Amazon’s Twitch Hit by Data Breach

Amazon.com Inc.’s livestreaming e-sports platform Twitch said Wednesday that it had been hit by a data breach. It gave no details.

An anonymous hacker claimed to have leaked Twitch data, including information related to the company’s source code, clients and unreleased games, according to Video Games Chronicle, which first reported the news of the hack.

Twitch confirmed the breach and said its “teams are working with urgency to understand the extent of this.”

The company declined to comment further and said ((https://twitter.com/Twitch/status/1445770441176469512)) it would “update the community as soon as additional information is available.” Amazon did not immediately respond to a request for comment.

The hacker’s motive was to “foster more disruption and competition in the online video streaming space,” according to the Video Games Chronicle report.

About 125GB of data was leaked, including information on Twitch’s highest-paid video game streamers since 2019, such as a $9.6 million payout to the voice actors of popular game “Dungeons & Dragons” and $8.4 million to Canadian streamer xQcOW, the report said.

“Twitch leak is real. Includes significant amount of personal data,” cyber security expert Kevin Beaumont tweeted.

Twitch, which has more than 30 million daily visitors on average, has become increasingly popular with musicians and video gamers. They interact with users while live streaming content.

The platform, which was boycotted earlier this year by users for not doing enough to block harassment, previously made a move to ban users for offenses such as hate-group membership and credible threats of mass violence.

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Facebook Called On to Answer Criticism About Negative Effects

Facebook is in the hot seat again. A recent Wall Street Journal report cites internal knowledge of its harmful effects and the company’s reticence to act. A whistleblower, a former Facebook employee, came out in public this week to testify against the social media company, only adding to the scrutiny. Tina Trinh reports. 

Produced by: Tina Trinh

 

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US Lawmakers Pillory Social Media Giant Facebook

Key U.S. lawmakers pilloried social media giant Facebook on Tuesday after Frances Haugen, an inside whistleblower who once worked at the company, alleged that Facebook’s products are harming young people, undermining democracy and helping to divide the country politically. 

Haugen, who worked as a Facebook project manager for less than two years, held Facebook Chief Executive Mark Zuckerberg responsible for prioritizing concerns about company profits over controlling online content on its various platforms, including Instagram. 

Haugen testified before the Senate Commerce Subcommittee on Consumer Protection a day after Facebook had encountered hourslong technical issues that left millions of users wondering why they could not access the site and its other platforms such as Instagram and WhatsApp. 

“I don’t know why it went down,” Haugen said, “but I know that for more than five hours, Facebook wasn’t used to deepen divides, destabilize democracies, and make young girls and women feel bad about their bodies” with the posting of glamorous pictures of models, pop singers and Hollywood starlets. 

Democratic and Republican lawmakers, in a rare show of political unanimity in Washington, quickly castigated Facebook and panned Zuckerberg for a recent sailing trip while controversy engulfed his company. They promised to enact tighter controls on social media. 

Democratic Senator Richard Blumenthal of Connecticut contended, “The damage to self-interest and self-worth inflicted by Facebook today will haunt a generation. Our children are the ones who are victims. Teens today looking in the mirror feel doubt and insecurity. Mark Zuckerberg ought to be looking at himself in the mirror.” 

He said, “Big Tech now faces the Big Tobacco jaw-dropping moment of truth.” 

Republican Senator Marsha Blackburn of Tennessee declared that Facebook “is not interested in making significant changes to improve kids’ safety on their platforms, at least not when that would result in losing eyeballs on posts or decreasing their ad revenues.” 

“It is clear that Facebook prioritizes profit over the well-being of children and all users,” she said. 

Other lawmakers accused Facebook of helping to foment the January 6 riot at the U.S. Capitol, when hundreds of supporters of former President Donald Trump stormed into the building to try to prevent lawmakers from declaring that Democrat Joe Biden had won last November’s election. 

Democratic Senator Amy Klobuchar of Minnesota said, “When they allowed 99% of violent content to remain unchecked on their platform, including the lead-up to the January 6 insurrection, what did they do? Now we know Mark Zuckerberg was going sailing.” 

While the hearing was ongoing, Facebook pushed back against Haugen and the onslaught of criticism. It said in a statement that Haugen had no other Facebook employees who reported to her, had never attended a decision-making meeting with top Facebook officials, and had acknowledged in her testimony at least six times she was being asked questions about aspects of the company she had not worked on. 

“We don’t agree with her characterization of the many issues she testified about,” Facebook said. 

“Despite all this,” Facebook said, “we agree on one thing; it’s time to begin to create standard rules for the internet. It’s been 25 years since the rules for the internet have been updated, and instead of expecting the industry to make societal decisions that belong to legislators, it is time for Congress to act.”

Haugen acknowledged that she was the one who provided the documents used in a Wall Street Journal investigation of Facebook. 

Some information for this report came from Reuters. 

 

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In America: Remembering Lives Lost to COVID

COVID-19 has killed more Americans than the Spanish flu pandemic of 1918-1919. One artist is determined that the more than 700,000 lives lost will not be forgotten. VOA’s Amy Hybels has the story.

Camera: Amy Hybels

 

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US Justice Department Renews Inquiry Into FBI’s Failures in Larry Nassar Probe

The U.S. Justice Department has launched a fresh inquiry into the FBI’s botched handling of its sex abuse investigation into disgraced former USA Gymnastics doctor Larry Nassar, after previously declining to prosecute the agents involved, Deputy Attorney General Lisa Monaco said on Tuesday.

