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Bitcoin And The Electronic Frontier Foundation
by Eugen Leitl 19 Nov '10

19 Nov '10

http://www.bitcoinblogger.com/2010/11/bitcoin-gains-legal-protection-throug… SATURDAY, NOVEMBER 13, 2010 Bitcoin And The Electronic Frontier Foundation There are many legal implications when utilizing Bitcoin. Users of Bitcoin who conduct business with the wrong people could face charges of money laundering, identity theft, and/or fraud. Honest Bitcoin users could be implicated in crimes by criminals engaging in phishing or malware and stealing identities. The Bitcoin economy resembles that of the wild, wild, west with inherently little or no regulation. Because of the barbaric nature of this new currency it is highly susceptible to legal attacks by law enforcement. Bitcoin has recently, however, gained some legal protection by the Electronic Frontier Foundation (EFF). In another significant milestone for P2P cryptocurrency the EFF has agreed to accept Bitcoin donations! The EFF is known for legal cases involving high profile tech companies such as Apple, Google, Craigslist, and Facebook. The simple fact that the EFF is welcoming anonymous donations is a small but significant step towards Bitcoin societal acceptance. Accepting anonymous donations is not a light decision by the EFF, and the implications are monumental. For example, selling or buying Bitcoins with an anonymous user could mean unintentionally aiding terrorism or helping North Korea build nuclear weapons. Or, political groups accepting Bitcoins could be accepting funds by enemies of the state. The United States recently placed sanctions on Iran for its nuclear programs, and if Bitcoins are adopted universally then sanctions would no longer work as a tool to change the behaviors of government. In essence, the globalization of Bitcoins will affect international political policy. The disruptive nature of Bitcoin can cause unease with existing institutions and the war against Bitcoin will be waged through a legal front. The endorsement of the EFF could set up a legal battle in the future, "Bitcoin vs. Entity X". What courts could fail to realize, however, is the non-centralized aspect of Bitcoin, which makes shutting down the service next to impossible. Most likely, that is why Bitcoin will succeed no matter what trials and tribulations it may have to face. Nevertheless, the EFF's willingness to accept Bitcoins will further the cryptocurrency's cause, and will encourage the recognition of Bitcoin as a currency to be "official". Several members of bitcoin.org have been involved in making the endorsement of the EFF happen which you can read at this forum thread. Feel free to donate to the EFF at their donation page.

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19 Nov '10

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Google charges feds $25 a head for user surveillance
by Eugen Leitl 19 Nov '10

19 Nov '10

http://www.theregister.co.uk/2010/11/18/microsoft_does_not_charge_for_gover… Google charges feds $25 a head for user surveillance Alert Print Post comment Retweet Facebook Microsoft charges zilch By Cade Metz in San Francisco b" Get more from this author Posted in ID, 18th November 2010 23:22 GMT Microsoft does not charge for government surveillance of its users, whereas Google charges $25 per user, according to a US Drug Enforcement Admission document turned up by security and privacy guru Christopher Soghoian. With a Freedom of Information Act (FOIA) request, Soghoian has exposed four years of DEA spending on wiretaps and pen registers. A wiretap grabs actual telephone or Internet conversations, whereas a pen register merely grabs numbers and addresses that show who's doing the communicating. In 2010, the document shows, the DEA paid ISPs, telcos, and other communication providers $6.7 million for pen registers and $6.5 million for wiretaps. Pen register payments more than tripled over the past three years and nearly doubled over the past two. Wiretap payments stayed roughly the same. The documents confirm that Microsoft does not charge for surveillance. "There are no current costs for information requested with subpoenas, search warrants, pen registers, or Title II collection [wiretaps] for Microsoft Corporation," they say. But they show that Google charges $25 and Yahoo! $29. As Soghoain points out, Google and Yahoo! may make more money from surveillance than they get directly from their email users. Basic Google and Yahoo! email accounts are free. Department of Justice documents (PDF) show that telcos may charge as much as $2,000 for a pen register. On the one hand, Microsoft could be commended for choosing not to make a single penny from government surveillance. But on the other, Soghoian says, the company should at least charge that penny, as that would create a paper trail. "You don't like companies to make money spying on their customers, they should charge something," Soghoian tells us. "You can't FOIA Microsoft's invoices, because they don't send any invoices." Most wiretap orders in the US involve narcotics cases, so DEA spending likely accounts for a majority of wiretap spending.

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18 Nov '10

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