Mars

ExoMars Rover Mission Officially Suspended As Europe Cuts Ties With Russia (gizmodo.com) 29

An anonymous reader quotes a report from Gizmodo: Today, the European Space Agency leadership took steps toward suspending the ExoMars mission, a joint project with Russian space agency Roscosmos. It's the latest scientific fallout from the Russian invasion of Ukraine, which has forced institutions collaborating with Russian entities to reevaluate their positions.

ExoMars a two-part mission: an orbiter, launched in 2016, that studies the chemistry of the Red Planet's atmosphere, and a Mars rover, named for scientist Rosalind Franklin and set to launch this year -- or at least, it was. The mission has been a long time coming; funding was granted 10 years ago this week, but technical delays and the covid-19 pandemic pushed the rover launch date back to fall 2022. That target was looking viable until the Russian invasion of Ukraine last month.

From the off, it was clear that ExoMars was in doubt. In a statement shortly after the invasion, the ESA said it was "fully implementing sanctions imposed on Russia by our Member States" and that "the sanctions and the wider context make a launch in 2022 very unlikely." The agency's most recent move codifies that unlikeliness. Meeting in Paris this week, the agency's ruling council unanimously mandated that the ESA Director General take steps to suspend cooperation with Roscosmos and authorized a study of how to get ExoMars off the ground without Roscosmos involvement. [...] In its newest statement, ESA announced that its director general would convene a meeting of the agency council in several weeks to submit proposals for how to proceed with ExoMars without Russian involvement.

Data Storage

Russia Will Run Out of Data Storage In Two Months (bleepingcomputer.com) 138

"A little noticed side effect of all the sanctions Russia is under for its invasion of Ukraine is that related to IT," writes Slashdot reader quonset. "U.S. sanctions prohibit any technology transfers to the country, including computer chips. However, another issue is Russia is now cut off from cloud storage companies in the West. As a result, Russia is two months away from using up all its domestic storage capacity. Four options have been proposed to counter this issue. BleepingComputer reports: Last week, the Ministry of Digital Development amended the Yarovaya Law (2016) to suspend a yearly requirement for telecom operators to increase storage capacity allocations by 15% for anti-terrorist surveillance purposes. Another move that could free up space would be to demand ISPs abandon media streaming services and other online entertainment platforms that eat up precious resources. Thirdly, there's the option of buying out all available storage from domestic data processing centers. However, this will likely lead to further problems for entertainment providers who need additional storage to add services and content. Russia is also considering seizing IT servers and storage left behind by companies who pulled out of Russia and integrating them into public infrastructure. There is one more option mentioned in the report and it has to do with China. Russia could "tap into Chinese cloud service providers and IT system sellers," reports BleepingComputer, although China has yet to decide how much it's willing to help Russia.
Bitcoin

Ukraine's Zelenskyy Signs Virtual Assets Bill Into Law, Legalizing Crypto (coindesk.com) 61

Ukrainian President Volodymyr Zelenskyy legalized crypto in the country, signing into law a bill on virtual assets, amid a frenzy of digital asset donations to support the country's defense against a Russian invasion. CoinDesk reports: The law determines the legal status, classification, ownership and regulators of virtual assets, as well as setting registration requirements for crypto services providers, the Ministry of Digital Transformation said in a statement Wednesday. The market will be regulated by Ukraine's National Commission on Securities and the Stock Market. Exchanges will be able to operate legally, and banks will open accounts for them, the digital ministry said in a tweet.

The state body is tasked with "shaping and pursuing a policy in the field of virtual assets; determining the order of circulation of virtual assets; issuing permits to virtual asset service providers; and carrying out supervision and financial monitoring in this area," according to a Feb. 17 government announcement. The Ministry of Finance is working on amendments to the country's tax and civil codes to fully launch the market for virtual assets, the statement said.
The report notes that Ukraine has received at least $100 million in crypto donations following Russia's unprovoked and unjustified attack on the country.