“The recently confirmed assistant attorney general for the Criminal Division is currently reviewing this matter, including new information that has come to light,” Monaco told the Senate Judiciary Committee on Tuesday, adding that she is “constrained” on what more she can say.

“I do want the committee and frankly, I want the survivors to understand how exceptionally seriously we take this issue,” she added.

In an emotional hearing last month famous gymnasts including Simone Biles and McKayla Maroney appeared before the same Senate panel, where they blasted the FBI for failing to properly investigate abuse they suffered under Nassar’s care.

The hearing was prompted by a scathing investigation by the Justice Department’s inspector general, which uncovered widespread and dire errors which allowed Nassar to continue to abuse at least 70 more victims before he was finally arrested.

Two former FBI agents were singled out in the report – the former Indianapolis field office Special Agent in Charge W. Jay Abbott and a former supervisory special agent who has since been identified as Michael Langeman.

The inspector general referred both former agents for prosecution, but the Justice Department declined to bring charges against them in September 2020.

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Russian Soyuz Spacecraft with Actor, Director Arrives at ISS

The crew of a Russian Soyuz spacecraft was welcomed aboard the International Space Station Tuesday, though a communications glitch during their final approach delayed their eventual boarding.

The Soyuz spacecraft was launched Tuesday from the Russian spaceport in Baikonur, Kazakhstan. The ship was carrying a history-making crew, as it included film director Klim Shipenko and actor Yulia Peresild, who will be filming a feature film during their stay at the station.

After the spacecraft orbited the earth twice and made a final approach to the ISS, mission control reported the Soyuz craft experienced some communication issues. Those issues resulted in the crew abandoning automated docking procedures. Veteran Cosmonaut Shkaplerov, the other crew member on the Soyuz craft, manually guided the spacecraft into place without a problem.

The manual docking set back the scheduled opening of the hatch between the spacecraft and the station by an hour.

Once they were welcomed on board the ISS, Shipenko and Peresild will spend the next 12 days filming segments of a new feature film called “Challenge” — the first to actually be shot in outer space.  

NASA says filming will begin almost immediately. Pereslid will play a doctor who is launched to the orbital outpost to save an ailing cosmonaut. Shkaplerov and two fellow cosmonauts already on board the ISS, Oleg Novitskiy and Pyotr Dubrov, will all have speaking roles in the film.

Shipenko and Pereslid will return to Earth on October 17 with Novitskiy.

The historic mission beats out a similar plan announced last year by Hollywood superstar actor Tom Cruise, the U.S. space agency NASA and Elon Musk’s privately-owned SpaceX company, which ferries crews and cargo to the ISS.  

Russian space officials are hoping the film will restore some luster to the program, which has fallen from its glory days of the 1950s and `60s, when it launched the first man-made satellite as well as the first man and woman, into orbit, but has been plagued by delays, accidents and corruption scandals in recent years.

Tuesday’s launch comes nearly a month after four Americans became the first all-civilian crew to orbit the Earth, spending three days in space aboard a SpaceX Crew Dragon capsule.

Some information for this report was provided by the Associated Press.

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US Senator: Facebook Whistleblower’s Allegations Should Be Investigated by Regulators

Facebook took another pounding in the U.S. Congress on Tuesday and a senator called on federal regulators to investigate accusations by a whistleblower that the company pushed for higher profits while being cavalier about user safety.

In an opening statement to a Senate Commerce subcommittee, chair Senator Richard Blumenthal, a Democrat, said that Facebook knew that its products were addictive, like cigarettes. “Tech now faces that big tobacco jawdropping moment of truth,” he said.

He called for Facebook CEO Mark Zuckerberg to testify before the committee, and for the Securities and Exchange Commission and Federal Trade Commission to investigate the social media company.

“Our children are the ones who are victims. Teens today looking in the mirror feel doubt and insecurity. Mark Zuckerberg ought to be looking at himself in the mirror,” Blumenthal said, adding that Zuckerberg instead was going sailing.

In an era when bipartisanship is rare on Capitol Hill, lawmakers on both sides of the aisle agreed on the need for big changes at Facebook.

The top Republican on the subcommittee, Marsha Blackburn, said that Facebook turned a blind eye to children below age 13 on its sites. “It is clear that Facebook prioritizes profit over the well-being of children and all users.”

Facebook spokesman Kevin McAlister said in an email ahead of the hearing that the company sees protecting its community as more important than maximizing profits and said it was not accurate that leaked internal research demonstrated that Instagram was “toxic” for teenage girls.

Frances Haugen, a former product manager on Facebook’s civic misinformation team, said the company keeps its algorithms and operations a secret.

“The core of the issue is that no one can understand Facebook’s destructive choices better than Facebook, because only Facebook gets to look under the hood,” she said in written testimony prepared for the hearing.

“A critical starting point for effective regulation is transparency,” she said in testimony to be delivered to the subcommittee. “On this foundation, we can build sensible rules and standards to address consumer harms, illegal content, data protection, anticompetitive practices, algorithmic systems and more.”

Haugen revealed she was the one who provided documents used in a Wall Street Journal investigation and a Senate hearing on Instagram’s harm to teenage girls.

