organization:u.s. securities and exchange commission

  • #CBP terminates controversial $297 million #Accenture contract amid continued staffing struggles

    #Customs_and_Border_Protection on Thursday ended its controversial $297 million hiring contract with Accenture, according to two senior DHS officials and an Accenture representative.
    As of December, when CBP terminated part of its contract, the company had only completed processing 58 applicants and only 22 had made it onto the payroll about a year after the company was hired.
    At the time, the 3,500 applicants that remained in the Accenture hiring pipeline were transferred to CBP’s own hiring center to complete the process.

    CBP cut ties with Accenture on processing applicants a few months ago, it retained some services, including marketing, advertising and applicant support.
    This week, the entire contract was terminated for “convenience,” government speak for agreeing to part ways without placing blame on Accenture.
    While government hiring is “slow and onerous, it’s also part of being in the government” and that’s “something we have to accept and deal with as we go forward,” said one of the officials.
    For its efforts, CBP paid Accenture around $19 million in start-up costs, and around $2 million for 58 people who got job offers, according to the officials.
    Over the last couple of months, CBP explored how to modify the contract, but ultimately decided to completely stop work and return any remaining funds to taxpayers.
    But it’s unclear how much money, if any, that will be.

    In addition, to the funds already paid to Accenture, CBP has around $39 million left to “settle and close the books” with the company, an amount which has yet to be determined.
    In November 2017, CBP awarded Accenture the contract to help meet the hiring demands of an executive order on border security that President Donald Trump signed during his first week in office. The administration directed CBP to hire an additional 7,500 agents and officers on top of its current hiring goals.
    “We were in a situation where we needed to try something new” and “break the cycle of going backwards,” said a DHS official about why the agency started the contract.

    Meanwhile, hiring remains difficult for the agency amid a surge of migrants at the southern border that is stretching CBP resources thin.
    It “continues to be a very challenging environment,” said one official about hiring efforts this year.

    In fact, one of the reasons that CBP didn’t need Accenture to process applicants, is because the agency didn’t receive as many applications as it initially planned for.
    The agency has been focused on beating attrition and has been able to recently “beat it by a modest amount,” said the official. “Ultimately we would like to beat it by a heck of a lot, but we’re not there yet.”

    https://edition.cnn.com/2019/04/05/politics/cbp-terminate-hiring-contract-accenture/index.html
    #frontières #contrôles_frontaliers #USA #Ests-Unis #complexe_militaro-industriel #business

    • Border Profiteers

      On a recent sunny spring afternoon in Texas, a couple hundred Border Patrol agents, Homeland Security officials, and salespeople from a wide array of defense and security contractors gathered at the Bandera Gun Club about an hour northwest of San Antonio to eat barbecue and shoot each other’s guns. The techies wore flip-flops; the veterans wore combat boots. Everyone had a good time. They were letting loose, having spent the last forty-eight hours cooped up in suits and ties back at San Antonio’s Henry B. Gonzalez convention center, mingling and schmoozing, hawking their wares, and listening to immigration officials rail about how those serving in enforcement agencies are not, under any circumstances, Nazis.

      These profiteers and bureaucrats of the immigration-industrial complex were fresh from the 2019 #Border_Security_Expo —essentially a trade show for state violence, where law enforcement officers and weapons manufacturers gather, per the Expo’s marketing materials, to “identify and address new and emerging border challenges and opportunities through technology, partnership, and innovation.” The previous two days of panels, speeches, and presentations had been informative, a major in the Argentine Special Forces told me at the gun range, but boring. He was glad to be outside, where handguns popped and automatic rifles spat around us. I emptied a pistol into a target while a man in a Three Percenter militia baseball hat told me that I was a “natural-born killer.” A drone buzzed overhead until, in a demonstration of a company’s new anti-drone technology, a device that looked like a rocket launcher and fired a sort of exploding net took it down. “This is music to me,” the Argentine major said.

      Perhaps it’s not surprising the Border Security Expo attendees were so eager to blow off steam. This year’s event found many of them in a defensive posture, given the waves of bad press they’d endured since President Trump’s inauguration, and especially since the disastrous implementation of his family separation policy, officially announced by former Attorney General Jeff Sessions in April of 2018, before being rescinded by Trump two-and-a-half months later. Throughout the Expo, in public events and in background roundtable conversations with reporters, officials from the various component parts of the Department of Homeland Security rolled out a series of carefully rehearsed talking points: Immigrations and Customs Enforcement (ICE) and Customs and Border Patrol (CBP) need more money, personnel, and technology; taking migrants to hospitals distracts CBP officers from their real mission; and the 1997 Flores court settlement, which prohibits immigration enforcement agencies from detaining migrant families with children for more than twenty days, is undermining the very sovereignty of the United States. “We want a secure border, we want an immigration system that has integrity,” Ronald Vitiello, then–acting head of ICE, said in a keynote address to the hundreds of people gathered in San Antonio. “We have a generous immigration system in this country, but it has to have integrity in order for us to continue to be so generous.”

      More of a technocrat than his thuggish predecessor Thomas Homan, Vitiello also spoke at length about using the “dark web” to take down smugglers and the importance of having the most up-to-date data-management technology. But he spoke most adamantly about needing “a fix” for the Flores settlement. “If you prosecute crimes and you give people consequences, you get less of it,” he said. “With Flores, there’s no consequence, and everybody knows that,” a senior ICE official echoed to reporters during a background conversation immediately following Vitiello’s keynote remarks. “That’s why you’re seeing so many family units. We cannot apply a consequence to a family unit, because we have to release them.”

      Meanwhile, around 550 miles to the west, in El Paso, hundreds of migrants, including children and families, were being held by CBP under a bridge, reportedly forced to sleep on the ground, with inadequate medical attention. “They treated us like we are animals,” one Honduran man told Texas Monthly. “I felt what they were trying to do was to hurt us psychologically, so we would understand that this is a lesson we were being taught, that we shouldn’t have crossed.” Less than a week after the holding pen beneath the bridge closed, Vitiello’s nomination to run ICE would be pulled amid a spate of firings across DHS; President Trump wanted to go “in a tougher direction.”

