This Is Your Child’s Brain on Video Games

The following is a behind-the-scenes glimpse of how gaming impacts a child’s nervous system.

On the eve of his big sister Liz’s high school graduation, nine-year-old Aiden sits with his parents and relatives at a celebration dinner, bored by their “adult” conversation and irritated at all the attention showered upon Liz. He can’t wait to get back to his video game!

Before dinner, Mom had (annoyingly) called him away to join the family, and then she got mad when he spent a few minutes getting to the next level and saving his game. So many people in the house make him restless; he squirms uncomfortably and drums his fingers on the table, waiting to be excused.

Finally, he is allowed to escape the dinner table, and he settles into a corner of the living room couch to play his Nintendo DS. For the next hour or so, he is completely oblivious to the company in the house. Although he’s already played much longer than his mother likes, she lets him continue, knowing these family situations are a little overwhelming for him. And besides, the game keeps him occupied. What’s the harm? she thinks. It’s just for today.

However, in the meantime, a perfect storm is brewing. As the play continues, Aiden’s brain and psyche become overstimulated and excited — on fire! His nervous system shifts into high gear and settles there while he attempts to master different situations, strategizing, surviving, accumulating weapons, and defending his turf. His heart rate increases from 80 to over 100 beats per minute, and his blood pressure rises from a normal 90/60 to 140/90 — he’s ready to do battle, except that he’s just sitting on the couch, not moving much more than his eyes and thumbs.

The DS screen virtually locks his eyes into position and sends signal after signal: “It’s bright daylight out, nowhere near time for bed!” Levels of the feel-good chemical dopamine rise in his brain, sustaining his interest, keeping him focused on the task at hand, and elevating his mood. The intense visual stimulation and activity flood his brain, which adapts to the heightened level of stimulation by shutting off other parts it considers nonessential.

The visual-motor areas of his brain light up. Blood flows away from his gut, kidneys, liver, and bladder and toward his limbs and heart — he’s ready to fight or escape! The reward pathways in his brain also light up and are reinforced by the flood of dopamine. He is so absorbed in the game, he doesn’t notice when his little sister, Arianna, comes over until she puts her chubby hand on the screen, trying to get his attention.

“DooOOON’T!!” he shouts and roughly shoves her out of the way. Arianna falls backward, bursts into tears, and runs to their mother, who silently curses herself for letting Aiden play this long.

“All right, that’s it. Time to start getting ready for bed. Get your pajamas on and you can have a snack before you go to bed,” she says, pulling the DS out of Aiden’s hands and turning it off in one fell swoop. Aiden looks at his mother with rage. How dare she ruin his game because of his stupid sister!

“Fine!” he shouts, runs up the stairs, and slams his bedroom door. His primitive brain is fully engaged now, turning him into an enraged animal ready to fight off all challengers. He rips all the sheets off his bed and then throws his lamp on the floor, providing a satisfactory crash and shatter. Thinking about how wronged he’s been and filled with visions of revenge, he kicks the wall a few times and then pounds on his bedroom door, putting a big hole in it.

Downstairs, his relatives sit in quiet shock and murmur to each other how they’ve never seen him act like this. Dad runs up the stairs to contain his son. Calmly, his dad holds him in a bear hug from behind, waiting for the rage to subside.

As the dopamine in his brain and the adrenaline in his body begin to ebb, his rage loses its focus. Now, the pent-up energy takes on a disorganized, amorphous form. Aiden feels like he can’t think straight or get himself together. While he spaces out, his dad helps him put his pajamas on and they go back downstairs.

Stress hormones remain high, however, making it difficult for him to relax or think clearly. He seems a little confused, actually. His relatives look at him with a mixture of concern and love, but they also wonder why his parents let him “get away with” this kind of behavior. His mother intuitively knows that direct eye contact will overstimulate him again, so she approaches him slowly from the side, and rubs his back gently.

When his favorite aunt looks him in the face sympathetically, he immediately distrusts her intentions. Eye-to-eye interaction is interpreted by his primitive-mode brain as a challenge, and he starts getting revved up again. His mother intervenes and takes him up to his room. She lowers the light, settles him into bed, and starts to read him a soothing story. His nervous system attempts to regulate itself back to normal, but it seems to still be held hostage by his hyped-up emotions.

That night, after he does finally fall to sleep, Aiden awakens repeatedly with panic attacks — his heart races and blood pounds in his ears. He’s scared of the dark and worried that his angry outburst has upset and alienated his parents. His mother, meanwhile, confiscates the DS and decides to take it with her to work on Monday. (She really wants to throw it in the trash, but it was expensive!)

The following morning, the fight in Aiden has subsided, but the aftermath leaves him in a fog, listless, weepy, and exhausted. He experiences an increased craving for sweets while cortisol, the stress hormone, drives his blood sugar up and down erratically. It will take weeks before his body, brain, and mind return to some sense of balance. Meanwhile, his mother reaffirms her commitment “to get rid of those damn video games.”

Perceived Threat and the Fight-or-Flight Response

Does Aiden’s story sound familiar? Why would a seemingly normal, loving child become so enraged and difficult after playing video games? Though his response may seem extreme, there’s actually a completely natural explanation for Aiden’s behavior.

Playing video games mimics the kinds of sensory assaults humans are programmed to associate with danger. When the brain senses danger, primitive survival mechanisms swiftly kick in to provide protection from harm. This response is instantaneous; it is hardwired in our genes and necessary for survival. Keep in mind that the threat does not have to be real — it only needs to be a perceived danger for the brain and body to react.

When this instinct gets triggered, our nervous system and hormones influence our state of arousal, jumping instantly to a state of hyperarousal — the fight-or-flight response. These feelings can be hard to shake off even after the provoking incident is over and the threat — real or perceived — is gone.

