Click here to listen to the Audio

Nick Weaver kicks off a wide-ranging episode by celebrating Treasury’s imposition of sanctions on a cryptocurrency mixer for facilitating the laundering of stolen cryptocurrency. David Kris calls on Justice to step up its game in the face of this competition, while Nick urges Treasury to next sanction Tornado Cash — and explains why this would incentivize better behavior more generally. Scott Shapiro weighs in to describe North Carolina’s effort to prohibit government entities from papaya ransom to ransomware gangs; he doubts it will work.

David and Scott also further our malware education by summarizing two chilling reports about successful long-term intrusion campaigns – one courtesy of Chinese state hackers and the other likely launched by Russian government agents. I can’t help wondering whether the Russian agencies haven’t prioritized cool hackings over effective ones – to Russia’s cost in the fight with Ukraine.

Nick provides a tutorial on why quantum cryptanalysis is worrying the Biden Administration and what it thinks we ought to do about it. I express some cynicism over how good U.S. physicists have gotten at selling expensive dreams to the government – and considerable relief that Chinese physicists are apparently at least as good at extracting funding from their government.

Here’s a story mainstream media is already burying because it doesn’t fit the “AI bias” narrative. It turns out that in a study by the Department of Homeland Security, most errors (75%) were introduced at the photo capture stage, not by the matching algorithms. What’s more, the bias we keep hearing about has disappeared for the best products. Error rates were reported for the best products by gender and skin color. Errors for women, for light-skinned subjects and dark-skinned subjects were all as low as it’s possible to be – zero. For men, the error rate was 0.8%. These tests were of authentication/identification face recognition, which is easier to do than 1:n “searches” for matching faces, but the results mean that it’s not unreasonable to expect the whole bias issue to disappear as soon as the public wises up to the ideologically driven journalism now on offer.

Nick and I spar over location data sales by software providers. I pour cold water on the notion that evil prosecutors will track women to abortion clinics in other states using their location data. Nick takes the affirmative on that topic, and we put some money on the outcome, though it may take five years for one of us to collect.

Scott unpacks the flap over Department of Homeland Security (DHS) Disinformation Governance Board, headed by Cyberlaw Podcast alumna Nina Jankowicz, who revealed on Tiktok that I should have asked her to sing the interview. Scott and I agree that DHS is retreating quickly from the board’s name and mission as negative reviews for the name, the leader, and the mission keep piling up.

This Week in Schadenfreude is covered by Nick, pointing out the irony of the Spanish prime minister’s phone being targeted with Pegasus spyware not long after the Spanish government was widely blamed for using Pegasus against Catalan separatists.

In quick hits,