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America isn’t alone in its moral panic over sex trafficking, as an Argentinian case against a self-help center called the Buenos Aires Yoga School (BAYS) suggests. Prosecutors are trying the school’s 85-year-old founder, Juan Percowicz, and a number of its members, alleging that the school was really a cult engaged in brainwashing and sex trafficking.

Authorities raided the group’s headquarters and the houses of 50 members two summers ago, accusing the group of being a front for an international sex slavery ring. Seventeen people, including Percowicz, were arrested and jailed on suspicion of human trafficking for sexual exploitation and money laundering.

It wasn’t the first time the Buenos Aires Yoga School faced criminal allegations; a similar case was brought in the 1990s. But after an intense investigation that involved raids and wiretapswhich human rights groups said were civil liberties violations and some chalked up to anti-Semitismthat earlier case was closed with nary a conviction.

And it’s looking like the newer case may face a similar fate. Last week, the Argentinian Court of Cassationthe country’s highest criminal courtupheld a lower court’s ruling from last December that the case would not be elevated to a trial.

I don’t pretend to have some special insight into what’s going on with BAYS. But in light of a recent New York Times article leaning heavily into prosecutors’ arguments, I think it’s worth bringing up some of the evidence that challenges the official narrative here and highlighting how the case mirrors many of the “sex trafficking busts” we’ve seen in the U.S.

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Δ ‘Human Trafficking Without Victims of Trafficking’

“Cults exist here, but we’ve never seen one that operated at this level,” Ricardo Juri, the investigator who oversaw the 2022 raids, told the Times.

“Prosecutors say the organization exploited and drugged some of its female members, forcing them to sell their bodies and generating hundreds of thousands of dollars monthly from clients in Argentina and the United States,” the newspaper reports.

Times writer Ana Lankes suggests the trouble with the earlier case was that “Argentina did not yet have laws on human trafficking or money laundering” and that “the country’s justice system was still being overhauled after the end of the military dictatorship”or at least that’s what the prosecutors today argue. According to authorities, this is a case of bad guys who got away before but are now finally being brought to justice.

The government says at least seven women were forced into prostitution by BAYS. “But the women in the case have denied ever having sex in exchange for money, or being victims of any crime,” Lankes points out.

“This is a case of human trafficking without victims of trafficking,” Percowicz’s lawyer, Jorge Daniel Pirozzo, told the Times. Red Walls = Brothel?

A paper published last year in The Journal of CESNUR (the Center for Studies on New Religions) casts doubt on the government’s narrative about BAYS and details questionable tactics used in investigations of it. The paper”The Great Cult Scare in Argentina and the Buenos Aires Yoga School” by Italian sociologist Massimo Introvignelooks at both the 2022 raids and the earlier case against BAYS.

As part of the 2022 raids, “a man was badly beaten by the police for no reason (it came out later they had mistaken him for somebody else),” and doors were busted in despite residents offering to open them, writes Introvigne. “All in all, twenty persons were arrested and warrants for arrest were issued against another eight.”

But police found scant evidence of the alleged international prostitution ring they were seeking or of an alleged sex museum linked to the group.

At the apartment of “a well-known female musician,” where they were told this “museum of sex” existed, “all they found was a small painting depicting three naked persons united in an embrace,” notes Introvigne. “They noted an abundance of the color red in the decoration of the apartment, and put in their notes it was reminiscent of a brothel.”

As in so many American “sex trafficking” busts, this was all turned into a big show for the media:

The painting was duly put on display for the media, together with some old and ruined commercial pornographic VHS videos found elsewhere in the building. The inhabitants claimed they were part of the inventory of a nearby shop that had been flooded with water. They had purchased the whole inventory to help the owner, who was their friend, and had forgotten the videos, most of them not pornographic, stored somewhere in the buildingand who would watch in 2022 pornographic VHS of the 1980s anyway.

By March 2023, “all those detained had also been liberated by a Court of Appeal after almost three months spent in jail, in conditions they described as horrible,” according to the CESNUR paper. An All-Too-Familiar Tale

Was BAYS a cult? Some former members or family of members report strange antics, including extreme reverence of the group’s leader, members partaking in orgies, and forcing new members to do housework for established members. But even if such statements are true (and I have no idea), it doesn’t necessarily mean anything illegal or exploitative was going on. One person’s “cult” can be another’s spiritual salvation, life coaching service, or kink activity.