In medical school, our instructors referred to this state as “running from the tiger,” since during ancient times humans protected themselves from predators by literally fighting or fleeing. Today, we still need this rapid stress response for emergency situations, and on a day-to-day basis mild stress reactions help us get things done. But for the most part, repeatedly enduring fight-or-flight responses when survival is not an issue does more harm than good.

When the fight-or-flight state occurs too often, or too intensely, the brain and body have trouble regulating themselves back to a calm state, leading to a state of chronic stress. Chronic stress is also produced when there is a “mismatch” between fight-or-flight reactions and energy expenditure, as occurs with screen time. Indeed, the build-up of energy is meant to be physically discharged to allow the nervous system to re-regulate. However, research suggests screen time induces stress reactions even in children who exercise regularly.

Once chronic stress sets in, blood flow is directed away from the higher thinking part of the brain (the frontal lobe) and toward the more primitive, deeper areas necessary for survival, causing impairment in functioning. With children, whose nervous systems are still developing, this sequence of events occurs much faster than it does for adults, and the chronically stressed child soon starts to struggle.

It’s easy to imagine how an exciting video game can cause hyperarousal. But in fact, numerous mechanisms act synergistically to raise arousal levels with all types of interactive screen time. And contrary to popular belief, many of them occur irrespective of content.

Because chronic stress effectively “short circuits” the frontal lobe, a hyperaroused and mentally depleted child will have trouble paying attention, managing emotions, suppressing impulses, following directions, tolerating frustration, accessing creativity and compassion, and executing tasks.

All of these effects are compounded by screen time disrupting the body clock and hindering deep sleep. In fact, the effects on sleep alone can explain many of the mood, cognitive, and behavior issues associated with screens, and also explain how screen effects can build over time, making them easy to miss.

When people say my strict screen time recommendations—which are based not just on clinical experience and research but also on how the brain works—are “not realistic,” and that children “must learn to manage technology,” my response is this: It’s not realistic to expect the brain to adapt to intense and artificial stimulation it was never meant to handle.

It’s also not realistic to expect a child with a still-developing frontal lobe to control their screen time, whether that means managing how long they play a game, how they use or misuse social media, or how they behave afterward.

Parents need to learn the science behind how screen time overstimulates the nervous system, how this manifests as an array of symptoms and dysfunction, and what that looks like in their own child.

Learning this information can literally change the course of a child’s life; it helps parents to make informed and mindful screen management decisions and steadies them from being swayed by cultural trends and misleading headlines. It puts parents in the driver’s seat. While the world may have changed, how the brain responds to stress and what it needs to thrive has not.

By: Victoria L. Dunckley M.D.

Victoria L. Dunckley, M.D. is an integrative child, adolescent and adult psychiatrist, the author of Reset Your Child’s Brain, and an expert on the effects of screen-time on the developing nervous system.  

Source: This Is Your Child’s Brain on Video Games | Psychology Today

More contents:

Scammers Have a New Way to Phish for Bank Account Information, Banker Says

In the new scam, a thief will pretend to be using the same number as their victim's bank, in order to convince the victim they're a legitimate bank employee. Chainarong Prasertthai/Getty

A new phishing scam is hitting banking customers—and this time, the scammers make it seem like their messages are coming from the real customer service line or fraud prevention hotline.

The scam was revealed by wrestling announcer Lenny Leonard, who says that when he’s not calling body slams and sleeper holds, he’s a “mid-level executive with a very large financial institution.” In a Twitter thread, he details the new scam and how not to fall for it.

FRAUD SCAM ALERT: a thread

As some of you know my day job is as a mid-level executive with a very large financial institution

Wanted to send a heads up about a scam that we are not only seeing at my bank but was attempted on me as well with one of my accounts at another bank

— Lenny Leonard (@WWNLennyLeonard) April 21, 2022

Leonard warned on Thursday that he had been called by a scammer who had spoofed the legitimate phone number to his bank. The scammer then sent a fraud alert using this number, asking if he recognized a certain charge.

In Leonard’s case, he says that when he told the scammer that he’d have to call them back, the scammer told him to look at the back of his debit card to confirm that they were calling from the same number. After telling off the scammer, Leonard says he called his bank and, sure enough, no legitimate alert had been sent, nor had any unusual activity been seen on his account.

Leonard told his followers how to not fall for the scam.

“If you EVER have someone CALL YOU and say they are your bank, do NOT provide any information like that over the phone on an INBOUND CALL,” he wrote. “Tell them you need to call them back & make sure you are dialing the number on the back of your card NOT a # they give you”.

“I would just urge everyone to make sure they are sharing this with their less tech savvy friends and family because the text I got looked EXACTLY like a prior text I had gotten from the bank my account is with,” Leonard told Newsweek.A representative from Chase also confirmed that the company was familiar with the scam.

“Unfortunately, scammers target consumers from many banks. We urge all consumers to never share their banking passwords or send money to someone who tells them that doing so will prevent fraud on their account. Bank employees won’t call, text or email consumers asking for this information, but scammers will,” Amy Bonitatibus, Chase’s chief communications officer, told Newsweek.

While spoofing a phone number is common with scammers, often it’s a fake number as well, though Western Bank warns their customers that fake calls can come from a number they recognize.

The bank also lists a variation on the scam Leonard warns of. In the version Western Bank describes, a scammer spoofs the legitimate customer service number of the bank, like before. But this time, anticipating a response like Leonard’s, the scammer will ask the victim to call them back using the same number that’s on the back of the debit card—which is the same as the one they’re spoofing.

