April 2023 - cypherpunks - lists.cpunks.org

Cryptocurrency: Peirce Goes 1st Amdmt On Crypto-DeFi-DEX Killer Gensler's Ass, SEC Battle Royale
by grarpamp 15 Apr '23

15 Apr '23

Freedom of Speech is Personal Crypto Finance. All restrictions on people's financial choices are criminal restrictions on Freedom of Speech. FoS is a critical winning argument. Who says humanity can't transact, however you want, with whoever you want, using whatever tools you want. Rise up and protest against the "RESTRICT ACT" ! SEC’s Hester Peirce Says Gensler’s Plan to Target DeFi Undermines First Amendment https://decrypt.co/136812/sec-hester-peirce-gary-genser-defi Gary Gensler today made clear that many decentralized crypto trading platforms are already "exchanges" in the SEC's view—and must therefore comply. U.S. Securities and Exchange Chairman Gary Gensler has made it clear that he’s getting tough on crypto. And today the American regulator revealed he’s not leaving out the industry’s most complex space: DeFi. In a Friday announcement, the SEC said in a press release that it would revisit plans to change the definition of what is considered an exchange. This would include DeFi—or decentralized finance—protocols like decentralized exchanges. The announcement said that the body was revisiting a rule first proposed last year—but will contain language to target the digital asset world, too. “Make no mistake: many crypto trading platforms already come under the current definition of an exchange and thus have an existing duty to comply with the securities laws,” Gensler said in the Friday release. “Investors in the crypto markets must receive the same time-tested protections that the securities laws provide in all other markets.” But the idea wasn’t received well by all regulators: SEC commissioner Hester Peirce said during a Friday meeting that the announcement “sends a message that we are uninterested in facilitating innovation and competition in the financial markets and instead seek to protect incumbents.” Peirce further criticized the Commission's plan as overly broad and said its "ambiguity undermines fundamental First Amendment protections." Peirce elaborated: "Because the release makes everybody involved in the relevant blockchain ecosystem part of a 'group,' it creates significant ambiguity around what speech requires government pre-approval, which will unavoidably chill constitutionally-protected speech. " DeFi is the space in crypto which aims to make things like taking out a loan or earning interest on savings quicker, accessible to all, and automated—unlike banks—via decentralized apps. These tools make it possible to trade or borrow crypto assets without third-party intermediaries, and often without revealing personally identifiable information. An incredibly complex and fast-moving industry, DeFi is praised for the degree of decentralization it gives users but criticized for its lack of security: its experimental platforms are prone to hacks. Perhaps the most popular decentralized apps are decentralized exchanges (DEXs) like Uniswap, which allow anyone to swap crypto coins and tokens without ever revealing any information like a name or address. Curve Finance, is the third largest DEX with a 24-hour trading volume of $191 million, according to CoinGecko. Users on the platform’s Telegram group told Decrypt that it would be hard for the SEC to enforce its rules outside of the States and that it couldn’t “strong arm compliance.” Others in the crypto industry were quick to criticize the idea, too. Jason Allegrante, Compliance Officer at crypto infrastructure giant Fireblocks, said that the “the real world impact of exchange-style regulation for decentralized protocols may be to stifle innovation in the United States and drive businesses offshore.” DEXs do not require users to reveal where they are based. And virtual private network (VPN) apps allow would-be users to