Breach Season Continues | THE BITCOIN BRIEF 91

0:00Biccoin is close to becoming worthless. Biccoin is gone! Now what's the Biccoin? Biccoin is like rap poison. Yeah! The greatest scam in history. Let's get it! Biccoin will go to fucking zero! Yeah! Yeah! Yeah! Welcome back to the Biccoin Brief. The show where me and Q&A talk about Biccoin, privacy, open source, keeping your Biccoin secure, and the news and software updates that matter. I just wanted to say a massive thank you to everyone who's been supporting Ungovernable Missfits and a big thank you to Foundation for supporting the show.

1:05If you haven't already checked them out, go to foundation.xyz. They make cipherpunk tools for fuck quits and anyone can use this, even me. If you have any questions or you want to reach out, feel free and I'll be happy to go through things with you. For anything super technical, I'll pass you on to Q. If you want to buy one of these incredible passports, use the code Ungovernable. It will get you a discount and it will let them know that I'm shilling. I'd also like to say a huge thank you to the K-Qollet team. Not only are they supporting this show, but they're also bringing out some incredible features. For those of you who actually use Biccoin and actually care about their privacy and security, K-Qollet make it incredibly simple for you to live outside of the traditional financial system. You can use K-Qollet pay within the app to buy gift cards, for food, petrol, and whatever else you might need day to day.

2:06You can use silent payments and of course you can use Monero. You can connect both Biccoin and Monero nodes, use coin control, and this team are constantly innovating. And I'm really excited to be working with them. If you have any questions, you can reach out to me, but check them out at kakewollet.com Download the APK or start using this today on Mac, Windows, Linux, iPhone, or of course your Android device. Enjoy the show. Hello everybody, welcome back to the Biccoin brief, a live and interactive show taking place every Monday at 9 a.m. Eastern and 2 p.m. UK time across the ungovernable network. Each week we go through the news, the releases, and the developments that actually matter in Biccoin. This of course includes self-custody, privacy, the tools you run yourself, and the people trying to make all of that harder. If it affects your ability to hold and spend your money without asking permission, then we want to talk about it.

3:10This show in the topics we cover are powered by Freedom.Tech, a daily news desk that uses AI to monitor hundreds of sources so that we can continue to bring you the signal every single week. We love to hear from you and have you helped steer the conversation by commenting live, asking questions, boosting the show, or just sharing it with your friends. My name is Q&A, I'm Head of Customer Experience at Foundation, and as always I'm joined by my good friend Max, the headhunt show of the ungovernable network. Without further ado, let's dive into the show, Max. Happy Monday, how are you doing mate? Very good mate, very good. I'm excited to catch up on your holiday news. I want to sort of like soak it in through what you tell me and fill the vibes there. Not so excited to go into some of the news that I've looked through on our show notes, because it's fucking depressing, but still needs to be covered. But yeah, good mate, how are you? I'm very good, feeling very rested. I had a very short stint in Lisbon this weekend, just a Friday to Sunday, hop in and hop back out to see one of my good pals who lives out there.

4:21We were very relaxing weekend, no children, no alcohol. We actually went for a run along the beach, it was almost like a little mini fitness retreat, loads of good food, some excellent chicken, some sublime pizza, and lots of naughty dessert based treats. So yeah, thoroughly enjoyable little weekend, albeit a short one, but back at HQ today and yeah, feeling ready to take on the world. Sounds so good. You were describing the Neapolitan pizza to me earlier, and I was just sat here just imagining just like, coming out of a nice stone, now for a minute. It's like, oh, just fucking perfect. One of the best things in life is pizza, and it's like a really simple meal. I wholeheartedly agree. Yeah, it's so, my miss is always like slags it off, she's like, oh, you've had one bite, you've had them all, it's all the same, you know, you get a bit of a get board of it, I'm like, well, you shut up.

5:26You don't want to be a stranger, you don't want to speak about pizza like that around me, pal, because it is the fact that you can eat it with your hands. That's a win. There's like a simplicity to it. It's just, it's like comfort food. When it's good quality, you peat, not dominoes and that sort of shit, but yeah. Are you one of the best? Are you a folder? Yeah, I am these days, not folding from like the tip of the triangle to the base of the triangle, I fold inwards on itself, so it's like a hamburger. Yeah, I mean, it depends on the pizza. If you're going to, if you have a pizza and it's like a shitty pizza and it just like doesn't move, you know, like a very thick base, shitty one, then you don't need to, you just pick it up. It goes to like a kid's birthday party, got pizza wherever, isn't it? It's shit, isn't it? We like oven pizza, shit. No need to fold. In fact, it's worst to fold because then as you fold, it's going to crack all of the base.