      Family Values

      On the second day of the Border Security Expo, in a speech over catered lunch, Scott Luck, deputy chief of Customs and Border Protection and a career Border Patrol agent, lamented that the influx of children and families at the border meant that resources were being diverted from traditional enforcement practices. “Every day, about 150 agents spend their shifts at hospitals and medical facilities with illegal aliens receiving treatment,” he said. “The annual salary cost for agents on hospital watch is more than $11.5 million. Budget analysts estimate that 13 percent of our operational budget—the budget that we use to buy equipment, to buy vehicles for our men and women—is now used for transportation, medical expenses, diapers, food, and other necessities to care for illegal aliens in Border Patrol custody.”

      As far as Luck was concerned, every dollar spent on food and diapers is one not spent on drones and weapons, and every hour an agent spends guarding a migrant in a hospital is an hour they don’t spend on the border. “It’s not what they signed up for. The mission they signed up for is to protect the United States border, to protect the communities in which they live and serve,” he told reporters after his speech. “The influx, the volume, the clutter that this creates is frustrating.” Vitiello applied an Orwellian inversion: “We’re not helping them as fast as we want to,” he said of migrant families apprehended at the border.

      Even when discussing the intimate needs of detained migrant families, the language border officials used to describe their remit throughout the Expo was explicitly militaristic: achieving “operational control,” Luck said, requires “impedance and denial” and “situational awareness.” He referred to technology as a “vital force multiplier.” He at least stopped short of endorsing the president’s framing that what is happening on the border constitutes an invasion, instead describing it as a “deluge.”

      According to the Migration Policy Institute, a non-partisan think tank, the U.S. immigrant population has continued to grow—although at a slower rate than it did before the 2007 recession, and undocumented people appear to make up a smaller proportion of the overall population. Regardless, in fiscal year 2018, both ICE and CBP stepped up their enforcement activities, arresting, apprehending, and deporting people at significantly higher rates than the previous year. More than three times as many family members were apprehended at the border last year than in 2017, the Pew Research Center reports, and in the first six months of FY 2019 alone there were 189,584 apprehensions of “family units”: more than half of all apprehensions at the border during that time, and more than the full-year total of apprehended families for any other year on record. While the overall numbers have not yet begun to approach those of the 1980s and 1990s, when apprehensions regularly exceeded one million per year, the demographics of who is arriving at the United States southern border are changing: fewer single men from Mexico and more children and families from Guatemala, Honduras, and El Salvador—in other words, an ever-wider range of desperate victims of drug gangs and American policies that have long supported corrupt regimes.

      This change has presented people like Luck with problems they insist are merely logistical: aging Border Patrol stations, he told us at the Expo, “are not luxurious in any way, and they were never intended to handle families and children.” The solution, according to Vitiello, is “continued capital investment” in those facilities, as well as the cars and trucks necessary to patrol the border region and transport those apprehended from CBP custody to ICE detention centers, the IT necessary to sift through vast amounts of data accumulated through untold surveillance methods, and all of “the systems by which we do our work.”

      Neither Vitiello nor Luck would consider whether those systems—wherein thousands of children, ostensibly under the federal government’s care, have been sexually abused and five, from December through May of this year, have died—ought to be questioned. Both laughed off calls from migrant justice organizers, activists, and politicians to abolish ICE. “The concept of the Department of Homeland Security—and ICE as an agency within it—was designed for us to learn the lessons from 9/11,” Vitiello said. “Those needs still exist in this society. We’re gonna do our part.” DHS officials have even considered holding migrant children at Guantánamo Bay, Cuba, according to the New York Times, where a new $23 million “contingency mass migration complex” is being built. The complex, which is to be completed by the end of the year, will have a capacity of thirteen thousand.

      Violence is the Point

      The existence of ICE may be a consequence of 9/11, but the first sections of fencing along the U.S.-Mexico border—originally to contain livestock—went up in 1909 through 1911. In 1945, in response to a shift in border crossings from Texas to California, the U.S. Border Patrol and the Immigration and Naturalization Service recycled fencing wire and posts from internment camps in Crystal City, Texas, where more than a hundred thousand Japanese Americans had been imprisoned during World War II. “Although the INS could not erect a continuous line of fence along the border, they hoped that strategic placement of the fence would ‘compel persons seeking to enter the United States illegally to attempt to go around the ends of the fence,’” historian Kelly Lytle Hernández, quoting from government documents, writes in Migra! A History of the U.S. Border Patrol. “What lay at the end of the fences and canals were desert lands and mountains extremely dangerous to cross without guidance or sufficient water. The fences, therefore, discouraged illegal immigration by exposing undocumented border crossers to the dangers of daytime dehydration and nighttime hypothermia.”

      Apprehension and deportation tactics continued to escalate in the years following World War II—including Operation Wetback, the infamous (and heavily propagandized) mass-deportation campaign of 1954—but the modern, militarized border era was greatly boosted by Bill Clinton. It was during Clinton’s first administration that Border Patrol released its “Strategic Plan: 1994 and Beyond,” which introduced the idea of “prevention through deterrence,” a theory of border policing that built on the logic of the original wall and hinges upon increasing the “cost” of migration “to the point that many will consider it futile to continue to attempt illegal entry.” With the Strategic Plan, the agency was requesting more money, officers, and equipment in order to “enhance national security and safeguard our immigration heritage.”

