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Chris Hedges: We Are Not the First Civilization to Collapse, but We Will Probably Be the Last – Scheerpost.com

The archeological remains of past civilizations, including those of the prehistoric Cahokia temple mound complex in Illinois, are sobering reminders of our fate.

By Chris Hedges / Original to ScheerPost

CAHOKIA MOUNDS, Illinois: I am standing atop a 100-foot-high temple mound, the largest known earthwork in the Americas built by prehistoric peoples. The temperatures, in the high 80s, along with the oppressive humidity, have emptied the park of all but a handful of visitors. My shirt is matted with sweat.

I look out from the structureknown asMonks Mound at the flatlands below, with smaller mounds dotting the distance. These earthen mounds, built at a confluence of the Illinois, Mississippi and Missouri rivers, are all that remain of one of the largest pre-Columbian settlements north of Mexico, occupied from around 800 to 1,400 AD by perhaps as many as 20,000 people.

Thisgreat city, perhaps the greatest in North America, rose, flourished, fell into decline and was ultimately abandoned. Civilizations die in familiar patterns. They exhaust natural resources. They spawn parasitic elites who plunder and loot the institutions and systems that make a complex society possible. They engage in futile and self-defeating wars. And then the rot sets in. The great urban centers die first, falling into irreversible decay. Central authority unravels. Artistic expression and intellectual inquiry are replaced by a new dark age, the triumph of tawdry spectacle and the celebration of crowd-pleasing imbecility.

Collapse occurs, and can only occur, in a power vacuum, anthropologistJoseph Tainterwrites inThe Collapse of Complex Societies. Collapse is possible only where there is no competitor strong enough to fill the political vacuum of disintegration.

Several centuries ago, the rulers of thisvast city complex, which covered some 4,000 acres, including a 40-acre central plaza, stood where I stood. They no doubt saw below in the teeming settlements an unassailable power, with at least 120 temple mounds used as residences, sacred ceremonial sites, tombs, meeting centers and ball courts. Cahokia warriors dominated a vast territory from which they exacted tribute to enrich the ruling class of this highly stratified society. Reading the heavens, these mound builders constructed several circular astronomical observatories wooden versions of Stonehenge.

The citys hereditary rulers were venerated in life and death. A half mile from Monks Mound is the seven-foot-highMound72, in which archeologistsfoundthe remains of a man on a platform covered with 20,000 conch-shell disc beads from the Gulf of Mexico. The beads were arranged in the shape of a falcon, with the falcons head beneath and beside the mans head. Its wings and tail were placed underneath the mans arms and legs. Below this layer of shells was the body of another man, buried face downward. Around these two men were six more human remains, possibly retainers, who may have been put to death to accompany the entombed man in the afterlife. Nearby were buried the remains of 53 girls and women ranging in age from 15 to 30, laid out in rows in two layers separated by matting. They appeared to have been strangled to death.

The poetPaul Valrynoted, a civilization has the same fragility as a life.

Across the Mississippi River from Monks Mound, the city skyline of St. Louis is visible. It is hard not to see our own collapse in that of Cahokia. In 1950, St. Louis was the eighth-largest city in the United States, with a population of 856,796. Today, that numberhas fallento below 300,000, a drop of some 65 percent. Major employers Anheuser-Busch, McDonnell-Douglas, TWA, Southwestern Bell and Ralston Purina have dramatically reduced their presence or left altogether. St. Louis is consistentlyrankedone of the most dangerous cities in the country.One in fivepeoplelive inpoverty. The St. Louis Metropolitan Police Department has the highest rate ofpolice killingsper capita, of the 100 largest police departments in the nation, according to a 2021 report. Prisoners in the cityssqualid jails, where 47 peopledied in custodybetween 2009 and 2019, complain of water being shut off from their cells for hours and guards routinely pepper spraying inmates, including those on suicide watch. The citys crumbling infrastructure, hundreds of gutted and abandoned buildings, empty factories, vacant warehouses and impoverished neighborhoods replicate the ruins of other post-industrial American cities, the classic signposts of a civilization interminal decline.

Just as in the past, countries that are environmentally stressed, overpopulated, or both, become at risk of getting politically stressed, and of their governments collapsing,Jared Diamondargues inCollapse: How Societies Choose to Fail or Succeed.When people are desperate, undernourished and without hope, they blame their governments, which they see as responsible for or unable to solve their problems. They try to emigrate at any cost. They fight each other over land. They kill each other. They start civil wars. They figure that they have nothing to lose, so they become terrorists, or they support or tolerate terrorism.

