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February 20, 2008 | Comments: (0)
Look before you leak
I bet you thought people banked in the Cayman Islands because they serve fruity cocktails with tiny parasols in them while you're waiting for your checks to clear. Well, you're only partly right. The other reason people keep accounts in the Caymans is to avoid paying taxes and/or to launder their ill-gotten gains.
For many of us this is not news -- or at least it wouldn't be, if not for the brain-dead actions of one such bank and the magistrate they duped into being their monkey.
Swiss Bank Julius Baer used its legal muscle to convince a U.S. judge to close down the WikiLeaks.org domain, because the site contains documents that allegedly show Baer is exchanging its clients' dirty old dineros for fresh clean ones with just a hint of mint.
Some background: WikiLeaks.org exists so anonymous whistle blowers around the globe can document human rights offenses, corporate malfeasance, nuclear accidents, and the like. The world gets to see what nasty things those in power have been up to, while the leakers get to live their lives without being waterboarded (or worse).
Because WikiLeaks operates anonymously across several jurisdictions, Julius Baer couldn't figure out how to sue the site directly for copyright infringement. So last Friday the bank found a friendly judge, who ordered the site's California hosting company (Dynadot) to turn off the WikiLeaks.org domain. According to Wired News, WikiLeaks was only notified of the hearing by e-mail a few hours before it was scheduled to happen, and didn't have time to muster its squad of pro bono attorneys.
Personally, I don't think Baer was overly concerned the world would know its Cayman branch (allegedly) exists to launder money and avoid taxes. I think the bank didn't want its rich, extremely powerful, allegedly money laundering/tax evading clientele to be exposed. Bad for business, you know.
But the bank's solution is so mind-bogglingly stupid, you have to wonder if these guys need help getting their pants on each morning.
First, this is exactly the kind of story bloggers and Net-centric journos crave. Big nasty corporation stomps all over plucky public-serving underdog. Who can resist that plot line?
Second, the equation Bank Julius Baer = Money Laundering is now firmly cemented in the minds of everyone who has encountered this story, regardless of whether it's true.
Trois: The documents in question, which might have been quickly forgotten alongside the 1.2 million others on the site, are now hotter than the Paris Hilton sex video. Dozens of mirror sites have sprung up, and Cryptome.org and PirateBay have squirreled away copies of the docs for any interested parties.
Oh, and by the way, the judge's order failed to shut down the site. The IP numbers (88.80.13.160) still work, as do its Belgian and Christmas Island domains. Or they would, only last time I checked the sites were overwhelmed with traffic from people with a sudden keen interest in Cayman Islands banking.
It's a fascinating study in how the courts and high-powered corporations still manage to shoot themselves in the feet when they try to manipulate the Net. (Remember: The Internet is not a dump truck, it's a series of tubes.) But it's also an illustration of why things like NSA wiretaps and efforts to throttle network traffic must be opposed.
Tap the Net backbone, and you make it much harder to post documents to places like WikiLeaks anonymously. (If you think those taps will only be used to identify terrorists, you're living in a fantasy world.) Suddenly the planet becomes a lot more dangerous for whistle blowers.
But this story also touches on both telecom immunity and Net neutrality. Say you're an AT&T employee who wants to post evidence revealing how the company deployed illegal wire taps. What's to keep your friendly telecom provider from killing those bits before they ever reach their destination? This is the kind of thing that will happen when ISPs are asked to become traffic cops, as the recording and movie industries have proposed.
As crypto-wonk Bruce Schneier has eloquently stated, this ain't about security, it's about control. Corporations and governments have an insatiable appetite for it. But I think we're all better off when they go hungry.
Would you leak your docs if you thought the NSA was listening? Spout off below or e-mail me here. Top tipsters qualify for cool swag and, yes, I will keep your identities confidential.
Posted by Robert X. Cringely on February 20, 2008 03:00 AM
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If/When the ISP's start filtering traffic, some enterprising programmer will create a robust proxy service to circumvent government spying (hushmail is an example) - and likely offer it to the masses for free.
Posted by: leaks gone wild at February 20, 2008 10:48 AMVERY well pointed out, NET neutrality is the only way we can keep 1st Amendment speech from being selectively blocked!! Bravo InfoWorld / Robert X. Cringely for posting on this topic!!! Phil G
Posted by: philg at February 20, 2008 11:10 AMThis story, coulpled with the news of the Senate granting retroactive immunity to the telcos for serving us up the Bush administration are almost too much to bear. We're allowing this to happen. Who have we become?
Posted by: Ken Cottrell at February 20, 2008 11:33 AMAll this talk about sniffing internet traffic will be short lived.
2008 will be the year of encryption. We will see browsers start encrypting, we will see hard drive encryption and we will see the increased use of SSL to transmit data.
Posted by: Adam at February 20, 2008 01:44 PMIt is apparent from your comments that you are acting on Wikileaks statements and not the actual court proceedings. The judge did not decide anything. He simply signed off on an agreement between Dynadot (Wikileaks DNS provider) and BJB. Yes, Dynadot folded instead of fighting for their client. That's an issue with Dynadot, not a friendly or activist judge. Also, Wikileaks claimed lack of legal representation is a quite dubious -- documents on Wikileaks own site show that they had been in touch with BJB's lawyers for a month. You would know that if you did any research at all. But, I guess it's more fun to rant than to be responsible. I'm ashamed for you. The misrepresentations you are engaging in are irresponsible journalism.
Posted by: sf_curmudgeon at February 20, 2008 05:21 PMWhether sf_curmudgeon's comments about this case are true or not, is unimportant compared to the more important issue that Cringe addressed.
It's about government and corporate control over us - in other words - freedom.
