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ZeroKnowledge to Discontinue Anonymity Service

Posted by michael on Thu Oct 04, 2001 10:32 AM
from the carnivores-circling-overhead dept.
VulgarBoatman writes: "ZeroKnowledge, providers of Freedom.net and Freedom privacy software, have abruptly decided to stop providing anonymous web browsing and private, encrypted, untraceable email for its customers. They give users 7 days before the system is shut down and all untraceable email addresses are disabled. They also say that your "secret" identity may not remain a secret for long." Well, note that that last link is a warning about using the service during the shutdown period, not a warning that they plan to compromise nyms in general. At least they're offering a refund. Update: 10/04 19:00 GMT by M : ZKS has a statement in the comments below.
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  • this blows by gregclimbs (Score:1) Thursday October 04 2001, @10:35AM
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  • Glad i didn't sign up.. (Score:3, Interesting)

    by milkme123 (302350) on Thursday October 04 2001, @10:36AM (#2388359)
    .. but doesn't it seem a little strange that this comes in the wake of september 11th? Who's pressuring them to discontinue annonymity?
  • Not so bad though is it? (Score:3, Insightful)

    by rm-r (115254) on Thursday October 04 2001, @10:36AM (#2388361) Homepage
    It's a shame sure, but like the article says- it's all down to people finding other ways to do it themselves rather than rely on somebody else. It would be nice if they gave advice to their existing nyms on how they might be able to maintain their privact though
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  • Bad business model (Score:5, Funny)

    by Quasar1999 (520073) on Thursday October 04 2001, @10:36AM (#2388365) Journal
    My question is, how did billing for the service work in the first place?

    Umm, account #12344234 owes us $300... but we don't know who it is, or where he lives...

    I think their business model didn't work... the collections department had nothing to do...
    • Easy, no billing (Score:5, Informative)

      by Anonymous Coward on Thursday October 04 2001, @11:45AM (#2388417)
      No collections department, you paid in advance for a year's service. If you wanted to ensure anonymity, you could sign up online, get an account number, and write that on an money order. You could also pay by credit card - they claimed to have an internal system to remove the linkage between the payment and the account.
      [ Parent ]
    • Re:Bad business model by cd_Csc (Score:2) Thursday October 04 2001, @01:34PM
  • Why are they stopping service? by jgerry (Score:2) Thursday October 04 2001, @10:37AM
  • Sept. 11 (Score:3, Interesting)

    by grub (11606) <slashdot@grub.net> on Thursday October 04 2001, @10:37AM (#2388369) Homepage Journal
    My money says it's all because of the September 11 attacks. From being a "cool" thing, companies offering anonymity services seem to be less cool in the eyes of the unwashed masses.
    • Re:Sept. 11 by jazman_777 (Score:1) Thursday October 04 2001, @11:54AM
    • Re:Sept. 11 by Pope (Score:2) Thursday October 04 2001, @01:39PM
      • Re:Sept. 11 by Caraig (Score:1) Thursday October 04 2001, @02:25PM
        • Re:Sept. 11 by harlows_monkeys (Score:1) Thursday October 04 2001, @07:22PM
          • Re:Sept. 11 by kubrick (Score:2) Friday October 05 2001, @02:26AM
    • Re:Sept. 11 by 4of12 (Score:2) Thursday October 04 2001, @01:45PM
    • Re:Sept. 11 by uberdood (Score:1) Thursday October 04 2001, @03:19PM
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  • SAFEWEB is still there. by bodin (Score:2) Thursday October 04 2001, @10:37AM
    • Re:SAFEWEB is still there. by danielobvt (Score:1) Thursday October 04 2001, @11:55AM
    • by billstewart (78916) on Thursday October 04 2001, @12:18PM (#2388587) Journal
      Safeweb is one of several anonymizing services, of which the first well-known one was www.anonymizer.com. There are a couple of serious problems with it, one technical, one trust-related. On the other hand, Triangle Boy is really cool.


      The technical problem is that their service uses Javascript, and doesn't work if you're not running Javascript. That means that any time you're using the system, you're vulnerable to any other JS problems on any other web page your browser encounters, until you turn JS back off. IIRC, Safeweb does attempt to clean up JS and other dangerous stuff from pages it displays to you, but it's still a risk. Also, I'm not that impressed with their Javascript, though I'm not an expert on the stuff - my problem was that under Mozilla ~0.91, they pop up windows to do the secure browsing in, and they're not really quite the shape of my screen, though that could have been Mozilla's fault. I sent email to the Safeweb folks about the fundamental "You're using Javascript" problem, and got a really prompt reply from their technical management, which was good, but they fundamentally didn't get it, which bothered me.

