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‘Always Be Concerned’: US Court Slaps Down Fifth Amendment Defense of Encryption – Sputnik International

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19:11 21.03.2017 Get short URL

The 3-0decision madeby the Third US Circuit Court ofAppealsmeans Francis Rawls, a former Philadelphia police officer, will remain imprisoned unless and untiltheorder finding him incontempt ofcourt is lifted or overturned. Rawls was originally jailed in2015 forrefusing tode-encrypt a pair ofhard drives which authorities claim contained child pornography.

In response, he "pleaded the Fifth,"butthe defense was not accepted, and he was summarily sentenced toindefinite detention forcontempt ofcourt, a sentence only tobe lifted if and when he unlocked the drives.

As ofMarch 2017, Rawls has spent 17 months behindbars and the court's ruling means he's likely toremain confined indeterminately unless he obeys the order. Rawls' attorney, Federal Public Defender Keith Donoghue, was reported tobe disappointed bythe ruling, saying "the fact remained" the government was yet tobring any charges againstthe accused.

The Fifth Amendment, inessence, protects suspects frombeing forced todisclose evidence byinvoking the right, suspects incriminal cases are not compelled toanswer questions forlaw enforcement or courts, and generally cannot be penalized forrefusing todo so. For privacy and civil liberties campaigners, already concerned withthe ongoing crackdown onencryption acrossthe Western world, this ruling may be deeply concerning.

Some campaigners have even suggested governmental demands that companies hand overencrypted data amount tobreaches ofthe Fifth Amendment.

However, Dr. Heather Anson, a consultant at Digital Law UK, says the decision stems fromthe highly specific circumstances ofthe case.

"Rawls has likely refused tounlock the drives because doing so will land him inprison forother charges. In tackling his Fifth Amendment defense, authorities cited the 'foregone conclusion exception' tothe Amendment, arguing he could not invoke the right because police already had evidence he'd committed the crime ofwhich he's accused the court agreed withauthorities that it was incontestable the drives contained child pornography," Dr. Anson explained toSputnik.

All ofthis, according tothe Appeals Court, meant the order forRawls tounlock the drives was entirely lawful, and constitutional. Dr. Anson adds that inanother case, where police did not have supplementary evidence, a court ruled a suspect could not be forced tooffer uppasswords forencrypted files.

Nonetheless, the decision comes asencryption is becoming ever-more ubiquitous onmobile phones, computers and applications.

For example, the contempt ofcourtorderagainst Rawls was obtained byciting the 1789 All Writs Act, the same law the US Justice Department invoked inits legal battle withApple, which saw a Magistrate JudgeorderApple toproduce code toenable the FBI todecrypt an iPhone used byone oftwo shooters who killed 14 ata San Bernardino County government building. The government's quest was ultimately unsuccessful.

These cases, Dr. Anson said, were a demonstration governments cannot act withimpunity, and cannot unlock any and all information they wish and that securing relevant warrants can often be difficult. Moreover, she hopes people will not be swayed intoallowing governments tomake the process easier forthemselves.

"The public should always be concerned aboutpowerful attempts toaccess encrypted data, and I hope scaremongering overthe use ofencryption for 'bad things' terrorism and crime doesn't turn opinion againstencryption," Dr. Anson concluded.

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SecurityBrief NZ – Gemalto introduces on-prem encryption key solution for ‘highly regulated’ organisations – SecurityBrief NZ

Gemalto has introduced the latest in its encryption key offerings with the launch of Hold Your Own Key (HYOK) functionality for Microsoft Azure Information Protection customers.

The HYOK, part of Gemaltos SafeNet Luna Hardware Security Modules (HSMs), provides highly regulated organisations a way to manage, own and store their encryption keys in on-premise HSMs.

They can also securely share data with complete control over their keys, which the company says will allow enterprises to align data protection policies and business processes without comprising data security.

"Organisations using Microsoft Azure Information Protection services now have access to the convenient security features they're used to, without having to hand over ownership and control of their encryption keys to their cloud provider," comments Todd Moore, SVP of Encryption Products at Gemalto.