      The plan also noted that “a strong interior enforcement posture works well for border control,” and in 1996, amid a flurry of legislation targeting people of color and the poor, Congress passed the Illegal Immigration Reform and Immigrant Responsibility Act, which empowered the federal government to deport more people more quickly and made it nearly impossible for undocumented immigrants to obtain legal status. “Before 1996, internal enforcement activities had not played a very significant role in immigration enforcement,” the sociologists Douglas Massey and Karen A. Pren wrote in 2012. “Afterward these activities rose to levels not seen since the deportation campaigns of the Great Depression.” With the passage of the Patriot Act in 2001 and the creation of the Department of Homeland Security and Immigration and Customs Enforcement in 2002, immigration was further securitized and criminalized, paving the way for an explosion in border policing technology that has further aligned the state with the defense and security industry. And at least one of Border Patrol’s “key assumptions,” explicitly stated in the 1994 strategy document, has borne out: “Violence will increase as effects of strategy are felt.”

      What this phrasing obscures, however, is that violence is the border strategy. In practice, what “prevention through deterrence” has meant is forcing migrants to cross the U.S.-Mexico border in the desert, putting already vulnerable people at even greater risk. Closing urban points of entry, for example, or making asylum-seekers wait indefinitely in Mexico while their claims are processed, pushes migrants into remote areas where there is a higher likelihood they will suffer injury and death, as in the case of seven-year-old Jakil Caal Maquin, who died of dehydration and shock after being taken into CBP custody in December. (A spokesperson for CBP, in an email response, deflected questions about whether the agency considers children dying in its custody a deterrent.) Maquin is one of many thousands who have died attempting to cross into the United States: the most conservative estimate comes from CBP itself, which has recovered the remains of 7,505 people from its southwest border sectors between 1998 and 2018. This figure accounts for neither those who die on the Mexican side of the border, nor those whose bodies remain lost to the desert.

      Draconian immigration policing causes migrants to resort to smugglers and traffickers, creating the conditions for their exploitation by cartels and other violent actors and increasing the likelihood that they will be kidnapped, coerced, or extorted. As a result, some migrants have sought the safety of collective action in the form of the “caravan” or “exodus,” which has then led the U.S. media and immigration enforcement agencies to justify further militarization of the border. Indeed, in his keynote address at the Expo, Luck described “the emerging prevalence of large groups of one hundred people or more” as “troubling and especially dangerous.” Later, a sales representative for the gun manufacturer Glock very confidently explained to me that this was because agents of al-Shabaab, the al-Qaeda affiliate in Somalia, were embedded with the caravans.

      Branding the Border

      Unsurprisingly, caravans came up frequently at the Border Security Expo. (An ICE spokesperson would later decline to explain what specific threat they pose to national security, instead citing general statistics about the terrorist watchlist, “special interest aliens,” and “suspicious travel patterns.”) During his own keynote speech, Vitiello described how ICE, and specifically its subcomponent Homeland Security Investigations, had deployed surveillance and intelligence-gathering techniques to monitor the progress of caravans toward the border. “When these caravans have come, we’ve had trained, vetted individuals on the ground in those countries reporting in real time what they were seeing: who the organizers were, how they were being funded,” he said, before going on an astonishing tangent:

      That’s the kind of capability that also does amazing things to protecting brands, property rights, economic security. Think about it. If you start a company, introduce a product that’s innovative, there are people in the world who can take that, deconstruct it, and create their own version of it and sell it as yours. All the sweat that went into whatever that product was, to build your brand, they’ll take it away and slap it on some substandard product. It’s not good for consumers, it’s not good for public safety, and it’s certainly an economic drain on the country. That’s part of the mission.

      That the then–acting director of ICE, the germ-cell of fascism in the bourgeois American state, would admit that an important part of his agency’s mission is the protection of private property is a testament to the Trump administration’s commitment to saying the quiet part out loud.

      In fact, brands and private industry had pride of place at the Border Security Expo. A memorial ceremony for men and women of Border Patrol who have been killed in the line of duty was sponsored by Sava Solutions, an IT firm that has been awarded at least $482 million in federal contracts since 2008. Sava, whose president spent twenty-four years with the DEA and whose director of business development spent twenty with the FBI, was just one of the scores of firms in attendance at the Expo, each hoping to persuade the bureaucrats in charge of acquiring new gear for border security agencies that their drones, their facial recognition technology, their “smart” fences were the best of the bunch. Corporate sponsors included familiar names like Verizon and Motorola, and other less well-known ones, like Elbit Systems of America, a subsidiary of Israel’s largest private defense contractor, as well as a handful of IT firms with aggressive slogans like “Ever Vigilant” (CACI), “Securing the Future” (ManTech), and “Securing Your Tomorrow” (Unisys).

      The presence of these firms—and indeed the very existence of the Expo—underscores an important truth that anyone attempting to understand immigration politics must reckon with: border security is big business. The “homeland security and emergency management market,” driven by “increasing terrorist threats and biohazard attacks and occurrence of unpredictable natural disasters,” is projected to grow to more than $742 billion by 2023 from $557 billion in 2018, one financial analysis has found. In the coming decades, as more people are displaced by climate catastrophe and economic crises—estimates vary between 150 million and 1 billion by 2050—the industry dedicated to policing the vulnerable stands to profit enormously. By 2013, the United States was already spending more on federal immigration enforcement than all other federal law enforcement agencies combined, including the FBI and DEA; ICE’s budget has doubled since its inception in 2003, while CBP’s has nearly tripled. Between 1993 and 2018, the number of Border Patrol agents grew from 4,139 to 19,555. And year after year, Democrats and Republicans alike have been happy to fuel an ever more high-tech deportation machine. “Congress has given us a lot of money in technology,” Luck told reporters after his keynote speech. “They’ve given us over what we’ve asked for in technology!”

      “As all of this rhetoric around security has increased, so has the impetus to give them more weapons and more tools and more gadgets,” Jacinta Gonzalez, a senior campaign organizer with Mijente, a national network of migrant justice activists, told me. “That’s also where the profiteering comes in.” She continued: “Industries understand what’s good for business and adapt themselves to what they see is happening. If they see an administration coming into power that is pro-militarization, anti-immigrant, pro-police, anti-communities of color, then that’s going to shape where they put their money.”