      The other problem is trust - in general, you always need to be concerned about whether a service like this is trustable, both because of the intent of the people running it (are they ratting you out to somebody) and the security of their systems (if their server is 0wned by CrackerZ, you're not secure.) As I mentioned, Triangle Boy is really cool - it's a sort of distributed set of volunteer-run anonymizing servers, which keep moving around to prevent blocking services from blocking them, and Safeweb announced that they were going to be using this to provide censorship-free web access for people in China, the Middle East, and other places with censorship problems. The catch - they've got funding from In-Q-Tel, the CIA venture fund. It's probably entirely legit, and certainly good enough for most purposes - but how paranoid you need to be depends on who's really out to get you. ZeroKnowledge was very upfront about what their trustability levels were (plus I knew the folks there, and they were well-connected to the cypherpunks community.)

      [ Parent ]
    • SAFEWEB is not trustworthy by ben_tarval (Score:1) Thursday October 04 2001, @12:25PM
    • Pornolizer is still there TOO!!! by JohnDenver (Score:1) Thursday October 04 2001, @12:46PM
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  • Hushmail... by Anonymous Coward (Score:1) Thursday October 04 2001, @10:38AM
    • Yah right... by Anonymous Coward (Score:1) Thursday October 04 2001, @12:15PM
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    • 1 reply beneath your current threshold.
  • Of course... by MKalus (Score:1) Thursday October 04 2001, @10:39AM
  • Alternatives? by broody (Score:1) Thursday October 04 2001, @10:39AM
  • A great pity indeed by tomknight (Score:1) Thursday October 04 2001, @10:40AM
  • History repeats itself (Score:3, Informative)

    by CaptainAlbert (162776) on Thursday October 04 2001, @10:40AM (#2388393) Homepage
    Remember anon.penet.fi?

    This is even more depressing, because this time the company running the service has pre-empted the government pressure to shut down, and gone ahead and done it before the lawyers arrive.

    Eek. DOes anyone else get the feeling that the terrorists might actually be winning?

  • Security Warning by AndroidCat (Score:1) Thursday October 04 2001, @11:17AM
  • This is an opportunity (Score:3, Insightful)

    by sting3r (519844) on Thursday October 04 2001, @11:39AM (#2388398) Homepage
    Certainly, the loss of one more tool in the fight for online privacy is a Bad Thing(tm). But we also need to examine the upside to this event.

    First off, when ZeroKnowledge closes, all of its customers will be forced to find another provider. That will make the other providers 1) more profitable (assuming they aren't taking a loss but making it up in volume, like Amazon); and 2) more effective. As mentioned in the warning to their customers, low volume makes it easier to correlate traffic entering their system with traffic leaving their system. When such a system gets sufficiently large, it will be very difficult to correlate input streams and output streams, because of the sheer number of possible matches.

    Secondly, the closing of another anonymity service will make it harder for terrorists to operate on the internet. They will have one less place to hide. And that has a positive effect on law-abiding netizens - because when communications are more traceable and less anonymous, the government will have fewer excuses to pass legislation that gives law enforcement more snooping powers. And that benefits us all.

    -sting3r

  • Safe Web by hendridm (Score:1) Thursday October 04 2001, @11:40AM
  • Shaver by DarkClown (Score:1) Thursday October 04 2001, @11:41AM
    • Re:Shaver by furiousgeorge (Score:2) Thursday October 04 2001, @11:49AM
    • Re:Shaver (Score:5, Interesting)

      by Mike Shaver (7985) on Thursday October 04 2001, @12:42PM (#2388707) Homepage
      I think I left ZKS several months back (on good terms, etc., etc.).

      I think that Hamnett's message says it all (they couldn't afford to keep operating the network, because of that traditional operating-cost-vs.-revenue balance).

      I think that gov't pressure -- should any have actually existed; I don't recall much such pressure from when I was there -- had nothing to do the decision.

      I think they picked a very hard market nut to crack, and chose a very high bar for the level of security and privacy they were going to provide.

      I think the market didn't share their (our) enthusiasm for that level of service, perhaps unfortunately.