HYOK functionality can also be tied to Microsofts Active Directory Rights Management Services (AD RMS). The AD RMS can be used to form protection policies for top secret data and Azure RMS protection policies for sensitive data.

Azure Information Protection can enable secure internal and external collaboration. The SafeNet Luna HSM integration with the Azure Information Protection HYOK feature requires no change to the user experience or deployments.

Organisations can also control access to sensitive data by defining protection policies and use rights while all information protection features such as document tracking and revocation are also preserved.

"Combining the SafeNet Luna HSM with the Azure Information Protection's HYOK functionality, customers can continue to deploy customized data protection controls without compromising security or operational transparency of a user's applications, Moore says.

Dan Plastina, Microsofts partner director of Information and Threat Protection, says that the partnership offers specialised and integrated protection.

"Microsoft Azure Information Protection enables selective use of on-premises AD RMS services in a Hold-Your-Own-Key configuration (HYOK) for customers with deeply regulated data. Gemalto's SafeNet Luna HSMs seamlessly integrate with this hybrid Azure Information Protection configuration providing customers the full spectrum of specialised protection they need, he says.

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Can You Solve This Chess Puzzle That AI Software Can’t? – Interesting Engineering

Back in 1997,Garry Kasparov, a chess grandmaster as the world knows him, was defeated byIBMs Deep Blue artificial intelligence (AI) computer. It was down hill from there for human chess players all over the world as AI machines began improving at an alarming rate.

[Image Source:Pixabay]

Komodo, a chess engine with an Elo rating of 3304 (450 points higher than Kasparov) was next in line to prove that computers are far superior when it comes to head to head chess matches.

This is partially due to Moores Law, which states that the number of transistors per square inch on integrated circuit board doubles year on year, allowing for greater computational power. This statement was originally made byIntel co-founder Gordon Moore in 1965 and holds up today.

Another reason for the demise of human chess players is the softwares ability to brute force its way through millions of possible scenarios in a matter of seconds. But recently, one scenario has these computers stumped.

[Image Source: Lichess]

The scenarioconsists of a chess board layout as per the image above. The human player is required todefeat or draw against the computer while playing as whites.(You can play an online simulation of the chess puzzle here.)

The puzzle, released by the Penrose Institute, was recently devised in order to study human consciousness through physics. The Penrose Institute founder, Sir Roger Penrose, Emeritus Professor at the Mathematical Institute of Oxford, devised the puzzle to distinguish between human and artificial intelligence machines. The puzzle is said to be solvable by humans but not by AI software.

If you put this puzzle into a chess computer it just assumes a black win because of the number of pieces and positions, but a human will look at this and know quickly that is not the case, said Sir Roger.

Penrose shared the World Prize in physics with Professor Stephen Hawking in 1988 for his work on black hole singularities.

Co-Founder and Director of the Penrose Institute, James Tagg said We plugged it into Fritz, the standard practice computer for chess players, which did three-quarters of a billion calculations, 20 moves ahead,

It says that one-side or the other wins. But, Tagg continued, the answer that it gives is wrong.

What makes the puzzle so unique, is the odd choice of a third bishop. This forces the AI software out of its comfort zone, with an endless amount of possible moves. It also begs the question, is it actually possible to get to this scenario?

Those who figure out the puzzle can send their answers to Penrose to be entered in to win the professors latest book. Goodluck!

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Is This Massive Power Struggle About To Blow Up Bitcoin? – Forbes


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Jackson pastor convicted in Bitcoin scheme – Asbury Park Press

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In this file photo, Pastor Trevon Gross of Hope Cathedral Church in Jackson prays during a Sandy grief relief seminar at the cathedral. Gross has been found guilty of accepting bribes and other crimes.(Photo: Robert Ward / Staff Photographer)Buy Photo

A popular Jackson Township pastor has been convicted of illegally allowing Bitcoin scammers to launder dirty money through the pastor's credit union in exchange for kickbacks.

The federal jury in New York City found Trevn Gross, 52, pastor at Hope Cathedral in Jackson and former chairman of the now-defunct Helping Other People ExcelFederal Credit Union (HOPE FCU), guilty of one count eachof receipt of corrupt payments as an officer of a financial institution, conspiring to make or receive corrupt payments, obstructing a regulatory investigation andmaking false statements to regulators, according to the U.S. Attorney's Office for the Southern District of New York. The verdict was returned Friday following the pastor's trial. He was accused of accepting $150,000 in bribes but pleaded not guilty to the charges.