      By way of example, Gonzalez pointed to Silicon Valley billionaire Peter Thiel, who spent $1.25 million supporting Trump’s 2016 election campaign and followed that up last year by donating $1 million to the Club for Growth—a far-right libertarian organization founded by Heritage Foundation fellow and one-time Federal Reserve Board prospect Stephen Moore—as well as about $350,000 to the Republican National Committee and other GOP groups. ICE has awarded Palantir, the $20 billion surveillance firm founded by Thiel, several contracts worth tens of millions of dollars to manage its data streams—a partnership the agency considers “mission critical,” according to documents reviewed by The Intercept. Palantir, in turn, runs on Amazon Web Services, the cloud computing service provided by the world’s most valuable public company, which is itself a key contractor in managing the Department of Homeland Security’s $6.8 billion IT portfolio.

      Meanwhile, former DHS secretary John Kelly, who was Trump’s chief of staff when the administration enacted its “zero-tolerance” border policy, has joined the board of Caliburn International—parent organization of the only for-profit company operating shelters for migrant children. “Border enforcement and immigration policy,” Caliburn reported in an SEC filing last year, “is driving significant growth.” As Harsha Walia writes in Undoing Border Imperialism, “the state and capitalism are again in mutual alliance.”

      Triumph of the Techno-Nativists

      At one point during the Expo, between speeches, I stopped by a booth for Network Integrity Systems, a security firm that had set up a demonstration of its Sentinel™ Perimeter Intrusion Detection System. A sales representative stuck out his hand and introduced himself, eager to explain how his employer’s fiber optic motion sensors could be used at the border, or—he paused to correct himself—“any kind of perimeter.” He invited me to step inside the space that his coworkers had built, starting to say “cage” but then correcting himself, again, to say “small enclosure.” (It was literally a cage.) If I could get out, climbing over the fencing, without triggering the alarm, I would win a $500 Amazon gift card. I did not succeed.

      Overwhelmingly, the vendors in attendance at the Expo were there to promote this kind of technology: not concrete and steel, but motion sensors, high-powered cameras, and drones. Customs and Border Patrol’s chief operating officer John Sanders—whose biography on the CBP website describes him as a “seasoned entrepreneur and innovator” who has “served on the Board of Directors for several leading providers of contraband detection, geospatial intelligence, and data analytics solutions”—concluded his address by bestowing on CBP the highest compliment he could muster: declaring the agency comparable “to any start-up.” Rhetoric like Sanders’s, ubiquitous at the Expo, renders the border both bureaucratic and boring: a problem to be solved with some algorithmic mixture of brutality and Big Data. The future of border security, as shaped by the material interests that benefit from border securitization, is not a wall of the sort imagined by President Trump, but a “smart” wall.

      High-ranking Democrats—leaders in the second party of capital—and Republicans from the border region have championed this compromise. During the 2018-2019 government shutdown, House Homeland Security Committee Chairman Bennie Thompson told reporters that Democrats would appropriate $5.7 billion for “border security,” so long as that did not include a wall of Trump’s description. “Walls are primitive. What we need to do is have border security,” House Majority Whip Jim Clyburn said in January. He later expanded to CNN: “I’ve said that we ought to have a smart wall. I defined that as a wall using drones to make it too high to get over, using x-ray equipment to make it too wide to get around, and using scanners to go deep enough not to be able to tunnel under it. To me, that would be a smart thing to do.”

      Even the social democratic vision of Senator Bernie Sanders stops short at the border. “If you open the borders, my God, there’s a lot of poverty in this world, and you’re going to have people from all over the world,” he told Iowa voters in early April, “and I don’t think that’s something that we can do at this point.” Over a week later, during a Fox News town hall with Pennsylvania voters, he recommitted: “We need border security. Of course we do. Who argues with that? That goes without saying.”

      To the extent that Trump’s rhetoric, his administration’s immigration policies, and the enforcement agencies’ practices have made the “border crisis” more visible than ever before, they’ve done so on terms that most Democrats and liberals fundamentally agree with: immigration must be controlled and policed; the border must be enforced. One need look no further than the high priest of sensible centrism, Thomas Friedman, whose major complaint about Trump’s immigration politics is that he is “wasting” the crisis—an allusion to Rahm Emanuel’s now-clichéd remark that “you never want a serious crisis to go to waste.” (Frequently stripped of context, it is worth remembering that Emanuel made this comment in the throes of the 2008 financial meltdown, at the Wall Street Journal’s CEO Council, shortly following President Obama’s election.) “Regarding the border, the right place for Democrats to be is for a high wall with a big gate,” Friedman wrote in November of 2018. A few months later, a tour led by Border Patrol agents of the San Ysidro port of entry in San Diego left Friedman “more certain than ever that we have a real immigration crisis and that the solution is a high wall with a big gate—but a smart gate.”

      As reasonable as this might sound to anxious New York Times readers looking for what passes as humanitarian thinking in James Bennet’s opinion pages, the horror of Friedman’s logic eventually reveals itself when he considers who might pass through the big, smart gate in the high, high wall: “those who deserve asylum” and “a steady flow of legal, high-energy, and high-I.Q. immigrants.” Friedman’s tortured hypothetical shows us who he considers to be acceptable subjects of deportation and deprivation: the poor, the lazy, and the stupid. This is corporate-sponsored, state-sanctioned eugenics: the nativism of technocrats.

      The vision of a hermetically sealed border being sold, in different ways, by Trump and his allies, by Democrats, and by the Border Security Expo is in reality a selectively permeable one that strictly regulates the movement of migrant labor while allowing for the unimpeded flow of capital. Immigrants in the United States, regardless of their legal status, are caught between two factions of the capitalist class, each of which seek their immiseration: the citrus farmers, construction firms, and meat packing plants that benefit from an underclass of unorganized and impoverished workers, and the defense and security firms that keep them in a state of constant criminality and deportability.

