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This article’s lead section may be too long for the length of the article. Please help open Source Crypto T-Shirts moving some material from it into the body of the article. Export-restricted RSA encryption source code printed on a T-shirt made the T-shirt an export-restricted munition, as a freedom of speech protest against U. The export of cryptographic technology and devices from the United States was severely restricted by U.

Since World War II, many governments, including the U. NATO allies, have regulated the export of cryptography for national security reasons, and, as late as 1992, cryptography was on the U. Munitions List as an Auxiliary Military Equipment. Due to the enormous impact of cryptanalysis in World War II, these governments saw the military value in denying current and potential enemies access to cryptographic systems. The First Amendment made controlling all use of cryptography inside the U. For law enforcement, framing the issue is simple.

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In this time of dazzling telecommunications and computer technology where information can have extraordinary value, the ready availability of robust encryption is essential. No one in law enforcement disputes that. Clearly, in today’s world and more so in the future, the ability to encrypt both contemporaneous communications and stored data is a vital component of information security. As is so often the case, however, there is another aspect to the encryption issue that if left unaddressed will have severe public safety and national security ramifications. For this reason, the law enforcement community is unanimous in calling for a balanced solution to this problem.

In the early days of the Cold War, the U. Western technology from falling into the hands of others, particularly the Eastern bloc. All export of technology classed as ‘critical’ required a license. Department of Commerce, while munitions were controlled by the State Department. By the 1960s, however, financial organizations were beginning to require strong commercial encryption on the rapidly growing field of wired money transfer. Government’s introduction of the Data Encryption Standard in 1975 meant that commercial uses of high quality encryption would become common, and serious problems of export control began to arise.

Encryption export controls became a matter of public concern with the introduction of the personal computer. Shortly afterward, Netscape’s SSL technology was widely adopted as a method for protecting credit card transactions using public key cryptography. Legal challenges by Peter Junger and other civil libertarians and privacy advocates, the widespread availability of encryption software outside the U. This section needs to be updated. Please update this article to reflect recent events or newly available information. As of 2009, non-military cryptography exports from the U.

Department of Commerce’s Bureau of Industry and Security. Title 15 chapter VII, subchapter C. Department of State on the United States Munitions List. Encryption export terminology is defined in EAR part 772. Encryption items include non-military encryption commodities, software, and technology. Open cryptographic interface is a mechanism which is designed to allow a customer or other party to insert cryptographic functionality without the intervention, help or assistance of the manufacturer or its agents.

Export destinations are classified by the EAR Supplement No. D:1 is a short list of countries that are subject to stricter export control. If a line of table that corresponds to the country contains an X in the reason for control column, the export of a controlled item requires a license, unless an exception can be applied. 5A002 Systems, equipment, electronic assemblies, and integrated circuits for “information security.

5A992 “Mass market” encryption commodities and other equipment not controlled by 5A002. 5B002 Equipment for development or production of items classified as 5A002, 5B002, 5D002 or 5E002. 5D992 Encryption software not controlled by 5D002. 5E002 Technology for the development, production or use of equipment controlled by 5A002 or 5B002 or software controlled by 5D002.

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5E992 Technology for the 5×992 items. A BIS review is required for typical items to get the 5A992 or 5D992 classification. Department of State — International Traffic in Arms Regulations, April 1, 1992, Sec 121. Freeh, Director, Federal Bureau of Investigation before the Senate Judiciary Committee. January 25, 1999 archive of the Netscape Communicator 4. 61 download page showing a more difficult path to download 128-bit version”.

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Archived from the original on September 16, 1999. EPIC copy of document from U. 1 to Part 774 Category 5 Part 2 – Info. Bureau of Industry and Security – Notification Requirements for “Publicly Available” Encryption Source Code”. Participating States Archived 2012-05-27 at Archive.

Bureau of Industry and Security — An overview of the US export regulations can be found in the licensing basics page. Whitfield Diffie and Susan Landau, The Export of Cryptography in the 20th and the 21st Centuries. In Karl de Leeuw, Jan Bergstra, ed. CRS Report for Congress 98-905 F. Encryption Technology: Congressional Issues CRS Issue Brief for Congress IB96039. An International Survey of Encryption Policy.