I am not ashamed of Bob Cringely, I am proud of him, and anyone who exposes those who would deprive us of freedom - regardless of the excuses they use for justification.
Posted by: Stu at February 20, 2008 06:27 PMsf curmudgeon is only partially correct. yes, julius baer's attorneys were in touch with wikileaks for weeks before the hearing, as evidenced by the confidential letters sent to them by said lawyers, which wikileaks promptly put up on its site.
however, in the report I reference above (from Wired News), wikileaks apparently was not made aware of the hearing until a few hours before it happened. I can't vouch for the accuracy of that statement, hence my qualification "according to wired news." but nobody's said otherwise yet as far as I know.
as for the judge "signing off on an agreement" between baer and dynadot.... that's absurd. it was a court order. if dynadot had wanted to do as baer requested, they wouldn't have needed a judge to intercede.
as for research, those boldfaced words in my entry are hyperlinks to some of the sources I consulted (probably less than half the total). and that was before the story got picked up by AP, the wall street journal, and other mainstream outlets. I suppose it could all be just a mass conspiracy, concocted by wikileaks against a totally innocent swiss/caymans bank. what do you think?
rxc
Posted by: cringe at February 20, 2008 09:09 PM'Tis a tightrope we walk between individual liberty and national security. It is only through vibrant discourse and active debate that the two sides can remain in balance. Keep up the discourse!
Posted by: Debra M at February 21, 2008 07:27 AMThis causes me to dream of a future where the 'Net is all/mostly wireless and there exists pirate web sites such as there are now pirate radio stations.
What's the line from the 1st Jurassic Park? "Nature finds a way."?
This matter makes the Three Stooges look like James Bond, or whatever avatar of hyper-competence pleases you. As Mr. Tynan has stated, the bank's leaders are "mind-bogglingly stupid," in that their action had, predictably, an effect in opposition to their (presumed) desires. The judge has made a laughingstock of the federal judiciary, and perhaps by association, federal law enforcement in general. Give a loud horselaugh and a rude raspberry to both clowns--hmmm--perhaps a bad choice of words. Clowns are skilled entertainers; bank and judge both outshine the village idiot in... idiocy.
But rxc is misleading in granting absolution to Dynadot. They filed a stipulation with the court, in essence agreeing with BJB's shysters( http://www.citmedialaw.org/threats/julius-baer-bank-and-trust-v-wikileaks ). On the surface, this is craven at best, and possibly tortious collusion with a criminal enterprise, namely money-laundering. Ummm--is the judge liable? Seems like three parties got together to deprive a fourth (wikileaks) of services, presumably prepaid (my DNS provider demands prepayment). If I had been a Dynadot customer, I no longer would be.
Got to run. I have to compose a letter asking my DNS provider if they are cowards, sneaks and possibly thieves, like Dynadot. And for a new clause in my contract.
Whether the judge ordered Wikileaks.org's DNS service turned off, or merely consented to an agreement between BJB and Dynadot to do so, is beside the point, which is that it was ASTOUNDINGLY naive for anyone involved to have believed this would "shut down" the entire site. Of course it did not; of course DNS is merely a pointer to a server which is otherwise still available on the 'net, by other means.
I'm sure the Dynadot folks knew this, and they may have gone along with it knowing it would not torpedo the site, in an effort to spare themselves further litigation. But it boggles the mind that BJB's lawyers and the judge could have been this stupid. Granted they aren't techies (in my experience many lawyers are actually tech-adverse), but they could easily have consulted some to see what the results of their action would be. That they chose not to, shows more than a small amount of arrogance.
That this judge would consent to this agreement, as opposed to having explicitly ordered it of his own accord, is not significanly better. He STILL went beyond what was legally appropriate, and did so very stupidly. His judgement (pun intended) is questionable at best.
Posted by: DJH at February 22, 2008 07:20 AMAs a twice over government whistle blower I can tell you they will burn your ass one way or another and I don't mean just blackball you or destroy your career but if you cause them to much pain in what you reveal or what you could reveal they will try to have you killed or have a very bad accident. Only having some info stashed away keeps some still kicking so yea, Big Brother wants complete control of everything and even though they are not that bright, they soon will have National I.D. and they own the system and they hire govt' schooled nurds with tax money to do the dirty web work for them.
Truth I found out (the hard way) really is so-much, much stranger than fiction.
1984 was 20+yrs to early is all.
So when's the next article that shares that list of the alleged money-laundering clientele?
Posted by: charlie at February 25, 2008 10:52 AMCringe called my statement that the decree in question was a settlement agreement "absurd". This quote from an EFF indicates the Cringe's interpretation was more absurd than mine. :o
"DynaDot's private agreement to disable access to its customer's domain name and the court's endorsement of that agreement raise (sic) serious First Amendment concerns," said EFF Senior Attorney Matt Zimmerman. [Appeared here: http://www.dailytech.com/article.aspx?newsid=10908
Incredibly underscores the point that I was making -- too many people:
- swallowed Wikileaks propaganda hook, line, and sinker;
- did incomplete (or no) research before spouting off;
- were/are wrongfully inferring what legal procedures took place;
- were/are willing to malign the judge based on limited/wrong data.
sf_curmudgeon:
looks like the judge himself doesn't agree with you (or his earlier ruling) anymore. but you should feel free to sue wikileaks yourself, if they tick you off so much.
the issue was never about buying wikileaks propaganda, it was about shutting down an entire website and squelching the ability for whistleblowers to operate anonymously. a far more important issue than whether the bank was doing the nasty things the wikileaks docs claimed.
cheers,
rxc
Posted by: cringe at March 4, 2008 01:55 PM






