Rolling Stone - The Rise and Fall of a Bitcoin Kingpin 5-15min

How a bullied geek forged an empire out of digital currency, and became a suspect in a half-billion-dollar heist ... During his reign, bitcoin, the leading form of virtual currency, rose in value from approximately a quarter to more than $1,200. The Wall Street Journal estimated that at one point Mt. Gox was processing 80 percent of all bitcoin transactions in the world. At its peak, the company traded more than $4 million a month. ... in February 2014, it was discovered that a half-billion dollars worth of bitcoins simply vanished from Karpeles' exchange, leaving customers around the world unable to withdraw their funds. It's the largest online heist in history. (Estimates vary on the exact amount. Many have reported $450 million; Karpeles says it could be as high as $650 million.) Some — including even those who worked closely with Karpeles — suspected it was an inside job. ... Mt. Gox was originally a site McCaleb had made for people to exchange Magic cards (thus the name — Magic: the Gathering Online Exchange, or Mt. Gox for short). But by July 2010, he'd devoted it to bitcoin instead, setting it up as the currency's first online brokerage ... According to Karpeles, the problem stemmed from what's called a "transaction malleability," a software flaw that allowed people on the outside to manipulate the bitcoin transactions and steal money from the exchange. At first, he tells me, he had no idea how much bitcoin was missing, but the deeper he dug, the worse it became

Foreign Policy - Fear This Man 5-15min

The Blackwater of surveillance, the Hacking Team is among the world’s few dozen private contractors feeding a clandestine, multibillion-dollar industry that arms the world’s law enforcement and intelligence agencies with spyware. Comprised of around 40 engineers and salespeople who peddle its goods to more than 40 nations, the Hacking Team epitomizes what Reporters Without Borders, the international anti-censorship group, dubs the “era of digital mercenaries.” ... The Italian company’s tools — “the hacking suite for governmental interception,” its website claims — are marketed for fighting criminals and terrorists. ... “Privacy is very important,” Vincenzetti says on a recent February morning in Milan, pausing to sip his espresso. “But national security is much more important.” ... Between 2003 and 2004, Vincenzetti and two college friends worked in their dank, underground apartment and coded what would become the Hacking Team’s flagship software. Called the Remote Control System (RCS), it commandeers a target’s devices without detection, allowing a government to deploy malware against known enemies. (The product was later dubbed Da Vinci, then Galileo.) Think of it as a criminal dossier: A tab marked “Targets” calls up a profile photo, which a spy must snap surreptitiously using the camera inside the subject’s hacked device. Beside the picture, a menu of technologies (laptop, phone, tablet, etc.) offers an agent the ability to scroll through the person’s data, including email, Facebook, Skype, online aliases, contacts, favorite websites, and geographical location. Over time, the software enables government spooks to build a deep, sprawling portfolio of intelligence. ... A hacktivist known as Phineas Fisher had hijacked the Hacking Team’s official Twitter account and posted an ominous message: “Since we have nothing to hide, we’re publishing all our emails, files, and source code.” Following the message was a link to more than 400 gigabytes of the company’s most sensitive data.

Outside Magazine - Is Your GPS Scrambling Your Brain? 13min

But after stopping on a desolate gravel road next to a sign for a gas station, Santillan got the feeling that the voice might be steering him wrong. He’d already been driving for nearly an hour, yet the ETA on the GPS put his arrival time at around 5:20 P.M., eight hours later. He reentered his destination and got the same result. Though he sensed that something was off, he made a conscious choice to trust the machine. He had come here for an adventure, after all, and maybe it knew where he was really supposed to go. ... It’s comforting to know where you are, to see yourself distilled into a steady blue icon gliding smoothly along a screen. With a finger tap or a short request to Siri or Google Now—which, like other smartphone tools, rely heavily on data from cell towers and Wi-Fi hot spots as well as satellites—a wonderful little trail appears on your device, beckoning you to follow. ... The convenience comes at a price, however. There’s the creepy Orwellian fact of Them always knowing where We are (or We always knowing where They are). More concerning are the navigation-fail horror stories that have become legend. ... Enough people have been led astray by their GPS in Death Valley that the area’s former wilderness coordinator called the phenomenon “death by GPS.” ... By turning on a GPS every time we head somewhere new, we’re also cutting something fundamental out of the experience of traveling: the adventures and surprises that come with finding—and losing—our way. ... Individuals who frequently navigate complex environments the old-fashioned way, by identifying landmarks, literally grow their brains.