The BAYS situation reminds me somewhat of the U.S. case against members of the self-help group NXIVM, a prosecution that included charges against actress Allison Mack. Prosecutors broke the case in a big, sensationalist manner, calling NXIVM a sex cult guilty of human trafficking. But the reality of the case was much more nuanced (and interesting) and nothing like the narrative that initially made headlines. There was certainly evidence that NXIVM’s leader may have been cruel, manipulative, and an egomaniac, and there were indications that he started a relationship with someone when she was under 18. And there were women upset with how the group’s secretive side-group DOS operatedas well as a number of women who still defend it to this day. But whatever was going on, it was not the simplistic black-and-white narrative that prosecutors portrayed, and it clearly involved authorities trying to slot a range of behaviorsome potentially illegal, some merely unsavory, and some that simply read as odd to many peopleinto a trendy criminal category. A surefire way to get attention to a case these days is to label it sex trafficking or human trafficking.

The BAYS situation also recalls oh-so-many lower profile U.S. “sex trafficking stings” conducted at massage parlors or during boondoggles like “Operation Cross Country” and their ilk. As part of these stings, adult sex workers are often described to and in the media as “victims,” even if none of them actually say they are being victimized.

In the BAYS raids, none of the female “victims” said they were being trafficked, and none said they sold sex for money (which is broadly legal in Argentina). But under Argentina’s anti-trafficking law, “if a trafficked prostitute denies that she is a prostitute…this is further evidence she is trafficked and somebody is abusing her vulnerability,” according to the CESNUR article.

“There is an express mention of the lack of legal relevance of the consent of the [alleged victim],” Argentinian lawyer Marisa Tarantino told the group Human Rights Without Frontiers. “If in a particular case the prosecution agencies detect an activity that they classify as a form of ‘prostitution’, even if it is exercised by adult and autonomous persons, these will be objectively considered victims and those who make the activity possible or benefit from it in any way, even if it is occasional,will be liable to prosecution.” Coming Up in the Yoga School Case

The case against Percowicz and the other remaining defendants “is currently working its way through the courts. No trial date has been set yet,” the Times reports.

And no trial may happen. The Times piece was published right around the same time that Argentina’s highest criminal court upheld a lower court ruling rejecting the government’s request that the case go to trial.

“This is not the end of the case, since it returns to the judge of first instance, but is clearly a setback for the prosecutors,” write Introvigne (author of the CESNUR article) and Maria Varde in the religious liberty and human rights magazine Bitter Winter.

Introvigne and Varde also call the Times piece “a sensationalist attack” that parrots prosecutors’ arguments.

They note that “the main reason the elevation to trial has been annulled is that it ignored the opinion by independent experts, including those of the Forensic Medical Corps of the Supreme Court, who examined the [women prosecutors say are victims] and concluded that they are psychologically normal and believable.” The court did not find persuasive the prosecutors’ claim that the women were brainwashed into denying their victimhooda bit of rhetoric that U.S. authorities also conveniently deploy to wave away sex workers or others whom they’ve deemed victims denying that they’re actually being trafficked.

Introvigne notes that brainwashing theories of this sort have generally been debunked, but “there is an international lobby of so-called anti-human trafficking agencies, not less powerful in the United States than in Argentina,” which wants to bring them back into vogue. More Sex & Tech News

Elon Musk has dismissed his lawsuit against OpenAI.

Four more states have joined the Department of Justice’s antitrust suit against Apple. (More about the case here.)

Apple’s Siri is getting an AI makeover.

New York is the latest state to pass a bill demanding age verification for social media. New York just passed the "Stop Addictive Feeds Exploitation (SAFE) for Kids act" that will require social media companies to use commercially reasonable methods to determine user age" https://t.co/QjFGUdbTRP pic.twitter.com/4qTzUlrshJ

— Sharon Polsky MAPP (@PolskySays) June 10, 2024

The tech industry group NetChoice is suing over Mississippi’s age verification law.

An interesting argument against the idea that technology should liberate us from routine housework and day-to-day chores. Today’s Image Phoenix | 2018 (ENB/Reason)

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Lectric Ebikes may be launching a new XP 4 this week, and it could change everything

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Lectric Ebikes may be launching a new XP 4 this week, and it could change everything

Lectric Ebikes appears to be preparing for a major new product launch, teasing what looks like the next evolution of its wildly popular folding fat tire electric bike. Based on the clues, it looks like a new Lectric XP 4 could be inbound.