The Journal’s stories showed the company contributed to increased polarization online when it made changes to its content algorithm; failed to take steps to reduce vaccine hesitancy; and was aware that Instagram harmed the mental health of teenage girls.

Haugen said Facebook had also done too little to prevent its site from being used by people planning violence.

Facebook was used by people planning mass killings in Myanmar and the Jan. 6 assault on the U.S. Capitol by supporters of then-President Donald Trump who were determined to toss out the 2020 election results.

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French Catholic Clergy Sexually Abused Over 200,000 Children Since 1950, Probe Finds

French Catholic clergy sexually abused more than 200,000 children over the past 70 years, according to an investigation by an independent commission.

The panel’s report, released Tuesday, said the Catholic Church covered up a “massive phenomenon” with decades of a “veil of silence.”

“Until the early 2000s, the Catholic Church showed a profound and even cruel indifference towards the victims,” the report said.

The commission’s report, released after a two-and-a-half-year investigation, said Catholic clergy in France sexually abused about 216,000 minors since 1950.

Jean-Marc Sauve, head of the commission that compiled the report, said at a Paris news conference that most victims were boys between ages 10 and 13.

The report said the number of child abuse victims increased to 330,000 when including claims against church lay members such as teachers at Catholic schools.

Catholic bishops in France established the commission in 2018 to uncover abuses and restore confidence in the church as congregations declined.

The probe was triggered by an increasing number of abuse claims and prosecutions of church officials worldwide.

Bishops’ Conference of France Archbishop Eric de Moulins-Beaufort, among those who requested the report, expressed “shame and horror” at the findings during the news conference.

“My wish today is to ask forgiveness from each of you,” he said.

Along with 45 recommendations to stop child abuse by clergy, Sauve urged the church Tuesday to pay reparations to the victims. The church announced a plan last spring to provide “financial contributions” to the victims. 

Six victims’ associations said, “We expect clear and concrete responses by the church.”

 

Abuse victim Francois Devaux, a founder of victims’ association La Parole Liberee, told church representatives at the report’s unveiling that “You are a disgrace to our humanity.”

Earlier this year, Pope Francis issued the most extensive revision to Catholic Church law in four decades, insisting that bishops act against clerics who abuse minors and vulnerable adults.

Some information in this report was provided by Agence France-Presse, the Associated Press and Reuters.

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At 24, Palestinian Photographer Is Youngest Winner of Journalism Award

A woman walks alone past bombed-out windowless buildings in Gaza, black high heels on gray rubble. This image of life during conflict was one of several captured by a young Palestinian photojournalist in May. 

The striking set of images has earned Fatima Shbair the 2021 Anja Niedringhaus Courage in Photojournalism Award, bestowed by the International Women’s Media Foundation (IWMF).  

At 24, Shbair is the youngest journalist to be awarded the honor, which was named for a German Associated Press photographer who was killed in 2014 while on assignment in Afghanistan.

Shbair’s photos center on the Palestinian-Israeli conflict in May 2021. More than 200 people, including dozens of children, died during the 11 days of fighting. The United Nations said at the time that the Israeli airstrikes might constitute a war crime, and it also condemned tactics used by Hamas.

Shbair, who lives in Gaza City, said that when the airstrikes began, she picked up her camera and continued doing her job: documenting daily life.  

“As photojournalists, it’s our job to focus on the little details that might not be apparent for anyone outside the city,” she told VOA.  

Shbair documented everything she saw, including scenes of mourning and commutes across the city, in her poignant photo essay “11 Days of the Israeli-Palestinian Conflict.”

“Everything happening there deserved to be documented. It doesn’t matter how dangerous it is,” she told VOA. 

Judges praise work 

The body of work, shot under tough conditions, caught the attention of the IWMF judges. 

Members of the judging committee “were really impressed with how she captured these incredibly beautiful images among the wreckage of an ongoing bombardment that she was also living through herself,” Elisa Lees Muñoz, executive director of the IWMF, told VOA.  

“The fact that she was part of this conflict and really trying to survive as a civilian, in addition to trying to survive as a photojournalist, was pretty telling,” Muñoz said.  

Shbair studied journalism in college but taught herself photography while documenting what she calls “different” daily life in Gaza in 2019. By 2020, she was working as a freelancer and selling images to international agencies such as Getty Images. 

But the conflict this May presented new challenges.  

“I left my home and my family for 11 days. I went directly into the field, moving from one office to another,” she said. “I just stayed there in the streets, running toward what was happening. It was not easy, but in some way, I did it.”  

Inspiring images 

The IWMF’s annual award recognizes photography that inspires viewers or helps them better understand the world. Each awardee is given $20,000 and has her work showcased.

Honorable mentions this year were given to Kiana Hayeri, an Iranian Canadian photojournalist based in Afghanistan since 2013, and Adriana Zehbrauskas, a Brazilian documentary photojournalist who covers immigration and the drug trade across borders with Mexico. 

On Thursday, one day after she was named an awardee, Hayeri posted a humble thank you on Instagram, alongside a photo of an older Afghan woman taken in April. 

“As I’m posting this, I’m sitting at my gate, waiting to catch one last plane to go back to #Kabul with a chest filled with contrasting feelings,” Hayeri wrote. 

The award’s namesake, Niedringhaus, also extensively covered events in Afghanistan. She was the recipient of a separate IWMF Courage in Journalism Award in 2005, the same year her team won a Pulitzer Prize for coverage of the war in Iraq.  