In this variation, though, they’ll leave the phone connection active, fooling the victim with a fake dial tone. Once the victim dials, the scammer “answers,” in hopes that the victim will be fooled into thinking the scammer is indeed a legitimate employee.

One way to thwart this is to remember that a real bank employee will already have your information. Never offer up important information like a bank account number. Instead, ask the bank employee if you can confirm their information by asking them to read off what they have.

In addition, banks will never ask for a PIN, a full Social Security number or a customer’s online banking username and password. Banks already have access to customers’ accounts, and when it comes to Social Security numbers, a legit bank employee will only ask for the last four digits to confirm.

By

Source: Scammers Have a New Way to Phish for Bank Account Information, Banker Says

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Phishing for phishing awareness”. Behaviour & Information Technology. 32 (6): 584–593. doi:10.1080/0144929X.2011.632650. ISSN 0144-929X. S2CID 5472217.Phishing attacks and countermeasures”. In Stamp, Mark; Stavroulakis, Peter (eds.). Handbook of Information and Communication Security. Springer. ISBN 978-3-642-04117-4.

Internet Crime Report 2020″ (PDF). FBI Internet Crime Complaint Centre. U.S. Federal Bureau of Investigation. Retrieved 21 March 2021.The Phishing Guide: Understanding and Preventing Phishing Attacks”. Technical Info. Archived from the original on 2011-01-31. Retrieved 2006-07-10.

The Big Phish: Cyberattacks Against U.S. Healthcare Systems”. Journal of General Internal Medicine. 31 (10): 1115–8. 2005). “A Leet Primer”. TechNewsWorld.Security Usability Principles for Vulnerability Analysis and Risk Assessment”. Proceedings of the Annual Computer Security Applications Conference 2007 (ACSAC’07). Archived from the original on 2021-03-21. Retrieved 2020-11-11.

Susceptibility to Spear-Phishing Emails: Effects of Internet User Demographics and Email Content”. ACM Transactions on Computer-Human Interaction. 26 (5): 32. Data Breach Investigations Report” (PDF). PhishingBox. Verizon Communications. Retrieved 21 March 2021.

Fifteen years of phishing: can technology save us?”. Computer Fraud & Security. 2019 (7): 11–16. doi:10.1016/S1361-3723(19)30074-0. S2CID 199578115. Retrieved 21 March 2021.The Black Market for Netflix Accounts”. The Atlantic. Retrieved 21 March 2021.

Spear Phishing: Who’s Getting Caught?”. Firmex. Archived from the original on 2014-08-11. Retrieved July 27, 2014.Hacking Gets Personal: Belgian Cryptographer Targeted”. Info Security magazine. 3 February 2018. Retrieved 10 September 2018.

RSA explains how attackers breached its systems”. The Register. Retrieved 10 September 2018.Epsilon breach used four-month-old attack”. itnews.com.au. Retrieved 10 September 2018.

What Phishing E-mails Reveal: An Exploratory Analysis of Phishing Attempts Using Text Analyzes”. SSRN Electronic Journal. doi:10.2139/ssrn.3427436. ISSN 1556-5068. S2CID 239250225. Archived from the original on 2021-03-21. Retrieved 2020-11-02.

Threat Group-4127 Targets Google Accounts”. secureworks.com. Archived from the original on 2019-08-11. Retrieved 2017-10-12.How the Russians hacked the DNC and passed its emails to WikiLeaks”

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Ukraine And The Financial Markets: The Winners And Losers So Far

It’s two weeks since the world woke up to the dreadful news of a Russian attack to Ukraine. Notwithstanding the incalculable costs in terms of human lives, as well as human capital and physical infrastructure, we’ve seen much turbulence in the financial markets. So what has happened so far?

Since markets tend to react to geopolitical risks, US Federal Reserve economists Dario Caldara and Matteo Iacoviello recently built a geopolitical risk index (GPR) to be able to compare events at different points in time. It is based on real-time reports in the news of war threats, terror threats, military build-ups, nuclear threats, acts of terror, beginnings of war and escalations.You can see below their plot of the daily data, which dates back nearly 40 years. The most remarkable spikes capture the 1991 Gulf war, 9/11, the beginning of the Iraq war in March 2003, the London bombings of July 2005, and now the Ukraine invasion. For those looking for some kind of consolation right now, the index reckons that we are still not close to the level of geopolitical risk that we saw in the aftermath of 9/11.

The geopolitical risk index

High geopolitical risk has been shown to increase investors’ uncertainty, prompting declines in stock prices and other financial assets. The link with stock market uncertainty is particularly clear in the graph below, which compares the GPR to the VIX indicator of stock market volatility, which is sometimes referred to as the “investors’ fear gauge”.

The GPR daily is in orange, while there are two other versions that track risk of threat (red) and geopolitical acts (green). Essentially they have all been moving in the same direction, with the red risk line leading the way.

As you can see, both these lines and the VIX rose in November after satellite imagery first showed build-ups of Russian troops on the border with Ukraine. Other peaks correspond to January 26, which was the date of Nato’s written response to the Russians, and the start of the invasion on February 24.

Geopolitical risk vs stock market volatility

Energy markets, and oil in particular, react to geopolitical risk at the best of times. And given Russia’s huge importance as an oil exporter, energy prices have been particularly affected by this war. Brent crude is currently trading at around US$116 (£88) per barrel, having risen over US$130 a couple of days ago. This will impact everything from firms’ cash flows to consumer petrol prices, creating inflationary pressure that helps to bring about recessions.

Because Russia and Ukraine are also major exporters of many other important commodities such as wheat, neon gas, palladium and sunflower oil, their prices have been soaring too – and they’re destined to keep increasing due to western sanctions.