Pre-industrial civilizations were dependent on the limits of solar energy and constrained by roads and waterways, impediments that were obliterated when fossil fuel became an energy source. As industrial empires became global, their increase in size meant an increase in complexity. Ironically, this complexity makes usmorevulnerable to catastrophic collapse, not less. Soaring temperatures (Iraq is enduring120 degree heatthat has fried the countrys electrical grid), the depletion of natural resources, flooding, droughts, (the worst drought in 500 years is devastating Western, Central and Southern Europe and is expected tosee a declinein crop yields of 8 or 9 percent), power outages, wars, pandemics,a rise inzoonotic diseases and breakdowns in supply chains combine to shake the foundations of industrial society. The Arctic has beenheating upfour times faster than the global average, resulting in an accelerated melting of the Greenland ice sheet and freakish weather patterns. The Barents Sea north of Norway and Russiaare warmingup to seven times faster. Climate scientists did not expect this extreme weather until2050.

Each time history repeats itself, the price goes up, the anthropologistRonald Wrightwarns, calling industrial society a suicide machine.

InA Short History of Progress,he writes:

Civilization is an experiment, a very recent way of life in the human career, and it has a habit of walking into what I am calling progress traps. A small village on good land beside a river is a good idea; but when the village grows into a city and paves over the good land, it becomes a bad idea.While prevention might have been easy, a cure may be impossible: a city isnt easily moved. This human inability to foresee or to watch out for long-range consequences may be inherent to our kind, shaped by the millions of years when we lived from hand to mouth by hunting and gathering. It may also be little more than a mix of inertia, greed, and foolishness encouraged by the shape of the social pyramid. The concentration of power at the top of large-scale societies gives the elite a vested interest in the status quo; they continue to prosper in darkening times long after the environment and general populace begin to suffer.

Wright alsoreflects uponwhat will be left behind:

The archaeologists who digusup will need to wear hazmat suits. Humankind will leave a telltale layer in the fossil record composed of everything we produce, from mounds of chicken bones, wet-wipes, tires, mattresses and other household waste to metals, concrete, plastics, industrial chemicals, and the nuclear residue of power plants and weaponry. We are cheating our children, handing them tawdry luxuries and addictive gadgets while we take away whats left of the wealth, wonder and possibility of the pristine Earth.

Calculations of humanitys footprint suggest we have been in ecological deficit, taking more than Earths biological systems can withstand, for at least 30 years. Topsoil is being lost far faster than nature can replenish it; 30 percent of arable land has been exhausted since the mid-20th century.

We have financed this monstrous debt by colonizing both past and future, drawing energy, chemical fertilizer and pesticides from the planets fossil carbon, and throwing the consequences onto coming generations of our species and all others. Some of those species have already been bankrupted: they are extinct. Others will follow.

As Cahokia declined, violence dramaticallyincreased. Surrounding towns were burned to the ground. Groups, numbering in the hundreds, were slaughtered and buried in mass graves. At the end, the enemy killed all people indiscriminately. The intent was not merely prestige, but an early form of ethnic cleansing writes anthropologist Timothy R. Pauketat, inAncient Cahokia and the Mississippians.He notes that, in one fifteenth-century cemetery in central Illinois, one-third of all adults had been killed by blows to the head, arrow wounds or scalping. Many showed evidence of fractures on their arms from vain attempts to fight off their attackers.

Suchdescent intointernecine violence is compounded by a weakened and discredited central authority. In the later stages of Cahokia, the ruling class surrounded themselves with fortified wooden stockades, including a two-mile long wall that enclosed Monks Mound. Similar fortifications dotted the vast territory the Cahokia controlled, segregating gated communities where the wealthy and powerful, protected by armed guards, sought safety from the increasing lawlessness and hoarded dwindling food supplies and resources.

Overcrowding inside these stockades saw the spread of tuberculosis and blastomycosis, caused by a soil-borne fungus, along with iron deficiency anemia. Infant mortality rates rose, and life spans declined, a result of social disintegration, poor diet and disease.

By the 1400s Cahokia had beenabandoned. In 1541, when Hernando de Sotos invading army descended on what is today Missouri, looking for gold, nothing but the great mounds remained, relics of a forgotten past.