“(Niedringhaus) is among us with her images,” 2021 awardee Shbair said. “Despite all difficulties, I hope that we will be efficient in continuing her journey to always highlight the truth.” 

 

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Facebook, Instagram, WhatsApp Suffering Outages

An outage has left millions of people around the world unable to use Facebook along with its Instagram and WhatsApp platforms to connect with friends, family and others.

“We’re aware that some people are having trouble accessing our apps and products. We’re working to get things back to normal as quickly as possible, and we apologize for any inconvenience,” the company tweeted Monday.

The outage appears to have started around 11:45 a.m. Eastern time.

Recently, The Wall Street Journal reported that internal Facebook documents showed the company knows about the negative effects of its products yet does little to counter potentially harmful consequences. CBS’s “60 Minutes” program Sunday broadcast an interview with a whistleblower, Frances Haugen, who aired her grievances about the social media giant.

Haugen is expected to testify before a Senate subcommittee on Tuesday.

Facebook says her allegations are misleading.

 

Some information in this report comes from The Associated Press.

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‘Captain Kirk’ Heading to Space

Actor William Shatner, best known for his portrayal of space explorer Captain James T. Kirk in the “Star Trek” television series, announced he will travel to space later this month.

Shatner, 90, will blast off October 12 aboard a Blue Origin rocket. Blue Origin is the space travel company of Amazon founder Jeff Bezos.

If successful, Shatner would be the oldest person ever to travel to space. He will be joined by three other passengers on Blue Origin’s second space venture.

Bezos was among the first Blue Origin passengers in July.

The flight is expected to last about 10 minutes and reach an altitude of 106 kilometers.

“I’ve heard about space for a long time now. I’m taking the opportunity to see it for myself. What a miracle,” Shatner said in a statement.

In a tweet, the actor wrote, “So now I can say something. Yes, it’s true; I’m going to be a ‘rocket man!’ a referral to his spoken-word cover version of singer-songwriter Elton John’s famous song.

 

Some information in this report comes from The Associated Press.

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Facebook Whistleblower Says Firm Chooses ‘Profit Over Safety’

The whistleblower who shared a trove of Facebook documents alleging the social media giant knew its products were fueling hate and harming children’s mental health revealed her identity Sunday in a televised interview, and accused the company of choosing “profit over safety.” 

Frances Haugen, a 37-year-old data scientist from Iowa, has worked for companies including Google and Pinterest, but said in an interview with CBS news show “60 Minutes” that Facebook was “substantially worse” than anything she had seen before.  

She called for the company to be regulated. 

“Facebook over and over again has shown it chooses profit over safety. It is subsidizing, it is paying for its profits with our safety,” Haugen said. 

“The version of Facebook that exists today is tearing our societies apart and causing ethnic violence around the world,” she added. 

The world’s largest social media platform has been embroiled in a firestorm brought about by Haugen, who as an unnamed whistleblower shared the documents with U.S. lawmakers and The Wall Street Journal that detail how Facebook knew its products, including Instagram, were harming young girls. 

In the “60 Minutes” interview she explained how the algorithm, which picks what to show in a user’s news feed, is optimized for content that gets a reaction. 

The company’s own research shows that it is “easier to inspire people to anger than it is to other emotions,” Haugen said. 

“Facebook has realized that if they change the algorithm to be safer, people will spend less time on the site, they’ll click on less ads, they’ll make less money,” she said. 

During the 2020 U.S. presidential election, she said, the company realized the danger that such content presented and turned on safety systems to reduce it.  

But “as soon as the election was over, they turn them back off, or they change the settings back to what they were before, to prioritize growth over safety, and that really feels like a betrayal of democracy to me,” she said.  

“No one at Facebook is malevolent,” she said, adding that the incentives are “misaligned.” 

“Facebook makes more money when you consume more content. … And the more anger that they get exposed to, the more they interact, the more they consume,” she said. 

Haugen did not draw a straight line between that decision to roll back safety systems and U.S. Capitol riot on January 6, though “60 Minutes” noted that the social network was used by some of the organizers of that violence.  

‘Ludicrous’ 

Earlier Sunday, Facebook dismissed as ludicrous suggestions it contributed to the January 6 riot.  

Facebook’s vice president of policy and global affairs Nick Clegg also vehemently pushed back at the assertion its platforms are toxic for teens, days after a tense congressional hearing in which U.S. lawmakers grilled the company over its impact on the mental health of young users. 

The New York Times reported Saturday that Clegg sought to preempt Haugen’s interview by penning a 1,500-word memo to staff alerting them of the “misleading” accusations. 

Clegg pressed the case in an appearance on CNN. 

“I think the assertion (that) January 6th can be explained because of social media, I just think that’s ludicrous,” Clegg told the broadcaster, saying it was “false comfort” to believe technology was driving America’s deepening political polarization. 

The responsibility for the insurrection “lies squarely with the people who inflicted the violence and those who encouraged them, including then-president Trump” and others who asserted the election was stolen, he added. 

Polarization 

While everyone “has a rogue uncle” or old classmate whose extreme views may be visible on Facebook, Clegg reportedly wrote in his memo, “changes to algorithmic ranking systems on one social media platform cannot explain wider societal polarization.” 