      I think a lot of people have talked here and elsewhere about how the Freedom network could have been done better, from technology or marketing or whatever perspectives...

      ...but I think nobody has done a better job so far of that type of network service.

      I think they've learned a _lot_ about protecting privacy and helping other people and organizations protect privacy.

      I think there's a market for that knowledge, and good applications of it.

      I think they're going to be OK.

      I think you shouldn't really care what I think.

      (I think Craig's still a dork.)
      [ Parent ]
  • by Lawmeister (201552) on Thursday October 04 2001, @11:42AM (#2388404) Homepage
    "Zero-Knowledge is introducing Freedom Privacy & Security Tools 3.0, the next generation of its online security software for consumers. This new software includes a personal firewall, form filler/password manager, ad manager, cookie manager and keyword alert. As a result, we have decided to focus our main development efforts on this product as well as other software solutions providing online security.

    As such, I regret to inform you that Freedom Premium Services - Anonymous Web Browsing and Private Encrypted Email - will be discontinued as of October 22nd, 2001. Please refer to the detailed Freedom Network shutdown timetable below"


    So basically they are winding down their subscription based business model, leasing nyms (4 minimum as far as I recall) on an annual basis and going with a shrink wrap product.

    I'm holding my breath to see what the reviewers have to say about this Tool kit v3.0 - it may provide what most users are looking for.
  • Getting rid of anonymity is not the answer by sledd_1 (Score:1) Thursday October 04 2001, @11:44AM
  • by Anonymous Coward on Thursday October 04 2001, @11:45AM (#2388416)
    holy smokes, when i read that a zero knowledge system was discontinuing anonymity, I thought
    that it meant that slashdot was going to stop
    posting by AC's!
  • Fallout from Sept 11 (Score:3, Redundant)

    by wiredog (43288) on Thursday October 04 2001, @11:47AM (#2388426) Journal
    I suspect that various governments are bringing pressure to bear. Hotmail et al are probably next. See this article at [washingtonpost.com]
  • ZKS cans its Freedom network. by mathieukhor (Score:1) Thursday October 04 2001, @11:49AM
  • Surprise to the staff as well? (Score:5, Interesting)

    by Pituritus Ani (247728) on Thursday October 04 2001, @11:50AM (#2388442) Homepage
    Yesterday, I received the following message in response to questions about upcoming changes in services and offshore servers (emphasis mine):

    Date: Wed, 3 Oct 2001 09:56:46 -0400 (EDT)
    From: InfoReplies@zeroknowledge.com
    To: @freedom.net
    Subject: Ref: "New anonymous browsing service"

    Hello,

    Thank you for your interest in Freedom. Currently, we are unable to release specific details about our upcoming privacy services; I wish I could provide you with more information. :(

    As for the servers, the upgrades should be completed shortly, and more servers should appear on the network. We apologize for the inconvenience.

    Regards,

    Freedom Support Team

    Have a question? Looking for answers? Visit our Knowledge Center for up-to-date solutions to common problems.
    http://www.freedom.net/support/knowledge.html
  • oh yeah by WinDoze (Score:2) Thursday October 04 2001, @11:50AM
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  • The really scary thing by RedCard (Score:1) Thursday October 04 2001, @11:51AM
  • Time for these to disapear by zarathustra93 (Score:1) Thursday October 04 2001, @11:51AM
  • Well, at least there are *options* by Majik (Score:2) Thursday October 04 2001, @11:52AM
  • by DumbSwede (521261) <slashdotbin@hotmail.com> on Thursday October 04 2001, @11:53AM (#2388461) Homepage Journal
    I will probably get flamed for this one, and I must admit my views on privacy and security are in flux right now.

    It seems to me the government should offer a free anonymizer service, with the proviso that detection of verifiable illegal activities transacted through same would lead to the immediate disclosure of the sender's identity (or at least location) to the appropriate legal agency. Private anonymizer services should not be allowed (at least within US borders).

    This would then be a way for whistle blowers and others not engaged in illegal activities to easily, and with better legal shielding, submit their disclosures or air their personal political views. Mailing death threats, circulating child pornography, arranging for killings, or setting up drug drops shouldn't have any kind of guarantee of hiding the sender's identity.

    I can already hear the big sucking sound from civil libertarians -- "HOW CAN YOU POSSIBLY TRUST THE GOVERNMENT WITH THIS?"