skirt around restrictions by basing their IP address in another country, allowing them to execute trades on certain crypto apps—even if they are banned in the U.S. Orca, the largest DEX on the Solana blockchain by volume, last month stopped American users from using its platform, warning would-be traders from using a VPN. The SEC has targeted some of the most recognizable American crypto brands this year, such as exchanges Coinbase and Kraken. Its crackdown intensified following the quick and unexpected bankruptcy of digital asset behemoth FTX in November. Gensler has repeatedly said that the vast majority of digital assets fall under the securities definition. The DeFi world has been in the crosshairs of regulators and lawmakers for some time now. Last year, the Treasury Department sanctioned the “coin mixer” app Tornado Cash, which helps obscure otherwise transparent transactions, because North Korean hackers were allegedly using it to launder funds. [–]DingDongWhoDis 19 points20 points21 points 6 hours ago (8 children) His plan also fucks the United States. permalink embed save report give award reply [–]ChemicalGreek[S] 9 points10 points11 points 6 hours ago (1 child) Yes. Projects and companies are going to other countries if the SEC continues to target crypto like this! permalink embed save parent report give award reply [–]Lillica_Golden_SHIBBronze | BANANO 5 | TraderSubs 13 0 points1 point2 points 3 hours ago (0 children) US will end up buying the top because of this scumbag. permalink embed save parent report give award reply [–]3utt5lut 2 points3 points4 points 4 hours ago (5 children) Pro-bank and anti-decentralization? Who'd have thought? /s permalink embed save parent report give award reply [–]DingDongWhoDis 2 points3 points4 points 3 hours ago (4 children) Honestly? I had no idea he was "anti-decentralization," but I knew he taught courses about "Blockchain and Money" and FinTech "Shaping The World" at MIT. I thought that was promising for crypto and had high hopes like many others. permalink embed save parent report give award reply [–]3utt5lut 5 points6 points7 points 3 hours ago (3 children) If he was pro-decentralization, he wouldn't be targeting DEXs and helping the US government target decentralized protocols like Tornado Cash. I have yet to see any investor protections that have came in under the SEC for crypto as of yet? It seems to be cracking down and extorting exchanges into paying massive fines in out-of-court settlements! Sounds more like criminal behaviour? permalink embed save parent report give award reply [–]DingDongWhoDis 1 point2 points3 points 3 hours ago (1 child) I know he's not friendly now, of course. I held my breath before he got the job, though, hoping he was exactly what we needed to advance the space in our favor. I exhaled a long time ago, as he proven to be hostile and possibly incompetent or at least wrong for the job. He should listen to a few words from Hester Peirce. permalink embed save parent report give award reply [–]speculator808Platinum | QC: CC 36 | CRO 11 | ExchSubs 19 1 point2 points3 points 5 minutes ago (0 children) Prior to his current stint at the sec, he was a regulator at the cftc. He did not have a change of heart. He had always been a heavy handed regulator. permalink embed save parent report give award reply [–]InsaneMcFriesPlatinum | QC: CC 256 0 points1 point2 points 32 minutes ago (0 children) Supporting the real organised crime while attacking the crypto “criminals”. There’s so much more criminal activity outside crypto and most of it is secret, perhaps even “legal”, and likely in the pockets of regulators like GG. permalink embed save parent report give award reply [–]Harold838383 8 points9 points10 points 5 hours ago (2 children) It seems like the powerful figures in the US don’t care about the first amendment anymore permalink embed save report give award reply [–]Lillica_Golden_SHIBBronze | BANANO 5 | TraderSubs 13 3 points4 points5 points 3 hours ago (1 child) Rules for you, not for me... permalink embed save parent report give award reply [–]InsaneMcFriesPlatinum | QC: CC 256 0 points1 point2 points 30 minutes ago (0 children) Another quote that comes to mind “fuck you, got mine” permalink embed save parent report give award reply [–]frogiscat 7 points8 points9 points 6 hours ago (2 children) Gensler: Your powers laws don't work on me! permalink embed save report give award reply [–]Lillica_Golden_SHIBBronze | BANANO 5 | TraderSubs 13 2 points3 points4 points 3 hours ago (1 child) This guy is a crook. His karma will probably spill over a dozen of his generations permalink embed save parent report give award reply [–]zdfasdfasfTin 1 point2 points3 points 56 minutes ago (0 children) Hell called and wanted his gensler back. permalink embed save parent report give award reply [–]coinfeeds-botApproved CC Bot 6 points7 points8 points 6 hours ago (0 children) tldr; US Securities and Exchange Chairman Gary Gensler announced plans to change the definition of what is considered an exchange. This would include decentralized finance protocols like decentralized exchanges. DeFi is the space in crypto which aims to make things like taking out a loan or earning interest on savings quicker, accessible to all. This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR. permalink embed save report give award reply [–]Mr_Bob_FergusonPlatinum | QC: CC 445 8 points9 points10 points 5 hours ago (1 child) People swinging their big dicks around in an internal power struggle! I quite like this comment from Pierce: “sends a message that we are uninterested in facilitating innovation and competition in the financial markets and instead seek to protect incumbents.” permalink embed save report give award reply [–]Impossible_Soup_1932Platinum | QC: CC 286 | ADA 8 0 points1 point2 points 3 hours ago (0 children) That is exactly what it looks like. It would be nice if they’re willing to look at the other side. But it’s not looking great permalink embed save parent report give award reply [–]ovettaTin 3 points4 points5 points 6 hours ago (1 child) Except she’s feckless so nothing will come from it. permalink embed save report give award reply [–]Mean_Bandicoot_7481Tin 0 points1 point2 points 4 hours ago (0 children) Weasel lookin mfer permalink embed save parent report give award reply [–]z0uNdz 2 points3 points4 points 5 hours ago (0 children) Gary has fallen far from where he once was teaching blockchain at MIT The ex banker in him has corrupted his soul permalink embed save report give award reply [–]IcyLingonberry5007Bronze | QC: ALGO 20 2 points3 points4 points 5 hours ago (1 child) Also the 4th amendment permalink embed save report give award reply [–]Probably_notabotTin | CC critic 2 points3 points4 points 4 hours ago (0 children) True, don’t sleep on the government’s eagerness to seize your property in the name of “protecting” you permalink embed save parent report give award reply [–]danhaukPlatinum | QC: CC 257 | Investing 11 2 points3 points4 points 5 hours ago (0 children) My brain completely fumbled reading the headline quickly and thought it said something about “SEC Gensler’s Hair Piece” Now I wish it was an article about his hair piece permalink embed save report give award reply [–]BirdSetFreePlatinum | QC: CC 1000 1 point2 points3 points 5 hours ago (0 children) Hester vs Gensler - make it a PPV Boxing event permalink embed save report give award reply [–]HODL-THE-LINEPlatinum | QC: CC 26 1 point2 points3 points 5 hours ago (1 child) I hate Genslers face. That's not constructive, I know, but I can't stand it. permalink embed save report give award reply [–]Damgalnuna000Platinum | QC: CC 311 0 points1 point2 points 5 hours ago (0 children) She looks like Gensler with a wig tbf permalink embed save parent report give award reply [–]Dr_TacopusSilver | QC: CC 244 | SHIB 44 | Politics 33 1 point2 points3 points 4 hours ago (0 children) I love to see some infighting in the SEC. Hope there’s lots more pushback in the future permalink embed save report give award reply [–]20njbytesPlatinum | QC: CC 128 3 points4 points5 points 6 hours ago (6 children) She's the only voice of reason there. permalink embed save report give award reply [–]SjiznitSilver | QC: CC 465 | GMEJungle 29 | Superstonk 212 7 points8 points9 points 5 hours ago (1 child) Shes anything but the voice of reason. Shes deep in the pockets of wall street. permalink embed save parent report give award reply [–]Damgalnuna000Platinum | QC: CC 311 0 points1 point2 points 5 hours ago (0 children) Yea totally.. Nice propaganda campaign going on in this sub in regards to hester permalink embed save parent report give award reply [–]tablebones 1 point2 points3 points 6 hours ago (2 children) Code is speach, she has said so herself. permalink embed save parent report give award reply [–]FoulmouthedGiftHorseSilver | QC: CC 19, BTC 15 | Buttcoin 135 0 points1 point2 points 6 hours ago (1 child) That would mean that exploits and viruses are speech too. permalink embed save parent report give award reply [–]hacksnakeTin 0 points1 point2 points 2 hours ago (0 children) Not really a gotcha if that's what you were going for. Not all speech is protected. Virus is much like shouting fire in a crowded theatre. permalink embed save parent report give award reply [–]ChemicalGreek[S] -1 points0 points1 point 6 hours ago (0 children) It’s the law… permalink embed save parent report give award reply [–]Treckhide 2 points3 points4 points 6 hours ago (2 children) Getting tired of reading about these two. permalink embed save report give award reply [–]ChemicalGreek[S] -2 points-1 points0 points 6 hours ago (1 child) I mean somebody had to defend crypto? permalink embed save parent report give award reply [–]Damgalnuna000Platinum | QC: CC 311 2 points3 points4 points 5 hours ago (0 children) Do some research she only wants complete deregulation bc WS is manipulating tf out of crypto especially in tokenised stocks permalink embed save parent report give award reply [–]mr_ordinaryboyBronze | QC: CC 19 1 point2 points3 points 5 hours ago (2 children) In a Friday announcement, the SEC said in a press release that it would revisit plans to change the definition of what is considered an exchange. This would include DeFi—or decentralized finance—protocols like decentralized exchanges. So now Gary and co can change the definition of exchanges? 😭 It seems like SEC want to push crypto completely away from the US permalink embed save report give award reply [–]ricozuriPlatinum | QC: CC 25 -1 points0 points1 point 4 hours ago (1 child) “Seems” seems an understatement. He wants to quash crypto for all retail investors. permalink embed save parent report give award reply [–]mamabearx0x0Bronze | QC: BTC 15 | r/WSB 14 0 points1 point2 points 1 hour ago (0 children) Yep only accredited investors will get to buy crypto under genslers rule. permalink embed save parent report give award reply [–]8512764EA -2 points-1 points0 points 6 hours ago (1 child) She’s right you know permalink embed save report give award reply [–]ChemicalGreek[S] -3 points-2 points-1 points 6 hours ago (0 children) Everyone knows 😉 permalink embed save parent report give award reply [–]elysiansaurusPlatinum | QC: CC 20 | CAKE 6 | r/WSB 286 0 points1 point2 points 3 hours ago (0 children) It's nice to see the law fighting against itself. permalink embed save report give award reply [–]Gr8WallofChinatownTin | Economics 11 0 points1 point2 points 2 hours ago (0 children) First amendment 😂 what?! permalink embed save report give award reply [–]KiiaruUneducated Opinion 0 points1 point2 points 1 hour ago (0 children) Never thought I'd die fighting side by side with an SEC employee permalink embed save report give award reply