Zelenskyy rejected an earlier version of the bill in September 2021.
United Kingdom

UK Looking To Extend Life of Nuclear Plant By 20 Years Amid Energy Crisis (ft.com) 122

The UK is looking at a 20-year extension of the Sizewell B nuclear power plant on England's east coast to 2055 as Boris Johnson aims to bolster domestic energy supplies following Russia's invasion of Ukraine. From a report: The extension is one of several options under consideration as the prime minister draws up a new "energy supply strategy," which will be published next week against the backdrop of highly volatile international gas prices and an escalating cost-of-living crisis. Johnson's new approach will not see him cut Britain's carbon targets, including the plan to reach net zero by 2050, and will see an increase in targets for various renewable energy sources, according to officials. However, it will also seek to improve security of supply of hydrocarbons by increasing North Sea oil and gas production and potentially keeping some of Britain's few remaining coal-fired power plants open slightly longer than expected -- rather than relying on imports.
NASA

Ex-NASA Astronaut Scott Kelly Says He's Ending Feud With Russian Space Chief (wsj.com) 37

Former astronaut Scott Kelly said he is ending his feud with the head of Russia's space program after the National Aeronautics and Space Administration asked former astronauts to dial down criticism of their Russian counterparts. From a report: The dustup began when Roscosmos Director General Dmitry Rogozin and other Russian government entities published a series of social-media posts, including one video showing Russian cosmonauts abandoning the International Space Station and leaving behind U.S. astronaut Mark Vande Hei. Mr. Kelly, who spent nearly a year in 2015 and 2016 aboard the ISS, got into a heated exchange on Twitter last week with the Russian space chief over the series of posts. Now Mr. Kelly said he is ending the spat with Mr. Rogozin after NASA sent an email to former astronauts asking them to stop criticizing their Russian partners because it was hurting the mission aboard the ISS, an orbiting lab where American astronauts and Russian cosmonauts work side by side. "I respect their position. They have a tough job. I believe in NASA and what they do. I want to help them. I respect the person that sent it greatly," Mr. Kelly said in an interview. "I would say that if I was in their position, I would have done the same exact thing."
Crime

Lawmakers Probe Early Release of Top RU Cybercrook (krebsonsecurity.com) 21

An anonymous reader quotes a report from KrebsOnSecurity: Aleksei Burkov, a cybercriminal who long operated two of Russia's most exclusive underground hacking forums, was arrested in 2015 by Israeli authorities. The Russian government fought Burkov's extradition to the U.S. for four years -- even arresting and jailing an Israeli woman to force a prisoner swap. That effort failed: Burkov was sent to America, pleaded guilty, and was sentenced to nine years in prison. But a little more than a year later, he was quietly released and deported back to Russia. Now some Republican lawmakers are asking why a Russian hacker once described as "an asset of supreme importance" was allowed to shorten his stay.

"An ICE spokesperson stated that Burkov is wanted by Russian authorities, and a DOJ spokesperson denied that a prisoner exchange took place," the letter reads. "The decision to prematurely release Burkov is curious given the lengths to which the U.S. government went to secure Burkov's arrest." The letter, signed by the ranking members of the House Judiciary, Homeland Security, Intelligence and Foreign Affairs committees, demanded to know why Burkov was released prematurely, and whether the U.S. received anything in return. The lawmakers also asked for a list of all Russian nationals convicted of crimes in the U.S. who were released early since President Biden took office.