6:27Yeah, which is not a very good base, it's going to crack and crumble everywhere, which is annoying, so no need. But with a proper pizza, like you will have had that fold is necessary. You keep the juices in. You're going to get no cracking. It's, yeah, that's the way that is the way the only way, especially with the Neapolitan, like you kind of have to because they're kind of floppy, aren't they? Yeah, yeah. Oh, we're the robot in the chat. Good morning, so no, so thing as shitty pizza, even a shit pizza is delicious. The only pushback I'll give to that is there is such a thing as shit pizza and that is pizza with pineapple on top. I will. No, no, no, I love pineapple on pizza. And thanks to everybody, we'll be back at the same time, maybe next week. I'm going to leave now. Yeah, it divides, it divides people. What about Mark? What's your stance on? Marmite. You a lover or a hater?

7:29I imagine you wouldn't like it. You're correct. Yeah, that's what I thought. So like it, like a little bitch, the same with the pineapple. It's a shame. Listen, mate, I still appreciate you. You're still a friend and all that. Just got a shit taste. It's fine. Miss Guy did Alan King is also in the YouTube chat said New York pizza or go fuck yourself. Do you know what New York New Yorkers do? Do some excellent pizza? Is it them who do that horrible fucking pizza pie like thick dish shit? I think you're not that. That's Chicago. Yeah, yeah, yeah, yeah. So what's New York pizza then? We will get on some Bitcoin stuff in a second. This isn't a pizza show, but just need to know New York is what? It's relatively similar to traditional Italian pizza, the ones I've had. You can't get you can get really deep dish pizzas in New York, but the good ones that I've had have been fairly thin. Okay, all right. Okay, I'll go along with that then. Well outside of pizza, what else is going on in life?

8:30I, yeah, a couple of foundation based A O B's, envoy version 234 is come out in the last couple of days, what definitely since we last recorded. Fairly minor release in terms of feature improvement, more of a stability, kind of maintenance release, big improvements. So kind of how fast firmware updates take place over Bluetooth for passport prime. A couple of bug fixes and some further fixes to tour connectivity, which has kind of been the, the thorn in our side, as I'm sure it is for many, many wallet projects. But it's does seem to be getting getting better with, especially with 234. So if you are a personal node, enjoyer and you connect to that over tour, definitely give 234 a world. And let us know if you come across any issues. And the, the other one that's slightly bigger news is we released legacy mode for passport prime last week.

9:32So for those of you that didn't see the pretty awesome AI video, tongue in cheek announcement video that said, did you do that? Did you make that? No, that was Zach. It's pretty good, wasn't it? That's very good. Yeah, so link will be in the show notes, by the way, people, if you're catching up afterwards, you know, and you want to go and check it out. But legacy mode is essentially a way for. And this might come as a shock to some listeners to the show, because I know that the show is named the Bitcoin brief, but some people that hold Bitcoin also hold things that are not Bitcoin as well. Farcoff, that's enough to get you shot in some areas of Twitter. So, yeah, be careful on what you admit here, but yeah, we obviously recognize that and passport prime was never ever meant to be a Bitcoin only device. It does, well, everybody that listens to this knows what it does. And that feature set is always growing. And legacy mode basically is a suite of applications that basically allow you to easily migrate from your close source hardware wallet that stores your alternative coins, such as your Ethereum and all of that other stuff that people seem to be into.

10:43And you can just bring your seed words over into the legacy mode app on passport prime and basically have a similar to ledger experience so that you can manage all of your tokens directly on passport prime on our open source hardware and our open source software, more importantly. The user interface will be very familiar to those that are familiar with using ledger. The cool part about this is that the one one of the few parts of the ledger stack that is actually open source is the applications that run on the device themselves. And that's exactly what we've used and ported across to kos so that we can run it on passport prime, which I thought is pretty funny. Yeah, taking their open source stuff and whacking it on our open source hardware software and saying, hey, ledger users, you can now choose open source like you don't need to settle for any less. So if you are an enjoyer of alternative coins like Ethereum and Salana and whatnot, feel free to migrate your funds across. You don't need to start again, you don't need to send any funds on chain or whatever the terminology is for Ethereum and all that stuff.

11:48You just put your seed into the legacy app and manage your assets, you know, you plug into phantom or whatever, while application that you want to use. Meta mask mask. Yeah, all that stuff just plug it in via usb exactly the same way that you would with your ledger, but you're able to do some decent hardware that's open source. So did they get rid of. Come on, man. Oh, I just said. Can we do it? Can we do it a fourth time? I'm going to go first. In terms of how this gets onto your device, because there's going to be some people here that are gasping because there's die hard Bitcoin only people. If you never install this app, you never, you never have to worry about any of the stuff I'm talking about. It's your device. You choose what what goes on. Not part of the core, KLS or bring system. You have to make an intentional choice to load this application onto your device to be able to access the functionality. It's completely up to you. Someone in the comments I shared like clever cunt or something like that with a with a link to what you've done.