Facebook has encountered criticism that it fuels societal problems, attacks Clegg said should not rest at Facebook’s feet. But he acknowledged that some people may not benefit from social media use. 

“I don’t think it’s intuitively surprising if you’re not feeling great about yourself already, that then going on to social media can actually make you feel a bit worse,” he told CNN. 

He also disputed reporting in a Wall Street Journal series that Facebook’s own research warned of the harm that photo-sharing app Instagram can do to teen girls’ well-being. 

“It’s simply not borne out by our research or anybody else’s that Instagram is bad or toxic for all teens,” Clegg said, but added Facebook’s research will continue. 

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Twitter Appeals French Court Ruling on Anti-Hate Speech

Twitter has appealed a French court decision that ordered it to give activists full access to all of its relevant documents on efforts to fight hate speech, lawyers and a judicial source said on Saturday.

 

In July, a French court ordered Twitter to grant six French anti-discrimination groups full access to all documents relating to the company’s efforts to combat hate speech since May 2020. The ruling applied to Twitter’s global operation, not just France.

 

Twitter has appealed the decision and a hearing has been set for December 9, 2021, a judicial source told AFP, confirming information released by the groups’ lawyers.

 

Twitter and its lawyers declined to comment.

 

The July order said that Twitter must hand over “all administrative, contractual, technical or commercial documents” detailing the resources it has assigned to fight homophobic, racist and sexist discourse on the site, as well as the offense of “condoning crimes against humanity”.

 

It also said Twitter must reveal how many moderators it employs in France to examine posts flagged as hateful, and data on the posts they process.

 

The July ruling gave the San Francisco-based company two months to comply. Twitter can ask for a suspension pending the appeal.

 

The six anti-discrimination groups had taken Twitter to court in France last year, accusing the US social media giant of “long-term and persistent” failures in blocking hateful comments from the site.  

 

The groups campaign against homophobia, racism and anti-Semitism.

 

Twitter’s hateful conduct policy bans users from promoting violence or threatening or attacking people based on their race, religion, gender identity or disability, among other forms of discrimination.  

 

Like other social media giants, it allows users to report posts they believe are hateful, and employs moderators to vet the content.  

 

But anti-discrimination groups have long complained that holes in the policy allow hateful comments to stay online in many cases.

 

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How China’s Ban on Cryptocurrency Will Ripple Overseas

Since China’s government declared all cryptocurrency transactions illegal last week and banned citizens from working for crypto-related companies, the price of bitcoin went up despite being shut out of one of its biggest markets.

Experts say large-scale Chinese miners of cryptocurrency — the likes of Bitcoin and Ethereum — will take their high-powered, electricity-guzzling servers offshore. Exchanges of the digital money and the numerous Chinese startups linked to the trade also are expected to rebase offshore after dropping domestic customers from their rosters.

The shift highlights how virtual currencies can evade government regulation.

“The exchanges have been pushing offshore anyways, and with the exchange business you need cloud infrastructure, you need developers, you need management to move things in the right direction, and so whether that is sitting in Taipei, San Francisco, Singapore or Shanghai, it doesn’t really matter — those businesses are very virtual,” said Zennon Kapron, Singapore-based founder the financial consulting firm Kapronasia.

“The real impact we’ve probably seen though is in the miners, and most of those miners [are in] the process of shifting overseas or [have] already completed moving overseas,” he said.

Strongest anti-crypto action to date

On Sept. 24, the People’s Bank of China, Beijing’s monetary authority, released a statement saying cryptocurrencies lack the status of other monetary instruments. The notice, issued in tandem with nine other government agencies, including the Bureau of Public Security, declared all related business illegal and warned that cryptocurrency transactions originating outside China will also be treated as crimes.

Explaining the ban, China’s official Xinhua News Agency reported Friday that cryptocurrencies have disrupted the controlled economy’s financial systems and contributed to crimes such as money laundering.

Cryptocurrencies — digital commerce tools that aren’t linked to a centralized banking authority — first appeared in China around 2008. Chinese banks began to prohibit the use of digital currencies in 2013 and stepped up regulations after 2016.

China was the world’s biggest Bitcoin miner and supported the largest exchange by volume, according to the news website CryptoVantage. It says many of those who suddenly made millions when Bitcoin prices soared four years ago were in China.

Chinese miners and traders head to Singapore

The Chinese ban carries penalties for international exchanges that do business with people inside China, and news reports indicate international crypto exchanges are trying to cut ties with Chinese clients in recent days. But the companies themselves are largely staying quiet.

A spokesperson for digital currency exchange Coinbase said Wednesday it does not “have anything to share at this time” about the crackdown in China. U.S.-based Worldcoin Global, a new type of cryptocurrency, did not reply to a request for comment.

China’s growing pressure on crypto over the past few years had prompted stakeholders to leave the country, Kapron said, adding that less than a quarter of the country’s original cryptocurrency peer-to-peer lending startups — small firms that connect individual lenders and borrowers — remain in China.

Mining for digital currency — the process of using computers to enter bitcoins into circulation and verify cryptocurrency transactions in exchange for a payout — should get easier overseas as Chinese exit the market, Kapron said.

Smaller operators, he added, may be able to mine more easily without the competition of giant Chinese operations.