Commodity and asset prices compared since invasion

On the other hand, safe havens in times of volatility have been doing well. The price of gold is up again after its remarkable uptick in the early months of the pandemic. Bitcoin and other cryptocurrencies have the potential to benefit since they are a possible vehicle for Russians to circumvent sanctions, but they have been more subdued lately.

Stock Market

The response of stock markets to the war is more complex, given that different markets have more or less exposure to different commodities than others. They also have different levels of exposure to the Russian stock market (which remains closed after plunging together with the rouble following the invasion).According to our calculations from data that dates back to 1985, European countries are more correlated to the Russian market and therefore more vulnerable.

For example, France, Germany and the UK have a 0.45, 0.42 and 0.47 correlation with Russia, where 1 would mean they moved in lockstep and 0 that they did not influence each other at all.The US, on the other hand, has an 0.26 correlation, while China’s, interestingly, is just 0.1. This all broadly corresponds to how different stork markets have performed since the invasion, as you can see below.

Stock markets compared

Finally, what about different types of companies? As you can see below in this breakdown of US players, different sectors have performed quite differently in the early stages of this crisis. The black line is the S&P 500, so those below have underperformed and those above have done better.Energy companies have been doing very well, for example (as have weapons makers).

Companies that either sell consumer staples or consumer products that are more discretionary, ranging from hifi equipment to cinema tickets, have been losing out amid fears that they will have less to spend because of commodity inflation.

We shouldn’t be fooled into thinking that some sectors are simply going to benefit from the war, however. There can be short-run winners, but the interconnectedness of economies, the burden of sanctions and the costs of increased uncertainty will eventually bite all markets. It’s going to affect household budgets, wages and also pensions – regardless of the final outcome, which remains largely unpredictable.

By: Senior Lecturer in Economics, Keele University Senior Lecturer in Economics, University of the West of England & Senior Lecturer in Macroeconomics, University of Portsmouth

Source: Ukraine and the financial markets: the winners and losers so far

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Austrian Programmer And Ex Crypto CEO Likely Stole $11 Billion Of Ether

Ethereum, the second biggest crypto network, is worth $360 billion. Its creator, Vitalik Buterin, has more than 3 million Twitter followers, has made videos with Ashton Kutcher and Mila Kunis, and has met with Vladimir Putin. All the most popular trends in crypto over the last several years launched on Ethereum: initial coin offerings (ICOs), decentralized finance (DeFi), non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs). And it has spawned a whole class of blockchain imitators, often called “Ethereum killers.”

Ethereum is also the subject of a great mystery: who committed the largest theft of ether (Ethereum’s native token) ever, by hacking The DAO? The decentralized venture capital fund had raised $139 million in ether (ETH) by the time its crowd sale ended in 2016, making it the most successful crowdfunding effort to that date. Weeks later, a hacker siphoned 31% of the ETH in The DAO—3.64 million total or about 5% of all ETH then outstanding—out of the main DAO and into what became known as the DarkDAO.

Who hacked The DAO? My exclusive investigation, built on the reporting for my new book, The Cryptopians: Idealism, Greed, Lies, and the Making of the First Big Cryptocurrency Craze, appears to point to Toby Hoenisch, a 36-year-old programmer who grew up in Austria and was living in Singapore at the time of the hack. Until now, he has been best known for his role as a cofounder and CEO of TenX, which raised $80 million in a 2017 initial coin offering to build a crypto debit card—an effort that failed.

The market cap of those tokens, which spiked at $535 million, now sits at just $11 million.After being sent a document detailing the evidence pointing to him as the hacker, Hoenisch wrote in an email, “Your statement and conclusion is factually inaccurate.” In that email, Hoenisch offered to provide details refuting our findings—but never answered my repeated follow-up messages to him asking for those details.

To put the enormity of this hack in perspective, with ETH now trading around $3,000, 3.64 million ETH would be worth $11 billion. The DAO theft famously and controversially prompted Ethereum to do a hard fork—where the Ethereum network split into two as a way to restore the stolen funds—which ultimately left the DarkDAO holding not ETH, but far less valuable Ethereum Classic (ETC). The proponents of the fork had hoped ETC would die out, but it now trades around $30. That means the descendant wallets of the DarkDAO now hold more than $100 million in ETC—a high dollar monument to the biggest whodunnit in crypto.

Last year, as I was working on my book, my sources and I, utilizing (among other things), a powerful and previously secret forensics tool from crypto tracing firm Chainalysis, came to believe we had figured out who did it. Indeed, the story of The DAO and the six-year quest to identify the hacker, shows a lot about just how far the crypto world and the technology for tracking transactions have both come since the first crypto craze. Today, blockchain technology has gone mainstream. But as new applications arise, one of the first uses of crypto—as an anonymity shield—is in retreat, thanks to both regulatory pressure and the fact that transactions on public blockchains are traceable.

Since Hoenisch won’t talk to me, I can only speculate about his possible motives; back in 2016 he identified technical vulnerabilities in the DAO early and may have decided to strike after concluding his warnings weren’t being taken seriously enough by the creators of the DAO. (One of his TenX cofounders, Julian Hosp, an Austrian medical doctor who now works in blockchain full time, says of Hoenisch:

“He is a person that is super opinionated. Always believed he was right. Always.”) Looked at from that perspective, this is also a tale of the big brains and big egos that drive the crypto world–and of a hacker who may have justified his actions by telling himself he simply did what the faulty code baked into The DAO allowed him to do.