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National Research Council, Cryptography’s Role in Securing the Information Society. The Race to Replace Bitcoin An epic battle between two bitcoin 2. There’s an epic battle for the future of money, and the outcome is murky. But one thing is crystal clear: The most exciting battle in this long war is taking place in San Francisco, and the town isn’t big enough for both Ripple Labs and Stellar, two of the contenders hoping to replace not just Bitcoin but the almighty dollar. On one side are governments, fiat currencies and the world banking industry. On the other side are hundreds of young companies backed by brilliant cryptographers, complex programming and security protocols and varying degrees of anti-establishment fervor. The United States government, European Union and other currency-creating governments will use every means to keep control of money.

Likewise, banking giants such as JPMorgan Chase, Bank of America, Citigroup and Wells Fargo are strongly invested in the status quo. Bitcoin has a massive head start and has already developed significant brand equity. But among aficionados, there is wide consensus that the weaknesses in Bitcoin are fatal and unfixable. We’ve already seen two major breaches: Mt.

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This article focuses on two of those cryptocurrencies, Ripple and Stellar. Ripple, founded in 2011, is a relative veteran in this business. The interpersonal story of Stellar and Ripple Labs is emblematic of the turmoil roiling the entire industry. It has everything: Sex, huge money, fraud, genius, betrayal, international intrigue and government raids.

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The story starts in a Williamsburg apartment in 2008 with a positive pregnancy test. Burzlaff gave birth to a daughter and, 14 months later, a son. He was also a pretty damn good coder. 30 million to avoid copyright infringement lawsuits by the RIAA. Burzlaff started a family, the cryptographers behind the pseudonymous Satoshi Nakamoto launched Bitcoin.

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Once coins are minted, they can be transferred based on an open-source Internet protocol. In July 2010, he created Mt. His idea and implementation was the first major turning point in the Cryptocurrency Era—even bigger than the invention of Bitcoin itself. Gox was handling more than 70 percent of Bitcoin transactions. Netscape took a decades-old technology nobody was using and put a familiar face on it.

Gox popularized Bitcoin, and then nearly destroyed it. Gox suspended trading, filed for bankruptcy and is in the process of liquidating. Then in 2011, he had his greatest inspiration. He uniquely understood Bitcoin’s flaws and decided to create a cryptocurrency immune to those flaws. The mining process is a bizarre abstraction to most people, but Bitcoin needed it to create and limit the BTCs. People love hot dogs, but don’t want to see inside the slaughterhouse.

To create a new and better cryptocurrency, Mr. He met with David Schwartz and the two discussed how a consensus network could work. David joined as CTO and later became Chief Cryptographer. 100,000 into what was then known as Opencoin Inc.

Soon after, they brought aboard legendary futurist Arthur Britto, who became the venture’s chief strategist. Despite IQs that look like professional bowling scores, no one in the trio could actually operate a company. Chris Larsen completed the all-star team as CEO of what became Ripple Labs. Larsen had already taken a pair of complicated start-ups and built them into thriving businesses: E-Loan, one of the first online mortgage companies, which IPO’d and is now part of publicly held financial services company Popular, Inc. Prosper, one of the first peer-to-peer lending marketplaces. Larsen presenting a suit-wearing, responsible front to the bankers and Mr.

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It had brilliant technologists, backed by banking relationships and wise management. It was clear to the fintech world that Ripple could match and potentially overtake Bitcoin in shaping the future of cryptocurrency. To paraphrase Leo Tolstoy, every unhappy family—and every unhappy company—is unhappy in its own way. Burzlaff worked raising their kids and creating a start-up of her own, Bravo Your City. You need to work like every other single mother.

This was around the time that Mr. Burzlaff and their kids foreshadowed an identical end between Mr. Sterling, two other law jobs, founder or CEO at two start-ups and now a venture capitalist. Kim’s mentors, who is today one of her most fervent supporters. I actually introduced her to Jed because she was raising money for her company. I introduced Jed as a potential investor, so I think that’s how they got to know each other and how they got started dating, but before that Joyce and I were like acquaintances.