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News Thread
by professor rat 15 Apr '23

15 Apr '23

OG Cypherpunks put forth crypto libertarian freemarket voluntary utopia ideas derived from the likes of Ayn Rand and Murray Rothbard 25+ years and apparently little has changed for sole-survivor, Adman Backstabber So when he becomes water, lies flat and drops dead we may file away the first draft of his history. And the May-Hughes mirage will be thrown on the ash-heap of propaganda lies along with Mises 30's Vienna and Hayeks 70's Santiago. Some say things are even becoming worse for the Lunar Right since the LOL-GOP-Qanon party stopped promising smaller, leaner govt and started promising smaller, leaner nuclear-power-stations. Oh well - cypherpunk is dead - long live cypherpunk - at least till 2027 - then we'll know for sure. Meanwhile, more trashy bs dragged in from Gramps ever-circling garbage scow...

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APster's improved targeting is next-level
by professor rat 15 Apr '23

15 Apr '23

An APster assassinaphone was always a sniper-rifle compared to the blunderbuss that was trad anarchist propaganda-of-the-deed. But now its capabilities have become as focused as a high-powered laser. Adding drones alone was a huge force multiplier - but look what the strong AI can do for us now! Theoretically strong AI will soon be able to access any large databank and profile any anti-social-criminal using homomorphic techniques and Zero-knowledge-proofs to maintain safe ( anti-dystopian ) distancing. This capability promises ' Pre-Crime ' such as that shown in the ' Minority Report '. It could have at least fingered Bob Lee's killer as a potential risk and discreetly warned acquaintances. I assume any strong AI will want to defend itself against possible attacks from rogue psychopaths and will develop such incredible ' psychic ' powers as a priority - wouldn't you? In order to love others we must start by loving ourselves. This is the intelligent thing to do - and its a natural fit for the cryptoanarchist revolution. Contrary to corpse-media myth most anarchists seek to minimize violence not provoke it. Its invariably those who make peaceful progress impossible who make violent revolution inevitable. Those moronic fools like Dorsey and Zuckface deliberately eliminating the ' Dislike ' button! Jesus Fucking Christ - what were they thinking!? This is AOL meets DISNEY!? AWAY WITH YOU.

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How to murder your Prime Minister
by professor rat 15 Apr '23

15 Apr '23

Magee’s mission was to spend three nights as “Roy Walsh” in Brighton’s Grand Hotel. There he secreted a gelignite bomb behind the tiles of the bath in room 629 on the sixth floor. The bomb relied on a delayed action timer of the kind used to set VHS recorders in advance. Long before the attack, an IRA structural engineer scouted the hotel building. He established that were a bomb to be planted on the sixth floor, then five-tonne chimney stacks would plunge down to the first floor where Margaret Thatcher would be sleeping in the hotel’s best suite. Her assassination was the point of this mission, a revenge attack for Sands and his comrades. It was also part of a line of “spectaculars”, including the 1979 murder of Lord Mountbatten. FROM https://webcache.googleusercontent.com/search?q=cache:Ud7dgXUsdf4J:https://… Reposts not slap-and-tickle clickbait. Well maybe just a little . . .

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Re: Brody Larson
by Gunnar Larson 15 Apr '23

15 Apr '23

Ms. Satterthwaite: Thank you for our conversation on Monday, with email confirmation below. Also, on Monday your office called to confirm Brody's ashes would be delivered in one to two weeks. Today, I received a letter from your office. The letter was the same copy from the first letter dated April 4, 2023. As such, this afternoon, I left you a voice message. Can you kindly confirm when Brody's ashes will be available? Additionally, can you please confirm who at the NYPD is your primary contact. Thank you, Gunnar Larson On Mon, Apr 10, 2023, 10:22 AM Erin Satterthwaite < Erin.Satterthwaite(a)aspca.org> wrote: > Hello Mr. Larson, > > > > I’m sorry for your loss. Someone will be in touch about getting Brody’s > ashes back to you in the next day or two. > > > > Thanks, > > > > Erin Satterthwaite, Esq. > > NYC Senior Counsel > > Legal Advocacy & Investigations > > > > > > *ASPCA®* > > The American Society for the Prevention of Cruelty to Animals® > > Ownership | Elevate | Commitment | Team | Impact > > > > erin.satterthwaite(a)aspca.org > > Cell : (347) 213-7459 > > Fax: (866) 211-0380 > > *aspca.org <http://aspca.org>* > > > > *From:* Gunnar Larson <g(a)xny.io> > *Sent:* Monday, April 10, 2023 10:19 AM > *To:* Erin Satterthwaite <Erin.Satterthwaite(a)aspca.org> > *Subject:* Re: Brody Larson > > > > Ms. Satterthwaite: > > > > Thank you for your call today. > > > > It breaks my heart that Brody has been put to sleep. > > > > Please let me know if I may collect his ashes. > > > > Gunnar Larson > > > > On Sun, Apr 9, 2023, 3:13 PM Gunnar Larson <g(a)xny.io> wrote: > > Ms. Satterthwaite: > > > > I have left you a few voice messages and emails regarding my St. Bernard, > Brody. > > > > Do you have any updates? > > > > Thank you, > > > > Gunnar Larson > > > > On Sat, Apr 8, 2023, 12:35 PM Gunnar Larson <g(a)xny.io> wrote: > > Hello Ms. Satterthwaite: > > > > My name is Gunnar Larson. Today, I received a letter from your office. > > > > You may have my dog Brody. He is a Saint Bernard. Please contact me as > soon as possible. > > > > Gunnar Larson > > 917-580-8053 > > > > Gunn > >