In early 2016, the Ethereum network was not even a year old, and there was only one app on it that people were interested in: The DAO, a decentralized venture fund built with a smart contract that gave its token holders the right to vote on proposals submitted for funding. It had been created by a company named Slock.it, which, instead of seeking traditional venture capital, had decided to create this DAO and then open it up for crowdfunding—with the expectation that its own project would be one of those funded by The DAO. Slock.it’s team thought The DAO might attract $5 million.

Yet when the crowd sale opened on April 30th, it took in $9 million in just the first two days, with participants exchanging one ether for 100 DAO tokens. As the money poured in, some on the team felt queasy, but it was too late to cap the sale. By the time the funding closed a month later, 15,000 to 20,000 individuals had contributed, The DAO held what was then 15% of all ether and the price of the cryptocurrency was steadily rising. At the same time, a variety of security and structural concerns were being raised about The DAO, including one that would, ironically, later prove to be crucial to limiting the hacker’s immediate access to the spoils.

That problem: withdrawing funds was too hard. Someone wanting to retrieve their money had to first create a “child DAO” or “split DAO,” which required not only a high degree of technical knowledge, but also waiting periods after each step and the agreement of anyone else who moved funds into that child DAO.

On the morning of June 17th, ETH reached a new all-time high of $21.52, making the crypto in The DAO worth $249.6 million. When American Griff Green woke up that morning in Mittweida, Germany (he was staying in the family home of two brothers who were Slock.it cofounders), he had a message on his phone from a DAO Slack community member who said something weird was happening— it looked like funds were being drained.

Green, Slock.it’s first employee and community organizer, checked: there was indeed a stream of 258-ETH (then $5,600) transactions leaving The DAO.  By the time the attack stopped a few hours later, 31% of the ETH in The DAO had been siphoned out into the DarkDAO. As awareness of the attack spread, ether had its highest trading day ever, with its price plummeting 33% from $21 to $14.


Split Fortunes

The 2016 DAO crowdfunding sale drove the price of ether (ETH) to a then record high—until the June 17th attack on The DAO sent it plummeting. After the hard fork on July 20th, the old blockchain began trading as ether classic (ETC).


Soon, the Ethereum community pinpointed the vulnerability that enabled this theft: the DAO smart contract had been written so that any time someone withdrew money, the smart contract would send the money first, before updating that person’s balance. The attacker had used a malicious smart contract that withdrew money (258 ETH at a time), then interfered with the updating of the contract, allowing them to withdraw the same ether again and again. It was as if the attacker had $101 in their bank account, withdrew $100 at a bank, then kept the bank teller from updating the balance to $1, and again requested and received another $100.

Even worse, once the vulnerability became public, the remaining 7.3 million ETH in The DAO was at risk of a copycat attack. A team of white hat hackers (that is, hackers acting ethically) formed and used the attacker’s method to divert the remaining funds into a new child DAO. But the attacker still had about 5% of all outstanding ETH, and even the rescued ether was vulnerable, given the flaws in The DAO. Plus, the clock was ticking down to a July 21st deadline—the first date when the original hacker might be able to get at the funds they had diverted into the DarkDao.

If the community wanted to keep the attacker from cashing out, they would need to put tokens in the hacker’s DarkDAO and then in any future “split DAOs” (or child DAOs) the unknown hacker created. (Under the rules of the DAO smart contract, the attacker couldn’t withdraw funds if anyone else in their split DAO objected.) Bottom line: if the white hats ever missed their window to object, the attacker would be able to abscond with the funds—meaning this informal group would have to be constantly vigilant.

Eventually, after much bickering (on Reddit, on a Slack channel, over email and on Skype calls) and Ethereum founder Buterin publicly weighing in, and after it seemed that a majority of the Ethereum community supported the measure, Ethereum did a “hard fork.” On July 20th the Ethereum blockchain was split into two. All the ETH that had been in the DAO was moved to a “withdraw” contract which gave the original contributors the right to send in their DAO tokens and get back ETH on the new blockchain. The old blockchain, which still attracted some supporters and speculators, carried on as Ethereum Classic.

• • •

On Ethereum Classic, The DAO and the attacker’s loot (in the form of 3.64 million ETC) remained. That summer, the attacker moved their ETC a few hops away to a new wallet, which remained dormant until late October, when they began trying to use an exchange called ShapeShift to cash the money out to bitcoin. Because ShapeShift didn’t at that time take personally identifying information, the attacker’s identity was not known even though all their blockchain movements were visible.

Over the next two months, the hacker managed to obtain 282 bitcoins (then worth $232,000, now more than $11 million). And then, perhaps because ShapeShift frequently blocked their attempted trades, they gave up cashing out, leaving behind 3.4 million Ether Classic (ETC), then worth $3.2 million and now more than $100 million.

That might have been the end of the story—an unknown hacker sitting on a fortune he couldn’t cash out. Except last July, one of my sources involved in the DAO rescue, a Brazilian named Alex Van de Sande (aka Avsa) reached out, saying the Brazilian Police had opened an investigation into the attack on The DAO — and whether he might be a victim or even the hacker himself.  Van de Sande decided to commission a forensics report from blockchain analytics company Coinfirm to help exonerate himself (though then, the police closed the investigation, he said). In case any similar situations arose in the future, he went forward with the report examining those cash-out attempts in 2016.

Among the early suspects in the hack had been a Swiss businessman and his associates, and in tracing the funds, Van de Sande and I also found another suspect: a Russia-based Ethereum Classic developer. But all these people were in Europe/Russia and the cash-outs mapped onto an Asian-morning-through-evening schedule—from 9 A.M. to midnight Tokyo time—when the Europeans were likely sleeping. (The timing of their social media posts suggested they kept fairly normal hours.) But based on a customer support email the hacker had submitted to ShapeShift in the leadup to the attack, I believed they spoke fluent English.