12:55Someone was like, why clever? I was trying to explain. If someone is coming over and even if they have all their shit coins and whatever else, you're opening the door for them to use open source. I don't see how that can't be a good thing. You're also opening the door. They're like, I can use this device which is open source and uses the firmware on top which is open source. I can port whatever I want across. Then they might get into the fold and into the way of thinking of foundation and the people around it. It might just change their views on things a little bit. They might be like, maybe there's something to this Bitcoin thing and everything else that I'm seeing here. Maybe security does matter. I think that step of saying I will move to an open source hardware company and use open source software.

13:56It's like, yeah, but I can't with all my other coins. People don't move at all. I think it is whatever way I look at it anyway useful. The thing I was interrupting you a million times there was did they get rid of Monero support or did they keep that? I think they've kept it because we are that is one of the coin apps from their open source stack that we are going to be adding as well. Okay. Yeah. Well, yeah, very cool. I liked the video. I thought that was really good. I liked the side step approach of like, I hope at least it takes some of their market share and makes people go, okay, I like what these guys are doing. They're doing it better and I'm going to move. Yeah, it is literally the best of both worlds. If you want it, install it. If you have zero interest in it, go for it. There's always going to be people on a particular Twitter that will see this as a red flag and just,

14:56well, it's already happened, you know, the usual shit corners blah, blah, blah. But for me, it's not like I personally have zero interest in that sort of stuff. If it was my passport prime, I wouldn't be installing it. But that's literally the point is that if I don't want to have it on my device, I'm just going to pay zero attention. But for those people that want to do it and they want to secure those sort of thing on some decent hardware and the proper touch screen. And that is open source, then they can choose your own journey. Yeah. And if, to be honest, like you've already crossed the line for those type of. Oh, yeah, yeah, yeah, yeah, yeah. You're way past your way past like, oh, now we've annoyed that little group. You really passed him out. I wouldn't worry about it. And if they want to use something, you know, they can use a cold card. Like who, I saw someone the other day, like screeching about how they're still going to use their cold card and everything else is shit. I was like, good, I would do a good going to use it mate. Like just go and do your thing.

15:56We don't need to hear about it. It's like you say choose your journey, lose your coins. Yeah, how about it? Yeah. That's it for my, my A or B. If what's been going on in your world, mate, I believe you've got something interesting. I mean, relatively for me, it's interesting. I bought two things that I'm really happy about. Really like retail therapy to myself. So number one, and John's going to call me gay for this, but I got another Stanley flask thing. And it's like you can hear this little, like a little click there. That's for my coffee. And it's just like a little no handle, no nothing. Just simple like fits my black coffee in there in the morning. And we're normally at this part of the show where, I don't know, 15 minutes here and I've made it 10 minutes before, my coffee would be absolutely cold. So I'd have like rushed through it.

16:56But actually now that it's in here, I've still got half of it left for the rest of the show. It was $20 and it keeps the coffee nice and hot for, I don't know, good few hours. So really fucking happy about that. And then the other bigger purchase I've made was a robot vacuum machine that also mobs. And it like is that, honestly, that's I think the best decision I've ever made in my life. Like especially with kids running in and out and dirt and crime and shit and being busy. And this thing is just like, it's fucking amazing. I love it so much. Is it the one, because I saw one doing the round on Twitter, not so long ago that I'd just been released that's got the arm on top that'll like pick up your socks and put them in a designated spot. No, it's not that one. I don't know what that is. It was like, it was like, what was the top model a year ago?

17:58So I got it like a bit less than half price. And I was like, that'll do. That's going to be good enough for me. I don't need it to pick up my fucking socks. So yeah, I think it was like $400 or something like that or maybe $500. So it's not cheap, but it's fucking amazing. Like you watch it on the little map thing. And like, I know it's probably not good for privacy and it's back in my house. I know all that stuff, but I've got kids. They're the fucking messy. We've got stuff everywhere. I spend all my time like picking up stuff after them. You know, we've got a billion other things to do. And now it just sets itself. And in the evening, when everyone's out the way, we just pick up shit off the floor. And then it goes and it does full vacuum of the house takes itself back to this little station empties itself into another separate bag. Yeah, it's like it has like a big separate bin that it's you know gets all the stuff out.