      You could even argue that nobody in a position of power really wants a literal wall. Even before taking office, Trump himself knew he could only go so far. “We’re going to do a wall,” he said on the campaign trail in 2015. However: “We’re going to have a big, fat beautiful door on the wall.” In January 2019, speaking to the American Farm Bureau Association, Trump acknowledged the necessity of a mechanism allowing seasonal farmworkers from Mexico to cross the border, actually promising to loosen regulations on employers who rely on temporary migrant labor. “It’s going to be easier for them to get in than what they have to go through now,” he said, “I know a lot about the farming world.”

      At bottom, there is little material difference between this and what Friedman imagines to be the smarter, more humane approach. While establishment liberals would no doubt prefer that immigration enforcement be undertaken quietly, quickly, and efficiently, they have no categorical objection to the idea that noncitizens should enjoy fewer rights than citizens or be subject to different standards of due process (standards that are already applied in deeply inequitable fashion).

      As the smorgasbord of technologies and services so garishly on display at the Border Security Expo attests, maintaining the contradiction between citizens and noncitizens (or between the imperial core and the colonized periphery) requires an ever-expanding security apparatus, which itself becomes a source of ever-expanding profit. The border, shaped by centuries of bourgeois interests and the genocidal machinations of the settler-colonial nation-state, constantly generates fresh crises on which the immigration-industrial complex feeds. In other words, there is not a crisis at the border; the border is the crisis.

      CBP has recently allowed Anduril, a start-up founded by one of Peter Thiel’s mentees, Palmer Luckey, to begin testing its artificial intelligence-powered surveillance towers and drones in Texas and California. Sam Ecker, an Anduril engineer, expounded on the benefits of such technology at the Expo. “A tower doesn’t get tired. It doesn’t care about being in the middle of the desert or a river around the clock,” he told me. “We just let the computers do what they do best.”

      https://thebaffler.com/outbursts/border-profiteers-oconnor

  • Why Unveiling Fake #volume is Essential for Market Growth
    https://hackernoon.com/why-unveiling-fake-volume-is-essential-for-market-growth-f20279b1ad8b?so

    The market is under fire the last few days as the general public have finally realized that a major chunk of liquidity on exchanges does not actually exist. This has been taken as a negative for #cryptocurrency growth and adoption, but I guess someone forgot to tell #bitcoin’s price action!As a primer, Bitwise Asset Management gave a presentation to the SEC where they showed the officials how crypto volume is manipulated. While I don’t agree with their investment philosophy or financial products, Bitwise’ presentation was perfectly summed up and contained useful data that everybody needs to see.Maybe this is being perceived incorrectly. Maybe this is actually excellent for cryptocurrencies. Most of the world sees cryptocurrency as ‘fake internet money’. That perception is likely to worsen in (...)

    #cryptocurrency-exchange #fraud

  • Rationales Behind Multi-Token Business Ecosystem (MTBE) for #blockchain Startups
    https://hackernoon.com/rationales-behind-multi-token-business-ecosystem-mtbe-for-blockchain-sta

    Image Credit: PixabayThe dopamine rush which likely hits the brains of intending founders of startups within the blockchain space at the thought of owning their own company solely powered by its utility token is ludicrous. We hear founders claim their tokens are utility tokens thereby saving them any future regulatory cross hairs with authorities such as the SEC and other regulatory agencies. Most times even with all the noise on the utility nature of these tokens, just a smidgen few of them consider the need to undertake the “Howey Test” which professionally investigates if a token is classified either as security or utility. This has led to many of them breaching the line of regulatory authorities put forward between utility tokens and securities offering. This discourse, however, is (...)

    #utility-tokens #token-economy #bitcoin #startup

  • Crypto companies move to Greener Pastures due to Overbearing Regulations
    https://hackernoon.com/crypto-companies-move-to-greener-pastures-due-to-overbearing-regulations

    Recently, I wrote about the shutdown of stablecoin, Basis. Like many other projects, Basis was impacted by the #sec’s latest guidance. But instead of trying to wade through the bureaucracy and sacrifice their principles, Basis’ founders decided to abandon the entire project and walk away from the $133 million they had worked hard to raise from investors.Commenting on the increasingly stifling regulations on crypto-related businesses, I suggested that companies should go where they’re wanted. Surprise, surprise, that’s exactly what we’re seeing more projects do.Just recently Lamassu, the world’s oldest #bitcoin ATM manufacturer, moved its business to Switzerland in order to operate in a more crypto-friendly regulatory environment. But this move had nothing to do with the SEC’s attempts to (...)

    #jurisdiction #cryptocurrency #cryptocurrency-news

  • Lenka Love Riding a Unicorn? Lets Review the Faba Invest #sto
    https://hackernoon.com/lenka-love-riding-a-unicorn-lets-review-the-faba-invest-sto-f699900f1d3?

    The hottest Shitcoinoffering investigation. All possible tools used: Google maps, British lawyers and cheeky Instagram.Did we already explain why you shouldn’t believe a #cryptocurrency startup just because they called themselves an STO? Oh, right, we did when told you about Bolton Coin. By the way, those guys took our article very negatively and demand to remove it. Of course, we won’t do it. After all, they can’t even explain why they are an STO that recognizes SEC. And what is their difference from the common scam ICO?Well, fuck them. There’re other adventurers on today’s agenda, Faba Invest. For those who are too lazy to read the article in full, we responsibly declare: these startupers are flunkeys who were too lazy to make their fake more or less attractive. Whitepaper is on the level (...)

    #lenka-love #ico #faba-invest-sto

  • Cryptocurreny Regulation Update (February 2019)
    https://hackernoon.com/cryptocurreny-regulation-update-february-2019-517ed749b5a2?source=rss---

    Cryptocurrency Regulation Update (February 2019)This piece is part of a monthly series covering regulatory updates related to cryptocurrencies. This piece provides important regulatory updates that have happened in the past month, broken down by developments in the United States and the rest of the world.SourceUnited StatesKik Interactive plans to fight an expected enforcement action from the SEC over a 2017 initial coin offering the company conducted (Jan 27th). As reported by the Wall Street Journal, the SEC’s enforcement division believes Kik issued an unregistered security when it sold $100 million in “kin,” a digital token that Kik says works like a currency on the its platform, according to Kik Interactive CEO Ted Livingston. At issue is whether Kin, a digital asset sold through an (...)