    It would seem trusting private individuals with this isn't much better (and the government gets what they want eventually anyway). Perhaps using a private anonymizing service shouldn't imply that someone has something to hide, but in the minds of many, it does.

    Being intractable on this issue will hurt the IT community more in the long run, because it closely associates it with the ability to conduct illicit and untraceable activities. I am more worried about being being prevented from using cryptography, or being forced to register the keys with a government agencies. Here is where the battle should be fought, because it will lead to the real government oversight of the flow of sensitive information.

    Yes this probably comes as result of 9-11-2001. Stop burying your heads in the sand and telling yourselves the world isn't any different now.

  • Grab it while it's still there by Pituritus Ani (Score:2) Thursday October 04 2001, @11:55AM
  • NBC knows how to do it: by pacc (Score:1) Thursday October 04 2001, @11:57AM
  • Really Anonymous??? by jsonic (Score:1) Thursday October 04 2001, @12:04PM
  • Zero Knowledge by depth_13 (Score:1) Thursday October 04 2001, @12:06PM
  • Well... by Pope Slackman (Score:2) Thursday October 04 2001, @12:07PM
  • Now What? by DebianDog (Score:1) Thursday October 04 2001, @12:08PM
    • Re:Now What? by gorillasoft (Score:1) Thursday October 04 2001, @12:51PM
  • As the saying goes... by Anonymous Coward (Score:1) Thursday October 04 2001, @12:10PM
  • by Everyman (197621) on Thursday October 04 2001, @12:12PM (#2388550) Homepage
    The liberals in Congress think they're sounding like civil
    libertarians with their new, modified stand on Internet
    surveillance. They say that the authorities should be allowed
    warrantless taps to find out where you surfed, but not what you did
    once you got there. The FBI has a right to know that you went to
    Amazon, for example, but without a warrant they don't have a right
    to know what books you bought. The legal distinction here is from
    the old days: a "pen register" would record the number you dialed,
    but not the conversation itself, and therefore qualified for a
    looser legal standard.

    But pundits don't realize that 99 percent of your Web activity can
    be reconstructed from the Web's equivalent of "pen register"
    information. The search terms you enter into search engines are
    attached to the address itself. Do you believe that the FBI will
    want this portion of the URL excluded simply because they don't
    have probable cause? If and when the NSA is authorized to monitor
    the backbone, do you expect that they will chop off the URL at the
    question mark, so that this information is kept out of their
    keyword-analysis supercomputers? Not likely.

    My reading of the provisions of the new Anti-Terrorism Act of 2001
    suggests that a single, one-time certification by a federal
    law-enforcement official that such information is needed in a
    criminal investigation, without any showing of probable cause, is
    enough to require a court to issue an order allowing a pen-register
    tap on any Internet service provider presented with the order,
    throughout the entire U.S. The definition of this "pen-register or
    trap and trace device" information has been expanded for the
    Internet. It now includes "other dialing, routing, addressing, and
    signaling information reasonably likely to identify the source of a
    wire or electronic communication (but not including the contents of
    such communication)."

    For example, some federal official could conceivably serve Google,
    or any other search engine, with a court order demanding log
    information for all those who searched for particular persons or
    particular combinations of search terms. The "query strings"
    consisting of the users' search terms are, in all standard HTTP
    server logs, included along with the user's domain or IP number.

    One hopes that search engines would be inclined to challenge such
    an order. But we may never know, because if they decide to
    cooperate with the new law, their public relations office won't be
    announcing this. The bottom line is that the phrase, "but not
    including the contents of such communication," might be useful for
    excluding the body of e-mail messages, but is mostly irrelevant for
    Web surfing. This poor wording in the new law may mean that search
    engines can no longer claim privacy at any level.

    If someone wanted to redesign the entire Web for the express
    purpose of surveillance, they couldn't do a better job than what we
    already have. The profile that could be compiled if one had a list
    of all the Web sites you visited, or all the search terms you've
    used on Google, would be very revealing. The latter scenario is
    more worrisome, because the former scenario, short of a
    comprehensive backbone tap, would imply an order served locally at
    your own ISP. You'd almost have to be pre-targeted by the
    authorities. But a tap on a general search engine would amount to a
    global sweep for information. Google currently gets about 110
    million searches every day, most of which are from outside the U.S.
    It would be tempting for the feds to monitor this traffic.
  • This is bad by DangerElf01 (Score:1) Thursday October 04 2001, @12:12PM
  • Ian Goldberg, Bruce Schneier & Whitfield Diffi by fnthawar (Score:1) Thursday October 04 2001, @12:27PM
    • Re:Ian Goldberg, Bruce Schneier & Whitfield Di by sulli (Score:1) Thursday October 04 2001, @12:50PM
    • by Ian Goldberg (526438) on Thursday October 04 2001, @01:38PM (#2388977) Homepage
      Believe me, no one is more disappointed about this than I am, but right now there simply isn't enough market buy-in on the premium services to justify the network's operating costs. :-(