Records show Burkov was in the custody of either Israeli or U.S. authorities for almost five years prior to his sentencing in 2020. At the time of his release, Burkov had already been incarcerated for nearly six years. So where did the other years of his sentence go? That remains unclear, but it is possible he cut some sort of deal to lessen his sentence. On June 16, 2021, a "sealed pleading" was added to Burkov's court record, followed by a sealed document entered on Aug. 18 -- a week before Burkov's deportation. The motion to seal these and other documents related to the pleading was made by U.S. federal prosecutors, and those documents remain hidden from public viewing.
"A native of St. Petersburg, Russia, Burkov admitted to running CardPlanet, a site that sold more than 150,000 stolen credit card accounts, and to being a founder of DirectConnection -- a closely guarded online community that attracted some of the world's most-wanted Russian hackers," notes Krebs. "A 2019 deep dive into Burkov's hacker alias 'K0pa' revealed he also was co-administrator of the secretive Russian cybercrime forum 'Mazafaka.' Like DirectConnection, Mazafaka's member roster was a veritable 'Who's Who?' of the Russian hacker underground, and K0pa played a key role in vetting new members and settling disputes for both communities."
ISS

US Astronaut's Return Hangs in the Balance as Tensions With Russia Escalate (theguardian.com) 70

The US astronaut Mark Vande Hei has made it through nearly a year in space, but now faces what could be his trickiest assignment: riding a Russian capsule back to Earth in the midst of deepening tension between the two countries. From a report: Nasa insists Vande Hei's homecoming at the end of the month remains unchanged, even as Russia's invasion of Ukraine has resulted in canceled launches, broken contracts and an escalating war of words from the leader of the Russian Space Agency. Many worry Dmitry Rogozin is putting decades of peaceful partnership at risk, most notably at the International Space Station (ISS). Vande Hei, who on Tuesday will break the US single spaceflight record of 340 days, is due to leave with two Russians aboard a Soyuz capsule for touchdown in Kazakhstan on 30 March. He will have logged 355 days in space. The world record of 438 days belongs to Russia.

The retired Nasa astronaut Scott Kelly, America's record-holder until Tuesday, is among those sparring with Rogozin, a longtime ally of Vladimir Putin. Kelly has returned a medal to the Russian embassy in Washington but believes the two sides "can hold it together" in space. "We need an example set that two countries that historically have not been on the most friendly of terms, can still work somewhere peacefully. And that somewhere is the International Space Station. That's why we need to fight to keep it," Kelly said. Nasa wants to keep the space station running until 2030, as do the European, Japanese and Canadian space agencies. The Russians have not committed beyond the original end date of 2024 or so.

Security

Germany Warns Kaspersky Software Risks Being Exploited by Russia (bloomberg.com) 44

Germany warned against using anti-virus software from Moscow-based Kaspersky Lab due to risks it could be exploited by Russia for a cyber attack. From a report: The Federal Office for Information Security, or BSI, issued the warning on Tuesday, saying that companies and authorities with special security status and operators of critical infrastructure could be "particularly at risk." The danger has increased since Russia's invasion of Ukraine, the Bonn-based agency said in a press release, citing threats made by Moscow against NATO, the European Union and Germany. In 2017, the U.S. government banned all use of Kaspersky Lab software in federal information systems, citing concerns about the firm's links to the Russian government and espionage. The company denied any wrongdoing in that case and pushed back against Germany's move now.
Medicine

Pfizer Halts Clinical Trials In Russia But Will Continue To Supply Medicine (time.com) 73

An anonymous reader quotes a report from Time: Pfizer said it would no longer start new clinical trials in Russia and that it would donate all profits from its subsidiary in the country to Ukraine relief causes. At the same time, the drugmaker said in a statement that it will continue to supply medicines to Russia, out of fear that vulnerable patients such as children and elderly people who rely on its therapies could be harmed by any halt. The company "concluded that a voluntary pause in the flow of our medicines to Russia would be in direct violation of our foundational principle of putting patients first," according to the statement. Pfizer said it doesn't own or operate any manufacturing sites in Russia and plans to cease planned investments with local suppliers. Pfizer said it would work with the U.S. Food and Drug Administration and other regulators to move current clinical trials to alternative locations outside of Russia. Patients already enrolled in studies will continue to receive medications, the company said.
Security

Ukraine Ethical Hackers Bewildered as HackerOne Bug Bounty Platform Said To Halt Their Payouts (gadgets360.com) 28