19:00So, you know, you can just go on and on and on. And then it has a like a roller mop like a paint roller underneath. And then heats up the water goes and does the mopping comes back to its station, like rings out the mop. That goes into a separate dirty container. And like you look at the thing, you're like, fuck, you know, that is just like that is grim. And now like walking around my floors, there's no gritty nurses. It's honestly, it's if you if you are busy and you have a million other things to do outside of just constantly hoovering and cleaning up after your kids, like the whole time. This thing is like the ROI is there like immediately. That thing would I'd love one, but it would last like 27 seconds before my dog destroys it. Yeah.

20:02Either that or it would be scared of it. It might just bark at it. You could put like a you could put like a figurine on the top of it. Do you know what I mean? Something that shakes and like scares it a bit that it's not going to just like suction a dill load to the top of it or something. Mate, what you want to do in your own time is completely down to you. I'm not going to judge. I'm not going to get like again, a non-bick on topic, but is it that's kind of like freedom tech because it is just freed up so much time. And I know it's probably mapping out the house and know all that's like I get it is there's I know there's a like other more freedom tech ones and you could blink it's you know, didn't it could go off on a certain block and or whatever. It's fucking brilliant that like if I wanted to keep the house as clean as it is, I'd have to spend at least an hour to an hour and a half per day doing what it's doing. And it saves me that every day. It's fucking amazing. Sounds like an overrina.

21:04Yeah, everyone go and buy one immediately use my code use my right. Yeah, use code and guvnvolch checkout. Right. Show. We hit the do I mean the news. Yes, let's do it. Let's reach yourself. Everybody. We tried to loop you up for this. First on the list, we finally have some sort of resolution. Oh, hang on, hang on. I've got a fancy new screen share to bring up. I've now and this is I haven't shown you this back, but I've decided that I can turn the show or have called should I say not me. Turn the show plan that you and I reference into something that looked pretty decent and we can just run through it visually. On the show, I know I normally have like a different tabs open, but I thought why not make this. So that's brilliant. And I did the other thing I want to say as well before we get into the do I keep putting it off. The intro is brilliant. I'm really enjoying that intro. That's a really like we, you know, how quickly we've gone into a live show and have it also polished is pretty impressive.

22:08Yeah, well, thank you, thank you, Claude. So yes, we finally have some form of closure to the clarity act, which seems to have been like featuring in every bit, coin brief in some way, shape or form for what seems like an eternity. The the clarity act for those that haven't heard the past 97 shows is the US market structure bill that would have split crypto Bitcoin oversight between the SEC and the CFC. Last week, we covered the final text and the vote that would you on the 15th September, which obviously now passed. And on the 15th September, the Senate voted 49 and 50 11 short of the 16 needed to end the debate and move the bill forward to the final step. Every Democrat who voted said no, joined by three Republicans who also voted no. Some guy called Tom Tillis also switched to no, which was apparently a procedural move that let's in bring a motion to reconsider.

23:13And some guy called Chris Coons did not vote. Democrats on surprisingly objected over ethics rules covering the president and his families crypto interests. So basically they didn't want it to go through because they want to, you know, have a little pop at Trump for his questionable sort of interests. Now to the stock market. Yeah, exactly. And you quite right there. The Republican holdouts were worried about community banks losing deposits to stable coins. Not sure how that relevant, but it was in the notes anyway. And another interesting fact, the day before the vote, the final text dropped the explicit protection for non-Costodial developers against criminal charges on the section 1960, which is the unlicensed money transmitting law, which carries up to five years in prison, as we've kind of covered with the summer case that went. The civil protection did stay in and there's a quote from Coons and here that says that even if the bill would have passed developers would still have been exposed on the one part of the section 1960.

24:19The same charge, which was as we said, used against tornado cash and the samurai developers. Senator Lomis, who was obviously behind this warned before the vote that failure would leave no realistic chance this decade. So yeah, seems like it's pretty much dead. I believe there is one final stage that they that they can go to like an appeal sort of thing. But the fact that it's got this far and then failed basically means that as Lomis said, it's kind of dead in the water now. I have to excuse my ignorance here a little bit everyone, but I'm personally not really taking this as a big loss and that might be completely wrong and like a really genuinely don't know how these things work and run and like how government works, etc. I try to completely don't understand it, but to me at least I just think whatever passes whatever they say if they want to put someone in prison, they'll find a fucking way.

25:20They want to stop something they'll just make something up. There'll be a new act, a new emergency this. And even past that if they can't do any of that, they just plant evidence or if I can do some other bullshit or just kill someone. So I don't think to me this makes much difference. And if anything, they should just shake people up and remind you if you've been around for a long time and open your eyes to if you're a bit newer. This stuff is never going to be accepted ever ever ever ever by the powers that be because it gives the individual more freedom or can if you use properly. And so all of this stuff to me is just complete theater and it means very little. Yeah. Dovetailing into the the Clarity Act flop. The CFTC has contacted the White House.