The scheme began in Florida, where Anthony R. Murgio ran Coin.mx, a bitcoin exchange service, with help from Yuri Lebedev, prosecutors said. Investigators charged Murgio and Lebedev with using a bogus antiques exchange as a front for the bitcoin service, skirting registration and reporting requirements on $10 million worth of bitcoin transactions. A bitcoin is a computer-generated digital currency that is used worldwide and is untraceable in most cases.

The owner of Coin.mx, Israeli national Gery Shalon, was also tied to a 2014cyber attack against JPMorgan Chase bank, which federal investigators called the largest-ever theft of customer data from an American financial institution.

Murgio, Lebedev "and their co-conspirators engaged in substantial efforts to evade detection of their unlawful Bitcoinexchange scheme by operating through a phony front company called 'Collectibles Club,' and by maintaining a corresponding phony'Collectibles Club' website," according to a criminal complaint against all three. They "sought to trick the major financial institutions through which they operated into believing their unlawful Bitcoin exchange business was simply a members-only association of individuals who discussed, bought, and sold collectible items, such as stamps and sports memorabilia."

Q & A:Bitcoin explained

Murgio and his associates opened bank accounts in the name of the dummy organization one of them in New York and told their customers to lie to banks about what they were buying through Coin.mx, according to the complaint.

Murgio and Lebedev roped in Gross in 2014, according to the complaint. Lebedev offered up $41,000 of his own money to help convince Gross to let him, Murgio and their associates take over HOPE FCU, a federal credit union based alternately in Lakewood and Jackson thatcatered to "primarily low-income members."

Gross had chaired the credit union's board. With Gross' help, Murgio "installed his co-conspirators, including Lebedev, on HOPE FCU's board of directors and transferred Coin.mx's banking operations to HOPE FCU," according to the complaint.

MIAMI JUDGE:Bitcoin is not money

The Florida-based crew used HOPE FCU "as a captive bank" into 2015, according to a March 2016 statement from then-U.S. Attorney Preet Bharara, but the National Credit Union Administration which charters and supervises federal credit unions eventually caught on to the "substantial payment processing activity" that was going on there. The regulators "forced HOPE FCU to cease engaging in such activity."

Murgio moved his exchange offshore and the regulators put HOPE FCU into conservatorship before killing it altogether, Bharara announced at the time.

According to a November2015 statement from the regulatory agency, HOPE FCU had 110 members and $626,529 in assets just before it was liquidated.

Murgio, 34, of Tampa, Florida,pleaded guilty in January to one count of conspiracy to operate an unlicensed money transmitting business, prosecutors said. The same jury that found Gross guilty also convicted Lebedev, 39, of St. Johns, Florida, of one count of making corrupt payments to an officer of a financial institution, participation in a conspiracy to make and receive corrupt payments, obstructing the regulators' examination, making false statements to regulators, wire fraud, bank fraud and conspiracy to commit wire and bank fraud.

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Gross is scheduled for sentencing on July 20. He faces up to

Hope Cathedral's website still named Gross as pastor on March 21, as well as his wife, D. Qwynn Gross.

Gross "accepted his call to preach at a very young age. He was licensed to preach at the age of 14. Since that time, he has actively prepared for pastoral ministry," according to his biography on the church's website. "With degrees from the University of Virginia, Duke University and further graduate work at Harvard University, Pastor Trevn has a passion for teaching the Word of God. His desire is to see people added to the family of God and growing in their faith so that they will see God's purposes for their lives unfold."

Gross could not be reached for comment. He faces 30 years in prison.

Henry Klingeman, Gross' defense attorney, said in an email to Newsweek magazine that, On behalf of Pastor Gross, we will now seek a judgment of acquittal from the court and if and when the time comes a fair and lenient sentence.

Alex N. Gecan: 732-643-4043; agecan@gannettnj.com

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Bitcoin Is Finally Starting to Settle Down – Fortune

Bitcoin regained its footing on Monday, having suffered its heftiest falls since early 2015 between Thursday and Saturday as investors sold the digital currency on worries about its future.

