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J.W. Verret is a Harvard-educated attorney who teaches corporate finance and accounting at George Mason University. His work has increasingly intersected with the cryptocurrency sector in recent years, as his legion of Twitter followers — who know him as “BlockProf,” or the Blockchain Professor — are poignantly aware.

Aside from his work at GMU, Verret has become known as a vocal advocate for crypto as the top honcho at Crypto Freedom Lab, a think tank fighting devoted to preserving “freedom and privacy for crypto developers and users.” He also serves as a professional legal witness for defendants accused — wrongfully, Verret would argue — of evading financial-tracking laws, and is authoring a book, tentatively titled “Blockchain Privacy and Forensics.” In between, he finds time to serve as a regular columnist for Cointelegraph.

1) You’re very busy professionally — teaching at George Mason University, serving on committees with the Securities and Exchange Commission, going to trials as expert witness. How did life lead you to cryptocurrency?

I spent 15 years as a libertarian regulation/financial person, writing it, think-tanking it in Washington, D.C. For the first 10 years, I lost everything I fought for in the Dodd-Frank era.



The thing with crypto is that it’s been a freedom revolution in finance. It fixes, or aims to fix, problems in finance that government regulation only aims to fix. Regulation entrenches intermediaries where crypto fixes problems by eliminating the need for those intermediaries. And that was very interesting to me. 

2) You served on the SEC’s Investor Advisory Committee, but you’ve also been very vocal in criticizing SEC Chairman Gary Gensler. How was that experience?

It was good. I replaced Hester Peirce when she became an SEC commissioner. I wrote a lot of dissents as a committee member, so I hope I did Hester proud, but I do not think they’ll invite me back in the future under the current chairman. It seems like he’s been trying to just destroy this industry.

He could’ve reached out to the industry to try to make things work, but he has no interest in that, and he’s sued some of the best actors in crypto — Coinbase and Kraken — while ignoring the worst.

3) You’re a vocal proponent of ZCash. Explain your interest there.

Zcash is like Bitcoin, but private. It’a a great invention. Whoever the developers were  deserve a Nobel Prize.

I own a lot of Bitcoin. I think it’s a tremendous innovation. But for day-to-day payments, I think we need some privacy, and it’s hard to get that with Bitcoin. I’m also a fan of Monero. which has some pretty good privacy technology. But they’re both pretty good projects — t’s possible to like both the Rolling Stones and the Beatles.

Also read: The Supreme Court could stop the SEC’s war on crypto

There are no other privacy tokens that are in the same ballpark. There are some that are really neat innovations, but they’re not at the level you need to have the same privacy. Other projects I’m very excited about are Samourai Wallet and Sparrow Wallet, which offer a bit of privacy for BItcoin transactions.

4) On that note, how do you think the future of crypto is going to be defined? Is it going to be defined as a way to achieve greater privacy in transaction? Will it be defined by efficiency in the sense that it’s easier to use than traditional finance instruments? Will it be defined by crime? Or will it be some mixture of these?

That’s an interesting question. I think it will be some combination of all those things. Crime is often a testing ground for new technology. It certainly was for the internet. In the 1990s, a lot of criminals used the internet. I think the strongest forces in determining what cryptos survive will be some mixture of efficiency and scale, but I think privacy will be a part of it. As governments and big corporations fight back against trustless, disintermediated property transfers, the only way to protect yourself will be through the use of privacy coins and privacy protocols.

5) You’re also serving as a professional witness in U.S. v. Sterlingov, where the U.S. government is charging 33-year-old Roman Sterlingov with developing Bitcoin Fog — a crypto mixer. The FBI arrested him at Los Angeles International Airport (LAX) in 2021, and they’re accusing him [Bitcoin Fog] of laundering $336 million. Tell me about that.

I spend a lot of time as a forensic accountant, but I’m also into privacy. Some people think that’s a conflict: How can you be privacy while also following the money? But I don’t see that as a conflict at all. Some of the people most into privacy who I know are forensic investigators. I’m a believer in public information. People should learn what it takes to be private. The worst people tend not to be smart anyway — they make mistakes, and they don’t use privacy tools optimally.