In a social media post released over the weekend, the company shared a minimalist graphic reading “XP4” along with the message “Tune in 5.6.2025 9:30AM PT.” That date – this Tuesday – suggests we’re just hours away from the big reveal of the Lectric XP 4.

If true, this would mark the next generation of the most successful electric bike in the U.S. market. The current model, the Lectric XP 3.0, has become an icon of accessible, budget-friendly electric mobility. Starting at just $999, the XP 3.0 offers a foldable frame, fat tires, a 500W motor, a rear rack, lights, and hydraulic brakes – all packed into a highly shippable design that arrives fully assembled. It’s the kind of package that has helped Lectric claim the title of best-selling e-bike brand in the U.S. for several years in a row.

With the XP 3.0 still going strong, the teaser raises plenty of questions. Will the XP 4.0 be a modest update or a major leap forward? Could we see new features like torque-sensing pedal assist, a location tracking option, or upgraded performance? Or is Lectric preparing a more comfort-oriented variant, maybe even with upgraded suspension or even more accessories included standard?

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The teaser image, which features stylized stripes in grey, blue, and black, may hold some clues. One theory is that the colors represent new trim options or component upgrades. Another possibility is that Lectric is preparing multiple variants of the XP 4.0 – perhaps targeting commuters, adventurers, and off-road riders with purpose-built versions. We took the liberty of a bit of rampant speculation late last year, so perhaps that’s now worth a revisit.

At the same time though, Lectric’s penchant for launching new models at unbelievably affordable prices has never run up against such strong pricing headwinds as those posed by uncertainty in the current US-global trade war fueled by rapidly changing tariffs for imported goods.

lectric xp 3.0 hydraulic
Previous versions of the Lectric XP e-bike line have seen sky-high sales

Whatever the case, Lectric’s knack for surprising the industry with high-value, customer-focused e-bikes means expectations will be high. The brand has built a loyal following by delivering reliable performance at a price point that few can match, and any major update to the XP lineup is likely to ripple across the market.

As a young and energetic e-bike company, Lectric is also known for throwing impressive parties around the launch of new models. It looks like I may need to hop on a red-eye to Phoenix so I can see for myself – and so I can bring you all along, of course.

Be sure to tune in Tuesday at 9:30AM PT to see what Lectric has in store – and you can bet we’ll have all the details and first impressions as soon as they drop.

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Industry calls for urgent crypto law reforms after Australian election

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Industry calls for urgent crypto law reforms after Australian election

Industry calls for urgent crypto law reforms after Australian election

The Australian crypto industry has called on the newly reelected Labor government to urgently make digital asset legislation a top priority to ensure Australia doesn’t fall further behind global markets.

The incumbent Australian Labor Party was returned in a landslide on May 3, picking up 54.9% of the two-party-preferred vote, against the Liberal and National Parties on 45.1%. Both parties went to the election promising crypto law reform, but only the opposition pledged to deliver draft legislation within 100 days.

Joy Lam, Binance’s head of global regulatory and APAC legal, said the exchange has been consulting with Treasury officials since late 2023 about its proposed legislation, and it was now time for action.

“Timing is really quite critical now because obviously it’s something that has been discussed and kicked around for quite a few years,” she told Cointelegraph.

Coinbase managing director for APAC John O’Loghlen said the reelected Albanese Government has the “opportunity and the responsibility to move quickly on this issue” and called for a Crypto-Asset Taskforce to be established within its first 100 days “with the aim of bringing forward legislation that protects consumers, promotes innovation, and stops the exodus of talent and capital to other markets.”

Cryptocurrencies, Australia, Bitcoin Regulation
Reelected Prime Minister Anthony Albanese. Source: Anthony Albanese

BTC Markets CEO Caroline Bowler said that “beyond the political implications, this result sets the stage for meaningful progress in Australia’s approach to digital asset regulation.”

Lam noted that the UK released its draft regulations last week, stablecoin bills are moving forward in the US, and the EU has already implemented its MiCA legislation.

“So there’s a very clear shift. Everyone’s moving towards providing the regulatory framework that is needed for the industry to develop in a sustainable way. So time is really of the essence now.”

Draft crypto legislation within months

Treasurer Jim Chalmers’ office told Cointelegraph that exposure draft legislation would be released sometime this year for consultation, and any legislated reforms would be “phased in over time to minimize disruptions to existing businesses.”