This time thecollapsewill be global. It will not be possible, as in ancient societies, to migrate to new ecosystems rich in natural resources. The steady rise in heat will devastate crop yields and make much of the planet uninhabitable. Climate scientistswarn thatonce temperaturesrise by 4, the earth, at best, will be able to sustain a billion people.

The more insurmountable the crisis becomes, the more we, like our prehistoric ancestors, will retreat intoself-defeating responses,violence, magical thinking anddenial.

The historianArnold Toynbee, who singled out unchecked militarism as the fatal blow to past empires,arguedthat civilizations are not murdered, but commit suicide. They fail to adapt to a crisis, ensuring their own obliteration. Our civilizations collapse will be unique in size, magnified by the destructive force of our fossil fuel-driven industrial society. But it will replicate the familiar patterns of collapse that toppled civilizations of the past. The difference will be in scale, and this time there will be no exit.

NOTE TO SCHEERPOST READERS FROM CHRIS HEDGES:There is now no way left for me to continue to write a weekly column for ScheerPost and produce my weekly television show without your help.The walls are closing in, with startling rapidity, on independent journalism, with the elites, including the Democratic Party elites, clamoring for more and more censorship. Bob Scheer, who runs ScheerPost on a shoestring budget, and I will not waver in our commitment to independent and honest journalism, and we will never put ScheerPost behind a paywall, charge a subscription for it, sell your data or accept advertising. Please, if you can, sign up atchrishedges.substack.comso I can continue to post my now weekly Monday column on ScheerPost and produce my weekly television show, The Chris Hedges Report.

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Multiverse and IQM Partner to Create Application Specific Quantum Computers – Quantum Computing Report

Multiverse and IQM Partner to Create Application Specific Quantum Computers

Multiverse Computing is a quantum software company based in Spain that tackles complex problems in finance, manufacturing, energy and other sectors with their proprietary quantum and quantum-inspired algorithms within its Singularity SDK. IQM is a European quantum hardware manufacturer that is focused on providing on-premise quantum processors for supercomputing data centers and research labs. As part of its efforts, IQM has engaged in a number of different projects, including a program funded by the German Federal Ministry of Education and Research, abbreviated BMBF. to develop application specific quantum processors to provide hardware optimized for specific use cases.

The two companies have entered into partnership to tightly integrate IQMs co-designed quantum processors with Multiverses Singularity SDK. When designing an application specific processor, one needs to have a deep understanding of the application and the specific algorithms that will be needed to provide solutions. IQM will be coordinating this effort through their office in Madrid, Spain to help the further development of the Spanish quantum ecosystem. Additional information about this new partnership is available in a press release located on the IQM website here.

August 19, 2022

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D-Wave Releases Its Second Quarter and First Half 2022 Financial Results – Quantum Computing Report

D-Wave Releases Its Second Quarter and First Half 2022 Financial Results

For its second quarter of fiscal 2022, D-Wave reported revenues of $1.371 million versus $1.137 million in the second quarter of 2021. Adjusted EBITDA showed a loss of $10.385 million versus a loss of $8.804 million in the same period a year ago and GAAP Net loss was $13.198 million versus a net loss of $4.668 million in 2021. The company reported that its customer base consists of 95 customers of which 55 are commercial organizations, representing an increase of 44% in the number of commercial organization customers in the past year. CEO Alan Baratz acknowledge during the earning calls certain headwinds stemming largely from the economic environment. To help adjust for these changes, they are increasing their budgets for go to market activities and moderating the budget growth in other areas. Despite this, he indicated that progress in their development programs has remained on-track or even been ahead of schedule in some cases. The company ended the quarter with about $10.5 million in cash, however they have announced an agreement that will provide them with a committed equity facility for up to $150 million. You can access a press release from D-Wave with their earnings announcement on their web page here and listen to their Q2 earnings call here.

August 18, 2022

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LLNL Joins Forces with HPC Centers in US and Europe to Form IASC – HPCwire

Aug. 16, 2022 Lawrence Livermore National Laboratory (LLNL) has signed a memorandum of understanding with high performance computing (HPC) facilities in Germany, the United Kingdom and the United States, jointly forming the International Association of Supercomputing Centers (IASC).

LLNL and co-founders the Science and Technology Facilities Council (STFC) Hartree Centre, the National Center for Supercomputing Applications (NCSA) and Leibniz Supercomputing Centre of the Bavarian Academy of Sciences and Humanities (LRZ) envision the IASC as a conduit for determining computing center management best practices, studying solutions for major common challenges and fostering communication and collaboration among the centers, partners and users.