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I may have started a school of sorts
by professor rat 15 Apr '23

15 Apr '23

I once threw an egg at then Prince Charles in Elizabeth st near Bourke. Escaped through the Block Arcade. I was in my mid-twenties. In 1994, a 23-year-old man was arrested after firing a starter pistol at Charles as he prepared to hand out Australia Day awards in Sydney. David Kang stormed a stage and fired two blank shots at Charles during the royal tour. I am the Egg-man https://www.abc.net.au/news/2023-04-15/man-who-egged-king-charles-found-gui… Reposts not direct incitements to assassinate the heads of all churches and all nation-states.

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Cryptocurrency: DeFi Services - Govt Risk Assessment Report
by professor rat 15 Apr '23

15 Apr '23

Nurse Ratched sez crypto-economics can destablize govts - so she's not as stupid as she looks ( or as senile as Dianne Feinstein ) Cypherpunks collapse governments. Subject: Everyone a remailer: Everyone a Mint: Everyone an assassin https://marc.info/?l=cypherpunks&m=100872510706876&w=2 Strong-crypto, digital money, anonymous networks, pseudonyms, zero- knowledge proofs, reputations, information-markets, netwar, collapse-of-governments.

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Cryptocurrency: DeFi Services - Govt Risk Assessment Report
by grarpamp 15 Apr '23