    #investing #blockchain #cryptocurrency #ethereum #bitcoin

  • Document Guide for your #sto in 2019
    https://hackernoon.com/document-guide-for-your-sto-in-2019-99d30d2b476b?source=rss----3a8144eab

    STO Document GuideDespite the market downturn, constantly declining numbers of indicators of funds raised by projects, as well as increasing skepticism about the industry, many startups still continue to think that ICO is an easy way to break into the cash flow and tear off a tasty piece of investment.However, the current reality is quite different. Everyone understands that ICO is far from ideal, primarily due to the fact that the tokens buyer mistakenly thinks that he is a full-fledged investor and he has a voting right in the company, he owns a profit share or he has a predominant right to newly issued shares. For this reason, the American regulator (SEC) back in July last year stated in its report that some tokens can be classified as securities, so they should be regulated in the (...)

    #blockchain #sto-document-guide #sto-documents #how-to-do-an-sto

  • How to survive and get profit during the crypto apocalypse?
    https://hackernoon.com/how-to-survive-and-get-profit-during-the-crypto-apocalypse-c3ae92f13b6a?

    The November 2018 latest notorious crypto free-fall has continued sending all the crypto assets to their lowest levels for well over a year. Total market capitalization is back to August 2017 levels and the market mood is far from excitement.The #bitcoin lost 12% in 24 hours on November 20th, which sent it below $5,000 for the first time since October 2017. However, the bulls were in control of the markets back in the day, whereas today it is the bears. Meanwhile, Ethereum is dying slow as another SEC charge on two ICOs has put them all in panic mode. ETH has been smashed again lately falling another 13% to below $150, its lowest level since May 2017. Fact is, even before the ICO 17’ boom Ethereum performed better so it could be the end of days for high priced ETH.Instead of waiting (...)

    #market-fall #crypto-apocalypse #trading #depression

  • Security tokens in the US: regulations and exemptions under the #sec laws
    https://hackernoon.com/security-tokens-in-the-us-regulations-and-exemptions-under-the-sec-laws-

    The USA and Switzerland became the first countries to initiate the legitimization of tokens. It is up to them that today we know the difference between security and utility tokens. Despite the fact that no law defines these concepts, each jurisdiction already has its own rules regarding security tokens’ issuance. Experts from consulting company Platinum have examined the American legislation and share their insights on SEC regulation, common pitfalls and secret paths.2018 can be considered as the year when crypto industry matured. The US Securities Exchange Commission (SEC) started investigating crypto companies on the nature of their tokens.As a result, more and more companies started filing the SEC’s Form D to conduct an STO, considering this type of fundraising as a reliable and (...)

    #blockchain #us-security-tokens #cryptocurrency #security-tokens-sec

  • Why the crypto focus for 2019 will be on compliance
    https://hackernoon.com/why-the-crypto-focus-for-2019-will-be-on-compliance-b430914173ec?source=

    Compliance will be a big focus for the crypto industry in 2019The year 2018 was a total disaster for the crypto world. In a space where the focus seems to be price and price alone, the general feeling was that of FUD (fear, uncertainty, and doubt).The effect of this global downtrend was never more apparent than for ICOs. Initial Coin Offerings started 2018 with a bang, by 2nd quarter of 2018 alone, they managed to snag 10 times more than the cumulative sum of investments from ICOs of Q1–2 2017. However, in the span of a year, the ICO investments per month — went from more than $1 Billion in January being invested, to just $179 Million in November.On top of this, the US SEC’s recent outings against ICOs, has rocked the world of cryptocurrencies and promoting more FUD. The agency has tagged (...)

    #ethereum #cryptocurrency #crowdfunding #blockchain-technology #bitcoin

  • Unresolved issues in Security Token Standards and Platforms
    https://hackernoon.com/unresolved-issues-in-security-token-standards-and-platforms-c9f6fe231947

    Unresolved Issues in Security Token Standards and PlatformsBlockchain is not ready to fit all the requirements of Digital SecuritiesICO market passed and crypto community preparing for new Era — Digital Securities Offering or simply STO. The amount of funds raised through ICO is less than $270m in November. This might be a sign that people don’t trust ICOs anymore. The next big stage of #blockchain is Security Tokens approved by regulators and more secure for investors. But for now it’s not so clear how new platforms will work, what exchanges will better adapt to to Security Tokens, and whether there will be a common Security Token standard approved by SEC and used by each project. There are more than 40 STO platforms for now, but most of them have some issues: in token standard, in (...)

    #security-token-standard #digital-asset #security-token #cryptocurrency

  • Our thoughts on the Demise of Basis
    https://hackernoon.com/our-thoughts-on-the-demise-of-basis-599bbadac830?source=rss----3a8144eab

    Artistic rendition of Basis’ Jersey OfficeFirst and foremost I want to say that we have a ton of respect for the Basis team. We’ve always viewed them as one of the more intellectually impressive and credentialed teams in the stablecoin space and they have done more than most other groups to drive the conversation forward and advance the crypto industry as a whole.All this being said, while we understand that Basis felt that outside regulatory agencies made their plan untenable and less promising to investors than they originally intended, we feel that there are lessons to be learned and we are certainly trying hard to absorb them. We also understand how they might have came to the conclusion that they needed to fold up shop, but we disagree that the SEC’s guidance was somehow a (...)