With a long history of leadership in HPC, LLNL stands to benefit from its IASC membership by strengthening its legacy and supporting its national security mission, according to former High Performance Computing Innovation Center Director Wayne Miller, who was instrumental in the founding of the IASC.

We have had an enthusiastic response to the creation of the IASC from major compute centers across the globe, including LLNL, and also from more topical centers serving smaller user communities, Miller said. We also are talking to regional center associations that represent many constituent centers; all are facing the same problems and are welcoming this opportunity to have a broader, problem-focused collaboration. The common refrain were hearing is: Im surprised this doesnt exist already.

By joining IASC, the Hartree Centre as part of its goals of adding scalability and functionality for research and development and improving user accessibility to include organizations without HPC resources seeks to learn and share good practices for operating HPC centers.

Public-facing supercomputing centers have a unique set of problems that are complex or complicated in nature, said Michael Gleaves, deputy director of the Hartree Centre. I think there are plenty of initial areas that we are all struggling with today that we can use to generate collaboration. Weve announced the IASC to engage the global supercomputer center community and talk about why, what and how it can be of value.

One of the original supercomputing centers in the U.S., the NCSA sited at the University of Illinois at Urbana-Champaign hopes the IASC will offer computing centers the opportunity to collaborate and share similar expertise in research, computing, application development, thought leadership and innovation, while working together to solve grand challenges.

IASC represents the opportunity to address common challenges in supercomputing centers around the world talent, resources, diversity, unique compute architecture, said Brendan McGinty, director of industry at NCSA. Industry has long provided some of the largest datasets from which supercomputers have solved the grandest of challenges. The evolution from petascale to exascale in a decade, combined with the confluence of AI on traditional HPC domain solutions, has accelerated the time to and depth of solution. Industry has now fully caught up to advanced computing and that marriage has never been more important. It will take collaborations between centers with like talent and resources to address all the opportunities to help us all to evolve.

The LRZ a computing user facility founded in 1962 that serves Munichs top universities and colleges as well as research institutions in Bavaria, Germany and Europe intends to utilize the IASC to address key operational and technical issues, including operating and streamlining center infrastructure, user engagement and experience optimization, workforce development and best practice exchange.

With the IASC, we can achieve more together and learn from each other. We have common topics such as integrating quantum computing into our traditional systems, attracting and training a modern workforce and working toward climate-neutral operations, said Laura Schulz, department head of quantum computing at LRZ. So far, supercomputing centers have largely solved these issues for themselves, but we can optimize it by partnering in the IASC. Our next goal is to go on a virtual global listening tour to talk to centers around the world about their common challenges.

The participants plan to report on the results of their virtual tour at an appropriate conference in the next year. As they look to add more members, IASC participants will meet monthly and examine options for organizing the association. They also will evaluate the most useful modalities for continually addressing key challenges from member institutions and options for expanding membership.

Visit the website to learn more about IASC.

Editors Note: To learn even more about the IASC, read our feature coverage of its debut here.

Source: LLNL

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Why is the Cryptocurrency Market Crashing Today? – Watcher Guru

Just when investors thought that the markets were in a recovery mode, the markets gave out a reality check. The cryptocurrency market is crashing today as leading cryptos are down double digits. Theres still fear and panic as most cryptos shed the gains they generated last week. The crypto markets have continually been trading one step forward and two steps back in 2022, and todays crash is no different. Bitcoin plummeted nearly 8% on Friday, while Ethereum is down 5% and is expected to head south further.

In the last 24 hours, $550 million worth of cryptocurrencies have been liquidated from the markets. The overall crypto market cap is down nearly 7% and is standing at $1.09 trillion. The liquidation numbers are expected to fall further as Bitcoin is on a downward spiral.

Also Read: Shiba Inu, Doge Prices Tank Double Digits, XRP & BNB Close behind

The markets reacted to the FOMC Meeting Minutes as reports state that the Feds plan more interest rate hikes to tame inflation. The U.S central bank has not explicitly revealed the upcoming interest rates hike publicly. However, the Minutes Meeting suggests that the policymakers are committed to raising interest rates again.

The policymakers agreed that inflation rates did not subsidize despite their previous attempts to tame inflation. Participants agreed that there was little evidence to date that inflation pressures were subsiding, the Minutes Meeting read.