      As a business, we are focusing on the product that customers and partners want. Here's an official Zero-Knowledge Systems statement on the matter:

      With the release of Freedom 3.0 [zeroknowledge.com] and the discontinuation of the Freedom Network (our anonymous browsing and encrypted pseudonym service) there have been a number of questions for more details about the decision to stop offering the Freedom Network services. Hopefully this will help clarify things.

      When we released Freedom 1.0 close to 2 years ago we saw a significant percentage of our users subscribe to the premium Freedom Network services. This was anticipated as our early adopters were very privacy and technology aware and had expressed strong interest in the Freedom Network offering.

      As we began to increase the distribution of Freedom into the mass market with the release of Freedom 2.0 & 2.2, we saw a disproportionately high percentage of users who subscribed to the standard features (and not Freedom Network services). The initial interest in the premium (FN) services amongst our early adopters simply didn't carry over to the mainstream and as our user numbers grew, we began to realize that the market was looking for the kind of features we are now offering in Freedom 3.0.

      As we began our feature triage for Freedom 3.0 (almost 9 months ago) we heard from customers and focus groups of users, as well as channel partners [zeroknowledge.com], and reflected on the statistics from our existing user base, and decided that there was not enough mass market demand for the premium services to justify continuing the service.

      This was entirely a market related decision. The market demand for consumer Internet security and safety tools has grown considerably in the 4 years our company has been in business. Freedom 3.0 is a strong competitor to security offerings from companies such as Symantec and McAfee and we have gotten very positive market support and a warm reception from channel partners to this new version of our suite of privacy and security tools.

      There has been speculation that this decision was somehow related to government pressure or was made in the wake of the tragedies of September 11. This is simply untrue. For the past 3 months we have been beta-testing this version with partners, getting certification from Microsoft for our drivers and completing our Alpha and Beta cycles with our beta users. Support for the Freedom network offering was removed from the client code base well before the recent tragedies of September 11.

      Our research team is continuing work in the area of privacy enhanced network protocols, and we are open to any suggestions the research community offers on how we can leverage the work that went into the Freedom Network design and operation to advance this area of computer science. If you have suggestions or interest in this, please contact us at corporate@zeroknowledge.com [mailto].

      Zero-Knowledge continues to offer our consumer protection utility Freedom 3.0 and we are very excited by the prospects for this product. We also have a division that is addressing the market need of enterprise privacy technologies that stem from managing consumer data that require strong security and policy frameworks to adhere to privacy regulations and customer preference management (Healthcare; Financial and other consumer data that is subject to new security, privacy restrictions relating to legislation like HIPAA, GLB, PIPEDA, EU privacy directive).

      Our company continues to evolve and focus our efforts on market needs and customer demands and we remain very confident of our prospects in these markets.

      [ Parent ]
    • Re:Ian Goldberg, Bruce Schneier & Whitfield Di by Zeinfeld (Score:2) Thursday October 04 2001, @03:32PM
  • Since when was the web anonymous? by Nitroshock (Score:1) Thursday October 04 2001, @12:27PM
  • This has been in the works for a while, I think by Phillip Birmingham (Score:1) Thursday October 04 2001, @12:34PM
  • Anonymity disappears with refunds... by Goldenhawk (Score:2) Thursday October 04 2001, @12:36PM
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  • What a gyp! by p0nderous (Score:2) Thursday October 04 2001, @12:43PM
    • Re:What a gyp! by p0nderous (Score:1) Thursday October 04 2001, @02:33PM
      • Re:What a gyp! by twalton (Score:1) Thursday October 04 2001, @02:56PM
        • Re:What a gyp! by p0nderous (Score:1) Thursday October 04 2001, @03:31PM
          • Re:What a gyp! by twalton (Score:1) Thursday October 04 2001, @03:34PM
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  • by Sonicboom (141577) on Thursday October 04 2001, @12:48PM (#2388734) Journal
    Closing an anon remailer or anon web proxy is not going to stop terrorism. Neither is putting backdoors into encryption schemes, or making National ID cards that people will be required to carry. They are great deterrents tho.