26:31Basically trying to jump at the chance with the failure, basically saying that on September the 17th, two days after the failed Clarity Act vote, the CFTC sent a rulemaking called quote regulation crypto asset transactions and regulation crypto asset markets. Wow, that's got to ring to it. To the White House for review, it's the pre-roll stage and the text is not public, but it is expected to give crypto spot exchanges a path to operate under CFTC oversight. This was basically ready and waiting and it's basically the CFTC vying for control over the regulation of this kind of market in the wake of the Clarity Act falling on its face essentially. We obviously don't know how far that's going to go or what the kind of the wording covers, but they're kind of staking their claim to say, you know, we want to be the regulator for this sort of stuff.

27:35So the one. And no action letter is. Let me just lost my thought. Where are we? Yeah, the CFTC, another one from them, they've got this thing called a dumb pipe letter, which apparently is letting passive trading software skip broker, regulation regulation. And no action letter is CFTC staff saying that basically they will not recommend enforcement against you as long as you meet their conditions in March, the wallet Phantom got one, which we yeah, weirdly mentioned just a couple of minutes ago. On on September 17th, CFTC staff letter opened the same relief to anybody who qualifies software that passes user orders to CFTC ready registered futures firms and exchanges does not need to register as an introducing broker. Yeah, I mean, they're all just fighting to be the ones that throw people in jail for failing to meet owner of regulations is what I can glean from all of this.

28:44Basically, yeah. Over the pond back in the UK, peer to peer trading. Well, obviously for those that don't know means buying Bitcoin directly from another person instead of through an exchange. And for a lot of people, that is the main way to buy without handing over your ID. Well, in the UK on September the 10th, the FCA the financial conduct authority, HMRC, the tax authority and the met police went into three London premises running quote unregistered peer to peer trading and issued a season, the system letters at all three. And it was announced on September the 17th that it follows its first operation in April across eight locations, which is now feeding criminal investigations. The FCA says there is not a single peer to peer crypto business registered in the UK. No fucking wonder. So anybody running a peer to peer desk as a business is quote outside the rules and the registration route has not worked for any of them.

29:52The UK's full crypto regime begins on the 25th of October 2027 and two operations in five months suggest that their pressure is being cranked up. I want to be clear here that if you're in the UK buying and selling Bitcoin directly with another person, you don't need to register to be a trader like it's not illegal in any way, shape or form. If you're not a business. Yes, if you're not doing it to make money, obviously that is outside of the fact of the kind of personal tax. Obligations that you have, but in terms of, you know, needing to register as a business just to buy some Bitcoin that is absolutely not the case. But I just thought this is interesting that no, there is not a single one registered in the UK and that says a lot of like how the what the posture looks like towards this type of thing and how owner of the regulations are to get over that line.

30:53Yeah, make it impossible for them to do it and then when they don't do it because they can't do it fucking rape them. Yeah, great. That's how you get business done, right? That's how you get it done indeed. Yeah, there was no there's no name shed of like the entities of whoever it was. I don't know who it could be, but yeah. Now, this is an interesting one. HODL HODL last week shipped coin security scoring, but then scrapped it a daily after quite a significant backlash. HODL HODL for those that you don't know is. Yeah, I throw a few fucks into them, actually. Well, I've got a hot take on this that you might disagree with, which I'll get to in a minute after I've given a story. Yeah, HODL HODL is a peer to peer Bitcoin marketplace with no KYC. They trade settle through a kind of two or three multi-sick escrow where HODL HODL holds one of the keys and you buy from another peer essentially.

32:01So, you know, buy has a key sell has a key and HODL has one for arbitration purposes. On the 18th September, HODL HODL announced quote, enhanced Bitcoin security scoring where incoming Bitcoin will be checked for quote serious red flags before a contract settles and trades with bad score would be blocked. HODL HODL said it was quote, not a KYC AML process. The users push back pretty hard on and on September the 19th just one day later, Anna from the HODL HODL team posted a follow up where she kind of basically said, you know, we kind of got this wrong or we, you know, this could have been an out better. So, I think it's a question that it shipped without a warning and was explained fairly poorly and that they've not they've disabled it for now and that it if it comes back in any form, it will be disclosed beforehand.