Also Read: Crypto Firm Hodlnaut slashes 80% of staff Amid Court Proceedings

Therefore, there are higher chances that the Feds might increase interest rates again in September. The decision will be confirmed in the next Minutes Meeting on September 20 and 21. It is reported that the Feds plan to double the rate of balance sheet shrinkage in September. However, the report is not confirmed until the Feds announce the next interest rate hike.

The FOMC Meeting was held on Wednesday, and the markets lost their cool after the release of the Minutes. The cryptocurrency markets are crashing today.

Heres what the FOMC Meeting Minutes read: Members agreed that, in assessing the appropriate stance of monetary policy, they would continue to monitor the implications of incoming information for the economic outlook and that they would be prepared to adjust the stance of monetary policy as appropriate in the event that risks emerged that could impede the attainment of the Committees goals.

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Ukraine has shown the value cryptocurrency offers to real people – Cointelegraph

The world is still struggling to comprehend the geopolitical and human impact of the Ukraine war. With more than 10 million people fleeingtheir homes and 6 million seeking refuge in foreign countries, it's been a time to support a sovereign country under attack.

It has also proven to be the moment where cryptocurrency proved its true value to real people. Not as the high-concept tech toy for the wealthy elite as many had previously dismissed it, but rather as an empowering force for good in a dangerously unstable world.

When the Russian invasion began in February, Twitter accounts belonging to the Ukrainian government posted pleas for crypto asset donations. Now, as more than $100 million in crypto donations have already been raised to support the Ukrainian resistance, those of us who have championed crypto as a way of giving ordinary people rather than corporations and governments control over their own money have been vindicated. While the banking financial system has been under sustained attack by Russia, using both military and cyberattacks, this life-saving money has gone directly to those in need via crypto.

Ukraine took a number of measures in an effort to stabilize the banking sector and protect the countrys economy, including suspending foreign cash withdrawals, limiting how much currency can be withdrawn, and banning cross-border forex transactions. Consequently, Ukrainians are turning to borderless and trustless crypto to enable them to either survive in or flee from the war zone.

Related:The Ukraine invasion shows why we need crypto regulation

We can now see the value of having somewhere safe to store money in a time when the traditional financial system is under threat a completely separate payment infrastructure that can step in and pick up the slack if the current infrastructure is destroyed in a black swan event. Whether it is a state destroying our ability to pay for goods and services or even a major cyberattack, the blockchain provides a vital backup to halt the destruction of entire economies.

We have witnessed digital currencies being used to quickly transfer cash to those in need from relatives abroad, enabling fleeing refugees to buy crucial goods and services when there is no cash in their ATMs after critical infrastructure has been decimated by relentless Russian attacks. Anyone with a mobile phone and internet access which has been bolstered by the thousands of Starlink satellite internet dishes generously provided by Elon Musks SpaceX can access their funds via crypto wallets.

Crypto averting sanctions? Think again

Digital currencies have not only shown their worth in helping desperate Ukrainian refugees but also in preventing sanctions from being averted. Contrary to speculation at the onset of the conflict, desperate Russian oligarchs have discovered that crypto is not the safe haven for their funds that they had hoped.

As the United Kingdoms independent crypto industry association, we called on all of our members and the wider crypto community to take all necessary steps to enforce economic sanctions against Russia through engagement with professional compliance teams, blockchain analytics companies, the National Crime Agency and government experts in illicit finance.

Contrary to the outdated image of crypto as a digital currency favored by criminals, every transaction on the blockchain is, in fact, publicly available, providing a secure and transparent record on a ledger that anyone can see. This publicly available information means that exchanges can use transaction monitoring tools to trace the source of the funds and flag what is coming from blacklisted, sanctioned sources.

The list of blacklisted addresses is in the public domain, which means that exchanges can not only identify and block sanctioned names but also prevent them from opening accounts in the first place.

Lack of liquidity

Contrary to some speculation, if Russia wanted to evade sanctions by converting fiat currency into crypto today, it would be extremely difficult because there is insufficient liquidity in the market to support exchanging its fiat for cryptocurrency at a sufficient scale.

If an oligarch is attempting to convert $1 billion into crypto, they would find that this vast amount of digital currency is simply not available in one place because it is scattered across thousands of marketplaces.

Building digitally from ground zero

The legacy systems upon which our financial markets stand are not going anywhere, and quite rightly, because governments around the world value the safety, predictability and security they offer. But if we could start from scratch, it is likely that we would turn to blockchain technology, which is at the cutting edge of financial technology thanks to its superior efficiency. It does away with all the intermediaries, reduces the time to settle, increases the global reach for sending payments, and reduces costs.