Having soared to an all-time high of $1,350 on the Bitstamp exchange on March 10, on speculation that regulators could approve the first U.S. bitcoin exchange traded fund the following day, the digital currency then slipped back.

Its falls began accelerating on Thursday and it hit a five-week low of $944.36 on Saturday. But bitcoin recovered a little on Sunday and built on those gains on Monday, climbing around 2.5% to roughly $1,050 by 18:15 GMT.

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Bitcoin experts said its steep losses were driven by a longstanding, and intensifying, row over whether - and how - to increase the capacity of the "blocks" that bitcoin transactions are processed in, so as to make sure there are no delays in transactions being finalized.

"The bitcoin scaling debate is a risk for the network and highlights core issues in terms of governance and this is where more nimble crypto competitors see advantages in fleshing out their capabilities sooner," said Charles Hayter, CEO of digital currency analysis website Crytocompare, in London.

Related: This New Tactic Might Finally Lure Big Investors to Bitcoin

At the same time that bitcoin was plunging, a newer, rival "cryptocurrency" was soaring: ether. The digital currency behind Ethereum - a project that some experts say holds more potential than bitcoin - has almost tripled in value this month, jumping to record highs of around $45.

Some experts said traders were selling bitcoin and buying ether, which was exacerbating the falls in the original cryptocurrency.

"Traders in the space are looking for better returns in the more risky and nascent cryptos such as Dash, Monero and Ethereum (and are) looking to replicate the extraordinary returns that bitcoin saw in its early days," added Hayter.

U.S. regulators dashed Cameron and Tyler Winklevoss's bitcoin ambitions earlier in the month by rejecting their application to list an exchange-traded fund linked to the digital currency.

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Bitcoin’s fake news problem – FT Alphaville (registration)


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BTCC CEO Bobby Lee On Why The Chinese Probably Aren’t Using Bitcoin To Evade Capital Controls – Forbes


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Bobby Lee is chief executive of BTCC, one of the world's longest-running cryptocurrency exchanges. He got into bitcoin early through his brother, Charlie Lee, the creator of Litecoin, the cryptocurrency often called digital silver, as opposed to ...

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Qtum Co-founder Jordan Earls: We Hope to Unify Different … – The Merkle

Considering the Qtum crowdsale has been a major success so far, we took the time to sit down with some of their team members. There are some questions regarding this project and its future, all of which have been answered by Jordan Earls, one of Qtums founders. The future of this project looks quite bright, and the interview below sheds a bit more light on what we can expect from Qtum moving forward.

TM: Bridging the gap between the best of Ethereum and Bitcoin is a bold goal. Some people may wonder if doing so really requires creating a brand new platform with a native token. How would you explain this thought process to less tech-savvy cryptocurrency enthusiasts?

JE: There are some other ways to combine Ethereum and Bitcoin, however, they have some significant drawbacks, one of the key ones being the lack of a functioning light wallet protocol (SPV) for these modes

TM: Are there specific types of dApps you hope to see realized by using Qtum? If so, who those types of dApps specifically?

JE: Our focus is Go Mobile and so one of our big hopes is to have completely decentralized apps that can be run (with a small front end) on mobile devices. Though we are compatible with Ethereum contracts, so we of course support many more use cases than just mobile

TM: What are the teams expectations for Qtum in terms of academic research?

JE: We have a PhD, Alex Norta, who is managing our academic research, and intend to open multiple academic research offices for Qtum globally

TM: The bitcointalk announcement makes a mention of cooperating with other open source development projects. Have any connections been made in this regard?

JE: No firm connections we can talk about yet, but our hope is to unify the different cryptocurrency communities, by the foundation trading a portion of their Qtum for a portion of the other cryptocurrencys coins. These tokens that are traded would be accessible by each community. So all Qtum holders would be entitled to a share of these traded tokens, and all of the other cryptocurrencys holders would be entitled to a share of Qtum

We would like to thank Jordan Earls for taking the time to answer our questions regarding the Qtum project.

If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.