Also read: CipherTrace expert says Chainalysis data contributed to ‘wrongful arrest’ of alleged Bitcoin Fog founder

In terms of U.S. v. Sterlingov, I’m providing some expert help in forensic accounting and money laundering. It’s been helpful to merge my legal and accounting perspectives to aid the legal team.  I also do some work helping customers of large crypto exchanges when their crypto is frozen, and we ultimately resolve it when we figure out that the customer did nothing wrong — but were falsely flagged by crypto tracing tools.

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False positives in crypto tracing can have a real cost and that is one thing that concerns me about the dominance of some of the tracing firms. TRM and Ciphertrace seem like they try to get things right — and don’t overclaim their tracing capabilities — but that’s not true of every firm in this industry.

6) I hear you have opinions about UFOs. Can you tell us what you know?

I’m really into podcasts about the history of investigations into UFOs. Some good ones are “Strange Arrivals” and “High Strange.” I’d also recommend reading J. Allen Hynek’s “The Hynek UFO Report,” which is about the Project BLUE BOOK Report. He was a physics professor at a little school [Ohio State] and the Air Force asked him to look into it one day. I think they thought he’d be a front man — and he was, but then he changed.

The government knows no more now than it did 50 years ago. They may know more than they’ve shared, but I don’t think they understand it. The Navy pilot revelations are pretty amazing. So I think they do exist. I think they’re probably probes of some kind that are unmanned — nothing armageddon or conspiracy. I just think they want to see what we’re up to.

Rudy Takala

Rudy Takala

Rudy Takala is the opinion editor at Cointelegraph. He formerly worked as an editor or reporter in newsrooms that include Fox News, The Hill and the Washington Examiner. He holds a master’s degree in political communication from American University in Washington, DC.

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South Korea ramps up crypto seizures, will target cold wallets

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South Korea ramps up crypto seizures, will target cold wallets

South Korea ramps up crypto seizures, will target cold wallets

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‘Bring it on’: Left-wing activists gather for fight back against the right – and Labour

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'Bring it on': Left-wing activists gather for fight back against the right - and Labour

The World Transformed, a left-wing political festival, has historically ran alongside the Labour Party Conference as an unofficial fringe event.

But a lot has changed since it began in 2016, organised then by the Corbyn-backed group Momentum. And like the former Labour leader himself, TWT has gone independent.

From Thursday to Sunday, a programme of politics, arts and cultural events will be held in Manchester, a week after Labour’s annual party gathering ended.

“It no longer made any sense to be a fringe festival of the Labour conference,” Hope Worsdale, an organiser since 2018, tells Sky News. “We need a space for the independent left to come together.”

This decision was made before the formation of Your Party in July and the surge of support behind the Greens and its new leader Zack Polanski, but both these factors have given TWT some extra momentum. Organisers say it is not just a festival, but a “statement of intent from the British left” – and a left that looks different from how it used to.

Previous headline speakers were Labour MPs in the left-wing Socialist Campaign Group, and in 2021, the showstopper was American democrat Bernie Sanders calling in live for an event alongside John McDonnell.

The World Transformed, previously headlined left-wing Labour MPs
Image:
The World Transformed, previously headlined left-wing Labour MPs

Bernie Sanders and John McDonnell in conversation at TWT in 2021
Image:
Bernie Sanders and John McDonnell in conversation at TWT in 2021

This year, Mr Polanski, Jeremy Corbyn and Zarah Sultana are the only British politicians due to speak at events – though Brian Leishman, who lost the Labour whip in the summer, is also scheduled on a panel.

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TWT was put on pause last year for organisers to reflect upon its role going forward, after Sir Keir Starmer’s election victory.

In 2021, 2022 and 2023, while he was leader of the opposition, the festival was able to “co-exist” with Labour as a space for activists on the left to discuss ideas.

But the prime minister’s “shift to the right” has alienated so many of those grassroots members that it was felt TWT’s core audience would no longer be at Labour Party conferences, says Hope, who joined Labour in the Corbyn years and has since left.

TWT in 2016. Pic: TWT
Image:
TWT in 2016. Pic: TWT

Event at TWT in 2023
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Event at TWT in 2023

“Our official position isn’t that Labour is dead and no one should engage with it,” she says.