Related:Ukraine has received $37M in tracked crypto donations so far

Big payment providers, which connect the banking world with merchants, have already embraced crypto, providing the ability to pay with digital currencies as an alternative to paying a credit card charge. The cost of these transactions has increased significantly in recent years, and if a company is turning over tens of millions of dollars per year, 2% is a lot of money. If they have another way to pay using crypto for a fee of less than 1%, it is a better choice.

Ukraines financial infrastructure may emerge from this tragic war at ground zero, and we may soon witness a modern society rebuilding its economy with a strong blockchain technology element built in. As the shockwaves of this tragic conflict resonate around the world, crypto has risen to the challenge and proven itself a vital source of both financial stability and accountability.

The views, thoughts, and opinions expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Ian Taylor is the executive director of CryptoUK, an independent industry body that exists as a cohesive, credible voice for the evolving United Kingdom digital assets industry. Having spent 20 years in investment banking, he has held many senior roles across trading, treasury and risk management, and is still involved with a major global bank. In his role he has built a community of more than 100 of the most influential industry participants and campaigns for a fit-for-purpose regulatory framework in the U.K., Europe and beyond.

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OFAC Around and Find Out – Lawfare

The cryptocurrency space has long hoped to emulate the business model of Uber: ignore the regulations until you can grow too big to regulate, a technique called regulatory escape velocity. With Uber, the primary tool was simply violating taxi regulations among thousands of independent municipalities and daring the local regulators to do something. With cryptocurrency, the common excuse is to just write code that ignores centuries of financial regulation and then let it loose upon the world.

The cryptocurrency ecology has now run into a regulator that thinks nothing is too big to regulate: The Office of Foreign Asset Control (OFAC). On Aug. 8, OFAC announced the addition of virtual currency mixer Tornado Cash and all of its wallets to the Specially Designated Nationals and Blocked Persons List (SDN list), of entities that it is illegal for U.S. persons, or really anything that touches the U.S. financial system, to do business with.

OFAC is not a business regulator like the Securities and Exchange Commission (SEC). OFAC doesnt have consumer protection interest or authority, nor does it investigate the various other little crimes (such as billion-dollar Ponzi schemes or industrial-scale securities fraud) that infest the cryptocurrency space. OFACs focus is national security, no different than the Army or Air Force branches. However, OFACs tools are sanctions, not soldiers, as a way of keeping money out of the hands of what are deemed national security threats.

This has implications beyond Tornado Cash, including how cryptocurrency mining and bridging may act in the future. And a griefer, an online individual who delights in causing problems for others, has also shown that most of these decentralized systems arent.

Tornado Cashs Designation and Its Implications for Decentralized Cryptocurrency

Tornado Cash was notorious for being an automated money laundering system that processed billions of dollars worth of stolen cryptocurrency, including almost a billion stolen by North Korea (DPRK). The response to OFACs designation was swift: Tornado Cashs github archive and website went away, and the founder of Tornado Cash found his personal github account suspended. And Dutch authorities even arrested one purported developer on Aug. 10.

Similarly, although the cryptocurrencies themselves are supposedly decentralized, actually using them requires centralized providers like Infura, which powers the popular cryptocurrency wallet MetaMask. Infura blocked MetaMask from accessing anything involving Tornado Cash, reminding everyone that the distributed, uncensorable Ethereum blockchain that powers Tornado Cash is amazingly dependent on centralized entities to deliver even remotely usable systems.

Likewise, the organization responsible for Tornado Cash, the Tornado Cash DAO (decentralized autonomous organization, basically a corporation that doesnt bother to do the paperwork to gain the legal protections of a corporation), decided to fold up shop as they cant fight the U.S. government, freezing future development and transferring funds initially intended to support continued development of the system to those who invested in the Tornado Cash governance token.

While these developments havent halted the smart contracts that operate Tornado Cash, they have severely disrupted the contracts in a few ways. First, without the web interface or MetaMask support, it requires an expert to access the underlying smart contracts to either withdraw or deposit Ethereum in Tornado Cash, a feature common to many decentralized projects. Even then, this disruption limits the utility as outputs of Tornado Cash are easy to identify as coming from Tornado Cash. Most central providers now treat such flows as dirty.