    Before the internet there was terrorism... and unfortunately terrorism will continue.

    A step in the right direction would be tighter immigration laws. Better security on flights, and letting the millitary do their job (no more bullshit police actions).

    But closing down a remailer or web proxy won't stop anything. It's paranoia. Why can't the terrorists set up their OWN anon remailers or proxies. Hell they could revert to using RFC1149 technology with a Honeycomb Cereal invisible ink pen....

    Paranoia does not solve problems...

  • There was once a time when anonymous remailers served a purpose on the net, and where the people using them were as or more likely to contribute something to the online community as any others.

    Sadly, I think that time has now passed.

    On most of the Usenet groups I frequent (which, of course, is merely the tiniest fraction of those available), the people using anonymous remailers seem to be overwhelmingly: A.) Spammers, B.) Jerks who contribute nothing to the group and who cower behind anonymity for the sole purpose of flaming others free of consequences, and C.) People who not not only pirate intellectual property, but who spam newsgroups with it to show everyone how big their virtual Warezzz penis is. For example, a couple of months ago, someone spammed rec.arts.sf.written with hundreds of badly OCRed SF novels and stories, including some by people who are by no means rich.

    Frankly, the people with the most urgent need for legitimate use of anonymous remailers (i.e., those in communist or otherwise oppressive countries where there is no freedom of the press) are the ones who either can't get to them anyway, or whose governments have so much of the system tapped that it would be easy to track them down.

    While there are still some legitimate uses for anonymous remailers (Scientology whistle-blowers, for example), the jerks and spammers seem to outweigh legitimate uses about 100 to 1. Thus I see no real cause to mourn their passing. I wish that it were otherwise, but we must deal with the world as it is, not as we wish it were.

    • I dissagree by Nf1nk (Score:1) Thursday October 04 2001, @01:53PM
      • Re:I dissagree by DumbSwede (Score:1) Thursday October 04 2001, @03:03PM
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  • A little privacy humour in a depressing discussion by Glytch (Score:2) Thursday October 04 2001, @12:52PM
  • by Corgha (60478) on Thursday October 04 2001, @01:01PM (#2388798)
    ...when you've got wireless?

    Just find your local wide-open corporate or university wireless network, and hack away! Maybe even buy yourself a nice directional antenna... w00t!
    • 1 reply beneath your current threshold.
  • WTC victims sue? by snarfer (Score:1) Thursday October 04 2001, @02:25PM
  • That's just great... by delta0 (Score:1) Thursday October 04 2001, @02:33PM
  • Sealand will be next (Score:3, Insightful)

    by Zeinfeld (263942) on Thursday October 04 2001, @02:59PM (#2389454) Homepage
    I posted a story to slashdot predicting this would happen a couple of weeks ago.

    The whole cryptographic anonymity area was likely to take a massive hit in the wake of the WTC attack.

    Even if ZeroKnowledge had kept going the increased scrutiny and surveillance would render the scheme pointless. Having a FreedomNet account or connecting to the server would get you put on a watch list the minute the NSA found out - and find out they would.

    I suspect that the number of hosting facilities willing to run the service servers declined substantially after the WTC attack.

    I would not give the Sealand folk much chance of lasting very much longer. For all the riddiculous libberprattle the platform is now inside UK territorial waters and the UK government does not recognise sealand as a state. Since the sealand employees are mainly from the US that would make them illegal workers subject to arrest when they set foot on the mainland.

    • Sealand won't be next... by Anonymous Coward (Score:1) Thursday October 04 2001, @07:56PM
    • Re:Sealand will be next (Score:4, Insightful)

      by rdl (4744) <ryan@venona.com> on Friday October 05 2001, @12:35AM (#2391033) Homepage
      ZKS ended Freedom because it doesn't make money for them; they rightly have shifted their focus to a somewhat better business model. I think ZKS was from the beginning a bit overly cypherpunk and not enough pragmatic business; it's widely known end-users DO NOT pay for privacy or anonymity and usually not for security. They are rightly focusing on what their major clients want. If the markets were doing better, ZKS could have continued subsidizing the Freedom network, and maybe more applications could have been built on top of it, but this is commercial reality -- they need to turn a profit ASAP.