33:06So, the scoring system, I don't think they went into details on how they were scoring it. I'd imagine that was proprietary, but they were looking for like, I guess, you know, what is sometimes called kind of taint analysis similar to how chain analysis. So, you know, it's a very, very good look to kind of give certain coins of score based on their history. HODL HODL has not said how the blocking worked, but, you know, obviously they hold a key on every trade. So, it gives them a bit of a position to make well, it gives them all of the position to kind of see what's happening in every trade basically. It's off for now after the pushback, but my guess is that given that they have grown to a certain size, they probably didn't make this decision off their own back. I'd imagine they probably had to push again. This is pure conjecture. I don't know this for sure, but I'm guessing they probably had some at the very least a tap on the shoulder to be like, hey, we see what you're doing is probably a good idea for you to do this.

34:10And the fact that they've been able to rip it out a day later tells me that obviously they're trying to appease the user base, which is obviously predominantly privacy preserving users by the nature of privacy appreciative users because of the nature of what the business is. It's a bit of marketplace. But, you know, as soon as you're in this business and you grow to any sort of size, you're inevitably going to get the catch the eye of the regulator and they are, you know, give you a tap on the shoulder threatening letter and, you know, once, surprisingly, and I do not blame them. If that has happened again, this is conjecture. I don't know for sure. Then they are not willing to go to prison over it and hence their putting all they did put plans in place to kind of appease the regulator basically now. Understandably, people got pissed off about it because it's something new, obviously, I don't would make privacy preserving users not wants to use that service.

35:13So they did get some pushback, but I don't blame her for not wanting to go to prison. And I would give them this at least they came out and set it up from rather than a shotgun KYC sort of situation where it's like, you know, which is that's the worst. That's that's the like, hey, come and use our service and then you use it and it's like, right, we've frozen your funds. Now what we're going to need is enough information to really cause you in your family. Potential harm from attackers and then we're going to store that insecurely for you so that you can get your money back like that's the worst of the worst. So at least they came out and set it up from yes, almost certainly they're going to have pressure on them because it's like the worst marketing decision ever otherwise. And so I feel for them in that sense and let you say like as you get larger you're going to have this pressure, but I think what pissed me off is just when you talk about risk scoring.

36:20What they do almost certainly I can almost guarantee this if you've used any privacy preserving tech if you've used a coin join of any sort or like done anything to try and protect yourself that's what will flag. And so it's not so much that I'm angry that I'm annoyed that they're going to have it eventually, but it's like the way that these things are conducted is the problem. It's not like, oh, you've stolen funds from this individual, we can see that it's like 99.9% like there's the hack that gone to your UTXO and you sent straight out to this. We're going to freeze them. It's, oh, you've used well pull or you've, you know, whatever thing that they're not happy about and that's what pisses me off. It's like you're assumed criminal for trying to protect yourself. That's fucked. Yeah, so I don't know how this is going to pan out. I'd imagine the probably like I said, they wouldn't have done it without good reason. So my guess is that this might come back in some way, shape or form, but for now it's not there. And they seem to be, you know, open to the idea of like if it does have to come back, we're going to communicate it in a much more clear and concise way before.

37:45Yeah, fair play on that part. Absolutely. Yeah. Yeah. As long as they do that, then, then I respect it. Yeah, absolutely. Next piece, another one from the rage. Pretty good article actually that they're arguing that the strategic Bitcoin reserve may not actually exist, which I'm sure is probably an idea that's been shared by many people in the space who've been skeptical of it. But in March of 2025, executive order one, four, two, three, three created a US strategic Bitcoin reserve meant to hold the Bitcoin, the government had seized. Well, on the 16th September, Lola leaps at the rage, publishing investigation, arguing it may exist only on paper. That same day, the House Financial Services Committee advanced a bit, called ARMA by 28 votes of 21. And it tells agencies to keep custody of their Bitcoin until the reserve is quote, fully established and certified operational, which is how you would write a bill about something that is not running yet.

38:53No reserve office appears in the treasuries public org chart, all their office list and the treasuries 2025 fiscal report does not mention it. Bloomberg also reported that in July, the Treasury and commerce were still arguing over who has the authority to run it. And the rage is freedom of information out the quest for the record on the reserve office is still pending shock horror. Obviously, none of this proves that it doesn't exist, but there's a couple of red flags there. Another update on what a quick update on the liquid saga. Still, well, liquid is now back and operational, but they are still around about 600 Bitcoin short and we're in what two, three weeks on now. LBTC holders still, I believe as of today cannot peg out to on chain Bitcoin, but they can sell or swap through services like acqua's Indra, which we're going to come on to in a second, but liquidity is extremely limited.