Second, it also effectively stops copycats. The Tornado Cash code is still out there, and someone can spin up a copycat for a couple hundred dollars worth of Ethereum gas fees, but any new mixing services are no longer nearly as useful for criminals. The mixing service needs many users to provide useful anonymity, so if there are few users it provides little benefit for the criminals. But if there are a significant number of users, it is nearly inevitable that this will include the DPRK, meaning Tornado Cash 2.0 will end up in the same situation as Tornado Cash Classic.

Third, as cryptocurrency analyst David Gerard put it, the cryptocurrency community has long believed that if you create an automated box where you put clean and dirty money in and shake it around, all the money comes out clean rather than dirty. The latest designation shows that OFAC has seen through this illusion, meaning that if Iran or North Korea finds the service useful at scale, then these boxes will be at risk of sanctions. Other regulators are likely to follow suit.

Another amusing lesson arises from a griefer who sent small amounts of Ethereum (0.1Eth or about $200) to numerous high-profile Ethereum wallets. These wallets then found themselves locked out of numerous decentralized services.

This was due to how centralized services Chainalysis, TRM, and Elliptic provide an oracle to say, This is a sanctioned wallet, do not accept, to the numerous centralized services that actually power the Ethereum ecology. These web pages then blocked access to the supposedly decentralized systems.

The disruption, although temporary, is a great demonstration that most of the cryptocurrency space is something I now describe as Derp-Centralized: centralized systems, powered by centralized entities, that simply abrogate their responsibilities unless threatened by a powerful regulatory authority like OFAC.

Going forward, OFAC should watch the Tornado Cash pools and pay attention to subsequent outflows as they indicate two groups of additional targets that OFAC will probably need to warn if not sanction in the future: the Ethereum miners themselves and various bridge protocols.

There is a myth that cryptocurrency miners are not involved in transactions because the system is decentralized. But the reality is that every transaction is included in the public record by a single block producer who is effectively the money transmitter for the transactions in the particular block.

Miners can refuse transactions that meet their individual criteria (and they have done so). Marathon Digital Holdings previously created an OFAC compliant Bitcoin mining pool, although they stopped this enforcement due to public backlash: Apparently the cryptocurrency community views violating OFAC sanctions as a desired property.

OFAC Moving Forward

Although previously most cryptocurrency mining occurred in China, China evicted the miners because of their obscene power consumption and other reasons. The mining has largely bounced all over the world, but a huge amount has now settled into the U.S. and Canada. This is due to a combination of inexpensive, reliable power as well as a strong rule of law. Of course, the strong rule of law comes with the condition that the miners too have to follow the law.

OFAC should offer a friendly reminder to all U.S.- and U.S.-adjacent-based cryptocurrency miners that they have an obligation to follow OFAC regulations. OFAC should elaborate that a miner that produces a block is responsible for the transactions contained in the block.

And it wouldnt be an undue burden for the miners. Marathon Holdings already showed it is possible to provide OFAC-compliant mining by using a risk-scoring method to exclude sanctioned transactions.

The list of sanctioned cryptocurrency wallets, across numerous blockchains, is now substantial. OFAC provides a convenient downloadable list, and as seen before there are central services that allow easy querying to determine if a transaction would run afoul of OFAC or other laws. Miners with a U.S. nexus need to abide by those laws.

The other likely target for future OFAC enforcement is bridge protocols. The primary blockchains, Ethereum and Bitcoin, are slow, congested, and expensive to use. So there exist services that will take a users Ethereum or other cryptocurrency on one system and transfer it to another as wrapped tokens. It was specifically the Ronin bridge that the DPRK targeted in its record-setting hack.

But bridges dont just serve to transfer cryptocurrency. They can also disguise cryptocurrency. A bridge, like a mixing service, represents a large pool of cryptocurrency where a participant can make a deposit and, at a later date, withdraw the cryptocurrency. The DPRK has already discovered this, apparently having laundered some $150 million through the RenBridge system out of some $500 million of dirty cryptocurrency.

The operators of this bridge, by not putting in proactive controls, are playing with fire. After all, they could modify both the front end and smart contracts to access the information needed to block OFAC-sanctioned entities from using the bridge.

Overall, the cryptocurrency communitys attempt at regulatory escape velocity has run into a huge obstacle: There is no escape velocity from the surface of a black hole. Things are now entering the Find Out stage of OFAC Around and Find Out.