Singapore looms as a prime go-to place for operations that need not be physically onshore. The country had accepted about 300 cryptocurrency license applications as of July. From China, e-commerce giant Alibaba as well as digital financial firms Yillion Group and Hande Group have applied, news reports in Asia say.

Other Asian countries lack the legal welcome mat that Singapore has extended, said Jason Hsu, vice president of the Taiwan Fintech Association industry group.

“Where would that money flow to? I think it’s a question that needs to be answered,” Hsu said. “I think in Asia, Singapore would be a destination for them to go to. Singapore obviously has the clearest regulations and also wants to attract more digital fintech [financial-technology] companies.”

Outside Asia, Amsterdam and Frankfurt are “establishing their footprint as international centers” for financial technology, said Rajiv Biswas, Asia Pacific chief economist with market research firm IHS Markit. Financial technology covers cryptocurrency.

Western Europe ranked this year as the world’s biggest crypto economy in the world with inflows of more than $1 trillion or 25% of all global trade, activity, news and data service Chainalysis says. Europe’s surge follows similarly rapid growth in 2020.

Eventual resurgence for crypto in China?

Authorities in China are targeting crypto now as part of a wider “crackdown on overnight riches” and to “clean out the wild, wild West,” Hsu said, referring to largely unregulated market sectors. The trade will go underground for now, he forecasts, and China will eventually come out with an official digital currency issued through major banks.

Several countries are considering adopting new digital currencies that would allow people to exchange money without an intermediary, such as a bank. Proponents argue these currencies could capture the benefits of cryptocurrencies that make exchanging money easy, but without the price volatility of decentralized digital assets like bitcoin.

Chinese authorities may eventually swing to a more tolerant view of non-state-sanctioned digital currencies, though subject to strict criteria on what’s legal or otherwise, said Song Seng Wun, economist in the private banking unit of Malaysian bank CIMB. Blockchain, the core technology behind the public transaction ledger that makes crypto commerce transparent, could continue to develop in China for other ends, he added. 

 

 

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China’s Tech Titans Funding Beijing’s Effort to Close Income Gap

During the three-day World Internet Conference held in Wuzhen, China, this week, the country’s biggest tech tycoons rushed to show their support for Beijing’s “common prosperity” initiative.

Their enthusiasm for the initiative comes amid a yearlong crackdown on the country’s tech industry, where several high-profile companies have faced investigations and fines. Formerly high-flying celebrity CEOs are now keeping a low profile.

Daniel Zhang, CEO at e-commerce giant Alibaba group, said his company’s donation of $15 billion to the initiative over the next five years represented its willingness to help China achieve its goal of prosperity for all.

Zhou Hongyi, billionaire entrepreneur and chairman and CEO of the country’s largest Internet security firm, Qihoo 360, said his company will donate an as yet undisclosed sum to the initiative and step up to help smaller firms thrive.

Stressing the need to develop these enterprises, Zhou said, “Our success depends on our country’s policies. … We must take the initiative to align our development with our national strategies and serve our country with science and technology.”

Lei Jun, CEO of consumer electronics manufacturer Xiaomi, said that technological development must be used to achieve social good and that tech companies should help build a good life for everyone.

Other tech giants, such as technology conglomerate Tencent, online agricultural marketplace Pinduoduo and food delivery platform Meituan, answered Beijing’s call before the Sept. 26-28 gathering, pledging financial support for social causes.

‘Common prosperity’ initiative

During his first eight years in office, Chinese President Xi Jinping occasionally mentioned the term “common prosperity.” Since February, when he declared China had eliminated poverty, “common prosperity” has become one of his favorite themes.

At a meeting of the Communist Party’s Central Committee for Financial and Economic Affairs on Aug. 17, Xi stressed that those who are already rich need to guide and help others achieve prosperity.

“Common prosperity means prosperity for all, not just a few people,” Xi said, according to a meeting note published by China’s state-run Xinhua News Agency. “We can allow some to get rich first, but we must then launch a scientific public policy to make sure every citizen can have their fair share.”

Central to achieving common prosperity is a concept known as the three distributions, first introduced by the Chinese economist Li Yining in the 1990s.

According to the explanation from China’s National Development and Reform Commission, the first distribution of wealth comes through market competition. The second is achieved through the state via taxes, subsidies and social welfare programs. The third distribution taps enterprises and individuals to redistribute their wealth through voluntary donations.

‘Third distribution’

“The target of this round of the common prosperity initiative is the wallet of wealthy domestic entrepreneurs,” said Lu Jun, founder of the influential nongovernmental organization Beijing Yirenping Center, in a phone interview with VOA Mandarin. His NGO focuses on eliminating discrimination and defending the rights of disadvantaged groups.

Wang Hsin-Hsien, a political science professor and chair of the East Asian Studies Institute at National Cheng-Chi University in Taiwan, told VOA Mandarin that businesses are essentially forced to make charity donations under the current system.

“China’s current common prosperity initiative is controlled by the party-state. That means large enterprises must make donations in order to show that they are choosing the right side. So I don’t think these donations will be voluntary,” he told VOA Mandarin via phone.

“This is not the charitable donation we see in Western countries, because eventually the money will be returned to the state for redistribution,” he added.

Meanwhile, analysts say this new wave of donation will not likely help boost China’s civil society.

NGOs under microscope

China has been tightening its grip on NGOs since 2016, demanding they provide specific funding sources and membership information or face being banned.