      HavenCo (the datacenter on Sealand) has *always* been focused on business clients, and selling services to people who receive bottom line benefits from HavenCo hosting -- a lot of our clients are chosing us at USD 1500/month where the only alternative is traditional central american offshore at USD 15k/month. That's why we have been profitable since 4 months after we started general sales. We're on-track with expansion plans, both in terms of physical sites, and related business offerings.We don't even offer a consumer web hosting or mail option because it just doesn't make money. You can feel free to criticize us for being mercenary, but that's why we'll be in business in 10 years, and companies which in effect subsidize consumer security offerings will probably not. In a recessionary market, products which can provide 1 for 1 substitution at a dramatic and immediate cost savings do well; we've had if anything an uptick since the summer.

      (interestingly, at least one member of the press also claimed HavenCo would be out of business; this was in December 2000 if I recall correctly.)

      Regardless of people of questionable impartiality or competence from cyberia-l, the fact is Sealand's legal claims have withstood more than 30 years of challenge by other governments; every lawyer who has written an opinion, including numerous professors of law, has recognized this, and there is substantial documentation from various government agencies, in the UK and other nations, to support.
      It has always been clear that the true threat to security and privacy companies is market demand; followed perhaps by internal execution. Any threat of government action is so remote that if a company gets to the point where the government DOES shut them down, they've already won. The majority of the p2p systems in the US were forced to shut for commercial reasons (scour, aimster, etc.). Only a few of the most successful were challenged in court, and their failings were after the initial challenge primarily due to execution and lack of a real way to extract revenue, not action by the MPAA or RIAA.

      That being said, I'm more than happy to run a Freedom server; I already run a mixmaster remailer (which is fairly similar technology), and there have been absolutely no serious complaints or difficulties. I know several of the executives at ZKS, and I'm sure they'll do the right thing. ZKS has always had a lot of support within the security and privacy community; they were started by and hired some of the best people, and developed technology which made no compromises on security. I'm sure their business and consulting offerings, as well as their remaining optimized client software, will do well.
      [ Parent ]
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  • Price and platform issues by delta0 (Score:1) Thursday October 04 2001, @03:08PM
  • Freedom Network Replacement? by cyberops0 (Score:2) Thursday October 04 2001, @03:33PM
  • List of alternatives by lmd (Score:2) Thursday October 04 2001, @03:43PM
  • The Tweakdom project might be able to fill the gap by willdye (Score:2) Thursday October 04 2001, @08:13PM
  • Re:In true .com fashion (Score:3, Informative)

    by VulgarBoatman (213054) on Thursday October 04 2001, @10:36AM (#2388364) Homepage
    Nope. $59.95 for 5 identities - each good for a maximum of 1 year.
    [ Parent ]
  • Re:Refunds? by Chmarr (Score:1) Thursday October 04 2001, @10:38AM
  • Re:Refunds? by weslocke (Score:1) Thursday October 04 2001, @11:44AM
    • Re:Refunds? by HiThere (Score:2) Thursday October 04 2001, @12:08PM
  • Re:check the math dude.... by Red Aardvark House (Score:2) Thursday October 04 2001, @11:44AM
  • Re:check the math dude.... by VulgarBoatman (Score:1) Thursday October 04 2001, @11:48AM
  • Re:Refunds? by Sawbones (Score:1) Thursday October 04 2001, @11:50AM
  • Re:Good. (Score:3, Insightful)

    by mathieukhor (460475) on Thursday October 04 2001, @12:05PM (#2388518)
    I am an ex-ZKS employee, and you - are a troll.

    Do you really think you can stop people from developping or using encryption or anonymity? There a rumours Ben Laden uses steganography - should we ban all .GIF's and JPEG's on the web?

    Most employeess at ZKS believe in protecting our rights, and in preserving privacy versus what is perceived by many as intrusions of a police state future into what was otherwise a "free" internet. As Phil Zimmerman said:, "if you ban strong crypto only the terrorists and criminals will have access to it."
    [ Parent ]
  • Re:Open Source? by Pituritus Ani (Score:1) Thursday October 04 2001, @12:26PM
  • Doesn't sound like it... by Bilbo (Score:2) Thursday October 04 2001, @01:42PM
  • Re:Uh oh... by Anonymous Coward (Score:1) Thursday October 04 2001, @03:18PM
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