Amid the ongoing disruption from Russia, some ethical hackers in Ukraine are feeling lost as bug bounty platform HackerOne has allegedly withheld their payouts. From a report: The loss due to the sudden halt is said to have mounted to hundreds and thousands of dollars. A few of the affected ethical hackers -- also known as cybersecurity researchers -- have taken the issue to social media. Some of them have also written to the platform to get clarity on why exactly it has disabled their payments in the middle of the humanitarian catastrophe in the country. Ethical hackers normally earn payouts ranging from tens and hundreds to over millions of dollars in the form of rewards through bug bounty platforms for reporting flaws in various Internet-based solutions. However, HackerOne is said to have suddenly stopped payouts for some Ukrainian hackers.

Earlier this month, HackerOne CEO Marten Mickos had announced, "[A]s we work to comply with the new sanctions, we'll withdraw all programmes for customers based in Russia, Belarus, and the occupied areas of Ukraine." On Monday, he clarified that the restrictions were for sanctioned regions - Russia and Belarus, not mentioning any clear details about the status of Ukraine. "That's a really weird situation," said independent security researcher Bob Diachenko, who has been associated with the San Francisco, California-based platform for the last two-three years now. The security researcher tweeted on Sunday that HackerOne stopped paying bounties worth around $3,000 for the flaws he reported. Alongside stopping payouts, HackerOne has removed its 'Clear' status from all Ukraine accounts. The status essentially allows ethical hackers to participate in private programmes run by various companies to earn a minimum of $2,000 for a high-severity vulnerability or $5,000 for a critical one. It requires background-check for researchers to participate in the listed programmes.

Social Networks

Instagram is Now Blocked in Russia (techcrunch.com) 97

Russia followed through on its threat to block Meta-owned Instagram on Monday, cutting off access to tens of millions of users in the country. From a report: Instagram is popular in Russia. It's Meta's second most popular app there, according to data from Sensor Tower, behind ubiquitous messaging service WhatsApp. The app has been installed 166 million times across the Russian App Store and Google Play since 2014, making it three times as popular as Facebook. After Russian censor Roskomnadzor announced that the government would restrict access to the app following a 48-hour "transition period," Head of Instagram Adam Mosseri condemned Russia's actions, which will affect 80 million people in the country.
Facebook

Russia Shuts Down Instagram at Midnight. Users Say Farewell (cnn.com) 116

Slashdot reader quonset shares this report from Reuters: Instagram users in Russia have been notified that the service will cease as of midnight on Sunday after its owner Meta Platforms said last week it would allow social media users in Ukraine to post messages such as "Death to the Russian invaders". An email message from the state communications regulator told users to move their photos and videos from Instagram before it was shut down, and encouraged them to switch to Russia's own "competitive internet platforms".

Meta, which also owns Facebook, said Friday that the temporary change in its hate speech policy applied only to Ukraine, in the wake of Russia's Feb. 24 invasion. The company said it would be wrong to prevent Ukrainians from "expressing their resistance and fury at the invading military forces"....

The message to Instagram users from the state media regulator, Roskomnadzor, described the decision to allow calls for violence against Russians as a breach of international law. "We need to ensure the psychological health of citizens, especially children and adolescents, to protect them from harassment and insults online," it said, explaining the decision to close down the platform.

"The tears were flowing Sunday among Russia's airbrushed Instagram influencers, who begged their followers in farewell posts to join them on alternative social media platforms..." reports the Washington Post: On the platform, emotions ran high Sunday among Russians who were about to lose thousands of dollars they received to promote various products, as well as access to millions of followers amassed over the years. "I'm writing this post now and crying," Olga Buzova, a Russian reality television star, wrote, saying she hoped "it's all not true and we will remain here...."