This year, China announced a new wave of crackdowns targeting NGOs. In May, the Ministry of Civil Affairs started to target “illegal NGOs with measures such as limiting their access to conference venues, publicity resources and manpower,” according to the state-owned news outlet China Daily.

“The moves were part of a sweeping campaign launched last month by the ministry and 21 other central agencies to clamp down on the unregistered NGOs, which have masqueraded as foundations, industrial associations and other nongovernmental groups to rake in money from the public,” China Daily said.

Lu told VOA Mandarin that the NGOs that can survive or get funding will be those that align their goals with the government’s agenda — unlike many NGOs outside China, whose views diverge from those of the government.

“I don’t think this is necessarily good news for NGOs, as I believe the money donated by private companies will go to the government-run or government-affiliated NGOs,” he said of the third distribution.

“Beijing won’t allow companies to donate to independent NGOs freely, let alone the ones they don’t like, such as NGOs working on human rights, labor rights and women’s rights.”  

 

 

 

 

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Report: Women’s Soccer League Officials Ousted After Accusations Against Ex-Coach

The National Women’s Soccer League (NWSL) board of directors has fired commissioner Lisa Baird and general counsel Lisa Levine in the wake of a report detailing allegations of misconduct against former North Carolina Courage head coach Paul Riley, The Athletic reported Friday. 

NWSL did not immediately respond to a request for comment. 

The Athletic on Thursday outlined allegations of sexual coercion and misconduct by Riley, who led the Courage to back-to-back NWSL championships in 2018 and 2019, after speaking to more than a dozen players he coached since 2010. 

Riley was terminated by the Courage and the league. 

“I am so sorry for the pain so many are feeling. Recognizing that trauma, we have decided not to take the field this weekend to give everyone some space to reflect,” Baird said in a written statement hours earlier while announcing that the league was canceling its weekend slate of games. 

“Business as usual isn’t our concern right now. Our entire league has a great deal of healing to do, and our players deserve so much better.” 

The report sent shock waves through the sport, and the players’ association demanded sweeping changes across the league, as some of soccer’s most prominent figures — including two-time World Cup winners and NWSL players Megan Rapinoe and Alex Morgan — voiced their outrage. 

The Athletic report came days after another head coach in the league, Richie Burke of the Washington Spirit, was terminated with cause. He had previously been suspended following allegations of abuse detailed by The Washington Post.

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Reviving the Arts Amid a Pandemic 

When the COVID-19 pandemic took hold early last year, artists such as Patricia Boyer of Charlotte, North Carolina, were panic-stricken. Who would see — not to mention purchase — her creations when much of America was on lockdown? 

 

“It was really bad, because here you are with all this art, and you’re like ‘what am I going to do with it?’,” the 65-year-old painter told VOA. “And the anxiety level was through the roof.” 

 

Amid a severe economic downturn and restricted in-person interactions, artists were forced to get creative. Boyer, who specializes in acrylic on canvas, said she was able to display some of her art with the help of friends and colleagues. 

 

“I now have my inventory in three different spaces — one of my friends got me in her gallery. So, it’s a way for me to get my name out,” Boyer said.  

 

Artists have faced unprecedented challenges triggered by the pandemic. Data published by the National Endowment for the Arts show, from 2019 to 2020, unemployment rates more than tripled for fine artists like Boyer and surpassed 50% for many types of performing artists. 

 

Among major U.S. economic sectors, creative industries were among the hardest hit by the pandemic, second only to the hospitality sector. 

Arts scene reemerges in Charlotte 

After more than a year of gloom, artists recently had cause to rejoice. Last weekend saw the resumption of Festival in the Park, a showcase of artisans and artwork Charlotte has held every year since 1964 — except last year.

 

The event draws a wide variety of artists and entrepreneurs, including photographers, ceramists, jewelers, bakers, carpenters, tattoo artists and puppeteers. 

 

“I love coming out here and meeting so many people,” Boyer said between conversations with clients. “This is the best thing that’s happened in a long time for me. I look at all these people and I am just in awe that people are coming out to support us artists during COVID.” 

 

Signs remain of the toll the pandemic has taken on artists. VOA spoke with Haydar Serezli, a jeweler based in Atlanta. He pointed to a drop in vendor attendance compared with pre-pandemic festivals. 

 

“It’s a little different this year,” said Serezli, who has been displaying work at Festival in the Park since 2011.“The amount of people coming, that’s stayed the same. But the vendors, many artists, we’ve known them for years, didn’t come.” 

 

The event drew 130 vendors this year, down from an average of 180 in previous years. 

 

“For us (Serezli and his wife), the pandemic didn’t affect us as badly. But for many artists around here, it wasn’t as easy for them. So, I hope some of them can come back around next year,” Haydari told VOA. 

Renewal after 2020 

“The biggest challenge was scaling it back,” said David Dalton, who has served on the festival’s board of directors for 30 years.

 

Even so, Dalton pointed to a sense of jubilation at the event. 

 

“Look at this crowd here,” Dalton remarked, gesturing at festivalgoers. “You can tell everyone’s been penned up.” 

Dalton added, “It’s an entirely outdoor event, but we’re still doing what we can for COVID (precautions).” 

 

Hand sanitizer stands dotted the grounds, and the Mecklenburg County Public Health Department staffed a booth to distribute pamphlets with tips for preventing coronavirus transmission. 