Jumping off from the Coinfirm analysis, blockchain analytics company Chainalysis saw the presumed attacker had sent 50 BTC to a Wasabi Wallet, a private desktop Bitcoin wallet that aims to anonymize transactions by mixing several together in a so-called CoinJoin. Using a capability that is being disclosed here for the first time, Chainalysis de-mixed the Wasabi transactions and tracked their output to four exchanges. In a final, crucial step, an employee at one of the exchanges confirmed to one of my sources that the funds were swapped for privacy coin Grin and withdrawn to a Grin node called grin.toby.ai. (Due to exchange privacy policies, normally this sort of customer information would not be disclosed.)

The IP address for that node also hosted Bitcoin Lightning nodes: ln.toby.ai, lnd.ln.toby.ai, etc., and was consistent for over a year; it was not a VPN.

It was hosted on Amazon Singapore. Lightning explorer 1ML showed a node at that IP called TenX.

For anyone who was into crypto in June 2017, this name may ring a bell. That month, as the ICO craze was reaching its initial peak, there was an $80 million ICO named TenX. The CEO and cofounder used the handle @tobyai on AngelList, Betalist, GitHub, Keybase, LinkedIn, Medium, Pinterest, Reddit, StackOverflow, and Twitter. His name was Toby Hoenisch.

Where was he based? In Singapore.

Although he was German-born and raised in Austria, Hoenisch is fluent in English.

The cash-out transactions occurred mainly from 8 A.M. until 11 P.M. Singapore time.

And the email address used on that account at the exchange was [name of exchange]@toby.ai.

In May 2016, as it was finishing up its historic fundraise, Hoenisch was intensely interested in The DAO. On May 12, he emailed Hosp a tip (“Profitable crypto trade coming up”) to short ETH once the DAO crowdfunding period ended. On May 17th and 18th, in the DAO Slack channel, he engaged in a long conversation in which he made, depending on how you count, 52 comments, minimum, about vulnerabilities in The DAO, getting into various aspects of the code and nitpicking over exactly what was possible given the way the code was structured.

One issue spurred him to email Slock.it’s chief technology officer, Christoph Jentzsch, its lead technical engineer, Lefteris Karapetsas, and community manager Griff Green. In his email, he said he was writing a proposal for funding from The DAO for a crypto card product called DAO.PAY, and added, “For our due diligence, we went through the DAO code and found a few things that are worrisome.” He outlined three possible attack vectors and later emailed with a fourth. Jentzsch, a German who had been working on a PhD in physics before dropping out to focus on Ethereum, responded point by point, conceding some of Hoenisch’s assertions but saying others were “false” or “don’t work.” The back and forth ended with Hoenisch writing; “I’ll keep you in the loop if we find anything else.”

But instead of further email exchanges, on May 28th, Hoenish wrote four posts on Medium, beginning with, “TheDAO—risk free voting.” The second, “TheDAO—blackmailing withdrawals,” foreshadowed the main issue with The DAO and why Ethereum ultimately chose to hard fork: if it did not, the only other options were to let the attacker cash out his ill-gotten gains or for some group of DAO token holders to follow him forever into new split DAOs he created as he attempted to cash out. “TLDR: If you end upon in a DAO contract without majority voting power, then an attacker can block all withdrawals indefinitely,” he wrote. The third showed how an attacker could do this cheaply.


To put the enormity of this hack in perspective, with ETH now trading around $3,000, 3.64 million ETH would be worth $11 billion.


His last, most telling post for the day, “TheDAO—a $150m lesson in decentralized governance,” said DAO.PAY decided against making a proposal after uncovering “major security flaws” and that “Slockit down-played the severity of the attack vectors.” He wrote, “TheDAO is live … and we are still waiting for Slockit to put out a warning that THERE IS NO SAFE WAY TO WITHDRAW!”

On June 3, his last Medium post, “Announcing BlockOps: Blockchain Hack Challenges” said, “BlockOps is your playground to break encryption, steal bitcoin, break smart contracts and simply test your security knowledge.” Although he promised to “post new challenges in the field of bitcoin, ethereum and web security every 2 weeks,” I could find no record that he did so.

Two weeks later came the DAO attack. The morning after the attack, at 7:18 A.M. Singapore time, Hoenisch trolled Ethereum creator Vitalik Buterin by retweeting something Buterin had said before The DAO was attacked, but after it was known that the vulnerability used in the attack was evident in the DAO’s code. In the two-week old tweet, Buterin had said that he’d been buying DAO tokens since the security news. Over the following weeks, Hoenisch tweeted anti-hard fork posts like one titled, “Too Big to Fail is Failure Guaranteed.”

Curiously, on July 5, a couple weeks after the attack, Hoenisch and Karapetsas exchanged Reddit DMs titled “DarkDAO counter attack” — though the substance of the messages is unclear because Hoensich has deleted all his Reddit posts. (Hosp recalls that Hoenisch told him he had deleted his Reddit account after an altercation with an “idiot” on Reddit over The DAO.) Hoenisch wrote, “Sorry for not contacting first. I got carried away from finding it and telling the community that there is a way to fight back. In any case, I don’t see any way the attacker can use this.”

After Karapetsas told Hoenisch of the white hats’ plans to protect what was left in The DAO, Hoenisch replied, “I took down the post.” Karapetsas responded, “I will keep you up to date with what we do from now on.” Hoenisch’s last message in that exchange: “I’m sorry if I messed up the plan.”