The ban on Instagram is the latest example of how Russia's citizens are being isolated from the rest of the world as a result of Moscow's war against Ukraine. Since Russian President Vladimir Putin launched the invasion on Feb. 24, his government has also pulled the plug on Russia's opposition-oriented radio and television networks, part of a broader effort to squelch domestic dissent in response to the war. Thousands of Russians have been arrested for attempting to protest the invasion.... But perhaps no move is more isolating than removing Russians from social media platforms that connect them directly to other users around the world. Instagram counted nearly 60 million users in Russia in 2021, according to the market data firm Statista, about 40 percent of the country's population. The platform is also a huge revenue source for its users, who rake in cash from sponsors by posting promotional content.

"We know that over 80 percent of people in Russia on Instagram follow an account from outside of Russia," Instagram head Adam Mosseri said in a video, according to the Post's article.

It adds that "It is unclear how many Russians will continue to be able to access Instagram using Virtual Private Networks, or VPNs."
AI

Ukraine Has Started Using Clearview AI's Facial Recognition During War (msn.com) 49

Reuters reports: Ukraine's defense ministry on Saturday began using Clearview AI's facial recognition technology, the company's chief executive told Reuters, after the U.S. startup offered to uncover Russian assailants, combat misinformation and identify the dead. Ukraine is receiving free access to Clearview AI's powerful search engine for faces, letting authorities potentially vet people of interest at checkpoints, among other uses, added Lee Wolosky, an adviser to Clearview and former diplomat under U.S. presidents Barack Obama and Joe Biden.

The plans started forming after Russia invaded Ukraine and Clearview Chief Executive Hoan Ton-That sent a letter to Kyiv offering assistance, according to a copy seen by Reuters. Clearview said it had not offered the technology to Russia, which calls its actions in Ukraine a "special operation...."

The Clearview founder said his startup had more than 2 billion images from the Russian social media service VKontakte at its disposal, out of a database of over 10 billion photos total. That database can help Ukraine identify the dead more easily than trying to match fingerprints and works even if there is facial damage, Ton-That wrote.... Ton-That's letter also said Clearview's technology could be used to reunite refugees separated from their families, identify Russian operatives and help the government debunk false social media posts related to the war.

The exact purpose for which Ukraine's defense ministry is using the technology is unclear, Ton-That said. Other parts of Ukraine's government are expected to deploy Clearview in the coming days, he and Wolosky said.

Censorship

How Putin's Pre-War Moves Against Google and Apple Prepared His Clampdown on Free Speech (msn.com) 91

The Washington Post shares a story that hasn't been previously disclosed. "Russian agents came to the home of Google's top executive in Moscow to deliver a frightening ultimatum last September: take down an app that had drawn the ire of Russian President Vladimir Putin within 24 hours or be taken to prison." Google quickly moved the woman to a hotel where she checked in under an assumed name and might be protected by the presence of other guests and hotel security, according to people with knowledge of the matter. The same agents — believed by company officials to be from Russia's FSB, a successor to the KGB intelligence service — then showed up at her room to tell her the clock was still ticking.

Within hours, an app designed to help Russians register protest votes against Putin could no longer be downloaded from Google or Apple, whose main representative in Moscow faced a similarly harrowing sequence....

The unnerving encounters, which have not previously been disclosed, were part of a broader campaign that Putin intensified last year to erode sources of internal opposition — moves now helping him maintain his hold on power amid a global backlash over the invasion of Ukraine. In a single year, Putin had his political nemesis Alexei Navalny imprisoned after a poisoning attempt failed to kill him; pushed independent news outlets to the brink of extinction; orchestrated a Kremlin-controlled takeover of Russia's Facebook equivalent; and issued "liquidation" orders against human rights organizations.

Amid this internal offensive, Putin also moved to bring foreign technology companies to heel. Moscow deployed new devices that let it degrade or even block Russians' access to Facebook and Twitter, imposed fines totaling $120 million on firms accused of defying Kremlin censors, and ordered 13 of the world's largest technology companies to keep employees in Russia and thus exposed to potential arrest or other punishment for their employers' actions — a measure that U.S. executives refer to as the "hostage law."