    #finance #demise-of-basis #bases #stable-coin #cryptocurrency

  • The Quick and Dirty Legal Guide on the #sec’s New Guidance on ICOs
    https://hackernoon.com/the-quick-and-dirty-legal-guide-on-the-secs-new-guidance-on-icos-2e74d51

    Since the SEC began taking sporadic action against “unregistered” ICOs earlier this year, the entire industry has been stopped dead in its tracks.And while legal pundits were able to put together a decent understanding of the situation based on SEC comments, opinion letters, and enforcement actions, there was no regulatory certainty.We knew, for example, that the SEC considered ICOs to be securities offerings that required registration with the SEC or to fit within a registration exemption. But even knowing the general framework the SEC wanted the industry to pursue, it was unclear how exactly ICOs should proceed.How does one launch a fully compliant security token? What does this mean for previously completed, but unregistered ICOs? If a token is a security, are centralized crypto (...)

    #regulation #cryptocurrency-news #sto #ico

  • RIP WordPress, GoDaddy. BUILD and HOST a #website IN 30 SEC with #ipfscloud.
    https://hackernoon.com/rip-wordpress-godaddy-build-and-host-a-website-in-30-sec-with-ipfscloud-

    IpfsCloud is bringing Disruption in the Hosting and Domain provider LandScapeFarewell WordPress, WIX, GoDaddy, Hostgator.As we talked about the vision of ClusterLabs in our previous article; we saw that we are about to witness a major change in how Internet works.This(below article) clearly shows that how this is going to happen, so make sure you go through it before proceeding further.Say BYE to F.A.G.M.A., and HELLO to the new InternetAssuming you have gone through the above article, let’s proceed further.As the title suggests, IpfsCloud is working on a Domain and Hosting platform (IpfsHost) that is going to change the website publishing landscape.Here is a sneak-peek showing how AWESOME it is:https://medium.com/media/f246210faee3ce349bdc714fb6f87a92/hrefRight now IpfsCloud provides (...)

    #ipfs #web-hosting #web-development

  • What Do Accredited Investor Laws and Voting Restrictions Have in Common? More Than You Think…
    https://hackernoon.com/accredited-investor-securities-reform-f672c4ee1648?source=rss----3a8144e

    What Do Accredited Investor Requirements and Voting Restrictions Have in Common? More Than You Think…Dealing with securities is a delicate dance for both investors and the companies they invest in. For investors, many are sitting on the sidelines while those who qualify as accredited investors are playing in the lucrative field of secondary markets. For companies, especially those experimenting with digital assets, they have to make sure that they follow the SEC’s guidelines such as registering as a security or qualifying as a utility token or face penalties. Securities laws such as the Securities Act of 1933 and Securities Exchange of 1934 were written in the wake of the Great Depression, and since then the world has witnessed several boom and bust cycles that have run parallel to the (...)

    #accredited-investor-laws #voting-restrictions #securities-law #financial-regulation #cryptocurrency

  • Issuer Guidance on How to Market a Security Token Offering in the United States Under Reg D 506(c)
    https://hackernoon.com/issuer-guidance-on-how-to-market-a-security-token-offering-b08793730b6f?

    Please note that I am not a lawyer and this is not legal advice. You should consult with your attorney, as we did, before conducting a 506(b) or 506(c) offering. US Securities regulations (and interpretations regarding such regulations) are subject to change.The information below is based on my research and understanding of the laws that exist as it pertains to #marketing a Reg D 506(c) offering in the United States.This is Part 1 of a 2 part series. Part 2 will cover best marketing practices for an International Reg S Security Token Offering.When it comes to your STO Marketing, a common sense approach is always your best bet. Think Twice.With the SEC still actively combatting fraudulent ICOs that launched in 2017, it’s become imperative that companies are fully aware of what can and can’t (...)

    #digital-marketing #crowdfunding #cryptocurrency #blockchain

  • The #sec Fights Decentralization: Round 1
    https://hackernoon.com/the-sec-fights-decentralization-round-1-369f9acd0372?source=rss----3a814

    It was bound to happen.The SEC first went after the ICOs in early March this year that had issued utility tokens to investors without registering their offering or seeking an exemption from registration (such as the often mentioned exemptions of the JOBS Act: Regulation Crowdfunding, Regulation A, Regulation D506(c)). To those familiar with securities laws, that outcome was anticipated. The next question was when would the SEC take action against the exchanges that were trading all of these tokens.Around the same time in March this year, the SEC announced that existing exchanges and online trading platforms for digital assets were “potentially unlawful.” The public statement continues,“a number of these platforms provide a mechanism for trading assets that meet the definition of a (...)

    #crypto #token-sale #cryptocurrency #decentralized-exchange

  • What a Startup Needs to Know if their going to sell securities in the US?
    https://hackernoon.com/what-a-startup-needs-to-know-if-their-going-to-sell-securities-in-the-us

    What Startups Need to Know if they’re going to Sell Securities in the US? (Reg D, Reg CF, Reg A+, WTF..)The goal of this article is to give a brief overview of the rules that are issued by the SEC (Securities and Exchange Commission). This is an attempt of the author to go in-depth and have an updated guide about the rules for selling securities in the US. All materials in this article are for informational purposes only. None of the material presented here should be interpreted as investment advice.The main revolution in #crowdfunding happened back in 2012 when US President Barack Obama signed the JOBS Act (Jumpstart Our Business Startups), which gave people more freedom to raise capital for “emerging growth companies” (with annual gross revenues of less than $1 bln). Starting from that (...)

    #equity-crowdfunding #sell-security #blockchain #sell-us-securities

  • Bitmain Plans to Benefit from the #bitcoin Cash Hard Fork and Bitcoin Drops Below $6,500
    https://hackernoon.com/bitmain-plans-to-benefit-from-the-bitcoin-cash-hard-fork-and-bitcoin-dro

    The State of The Market — November 9, 2018BTC: $6,393.37 (-1.15%)ETH: $210.34 (-1.49%)XRP: $0.5049 (+0.14%)The overall #cryptocurrency market has seen a pullback in prices following recent gains, as the total market cap has dropped more than $5 billion in the last 24-hours. The price of Bitcoin (BTC) has dropped by 1.15% and currently trades at $6,393.37 while #ethereum (ETH) has shed 1.49% and is trading at $210.34. XRP pulled back slightly, but still trades above $0.50. Currently, the total market cap is $212.9 billion.In other #news, Bitmain is rushing to deploy 90,000 S9 Antminers ahead of the Bitcoin Cash hard fork on November 15 and executives from VanEck remain calm and confident about the prospects of the SEC approving a Bitcoin ETF.1) The U.S. Securities and Exchange Commission (SEC) (...)