Although the Treasury has draft legislation on “regulating digital asset platforms” and “payments system modernization” scheduled for release by the end of June, Lam isn’t confident. “I don’t know whether this quarter specifically is still sort of the timeline,” she said.

Related: Australian election will bring pro-crypto laws either way

While the ALP has been attacked by some over not taking any action in its first term in government, that may actually have resulted in a better outcome than legislation that took its cues from the approach of Joe Biden’s administration, which took a hard line on banks dealing with cryptocurrency and viewed most coins as securities. 

Industry figures report a noticeable evolution in the government’s approach to crypto between when proposals were first put out for consultation at the end of 2023 and when the Treasury released its much more positive “Statement on Developing an innovative Australian digital asset industry” in March this year.

Cryptocurrencies, Australia, Bitcoin Regulation
Australia Votes running tally on the Australian election. Source: ABC

The statement sets out key priorities, such as using the existing Australian Financial Services License (AFSL) regime to underpin the regulation of Digital Asset Platforms and payment stablecoins. It’s focused on the safe custody of client assets by centralized providers and sidesteps issues around decentralized finance platforms

Lam welcomed the use of the AFSL regime. “Obviously, we don’t need to reinvent the wheel,” she said. “It’s something that people know and understand. It’s a pretty sensible move, and it’s also going to be much easier for regulators.”

Tokenization and sandbox

The government will also review the Enhanced Regulatory Sandbox, which aims to provide space for innovative digital asset startups to grow free of red tape. The statement also highlights opportunities with tokenization.

Lam said the change in emphasis showed the government has been listening to the industry. 

“It reflects the industry feedback that they would have received in 2023 as a result of the consultation, as well as the changing landscape because obviously it’s been evolving pretty quickly internationally,” Lam said.

“They do have the benefit now of looking at what has worked and hasn’t worked in other jurisdictions, and really building on those lessons.”

Dea Markovy, policy director at Fireblocks, told Cointelegraph that “a lot of the groundwork and research is done” and it was looking broadly positive.

“Of course, a lot of details are still to come around Australia’s Digital Asset Platforms (DAPs) regime. What is significant here is the willingness of the Government to cut through the complexity and uncertainty on crypto intermediaries licensing.” 

The securities regulator ASIC released its own crypto regulations proposals (INFO 225) in December, and feedback from those consultations will help inform the government’s new legislation. 

“In essence, it details how different token issuances and crypto intermediation will fit into Australia’s existing securities legislation, providing for a transition period,” explained Markovy.

The draft guidance suggests NFTs, in-game assets and memecoins are not financial products — the local equivalent of a “security” — while a yield-bearing stablecoin or a gold-backed token probably are.

The Treasury statement also highlighted issues with debanking. Lam said that simply regulating the industry would go a long way toward solving the issue.

“What we really want from governments and regulators is that clean licensing framework, because that goes a long way to mitigating the risk and giving the banks the comfort that they need,” she said. “And then, there’s probably going to need to be some additional guidance given to banks.”

Magazine: ZK-proofs are bringing smart contracts to Bitcoin — BitcoinOS and Starknet

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At least 15 injured in ‘US-British’ strike on Yemeni capital, according to Houthi group

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At least 15 injured in 'US-British' strike on Yemeni capital, according to Houthi group

Yemen’s Houthi rebel group has said 15 people have been injured in “US-British” airstrikes in and around the capital Sanaa.

Most of those hurt were from the Shuub district, near the centre of the city, a statement from the health ministry said.

Another person was injured on the main airport road, the statement added.

It comes after Israeli Prime Minister Benjamin Netanyahu vowed to retaliate against the Houthis and their Iranian “masters” following a missile attack by the group on Israel’s main international airport on Sunday morning.

It remains unclear whether the UK took part in the latest strikes and any role it may have played.

On 29 April, UK forces, the British government said, took part in a joint strike on “a Houthi military target in Yemen”.

“Careful intelligence analysis identified a cluster of buildings, used by the Houthis to manufacture drones of the type used to attack ships in the Red Sea and Gulf of Aden, located some fifteen miles south of Sanaa,” the British Ministry of Defence said in a previous statement.

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On Sunday, the militant group fired a missile at the Ben Gurion Airport, sparking panic among passengers in the terminal building.

The missile impact left a plume of smoke and briefly caused flights to be halted.

Four people were said to be injured, according to the country’s paramedic service.

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