On their own, these moves were seen as disparate signs of Russia' descent into authoritarianism. But they also laid the groundwork for the Soviet-style suppression of free expression now underway in Russia, much as the months-long military buildup set the stage for the invasion of Ukraine.

The article also notes "preliminary evidence that the suppression strategy is working. "Polls, whose reliability is always uncertain in Russia, show that a majority of Russians support the war. In interviews with Western journalists that have gone viral online, Russians who rely on state-controlled media have consistently echoed Kremlin falsehoods about eradicating alleged Nazism in Ukraine while seeming to be genuinely oblivious to the war's carnage."

The article also notes how Apple is responding to Ukraine's crisis — but also includes this anecdote: Apple has similarly kept employees in Russia and taken other steps to placate the Kremlin. The company last year began configuring iPhones sold in Russia to promote Kremlin-backed social media companies, enabling users to activate them with a single click. It is an accommodation Apple has rarely made elsewhere and advances Putin's goal of migrating Russian people to platforms controlled by the government, according to Russia analysts.
Wikipedia

Belarus Arrests Prominent Wikipedia Editor, Sentences Him to 15 Days of Arrest (theverge.com) 73

Friday the Verge reported: The Main Directorate for Combating Organized Crime and Corruption of Belarus (GUBOPiK) has detained prominent Wikipedia editor Mark Bernstein, according to the Belarusian publication Zerkalo.

The arrest comes after Bernstein's personal information was shared on GOBUPiK's public Telegram channel. Bernstein is one of the top 50 editors of Russian Wikipedia. The Verge was able to confirm that Bernstein's information — including his social media, Wikipedia handle, and place of work — had been shared in GUBOPik's channel on the messaging app. A video of Bernstein's arrest was also posted alongside his photo and personal details. In the photo itself, Bernstein is accused of "distributing fake anti-Russian information." The channel has since been made private....

In an activity log of Bernstein's purported Wikimedia username, you can see that he's made over 200,000 edits to Russian Wikipedia articles. Currently, his account is described as "blocked indefinitely."

"Earlier in March, Slate reported on the same Wikipedia editor and his efforts to ensure the correct information hits pages about the invasion," adds The Byte.

On Saturday the human rights site Charter 97 reported that Bernstein was given 15 days of arrest, "according to the Viasna human rights center."
Censorship

'The Kremlin is Lying', Warn Text Messages Sent to Millions of Russian Cellphone Numbers (dailydot.com) 210

"People around the world are using a new website to circumvent the Kremlin's propaganda machine by sending individual messages about the war in Ukraine to random people in Russia," reports the Wall Street Journal.

"The website was developed by a group of Polish programmers who obtained some 20 million cellphone numbers and close to 140 million email addresses owned by Russian individuals and companies."

A Tuesday report from the Daily Dot: Created by the hacking group known as Squad303, the tool, hosted at the domain 1920.in, loads a pre-written statement into a user's native SMS app that attempts to inform Russians about the ongoing conflict.

"Dear Russians, your media is being censored. The Kremlin is lying," the statement reads. "Find out the truth about Ukraine on the free internet and in the Telegram app. Time to overthrow dictator Putin!"

In a statement to the Daily Dot, a member of Squad303 described the effort as a "non-violent communication project" aimed at bypassing Russia's crackdown on independent news sources.

The domain name for the tool refers to Poland's surprise victory against Russian forces in 1920.

"We know that people wanted to get engaged to help Ukrainians. We wanted to deliver them a tool to start a dialog with Russians," the group said.... Squad303 claims that its tool has already been used to send out more than 6.3 million text messages, although the Daily Dot was unable to confirm the number.