    #blockchain

  • New Protocols for old Asset Classes
    https://hackernoon.com/new-protocols-for-old-asset-classes-4f1a8a18a0b7?source=rss----3a8144eab

    A conversation with Consensys’ founder and CEO Joe Lubin and the Consensys CSO Sam CassattIt seems like a no brainer that, eventually, financial assets will become fully digitalized. #automation will significantly speed up bureaucratic processes which are done today by office clerks. #blockchain protocols will step into their place to govern a financial system not too dissimlar from today’s. Joe Lubin and Sam Cassat talk about how such a new infrastructure could look like.Marlene: Initial Coin Offerings (ICOs) have become a popular way for blockchain startups to pull off huge financing rounds with little effort compared to traditional VC funding. Companies issue their own utility token which investors buy for future services. In the eyes of the SEC, however, coins like this are securities. (...)

    #fintech #ethereum #security-token

  • #nasdaq Offers To Help ‘Legitimize’ #bitcoin
    https://hackernoon.com/nasdaq-offers-to-help-legitimize-bitcoin-8384cf98a2ba?source=rss----3a81

    Does the Bitcoin industry want/ need this help?Nasdaq Inc. is taking on the challenge of helping Bitcoin achieve legitimacy amongst regulators and institutional investors. On the heels of the SEC’s second rejection of a Bitcoin #etf proposed by the Winklevoss twins (of crypto exchange #gemini), Nasdaq held a closed door meeting with representatives from several companies, including Gemini, to discuss a plan to legitimize cryptocurrencies.Gemini has been very cooperative in trying to fix these challenges in the crypto space. In April this year, the exchange hired Nasdaq to conduct market surveillance for Bitcoin and Ether trading. They have also been active in proposing ways to create a Self-Regulatory Organization for the U.S. Virtual Currency IndustryHowever despite their cooperation, the (...)

    #legitimate

  • Making Sense of #crypto Valuations
    https://hackernoon.com/making-sense-of-crypto-valuations-cd4417d1f250?source=rss----3a8144eabfe

    UnsplashWhen meeting with sophisticated and institutional investors there are a few things I noticed keeping them on the sidelines. Their concerns range from a lack of clear regulation coming from Washington, to a shortage of SEC-regulated, secure, custody solutions. The good news is each of these issues are gradually being resolved. Crypto regulation is slowly becoming clear. Though cautious, US regulators are shaping their stance. Security storage solutions have improved vastly helping to reduce the number of hacks. At the same time, compliant custody solutions are coming online as qualified custodians are entering the space. However, there is one area where investors struggle to find clarity: How to assess the #valuation of blockchain protocols? In other words, by buying right now, (...)

    #crypto-valuation #making-sense-of-crypto #bitcoin

  • Why ’Ethereum not being a #security' is a big news?
    https://hackernoon.com/why-ethereum-not-a-security-by-sec-big-news-e90aff0fdfbe?source=rss----3

    Why #ethereum (ETH) not being a security is a big news?Are #bitcoin and ether securities? Finally, one of the biggest questions and debates in crypto has been answered by the #sec, officially. Here’s a detailed insight on why this announcement is such a big news for traditional and cryptocurrency investors.AnnouncementAs per Yahoo Finance, In an announcement at Yahoo Finance’s All Market Summit: Crypto in San Francisco on Thursday, the U.S. Securities and Exchange Commission Director of Corporate Finance William Hinman said that the commission would not be classifying ether or bitcoin as securities.Photo by Mike Enerio on UnsplashCommentsHinman said that the SEC will not be changing cryptocurrency and digital asset rules, but rather would be applying them. Previously, bitcoin and ether may (...)

    #ethereum-not-a-security

  • #china’s True Crypto Giants- #tencent, Baidu, #alibaba and JD
    https://hackernoon.com/chinas-true-crypto-giants-tencent-baidu-alibaba-and-jd-91bf7786413b?sour

    Regulation is not a sexy topic, unless we are discussing crypto regulations.In the last few weeks, many countries have voiced their unique ways to welcome ( or not so much) the crypto community. Korea has decided to regulate crypto exchanges as banks, while Thailand has permitted certain cryptocurrencies to be traded and exchanges to be opened. Even the SEC made remarks on BTC and ETH not being securities (horay!). China certainly has voiced their opinions too, this time through their permitting of e-commerce company JD to build a blockchain-backed token.This is particularly important, for 2 reasons. For one, we now know that China doesn’t just care about blockchain, it cares about tokens too. Past announcements only suggested the former, such as President Xi’s recent speech touting the (...)

    #cryptocurrency-investment #regulation

  • The #sec’s Guiding Hand
    https://hackernoon.com/the-secs-guiding-hand-8c23f95849b8?source=rss----3a8144eabfe3---4

    Today the SEC spoke at a town hall called #investing In America in Atlanta, Georgia. While the event was not crypto-specific, cryptocurrencies and ICOs loomed in the background. Indeed, blockchain and ICOs came up in one of the first questions at the Q & A at the end of the panel.In regards to ICOsBlockchain as architectureIn response to an inaudible question, one in which we can posit that the audience member asked about the SEC’s views on ICOs and the emerging crypto space, SEC Chairman Jay Clayton said, “I think we can all agree on [the promise of blockchain]. At the fore of my mind is that blockchain greatly reduces transactions costs, including costs of verification.”He goes on to describe how blockchain was adopted for the act of fundraising, but that “much of what I have seen in (...)

    #financial-regulation #crowdfunding #bitcoin