40:07When peg out reopen. I was just going to say they can swap to stable coin, whatever the stable coin is on there, kind of which what they use now. I think it's tether, isn't it? Yeah, it is tether. Yeah, you, I think you can swap from liquid to tether, but you can't go from LBTC to BTC. Oh, thank you for that one. So, yeah, still, they're still chasing that 600 or around about 600 Bitcoin, which is like $50 million with the attacker. No further updates on that. Blockstream gave a update on a set, 10 of the 17 said peg outs are going to stay paused until the one to one backing is confirmed. And the software updates and independent security reviews are done. It hasn't given any dates and the promised technical postmortem has not yet been published.

41:08Next on the list and tangential to this, acqua wallet has launched Indra, which is its own liquid, sorry, lightning to liquid swap service. Now, this is great timing. This is hilarious timing to me. Is it not like, is it not like, hey, whoopsie, we had a bit of a, just a small mistake that's just happened, but come and use the service. Yeah, well seems like that. I have to my name. Yeah, I mean, they are two separate companies, albeit they are kind of known to be friends. Like, yeah, acqua is run by Jan 3, which is Samsung mouse company. It's not a block stream or at least the direct subsidiary of block stream to my knowledge. But yeah, but it's the same cabal. It's the same. Like, I don't know, it just seemed fun. I read through the list. I didn't know it was in there and I read it this morning and I was like, fuck it now.

42:08So on the 15th September, Jan 3 of aqua wallet launched Indra, its own liquid lightning liquid swap service for aqua wallet, which is in open beta. And for now, it only handles lightning sends, paying an invoice from liquid Bitcoin with receiving to follow later. Jan 3 of said that they've copied the bolts API signatures so it can act as a drop in replacement and other wallets could plug into it. Although for now, it is aqua only. And then about three hours after launch, Indra was hit by a denial service attack and forward swaps were temporarily switched off. So yeah, seems like nothing is nothing is safe at the moment. And that was actually one of the potential show titles out for this show was nothing is safe. Speaking of speaking of nothing is safe. Core lightning.

43:10Lost my nose for this one. Oh, no, core lightning, which is block streams lightning node software. They have been told to disable experimental features such as dual funded channels. For those you don't know, dual funded channels let both sides put money into a channel when it opens. This feature is sat behind an experimental flag literally called experimental dual fund. On 12th September, CLN operator opened the GitHub issue, a peer had opened the dual fund the channel with his node, drained most of the liquidity and gone offline. And the funding transaction, his node had recorded did not exist on chain. On the 14th September CLN collaborator said early indications were that only dual funded channels channel opens are affected. And that removing the dual fund flag should be enough for now. On the 15th September, core lightning issued a security advisory telling anybody running the experimental features to turn them off.

44:16At least two more operators have centriported losses and one says that the channel was about 10 times larger than the funds that were actually locked, which I found pretty bizarre. To this day, there's no published root cause and no patch released yet. So if you do run a CLN node and you are being reckless, maybe go in and check all the if you configs and turn off the experimental stuff. I guess the clue is in the name if you are running experimental stuff, particularly with lightning, where funds are hot, then do so at your own risk, especially in September of 2026, where nothing is safe. Next on the list, we have a lightning spec proposal for rejecting invoices with duplicate payment hashes. This is for bolt eleven, which is the standard format for a lightning invoices that's been around for since 2017, essentially. In that every invoice carries a payment hash, which is like the fingerprint.

45:20I used to confirm that an invoice was paid on the September roast beef of lightning labs, the one that talks at 19,000 miles an hour. Open the pull requests to change the spec so that software reading an invoice must reject it if it contains more than one payment hash. The pull requests says a popular telegram PTP trading bot was recently hacked through this gap and guessing that LMP to be box is one of the most popular ones. So apparently some libraries read the first payment hash and others read the last so a system using both could be tricked into believing that a withdrawal was never paid out. The change has early approval but has not been merged yet. Obviously again, another warning if you run a service that kind of reads lightning invoices in code, maybe have a check at how it rejects the invoices and you know, minimize your risk accordingly. Again, nothing seems to be safe, so be very, very careful.

46:20That's just everything just being taken out. You know, we said before going live that it was like fucking depressing. Can I bring our robot discussions from off air in just to like break up the pain just for two seconds? Absolutely. Do you think we're going to get, you know, obviously I'm so excited about my little robot who we've got these optimus prime like whatever they're called things from Tesla supposedly coming in 2027. Obviously you've got great experience in this field actually being one for all these years. Like do you think that we're going to get to a stage where. Not every household has one in the same way that not every household has local AI.