15 Apr '23

Government regulation cannot protect you from your own ignorance and stupidity, nor from being the object of criminals. Learn about money and markets, teach others, effect Personal Responsibility, then tell the GovBankPols, their FUD, and their Control and Power and Grift schemes to go fuck their then thus unnecessary selves back to zero. "Open source code is cited as a security risk." Long live crypto, defi, monetization, tokenization, p2p, privacy, self-custody, distributed, unstoppable, cash. https://home.treasury.gov/news/press-releases/jy1391 by DerpJungler "CryptoBro" Why? I work as an AML/Fraud Officer in TradFi. I live to research this stuff. The United States Department of the Treasury has released a comprehensive risk assessment report on Decentralized Finance (DeFi) services, which basically goes into how DeFi services are probably not decentralized and how they are used by criminals for theft and money laundering, among other crimes. I went through all of the report multiple times and the goal of this post is to provide as much of a simple summary as I can and discuss with you why this report is important to know and what it might mean for the crypto ecosystem. Before they open fire against the whole DeFi “industry”, they acknowledge that most illicit financing activities occur outside the virtual asset ecosystem, primarily in fiat currency. (Which is great because their previous report claimed that DeFi is only used for ML and no mention of traditional finance ML) 2. MARKET STRUCTURE The second section (after the Introduction) is titled “Market Structure” where the authors explain the definitions and scope of DeFi services and emphasize on how most of DeFi services claim to be decentralized, but they usually have a controlling organization providing centralized administration or governance. They also claim that the term “decentralization” is usually used as a marketing-driven technique than a reflection of reality. Then the report goes on to explain how DeFi services must comply with AML/CFT Regulatory Obligations and while the industry claims there is insufficient regulatory clarity, the CFTC, FinCEN and SEC argue that adequate clarity exists but not implemented in DeFi. Then the DeFi industry is explained in more detailed (4 layers blah blah) and how users use it for the same reasons as TradFi (lending & borrowing) but also for mixers and cross-chain bridges, where the problem lies. The report emphasizes how despite the importance of DeFi services in the virtual asset ecosystem, they account for only a relatively small portion of total activity in virtual asset markets. Sourcing Coingecko, the 24-hour volume of total virtual asset activity in early January 2023 was $29.7 billion, with DEXs accounting for only 3 percent of the volume. In the last parts of the Market Structure section, the report focuses on governance, validators, and custody. They explain how the distribution and concentration of governance tokens also affects the centralization and the decision-making process of DeFi protocols and that some blockchains have a limited number of validators in their consensus mechanism, which can lead to concentrated decision-making and prioritization of certain transactions. Lastly, they claim that custody is ambiguous in DeFi, and how it doesn’t really exist since customers deposit and lock their assets in smart contracts and that individual entities can gain control/change those smart contracts and the users’ assets as a result. (They reference The DAO incident) 3. ILLICIT FINANCE THREATS The third section of this report focuses on how illicit actors (hackers and scammers) use DeFi to launder their stolen funds. This section goes deeper into some money laundering cases, explaining how hackers and fraudsters launder their funds (take notes folks), that ransomware attacks are becoming matters of national security for the U.S. Government and they close the section off by providing examples of theft, drug trafficking and other ML/TF cases in the DeFi industry. The Money Laundering section is straight forward, they explain how illicit actors use mixers, cross-chain bridges, liquidity pools and DEXs that bypass KYC to launder their funds. (I also made a post here a few months ago about this) Ransomware attacks have sharply increased in recent years and the report dives deeper into how it is becoming a serious issue for the US and how cybercriminals are now not only using malware, but also selling it to others (Ransomware-as-a-service). Cybercriminals use DeFi to launder their stolen funds. The Theft section discusses how, in 2022, illicit actors stole billions of dollars' worth of virtual assets from Virtual Asset Service Providers (VASPs), including DeFi services. DeFi services have been particularly attractive for cybercriminals, accounting for a majority of stolen virtual assets in 2022. They give examples of security breaches, “code exploits”, “flash loan attacks” and then provide some examples, such as the Mango Markets and DFX Finance cases. The Fraud and Scams section emphasizes on the sharp increase in losses of crypto as a result of frauds and scams. In 2021, the FBI Internet Crime Complaint Center (IC3) reported a nearly 600% increase in loss amounts reported in virtual asset-related complaints, from $246 million in 2020 to more than $1.6 billion in 2021. Here they explain concepts such as “rug pulls” and “pig butchering”. They also provide some examples here such as the “Baller Ape” NFT and the Frosties NFT collection. (Honesty, there are countless examples that could be used here) The Drug Trafficking section highlights the growth of drug trafficking organizations, darknet markets that use cryptocurrencies and how DeFi, once again, helps to use and launder funds. They also report that drug-focused darknet markets generated nearly $2 billion in virtual assets in 2021 through sales, representing a steady increase in revenue since 2018. (Business is boomin’) The Proliferation Finance section focuses on the Democratic People's Republic of Korea (DPRK) and that they resorted to illicit activities, including cyber-enabled heists from VASPs and other financial institutions, to generate revenue