A regulatory filing shows the price of each share ranged between US25.75 and US$34.39. The shares represent about four percent of Virgin Galactic. Post-sell, Branson remains the biggest investor in the space company with 18 percent holding.

The sub-orbital tourism venture’s stock price wobbled in response to the sale, first falling three percent in early trading and then recovering at one percent down, but has struggled to stay steady and level since.

The septuagenarian’s offloading of Virgin Galactic stock was not meant to be a sign of wavering commitment to space, but rather a way to build capitol for the rest of Virgin Group’s portfolio.

“Virgin intends to use the net proceeds from this sale to support its portfolio of global leisure, holiday and travel businesses that continue to be affected by the impact of the Covid-19 pandemic, in addition to supporting the development and growth of new and existing businesses,” said Virgin Group in a statement. The biz said it remains the largest single shareholder of Virgin Galactic.

COVID-related travel bans have crushed airline profitability worldwide. Virgin Atlantic was not able to avoid the turbulence, suffering an 80 percent drop in both passenger numbers and revenue in 2020.

The airline, which is 51 percent owned by Virgin Group and 49 percent owned by Delta Airlines, has needed help to keep it aloft. Branson sold Virgin Galactic shares back in May 2020 to keep the airline operating and in September 2020 the company received $1.6B loan from private-equity firm Davidson Kempner after the UK government refused to provide Virgin Atlantic with emergency support.

Reports say Branson is considering listing Virgin Atlantic to resolve some of the current cash flow problems.

The sale comes a month after the billionaire took a morning trip almost all the way into space and a few weeks since announcing Q2 2021 results in which Virgin Galactic reported strong cash and cash equivalents of US$552M and a net loss of US$94M, compared to US$74M net loss in Q2 2020. ®

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NFT trader OpenSea bans insider trading after employee rakes in profit | Non-fungible tokens (NFTs)

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A non-fungible token (NFT) marketplace has introduced policies to ban insider trading, after an executive at the company was discovered to be buying artworks shortly before they were promoted on the site’s front page.

OpenSea, one of the leading sites for trading the digital assets, will now prevent team members buying or selling from featured collections and from using confidential information to trade NFTs. Neither practice was previously banned.

“Yesterday we learned that one of our employees purchased items that they knew were set to display on our front page before they appeared there publicly,” said Devin Finzer, the co-founder and chief executive of the site.

“This is incredibly disappointing. We want to be clear that this behaviour does not represent our values as a team. We are taking this very seriously and are conducting an immediate and thorough third-party review of this incident so that we have a full understanding of the facts and additional steps we need to take.”

NFTs are digital assets whose ownership is recorded and traced using a bitcoin-style blockchain. The NFT market boomed earlier this year as celebrities including Grimes, Andy Murray and Sir Tim Berners-Lee sold collectibles and artworks using the format. But the underlying technology has questionable utility, with some dismissing the field as a purely speculative bubble.

The insider trading came to light thanks to the public nature of the Ethereum blockchain, on which most NFT trades occur. Crypto traders noticed that an anonymous user was regularly buying items from the public marketplace shortly before they were promoted on the site’s front page, a prestigious slot that often brings significant interest from would-be buyers. The anonymous user would then sell the assets on, making vast sums in a matter of hours.

One trade, for instance, saw an artwork called Spectrum of a Ramenification Theory bought for about £600. It was then advertised on the front page and sold on for $4,000 a few hours later.

One Twitter user, ZuwuTV, linked the transactions to the public wallet of Nate Chastain, OpenSea’s head of product, demonstrating, using public records, that the profits from the trades were sent back to a wallet owned by Chastain.

While some, including ZuwuTV, described the process as “insider trading”, the loosely regulated market for NFTs has few restrictions on what participants can do. Some critics argue that even that terminology demonstrates that the sector is more about speculation than creativity.

“The fact that people are responding to this as insider trading shows that this is securities trading (or just gambling), not something designed to support artists,” said Anil Dash, the chief executive of the software company Glitch. “There are no similar public statements when artists get ripped off on the platform.

“If Etsy employees bought featured products from creators on their platform (or Patreon or Kickstarter workers backed new creators etc) that’d be great! Nobody would balk. Because they’d be supporting their goal,” Dash added.



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British home computer trailblazer dies aged 81 • The Register

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Sir Clive Sinclair died on Thursday at home in London after a long illness, his family said today. He was 81.

The British entrepreneur is perhaps best known for launching the ZX range of 8-bit microcomputers, which helped bring computing, games, and programming into UK homes in the 1980s, at least. This included the ZX80, said to be the UK’s first mass-market home computer for under £100, the ZX81, and the trusty ZX Spectrum. A whole generation grew up in Britain mastering coding on these kinds of systems in their bedrooms.

And before all that, Sir Clive founded Sinclair Radionics, which produced amplifiers, calculators, and watches, and was a forerunner to his Spectrum-making Sinclair Research. The tech pioneer, who eventually sold his computing biz to Amstrad, was knighted during his computing heyday, in 1983.

“He was a rather amazing person,” his daughter, Belinda Sinclair, 57, told The Guardian this evening. “Of course, he was so clever and he was always interested in everything. My daughter and her husband are engineers so he’d be chatting engineering with them.”

Sir Clive is survived by Belinda, his sons, Crispin and Bartholomew, aged 55 and 52 respectively, five grandchildren, and two great-grandchildren. ®

A full obit will follow on The Register.

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UN human rights chief raises concerns over AI privacy violations in report

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‘AI tech can have negative, even catastrophic, effects if they are used without sufficient regard to how they affect people’s human rights.’

The UN’s human rights chief Michelle Bachelet called for a moratorium on the sale and use of artificial intelligence technology until safeguards are put in place to prevent potential human rights violations.

Bachelet made the appeal on Wednesday (15 September) to accompany a report released by the UN’s Human Rights Office, which analysed how AI systems affect people’s right to privacy. The violation of their privacy rights had knock-on impacts on other rights such as rights to health, education and freedom of movement, the report found.

“Artificial intelligence can be a force for good, helping societies overcome some of the great challenges of our times. But AI technologies can have negative, even catastrophic, effects if they are used without sufficient regard to how they affect people’s human rights,” Bachelet said.

“Artificial intelligence now reaches into almost every corner of our physical and mental lives and even emotional states,” Bachelet added.

Japanese multinational Fujitsu caused a stir when it announced plans to implement AI facial recognition technology to monitor employees’ concentration levels during meetings.

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The report was critical of justice systems which had made wrongful arrests because of flawed facial recognition tools. It appealed to countries to ban any AI tools which did not meet international human rights standards. A 2019 study from the UK found that 81pc of suspects flagged by the facial recognition technology used by London’s Metropolitan Police force were innocent.

Earlier this year, Canada banned Clearview’s AI facial recognition technology after the company violated Canadian privacy laws by collecting facial images of Canadians without their consent.

Bachelet also highlighted the report’s concerns on the future use of data once it has been collected and stored, calling it “one of the most urgent human rights questions we face.”

The UN’s report echoes previous appeals made by European data protection regulators.

The European Data Protection Board (EDPB) and the European Data Protection Supervisor (EDPS) called for a ban on facial recognition in public places in June. They urged EU lawmakers to consider banning the use of such technology in public spaces, after the European Commission released its proposed regulations on the matter.

The EU’s proposed regulations did not recommend an outright ban. The commission instead emphasised the importance of creating “trustworthy AI.”

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