Social Networks

DuckDuckGo's Down-Ranking of Russian Disinformation Caused by Microsoft's Bing (rawstory.com) 115

Slashdot reader nickwinlund77 quotes the New York Times (also quoted here): DuckDuckGo has little control over its search results because they are provided by Microsoft's Bing, which announced that it would follow the European Union's order to restrict access to the Russian state news agencies RT and Sputnik. But the criticism from the far right was directed at DuckDuckGo. The conservative website Breitbart said DuckDuckGo was "adopting the censorship policies" of Big Tech. In social media channels devoted to conspiracy theories, users vowed to switch to alternatives like the Russian search engine Yandex....

In a statement, Kamyl Bazbaz, the vice president of communications for DuckDuckGo, said that the affected sites were engaged in "active disinformation campaigns," meaning they were similar to other low-quality websites already penalized by search algorithms. "This isn't censorship, it's just search rankings," he said....

The company also announced this month that it would pause its relationship with Yandex, the Russian search engine, which was providing certain links for results in Russia and Turkey.

United States

Critical US Companies Will Soon Be Required to Report All Breaches and Ransomware to the DHS (apnews.com) 16

"Companies critical to U.S. national interests will now have to report when they're hacked or they pay ransomware, according to new rules approved by Congress," reports the Associated Press: The rules are part of a broader effort by the Biden administration and Congress to shore up the nation's cyberdefenses after a series of high-profile digital espionage campaigns and disruptive ransomware attacks. The reporting will give the federal government much greater visibility into hacking efforts that target private companies, which often have skipped going to the FBI or other agencies for help. "It's clear we must take bold action to improve our online defenses," Sen. Gary Peters, a Michigan Democrat who leads the Senate Homeland Security and Government Affairs Committee and wrote the legislation, said in a statement on Friday.

The reporting requirement legislation was approved by the House and the Senate on Thursday and is expected to be signed into law by President Joe Biden soon. It requires any entity that's considered part of the nation's critical infrastructure, which includes the finance, transportation and energy sectors, to report any "substantial cyber incident" to the government within three days and any ransomware payment made within 24 hours....

The legislation designates the Department of Homeland Security's Cybersecurity and Infrastructure Security Agency as the lead agency to receive notices of hacks and ransomware payments.... The new rules also empower CISA to subpoena companies that fail to report hacks or ransomware payments, and those that fail to comply with a subpoena could be referred to the Justice Department for investigation.

Bitcoin

Why Isn't Bitcoin Booming? (nytimes.com) 168

"Bitcoin was seen by many of its libertarian-leaning fans as a kind of doomsday insurance," argues a columnist in the New York Times, "a form of 'digital gold' that would be a source of stability as the world grew more chaotic and unpredictable....

"But Bitcoin hasn't boomed.... Bitcoin prices are down 10 percent in the past month, and Ether, the second most popular crypto coin, is down roughly 15 percent.Day-to-day usage of cryptocurrencies isn't picking up the way you'd expect, either. Bitcoin trading volume rose after Russia invaded Ukraine, but it has remained relatively flat since, suggesting that people aren't rushing to trade their rubles and hryvnia (Ukraine's currency) for digital currencies. Russian oligarchs don't appear to be using crypto to evade sanctions en masse, either, despite initial fears that they might...."

The column ultimately argues that bitcoin isn't playing a central role in the unfolding crisis. "Which raises the obvious question: Why not?" One possibility is that crypto is still too confusing and too difficult for normal people to use, especially during a war. Internet access is spotty in many parts of Ukraine, and reports have suggested that even the country's elites are struggling to convert their assets into crypto.

Another possibility, popular among skeptics of Bitcoin and other cryptocurrencies, is that Bitcoin is still too volatile to be useful as a hedge against economic and political instability. "The Bitcoin and crypto communities have been selling a false narrative all these years that Bitcoin is supposed to be a safe haven from the traditional financial markets," said Jimmy Nguyen, the president of the Bitcoin Association, a cryptocurrency trade group. (His group promotes a Bitcoin spinoff, Bitcoin SV, that sees itself as a more useful version of the cryptocurrency.) Bitcoin is doomed, Mr. Nguyen argues, because it can be slow and expensive to process transactions, making it less useful for paying for things. "And so a lot of Bitcoin supporters have had to come up with this argument that it's meant to be a reserve asset," he said.