 

Signs were placed throughout the park urging mask-wearing, although relatively few attendees were seen with face coverings. 

Charlotte resident Jason Norvell said he has attended the past six festivals. 

 

“Personally, I’m vaccinated so I’m not really worried about being out in public. It’s great weather, so we thought, ‘hey let’s come out and have a nice evening,’” Norvell told VOA. “I think, frankly, so many people are kind of fed up with being cooped up, and so they want excuses to go to activities.” 

“It felt so nice to attend this year,” said Hayley Schnackenberg, who grew up in Charlotte and works remotely as a technology consultant.

 

“Some of the best memories I have as a kid” were from going to the festival, she added. “There’d be dancers from local schools or local theaters and those were some of the things that I felt were missing [this year].” 

 

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Lithuania Urges Users to Ditch Chinese Smartphone Over ‘Built-In Censorship Tool’ 

A popular Chinese-manufactured phone has a built-in censorship tool that can blacklist search terms on the web, according to research by the Lithuanian government, which is urging owners of the phones to replace them. 

The Lithuanian Ministry of Defense analyzed three popular Chinese-made phones currently sold in Europe: the Xiaomi Mi 10T 5G; the Huawei P40 5G; the OnePlus 8T 5G. It reported finding a censorship tool built into the Xiaomi phone that can block certain search terms, including “Long live Taiwan’s independence,” “Free Tibet,” “Democratic Movement,” and “Voice of America.” 

 

“It is very, very worrying that there is a built-in censorship tool and of keywords, which filters or could filter your search on the web,” Lithuanian Vice Defense Minister Margiris Abukevicius told VOA.

 

Xiaomi 

 

Xiaomi is the most popular smartphone brand in Europe. The Lithuanian researchers said the blacklist function was turned off on the Xiaomi phone sold in Europe, but it can be activated remotely. The list of blocked search terms appears to be continually updated. There were 449 words or phrases on the blacklist in April 2021. By September, that number had tripled to 1,376.

 

“We clearly saw that all of those key words are politically motivated,” Abukevicius said. “Terms such as Tibet, Taiwan, democracy, U.S., and some companies like yours [Voice of America], are mentioned in that list. And they are adding [words] not only in Chinese, they are also adding words in Latin [script].”

 

German security services also have begun a technical examination of the Xiaomi phone. 

 

Xiaomi did not respond to VOA requests for comment. The firm said this week it was engaging an independent expert to assess the findings. 

Huawei 

 

The Lithuanian researchers found the Huawei P40 5G model collected users’ data — including how long they spent using the apps — and stored it on servers outside the European Union, beyond the jurisdiction of the EU’s strict data laws.

 

The report said Huawei’s official app store, called AppGallery, directed users to apps containing malware.

 

“A portion of the mobile applications contained on the application distribution platforms are imitations of the original applications, with malicious functionality or virus infestation; such applications can be downloaded and installed by the user on the mobile phone, thereby jeopardizing the security of the device and the data contained in it,” the report said. 

 

“Data security risks have also been identified in the Xiaomi device; factory-installed system applications send statistical data on the activity of certain applications installed on the device to servers of the Chinese cloud service provider Tencent, located in Singapore, the USA, the Netherlands, Germany and India,” the researchers wrote. 

 

In a statement, Huawei told VOA, “Huawei has always adhered to the principle of integrity, abided by the laws and regulations of the countries and regions where it operates. Huawei has a strong cybersecurity record in more than 170 countries and regions and has served over 3 billion users. Data is never processed outside the Huawei device.” 

 

It added, “Huawei is transparent about the necessary data it collects from customers, which is kept to a minimum and used to enhance personalization and the user’s experience. Huawei makes it clear that these apps are from publicly available sources, so the user isn’t forced to download an app.”

 

National security 

Lithuania has told government workers to get rid of the Xiaomi and Huawei phones. Abukevicius told VOA that other countries should take note of the research. 

 

“On the basis of national security, really, we are looking for ways to protect our state institutions and institutions working in national security and give them a chance to only work with trusted suppliers. When it comes to consumers, we are giving recommendations of course, you know, to really avoid using cloud services, avoid using some applications, Chinese-made applications,” Abukevicius said. 

 

China has yet to comment on the report. Many Western countries, including the United States, have blocked Huawei from the rollout of 5G mobile networks, fearing the company poses a security risk. 

 

“I think our research is an illustration of how we should go beyond that discussion in the telecommunications sector, that we should think about other sectors,” Abukevicius said. 

 

Diplomatic tensions 

 

The report comes against a backdrop of tense relations between Lithuania and China.

 

Both countries have withdrawn their ambassadors after Lithuania agreed to allow Taiwan to open a de facto embassy there using its own name. China claims Taiwan as its own territory. 

 

In many countries, Taiwan’s diplomatic missions are named after the capital, Taipei, rather than the island itself. In retaliation, Beijing last month halted rail freight to Lithuania and suspended trading licenses for Lithuanian producers.

 

The United States has reiterated its support for Lithuania in the face of what Washington called “economic coercion” by China. 

 

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Lithuania Urges Users to Ditch Chinese Smartphone Over ‘Built-In Censorship Tool’

A popular Chinese-made phone has a built-in censorship tool that can blacklist search terms on the web, according to research by the Lithuanian government. The country is urging owners of the phones to replace them, as Henry Ridgwell reports.

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