On July 24th, the day after the Ethereum Classic chain revived and began trading on Poloniex, Hoenisch tweeted, “ethereum drama escalating: from #daowars to #chainwars. Ethereum classic now traded on poloniex as $ETC and miners planning attacks.” On July 26th, he retweeted Barry Silbert, the founder and CEO of the powerful and well-respected Digital Currency Group, who had tweeted, “Bought my first non-bitcoin digital currency…Ethereum Classic (ETC).”


“He (the DAO hacker) really screwed the pooch. Reputation is way more valuable than money.”


Upon hearing the name Toby Hoenisch, without knowing evidence indicated he was the DAO attacker, Karapetsas, a usually good-humored Greek software developer who was one of the DAO creators and had engaged with him by email and on Reddit, said: “He was obnoxious…. he was quite insistent on having found a lot of problems.”

After hearing that the DarkDAO ETC had been cashed out to a Grin node with Hoenisch’s alias, Karapetsas observed that if Hoenisch had instead remedied the situation while the DarkDao funds were frozen, the Ethereum community would have given him “huge kudos” for finding the weakness and then returning the ETH. Similarly, Griff Green, whose current projects lean towards helping non-profit and public causes grow in the digital world, believes the hacker missed the chance to “be a hero.” Says Green: “He really screwed the pooch…Reputation is way more valuable than money.”

Ironically, in a 2016 blog post, Hoenisch wrote, “I’m a white hat hacker by heart.’’ Twenty days later came the DAO attack.

As I noted earlier, after being sent a document laying out the evidence that he was the hacker and asking for comment for my book, Hoenisch wrote that my conclusion is “factually inaccurate.” He said in that email he could give me more details—and then did not respond to four requests for those details, nor to additional fact checking queries for this article. In addition, after receiving the first document detailing the facts I’d gathered, he deleted almost all his Twitter history (though I’ve saved the relevant tweets).

In May 2015, Hoenisch and the cofounders of his crypto debit card venture—first known as OneBit—had some success at a Mastercard Masters of Code hackathon in Singapore. They started making the card available that year on an invitation-only basis, because, as Hoenisch explained on Reddit, “We don’t want to launch a half-assed Bitcoin wallet that gets us in trouble for violating KYC (know your customer) laws. And yes, legal is the main reason we can’t just ship it.” A Bitcoin Magazine article at the time said Hoenisch had a background in AI, IT security and cryptography.

In early 2017, just months after the presumed DAO attacker stopped trying to cash out their ETC, Hoenisch’s team—by then operating as TenX—announced it had received $1 million in seed funding from (among others) Fenbushi Capital, where Ethereum founder Buterin was a general partner. Then came the $80 million ICO. In early 2018, things started to go south for TenX when its card issuer, Wavecrest, was booted from the Visa network, meaning that TenX’s users could no longer use their debit cards.

On Oct. 1, 2020, TenX announced it was sunsetting its services because its new card issuer, Wirecard SG, had been directed by the Monetary Authority of Singapore to cease operations. On April 9, 2021, TenX posted a blog called “TenX, Meet Mimo.” It outlined a new business that would offer a euro-pegged stablecoin, which kept its value pegged to a fiat currency such as US dollars or euros or Japanese Yen. The market cap of TenX tokens, which spiked at $535 million, now sits at just $11 million. TenX has rebranded itself as Mimo Capital and is offering holders of TenX tokens mostly worthless MIMO tokens instead at a rate of 0.37 MIMO for each TenX.

Hosp, who was the public face of the company while there, was booted by Hoenisch and another cofounder in January 2019. This occurred a couple months after some crypto publications reported on Hosp’s past affiliation with an Austrian multi-level marketing scheme. However, before hearing that evidence indicated Hoenisch was the DAO attacker, Hosp said his feeling had been that Hoenisch had perhaps pushed him out over jealousy that Hosp had sold bitcoin at the top of the bubble in late 2017, netting himself $20 million. Meanwhile, Hoenisch had kept all his crypto as the bubble – and his personal net worth – deflated.

“He came from a very poor family, he had no experience in investing, and he was in crypto in 2010 but he had literally no money, nothing, when we were in Las Vegas together [in the summer of 2016] he had nothing, and I was doing really well with my investments… he would always push for getting more salary, for having something nicer.” Hosp also mentioned Hoenisch had to send money home to his mother, who had raised him, as well as his sister and brother, as a single parent.


As new blockchain applications arise, one of the first uses of crypto—as an anonymity shield—is in retreat.


Upon hearing that Hoenisch was the likely DAO attacker, Hosp said he was “getting goose bumps” and begin recalling details from his interactions with his former partner that now seemed to take on new significance. For example, when asked if Hoenisch was into Grin (the privacy coins to which the hacker had cashed out) Hosp said, “Yes! Yes, he was. He was fascinated by that…I lost money because of those stupid coins! I invested in them because of him, because he was so fascinated by them.”

He said that Hoenisch was also obsessed with building a Bitcoin/Monero “atomic swap” – or a way to use smart contracts to swap between Bitcoin and the privacy coin Monero. At the time, Hosp was confused by that, because he felt there was no market for such a product. Later, Hosp pulled up chats from August 2016, in which Hoenisch seemed excited about the price of ETC, the coin held by the hacker after the ethereum fork.

When trying to recall the incident that he believed prompted Hoenisch to close his Reddit, Hosp began searching on his computer and muttered to himself, “He always used tobyai.” He confirmed that one of Toby’s regular email addresses ended in @toby.ai.

Recalled a still astounded Hosp: “For some weird reason, he was quite well aware of what was happening…He understood more of the DAO hack when I asked him what had happened…than I had found on the internet or anywhere.”

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Follow me on Twitter or LinkedIn. Check out my website.