“But they have shifted the values of Labour so radically since the last election, broken promise after promise, attacked civil liberties… there’s been such a suite of terrible decisions that mean people who are generally progressive and generally left wing feel like they have to take their organising elsewhere.”

So what’s on the cards?

There will be 120 events held in Hulme, Manchester, from Thursday to Sunday evening.

At the heart of the programme is daily assemblies, which organisers say are “designed to hold genuinely constructive debates about what we should do and how we should do it”.

But there’s just as much partying as there is politics – Dele Sosimi and his Afrobeat Orchestra are headlining the Saturday night slot while a “mystery guest” will host what TWT calls its “infamous” pub quiz on Friday night.

Back in 2018 that was Ed Miliband’s job, when 10,000 activists were expected to attend TWT. This year, organisers anticipate around 3,000 people will gather, but those involved insist this is a real chance for the left to strategise and co-ordinate, given the involvement of over 75 grassroots groups, trade unions, and activist networks.

Collaboration ‘vital’

A key question the left will need to address is how it can avoid splitting the vote given the rise of the Greens, socialist independents and the formation of Your Party,

One activist from the We Deserve Better organisation, which is campaigning for a left-wing electoral alliance and will be at TWT this weekend, acknowledged collaboration is “vital” if the left is to make gains under Britain’s first-past-the-post system.

Jeremy Corbyn at TWT. Pic: Reuters
Image:
Jeremy Corbyn at TWT. Pic: Reuters

But it remains to be seen whether Your Party co-leaders Mr Corbyn and Ms Sultana can even work together following their public spat last month, let alone with other parties. The pair put on a united front at a rally in Liverpool on the eve of TWT, when Sultana said she was “truly sorry” and promised “no more of that”. But will the truce last?

“It’s not ideal”, says the activist. “Hopefully they are back on track…a lot of collaboration is happening at the grassroots and we need to make sure it’s formalised so we can beat Labour and the right, we need to put on united front.”

They point to seats like Ilford North, where Health Secretary Wes Streeting clung on by a margin of just 528 votes in the general election, after a challenge from British-Palestinian candidate Leanne Mohamad, who ran in protest against Labour’s stance on Gaza.

Meanwhile, in Hackney, the Greens are hoping to gain their first directly elected mayor next May, with the Hackney Independent Socialist Group of councillors throwing their weight behind the party’s candidate, Zoe Garbett.

The We Deserve Better activist says Labour’s “hostile war on the left” has made these areas ripe for the taking, and what is more important than party affiliation is galvanising momentum behind one candidate who shares socialist values on issues like public ownership and immigration – be they the Greens, independents, or Your Party.

“The World Transformed reflects a general reorientation of the left outside of Labour. If they are taking these places for granted, we are going to win. If we unite as the left then we can win even bigger. Bring it on.”

Is Labour in danger?

There is some cause for Labour to be worried. It is haemorrhaging votes to both the right and the left after a tumultuous first year in office (13% to Reform UK, 10% to the Greens and 10% to the Lib Dems, according to an Ipsos poll in September).

Many Labour MPs feel the prime minister has spent too much energy trying to “out Reform Reform” with a focus on immigration, and he needs to do more to win back moderate and progressive voters that will be gathering at TWT this weekend.

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Starmer’s ‘anti-Reform party’ gamble

One fed-up MP told Sky News it was a shame TWT had decided to branch away from Labour, but not a surprise.

“This was something that was on the cards for a while, a parting of the ways, it’s another thing to show what’s happening with the direction of the party.”

He said in previous years the festival “was full of people for the first time in their life who were excited about politics and had a leadership looking at how it could challenge the biggest issues in our country”.

“Debates could be heated but it was always a place for intellectual discussion and that inside the Labour Party is now dead.”

But he said the party ultimately had bigger things to worry about than TWT, with a budget round the corner and potentially catastrophic local elections in May.

“I don’t think it will keep Keir Starmer or Morgan McSweeney up at night.”

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Privacy group urges Ireland to drop work on encryption ‘backdoor law’

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Privacy group urges Ireland to drop work on encryption ‘backdoor law’

Privacy group urges Ireland to drop work on encryption ‘backdoor law’

The Irish Communications Interception and Lawful Access Bill is still in development, with drafting yet to occur, but the Global Encryption Coalition wants it scrapped now.

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