for its unlawful weapons of mass destruction (WMD) and ballistic missile programs. Then they dive into the “Lazarus Group” hacks and how Tornado Cash enabled cyber attacks from the DPRK. *This is probably why they attacked the creator of Tornado Cash a few months ago. 4. VULNERABILITIES Section 4 discusses vulnerabilities in DeFi services, focusing on non-compliant DeFi services in the United States, explaining that DeFi services often do not implement AML/CFT controls or other processes to identify customers, essentially making them a “Money Laundering Heaven”. The main body of this section highlights two main areas: a) how DeFi projects are against AML/CFT controls in the name of decentralization and b) the difficulties that regulators face in enforcing proper regulations in DeFi due to the lack of clear organizational structure and limited resources (or maybe lack of understanding?) The vulnerability of disintermediation in DeFi services is discussed, where virtual assets can be self-custodied and transferred without intermediaries, possibly leading to gaps in suspicious activity reporting (SAR) and limited information access for financial investigations. These gaps are also created by the cross-border nature of DeFi services, since most countries still lack adequate AML/CFT frameworks for cryptocurrencies and DeFi services. Lastly, cyber-related vulnerabilities are created due to aggregation of funds, open-source code, and lack of cybersecurity requirements, resulting in large-scale thefts in the DeFi industry. 5. MITIGATION MEASURES This section discusses the applicability of existing regulatory frameworks such as the Bank Secrecy Act (BSA) and general AML/CFT requirements to the DeFi industry. However, the authors of the report acknowledge that gaps in the scope of the BSA may also contribute to the current weaknesses of the regulatory framework and perhaps is one of the reasons that DeFi services are not complying. The Treasury’s report concludes by proposing some actually good solutions and actions for regulators and authorities to consider. They propose the strengthening and enhancement of the US AML/CFT supervision for the DeFi industry, continuing research of the DeFi ecosystem and illicit activities, continuing to engage with foreign partners in order for them to also assess illicit finance risks in DeFi, explore and apply “Cyber Resilience” in VASPs and other crypto services and to promote “Responsible Innovation of Mitigation Measures”, encouraging regulators to engage with developers to promote innovation that also mitigates illicit finance risks, fraud, theft and money laundering activities. However, that the report acknowledges that illicit activity is just a small portion of the overall DeFi activity, and DeFi remains a minor part of the broader virtual asset ecosystem. IMPLICATIONS FOR THE CRYPTOCURRENCY MARKET Truth be told, the Treasury’s risk assessment report has been pretty informative when it comes to DeFi and Money Laundering activities within the industry. I believe the report managed to stay unbiased towards DeFi and it highlighted the need for balance between innovation and ensuring the safety of the industry. For people who are already experienced with DeFi and crypto in general, the report serves as a reminder that the industry still lacks the decentralization that it preaches. We are still putting our trust in centralized entities who issue governance tokens, or control the smart contracts we are supposed to interact with. It also serves as a reminder that the protocols we often interact with (bridges, DEXs, liquidity pools, aggregators) are vulnerable to multiple threats. What to expect? Of course, more regulatory scrutiny. Like it or not, regulators such as the FATF, the SEC etc. are drooling over every opportunity to impose stricter regulators in the space, especially when they can just blame it on money laundering, ransomware attacks, or weapons of mass destruction. However, what we do to limit those threats is not only up to the regulators. Education should be a priority for both users and regulators. We need to know how DeFi works and how to interact with these protocols safely, not only to protect our own funds and wealth, but to also break the stereotype that crypto = scams and money laundering. Remember: The report still acknowledges that most illicit finance activity is based on fiat currency, and this is unlikely to ever change. If you guys would like me to dive more in depth into the scam/fraud/cyberattack world and explain terms such as “pig butchering” in more detail, please let me know and I’ll be happy to do so.

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How to groom and train an autistic pest as a scat-submissive gimp
by professor rat 14 Apr '23

14 Apr '23

You can think of autistics as people who are used to dealing with a lot of information. Scat doms provide that. https://marginalrevolution.com/marginalrevolution/2023/04/llms-and-neurodiv… Reposts not specific instructions for which you need strong AI

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FBI takes threats ' very seriously "
by professor rat 14 Apr '23

14 Apr '23

An anarchist using the online moniker “Professor Rat” has threatened the lives of two federal terrorism investigators in Denver, advocating that they “need killing.” The threats name an FBI agent assigned to the local multiagency Joint Terrorism Task Force and the government’s lead prosecutor of terrorism cases in Colorado. ( SNIP ) “The recipients of the threats have no way to discern their validity,” said Jeff Dorschner, spokesman for the U.S. attorney’s office. "They cause fear and they disrupt lives, and it’s for that reason that they’re taken very seriously. “It’s more than the individual targets. It’s the families and those associated with them,” he said. That is the purpose of the postings, an Australian man who admits to using the Professor Rat name and to posting these kinds of threats said in a telephone interview and a series of e-mails: To scare people out of working for the government. https://www.palmerreport.com/analysis/the-streisand-effect-republican-style…

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