by Joseph P. Farrell, Giza Death Star:
This week I’ve been blogging about the FTX story, and about my problems with it. I won’t rehearse those problems here, because readers can read last Monday’s and Wednesday’s blogs. Basically put, my problems are twofold: (1) the alleged lack of record-keeping on the part of FTX and the problematic nature of those allegations when viewed against the backdrop of claims made for the blockchain and distributed ledger technology itself, and (2) the wider problem of crypt-“currencies” themselves, and their potential for becoming merely corporate coupons.
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Both dangers have come home with a vengeance in the FTX story, but there is still an odor wafting over the whole phenomenon that my high octane speculations of the past two blogs cannot dispel. One reader of this site contacted me after hearing about my problems with the whole crypto phenomenon, particularly since the FTX scandal broke, and this individual sent the following two articles from just a few years ago:
Bitcoin’s Blockchain Caught Loaded With Child Pornography
I’ll cut right to the chase today: I strongly suspect that with these two stories we’re looking at one of the hidden motivations for “the elite” for pushing the crypto-“currency” phenomenon and Central Bank Digital Currencies: they’re tailor-made to support a network of human trafficking and humans could indeed form the “collateral” for such “currencies”. If that seemed far-fetched, consider carefully what is stated in the second linked article says:
Lurking within Bitcoin’s ever-growing blockchain is a disturbing surprise. A team of researchers say they’ve found links to online child pornography recorded into the technology.
The researchers at RWTH Aachen University in Germany claim to have uncovered the 274 links while investigating the non-financial data that’s been stashed into Bitcoin’s blockchain.
Unfortunately, that’s not all. A pornographic image, possibly of a minor, was also scribbled into the blockchain. This all could theoretically make the blockchain illegal to possess in 112 countries, the researchers warned in a new paper(Opens in a new window) that was presented at a conference(Opens in a new window) earlier this month.
How did the sexual content get there? Although the Bitcoin blockchain is designed to record every transaction with the cryptocurrency, you can also adds snippets of non-financial data too. This has benefits. For instance, a notary service can tie a Bitcoin transaction to a digital document.
The blockchain network is decentralized, which helps make the data recorded practically immutable. But this also introduces a problem: potentially anyone can anonymously insert controversial data on the blockchain.
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Others have also warned about blockchain’s dangers. Back in 2015, Interpol worried(Opens in a new window) about bad actors embedding malware and other illegal data, including child abuse images, into the technology.
Fortunately, the researchers at Aachen University didn’t find any malware on Bitcoin’s blockchain. Nevertheless, the researchers warned: “Illegal content has the potential to jeopardize a whole cryptocurrency.”
To be clear, bitcoin holders don’t need to download the entire blockchain to make transactions in the virtual currency. Many investors buy and send transfers through third-party cryptocurrency services that directly interact with the Bitcoin blockchain.
The takeaway from this is that while a crypto-“currency” itself is not necessarily tied to the possibility of such illegal activity, the technology enabling the crypto-“currency” can be, and if that is the case, then I strongly suspect that it would be possible to entangle crypt0-miners and traders to that illegal activity without their knowledge: after all, if one can hack a supposedly “secure” technology and steal $477,000,000 as we saw in our blog on the FTX scandal last Monday, then it might be possible via the same or some similar process to plant incriminating things and ultimately to blackmail people.