A former senior editor of Forbes, I’m a crypto journalist, host of the Unchained podcasts, and author of The Cryptopians: Idealism, Greed, Lies, and the Making of the First Big Cryptocurrency Craze. https://bit.ly/cryptopians

Source: Exclusive: Austrian Programmer And Ex Crypto CEO Likely Stole $11 Billion Of Ether

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Recent News

How To Move With Migraines

Migraines are the most common form of headache that can cause severe throbbing pain – usually on one side of the head – and severely affect quality of life. A migraine attack can last hours or days and often comes with nausea, vomiting and extreme sensitivity to light and sound.

According to a 2018 Deloitte Access Economics Report, almost 5 million people in Australia live with migraine, with 7.6% of them – around 400,000 people – experiencing chronic migraine, which means more than 15 migraine days per month.

Migraines are much more common in women than men and more prevalent in working-age people.

“During a flare, all people want to do is lie in a cold dark room and not do anything,” says Adnan Asger Ali, a physiotherapist and the deputy national chair at Musculoskeletal Physiotherapy Australia. But research shows regular exercise may have a preventive effect in reducing the number and intensity of migraines. One of the main reasons physical activity may help relieve migraines, says Ali, is that the body releases endorphins (natural painkillers) during exercise.

“Physical therapy can complement the pharmacological management of migraines,” he says. “It might mean that they take two Panadol instead of two codeine, and that’s still going to be a win because they’re not taking the hard stuff.”

A proper physical assessment is necessary to tailor a treatment plan to the individual, and individuals should consult with a health professional before embarking on a new exercise regime, but here are some suggestions on physical exercise that might help manage migraine.

The class: yoga and tai chi

Ali says slow movements, meditation and relaxation have significant beneficial effects on people who suffer from migraines. That includes activities such as yoga and tai chi.

In a recent randomized clinical trial that involved 114 patients aged 18 to 50 years with a diagnosis of episodic migraine, researchers found that people who practised yoga as an add-on therapy had less frequent and less intense migraines than those who received medical treatment alone.

Tai chi can also serve as a preventive measure for migraines. In a 2018 randomised controlled trial of 82 Chinese women with episodic migraines, researchers found that after 12 weeks of tai chi training, the women experienced significantly fewer migraine attacks.

The move: chin tuck

Neck stiffness and postural issues can be a driver for migraines, says Ali. He suggests the chin tuck, or cervical retraction, exercise to strengthen neck muscles and improve mobility.

The chin tuck exercise can be performed standing or sitting. Begin by sitting upright and looking straight ahead, keeping your neck and shoulders relaxed. Place a finger on your chin and gently glide your chin down – tuck your chin to your neck. Don’t hold your breath, move your head up or down or bend your neck forward.

You might feel a gentle pull at the base of the head and top of the neck. Hold the position for about five seconds and repeat the exercise 10 times – as long as it doesn’t cause any pain.

The activity: walking, jogging, running and cycling

Aerobic exercises such as walking, jogging, running and cycling might help mitigate migraine.

A systematic review of studies on exercise and migraine published in The Journal of Headache and Pain in 2019 found that moderate-intensity exercise – physical activities that elevate your heart rate and cause you to breathe harder but still allow you to carry on a conversation – can decrease the number of migraine days.

“Any activity that people will do consistently and that they enjoy will be good for them,” says Ali.

The hard pass: high-intensity interval training

Ali warns against HIIT workouts, which alternate short bursts of intense cardio exercise with rest or lower-intensity exercise. “Very high-intensity exercise is discouraged if it triggers your migraine,” he says.

In some people, high-intensity exercise can trigger a migraine attack. But research has shown that regular HIIT workouts might be more beneficial than moderate exercise for others, highlighting the importance of a personalized exercise plan.

By: Manuela Callari

Source: How to move: with migraines | Life and style | The Guardian

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Definition:

The main symptom of a migraine is usually an intense headache on 1 side of the head. The pain is usually a moderate or severe throbbing sensation that gets worse when you move and prevents you carrying out normal activities. In some cases, the pain can occur on both sides of your head and may affect your face or neck.

Additional symptoms

Other symptoms commonly associated with a migraine include:

  • feeling sick
  • being sick
  • increased sensitivity to light and sound, which is why many people with a migraine want to rest in a quiet, dark room

Some people also occasionally experience other symptoms, including:

Not everyone with a migraine experiences these additional symptoms and some people may experience them without having a headache. The symptoms of a migraine usually last between 4 hours and 3 days, although you may feel very tired for up to a week afterwards.

Symptoms of aura

About 1 in 3 people with migraines have temporary warning symptoms, known as aura, before a migraine.

These include:

  • visual problems – such as seeing flashing lights, zig-zag patterns or blind spots
  • numbness or a tingling sensation like pins and needles – which usually starts in 1 hand and moves up your arm before affecting your face, lips and tongue
  • feeling dizzy or off balance
  • difficulty speaking
  • loss of consciousness – although this is unusual

Aura symptoms typically develop over the course of about 5 minutes and last for up to an hour. Some people may experience aura followed by only a mild headache or no headache at all.

When to get medical advice

You should see a GP if you have frequent or severe migraine symptoms that cannot be managed with occasional use of over-the-counter painkillers, such as paracetamol. Try not to use the maximum dosage of painkillers on a regular or frequent basis as this could make it harder to treat headaches over time.

You should also make an appointment to see a GP if you have frequent migraines (on more than 5 days a month), even if they can be controlled with medicine, as you may benefit from preventative treatment. You should call 999 for an ambulance immediately if you or someone you’re with experiences:

References:

  • Paralysis or weakness in 1 or both arms or 1 side of the face
  • stroke or meningitis, and should be assessed by a doctor as soon as possible.

 

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