Kevin Werbach, a professor of legal studies and business ethics at the Wharton School at the University of Pennsylvania, floated a different theory. Bitcoin's earliest and most vocal adopters, he said, tended to be libertarians who saw cryptocurrency as a kind of insurance policy against hyperinflation and government corruption. But the more recent price swings in the crypto markets attracted a surge of speculators who viewed Bitcoin and other cryptocurrencies mainly as investments, and cared less about their political implications. "There's a tremendous amount of rhetoric around Bitcoin in particular that suggests that it's predominantly a means of escaping from the government-issued fiat currency system," he said.

"And yet most of the activity, according to basically every rigorous study that's been done, is predominantly people speculating...."

CNN got another reaction from Eswar Prasad, a professor at Cornell's Dyson School of Applied Economics and Management, also a senior fellow at the Brookings Institution and the author of "The Future of Money: How the Digital Revolution is Transforming Currencies and Finance."

The professor's opinion? While bitcoin "has failed in its stated purpose as a medium of exchange for conducting transactions, it has become a speculative financial asset..." The Russian government cannot count on bitcoin to evade sanctions — after all, payments for international transactions still need to be settled in real money such as dollars or euros. Furthermore, cryptocurrencies cannot in any significant way prevent a country's currency from collapsing in value relative to major reserve currencies since those values are determined in formal financial markets. Cryptocurrencies might in fact hurt Russia if they are seen by the country's citizens as a better option than the plunging domestic currency. Thus, bitcoin might end up precipitating a flight of deposits from Russia's banking system and even as a conduit for capital flight out of the country.
ISS

No, Russia Has Not Threatened To Leave An American Astronaut Behind In Space (arstechnica.com) 73

Ever since Russia invaded Ukraine, the fate of the International Space Station, which has 15 partner nations and is the crown jewel of unity in space between NASA and Russia, has been up in the air (figuratively, of course). What we do know is that there are no plans to abandon NASA astronaut Mark Vande Hei on the space station, despite a number of stories claiming otherwise. "Vande Hei is scheduled to return to Earth in a Soyuz capsule at the end of this month, landing in Kazakhstan," reports Ars Technica. "NASA officials are expected to be there to greet him and bring him back to the United States." Ars Technica sets the record straight and explains where these Russian "threats" originated: The source of this "news" appears to be a video published more than a week ago by a Kremlin-aligned publication, RIA Novosti. Roscosmos TV provided footage for the video, but in sharing it acknowledged that the video was a "joke." Now, this is an exceptionally poor joke given the tensions on Earth, but it is important to understand that sharing a video a week ago does not mean Russia is threatening to leave Vande Hei behind. Nothing has changed since the video was posted. Since the beginning of this crisis, NASA officials have said operations with Russian colleagues working on the space station have proceeded nominally. "Operations have not changed at all," one NASA source confirmed Friday. On Monday, NASA's manager of the International Space Program, Joel Montalbano, is scheduled to speak at a news conference about upcoming spacewalks. He likely will say something similar.

Additionally, Vande Hei could not be abandoned. At present there are three other Americans living on board the International Space Station -- Raja Chari, Kayla Barron, and Thomas Marshburn. There is also an allied astronaut, Matthias Maurer, from Germany. NASA has its own transportation to and from the station, so Vande Hei can be assured of a safe ride home whenever NASA wants. The status of the ISS partnership is subject to change, of course. It could do so quite quickly. Russia is doing horrible things in Ukraine, and the Western world has responded with harsh sanctions. No one really knows whether Vladimir Putin will decide to end Russian participation in the International Space Station. Certainly, making it appear to a domestic audience that he was stranding a NASA astronaut in space might make him look "strong" to some Russian people. But there are simply no indications this will happen.

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