Kim’s start-up, Simple Honey, a company she started with Eric Nakagawa, who previously created I Can Has Cheezburger, the humor site that launched the viral careers of thousands of cats. The company developed its product by flying its entire development team to Honolulu, renting a house for two months and working about six hours a day between surfing sessions. Keep track of the things you want to buy and save money! Bitcoin and other virtual currencies could be easier for normal folks to use. If anyone at Ripple Labs invited Ms.

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Kim to roll up her sleeves, they either regretted it or immediately asked her to roll them back down. The travel site and the app disappeared almost immediately. You don’t have to be a genius to see the implication: CEO. Kim’s next big idea was to drop hints to the world that Mr. Joyce was creating all kinds of rumors that Jed was Satoshi and Jed was happy to go along with it, smiling like the cat that ate the canary. She thought it would help Ripple go viral, get more street cred.

Another Ripple Labs employee portrayed Ms. She was only at the company for like six or eight weeks, but we’re a small company and she showed up with three people. CTO highest on the website, because that was her boyfriend Jed and she knew Chris wouldn’t complain about it. Kim in a warmer, more sympathetic light, though this story, too, shows a relationship that was ill fitting at best.

Ripple Labs had this really good immigration attorney. Winnie is a really good designer, and Joyce treated her literally like a daughter. Kim was gone from Ripple Labs. It was not a pretty exit.

Kim having no clear place at the company he founded, Mr. He decided the best exit would be a deal with Stripe, the fintech golden child. He began unilaterally trying to negotiate a deal. But what did happen next was messy. Frustrated with the deal’s dissolution, Mr. Kim remained at Ripple Labs even after she’d left the company.

She was viewed by many as having exerted some sort of spell over Mr. It was the way she would just be there all the time and you could never have a private conversation with Jed. Arthur and David had all these meetings with Jed and Joyce would fucking show up. I don’t want you to share this with Joyce.

Another thorny issue involved the extent to which Mr. Larsen’s personal stakes affected the future of Ripple Labs. Larsen each owned 9 billion XRPs—18 percent of the total that could ever be created. Larsen to donate their giant stores of XRPs back to the company or to charity. Kim at his side, as always, was explaining to Arthur Britto how they would handle Mr. Won’t it hurt Chris’ career if he’s pushed out of the company?

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No, you should just say that he got sick. This all culminated in a showdown meeting in which the board and key investors sided with Mr. It was a 5-1 vote to keep Mr. According to two people present at the meeting, Mr. Every single person begged Jed not to make us choose between him and Chris.

Chris was willing to stay and continue working with Jed, but Jed was not. In the end, the vote was unanimous that Chris should stay. The only person who disagreed was Jed. None of us wanted him to leave, but he did anyhow. One can imagine the awkwardness of the scene—both Mr.

After the vote, as would prove to be his habit when faced with a situation not to his liking, Mr. Kim went to Costa Rica to surf, then to Brazil. Even close friends at Ripple Labs had no idea where their mercurial founder was for months at a time. Ripple Labs employee, who remains a fan of Mr. Burzlaff negotiated a settlement for their children’s support, but his behavior toward his kids mirrored his departure from Ripple and, to some degree, every company he incubated. Gox, he actually claimed the company no longer had any of his coding DNA, even though he still owned 12 percent of the company and advised on an attempt to acquire its assets. Leaving his children was even harsher, with the kids’ mother placing the blame on the woman who had turned his formidable head.

This was not part of some unspecific rant. I plan to start selling all of my remaining XRP beginning in two weeks. The announcement by a founder that he intended to dump 9 billion units of the currency he helped create was perceived as a threat by all who cared about Ripple Labs or held XRPs. I still had orders to buy 30k worth of ripple for people which I did.

2 porsche and jed still drives a 1990s honda civic! Those two are just so different, and have different visions for what should happen with ripple. Burzlaff told her friend that the timing of Mr. Jed told me all along that since it’s open sourced, someone is gonna fork it soon. In sum, in early summer 2013, Mr.