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Cryptocurrency Ethereum Classic Decreases More Than 15% Within 24 hours – Benzinga

Ethereum Classic's ETC/USD price has decreased 15.22% over the past 24 hours to $35.07, continuing its downward trend over the past week of -17.0%, moving from $42.27 to its current price.

The chart below compares the price movement and volatility for Ethereum Classic over the past 24 hours (left) to its price movement over the past week (right). The gray bands are Bollinger Bands, measuring the volatility for both the daily and weekly price movements. The wider the bands are, or the larger the gray area is at any given moment, the larger the volatility.

The trading volume for the coin has fallen 28.0% over the past week which is opposite, directionally, with the overall circulating supply of the coin, which has increased 0.16%. This brings the circulating supply to 136.43 million, which makes up an estimated 64.75% of its max supply of 210.70 million. According to our data, the current market cap ranking for ETC is #21 at $4.78 billion.

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Cryptocurrency based television advertisement expenses have fallen since February – The Financial Express

Market behaviour suggests that cryptocurrency television advertising has fallen in the United States without reasons for a break, as reported by Cointelegraph.

On the basis of Cointelegraphs data, a Bloombergs report emphasised that television advertising expenses among cryptocurrency trading firms went the lowest in over a year, with spending being $36,000 in July which went down from $84.5 million in February, data from ISpot stated. The spending spree of $84.5 million on advertisements took place during the US Superbowl period when Crypto.com, FTX US and Coinbase released high-profile advertisements to aware people about their cryptocurrency services. Despite the fall in television advertising costs, certain cryptocurrency firms such as Singapore digital asset management firm IDEG Limited made the statement of spending heavily on advertising to maintain brand awareness. According to Markus Thielen, chief investment officer, IDEG Limited, their company has been conservative with regard to cryptocurrency investments to benefit from current slowdown.

Information from Cointelegraph said that Apurva Chiranewala, general manager, Block Earner, an Australian cryptocurrency investment platform, the firm dialed back its marketing efforts amid the FUD of the current bear market. Bill Daddi, president, Daddi Brand Communications, a marketing agency, informed Bloomberg that if other firms decide to advertise on television again, theme of the message can change and convey something else.

Moreover, Cointelegraph mentioned about how the spending on television advertisements might be down but sports partnerships are still taking place. Going by insights from Financial Review, cryptocurrency companies such as Binance Holdings, OKX and FTX have undertaken spendings worth $2.4 billion on sports marketing over the past 12 months, which include costs on partnerships with teams such as Manchester City Football Club (FC) for $12 million, and for the naming rights to a National Basketball Association (NBA) sports stadium in Florida worth $135 million.

(With insights from Cointelegraph)

Also Read: How can investors trade in the Ethereum merge

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Why Cryptocurrency EOS Soared 19% While the Market Took a Breather Today – The Motley Fool

What happened

On an otherwise down day in the cryptocurrency market,EOS(EOS -8.20%) is one token that's absolutely rocketing higher. As of 12:30 p.m. ET, EOS has soared 19% over the past 24 hours.

The move follows an interesting court ruling this week in which a judge from the Southern District of New York threw out a settlement between Block.one (the company that initially designed the EOS network) and investors. This $27.5 million settlement, which was proposed by Block.one and agreed to in June of this year, stemmed from a dispute with investors over whether an initial coin offering back in 2018 constituted an unregistered securities offering.

Other crypto projects have been mired in scrutiny from regulators and investors over alleged unregistered securities offerings, but this settlement was one of the more substantial the crypto community had seen. In addition, it's important to note that Block.one also previously settled with the U.S. Securities and Exchange Commission for $24 million over the same allegations.

While the company sought to settle these claims to focus on moving its blockchain endeavors forward, it's clear that investors are paying close attention to what this ruling could mean for various projects embattled with legal issues. The fact that EOS is surging following this news indicates investors are taking the cue that the downside pressure from this headwind could be over.

Now, EOS isn't the only token that's been caught up in allegations of unregistered securities offerings. Other projects, includingXRP, are fighting similar battles. That said, the rather massive $4 billion raise Block.one managed to pull off in 2018, then the largest ever, made a settlement more likely. The ability for other projects to settle, given limited liquidity, remains uncertain.

The reason for this settlement being thrown out -- that the party representing investors didn't "adequately represent the interests of all investors" -- is interesting. From here, it will be interesting to see how this decision impacts ongoing litigation with other projects. Investors are clearly watching these cases closely, and EOS is one token that could represent the upside following potentially positive future rulings for other embattled crypto projects.

Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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