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Top 6 Cryptocurrencies With High Block Rewards – The Merkle

With so many alternative cryptocurrencies in existence, it becomes difficult for developers to make their coin stand out. Some developers prefer to offer large block rewards, even though that will only add to coin inflation as time progresses. Below are some of the alternative cryptocurrencies with the largest block rewards in history. Not all of these projects are still operational today, though.

While the list is ranked based on the raw amount of coins that a cryptocurrencys network rewards, we alsomeasured each cryptos reward as a function of its total supply. You will be surprised to find out that while a cryptocurrency may reward users with 10,000 coins per block, when factoring in its total supply some of the coins rewards arevery close to that of Bitcoin. This is a reminder to always keep data in perspective.

Perhaps the only altcoin with a somewhat intriguing name is Bonus, listed as BNS on various cryptocurrency exchanges. Although this altcoin doesnt offer much in terms of innovation, the block reward of at least 2,300 BNS is plenty of reason for some miners to jump in. The block reward rate of 2,300 is the minimum as a random bonus will be assigned on top of the original reward.

If we were to compare Bonus reward to that of Bitcoin, since there are 2.5 billion BNS in circulation, a 2300 block reward would equate to a 23 BTCreward if the network was Bitcoin. Remember that Bitcoin would have 21 million total coins in existence which is roughly 1/1000 that of BNS. It is important to keep these values in perspective when comparing block rewards.

MazaCoin is one of those altcoins which has seemingly been around for quite some time. Despite gaining some initial momentum, there are very few use cases for this particular currency. That said, the coin made it onto Poloniex, which is considered to be the leading altcoin exchange to date. Mazacoin had an initial block reward of 5,000, which halves every 12 months.

Due to its low trading volume on exchanges, and the 50 million premine MazaCoin never amounted to much. With a total supply of around 2.4 billion and a block reward of 5,000, if MazaCoin was a Bitcoin network, the reward would be roughly 50 BTC.

At one point in time, many people thought Earthcoin could become the next Dogecoin. Rather than positioning itself as a meme, EarthCoin intended to change the world and protect out natural ecosystem Things did not work out all that well. With a variable block reward usually around 10,000 the coin is plagued by significant inflation. With no clear use cases and no one interested in using Earthcoin, that inflationary supply is doing more harm than good.

With a supply of 13.5 billion and a block reward of 10,000, Earthcoin has roughly 500 times the supply than that of Bitcoin. If it were a Bitcoin network, the reward would be around 20 BTC.

Once called the joke-coin of the internet, Dogecoin turned into something much more powerful than that. Dogecoin gained a lot of mainstream media recognition by sponsored various sports teams and even a NASCAR driver. Even though there isno limit as to how many Dogecoins can be generated in the end, many people still like this concept. The current block reward still sits around 250,000 DOGE, which is way too high. Dogecoin still generates a fair bit of trading volume across exchanges, though.

With its current supply of 108.619 billion coins, there are a lot of DOGE in the world. In fact, the number of coins is 5,172 times higher than bitcoin. If this were a bitcoin network, the block reward would be 48.34 BTC.

When it comes to finding an altcoin with a very large supply, look no further than Reddcoin. There will be 109 billion coins at the end, which will be achieved due to the currencys high block reward. After initially starting at 300,000 RDD per block, the reward is now sitting at the 100,000 mark. It is not a surprise the value of RDD has tanked significantly as more time elapsed. The lack of proper use cases is not helping matters either for this altcoin.

Reddcoin has a total supply of 28.279 billion, resulting in there being 1,346 as many coins as bitcoin. If this were a bitcoin network, the block reward would be 74.29 BTC.

When MoonCoin was first introduced, a lot of people were very skeptical about this process. The developer deliberately introduced significant block rewards, which started at two million MOON. As more time progressed, the reward dropped to 1 million, although mining was halted shortly afterward. With so many coins in circulation and no way to spend them other than selling MOON in favor of bitcoin, this project ground to a halt pretty quickly. It is still the altcoin with the highest block reward during the time it was actively mined.

The current MoonCoin supply sits at 221.64 billion MOON, making it 10,554 times as common as bitcoin. If this were a bitcoin network, the block reward would be 94.75 BTC.

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