47:20But it could be a reality that like you get one of these things that it's taking the bins out and like, you know, dad mode of like walking behind your children just picking, fucking stuff up that they just throw it out. That off the shelf, they're just fucking throw that on that smash is like it can do that stuff. It can just clear away. Do the just all the all the stuff that like could free you up to do other things in life. Do you think we get there within the next couple of years with everything accelerating as it is if maybe regulate us stay out the way or we get some open source. Stuff happening. For the majority of households in the next couple of years now. Okay. I think. Would it be a possibility? Yes. Is it going to be ridiculously expensive and very buggy? Yes. I think that type of horizon where it's like as common places having a hoover.

48:20Right. Is at least 10 years out. Really 10 years. That's a long time. Okay. You're much more bearish on this. What you're saying is if you could afford one of these things, get a Philippine I made. Yeah. Be a lot cheaper. Pretty much and better probably. Yeah. It's just there's a part of me that's like I got I got caught out with Bitcoin. Thinking it was going to be much faster for the average person to start using it than it is. Like by a long way like I was really wrong. I was really wrong. Like I thought I don't know 10 years from now it's going to be so common place that people don't even question using it. And I was so fucking wrong. And then I was also wrong on all the AI stuff. I was like, oh, this is going to be a long time till this is useful. You know, this is going to be a long time till we're going to be able to do useful stuff with this and I can trust it to do some of the stuff it's doing now.

49:23I thought like it's going to be at least 5 10 years. And then suddenly I'm like, oh no, this is like amazing. I'd much rather have my AI than I would like a team of two or three people. So you know, we're there. So I'm just wondering if we get caught off guard with this. I just think like you're right. And in hindsight, the AI acceleration makes sense because like it's software at the end of the day. That's and that it's the language of computers, right? It lives in the computer. It stays in the computer. When you go into meat space, like that just raises the difficulty level exponentially. Yeah. How long have we had Tesla's ability to do full self driving? And only in the last month or so have we got autonomous fully autonomous. Yeah. Yeah. But that's not fair because because that is regular tree bullshit.

50:26Well, these will be regulated into oblivion as well. No, but my point is, right? It is very different. I think it's more different than people realize because a car or a truck on a public road is going to be much more attacked by regulators as our taxis and things that take jobs away that are out in public. Something that's inside your own home on your own land is a very different risk profile. And yeah, those things have had the ability to drive around for, I don't know, like five years they've been doing it in parts of America. They're fine. Much better than most drivers that you encounter on the road to a human. So like it's not that it's not capable. It's that it's regulated and not allowed to do what it can do. So my thinking is, well, I've got AI. We've got 3D printers. We've got the ability to share software. We've got the ability to pay anyone anywhere in the world without like the friction. If we so wish, we're getting into the realm of like metal 3D printing and all this other stuff.

51:41Just wondering if there's like a merging of, okay, well, you can build these five parts and this thing's going to like do your dishes and do your stuff and you can download this software, which is open source and like completely bypass the regulators who would otherwise definitely get in the way. I'm just thinking like, is it, is it that we can build it and make it possible if we sidestep all that sludge? Yeah, potentially. I just, I just think when you do shit in meat space, irrespective of where it goes. I just think it's going to be a lot harder to actually make it useful. Fair, fair. Okay, right. Non Bitcoin, we'll go back to the Bitcoin thing just just something I'm thinking about. Okay, next on list, blink on the 90th of September, blink, Bitcoin wallet that offers custodial and non custodial Bitcoin accounts.

52:42They paused all services after an attacker got into a limited number of custodial accounts and with three funds. It later said quote a few dozen custodial accounts were affected and that everybody has been or everybody affected has been notified and will be made whole and that non custodial wallets were not affected at all. And patch went out and services were back on the exact same day. The effect of the accounts are going to stay locked for now, apparently, and that those users do not need to do anything to be made. I need to blink has not yet said how the attacker got in or how much was taken and that a full post-mortem is promised but has not yet landed. Another one. Another one bites the dust. DJ Khaled one. Which one? Another one. Yeah, yeah, yeah, yeah, that was slow from me. Yeah, okay, that's a good idea.

53:45Another one. If anyone has ideas for the soundboard and you want to clip something up and send it to me, I will strongly consider its use. You can create an MP3 and ping it across to us. That would be much appreciated, but a value for value. That Haruko Haruko is a London based tech provider for crypto trading firms. Probably not. And they collect clients which changes through an API service. On September the 18th, Konesh reported that Haruko had been hit by a targeted attack earlier that week, which affected 15 of their clients. Which were all of the ones without an IP white list, a setting that only allows API access from approved addresses. Why would it even allow you to use the service without it? Anyway, according to the CTO's message to clients, the attackers use the floor in Haruko's processes to pull out user access token exposing exchange API details and trading data. Three sources told Konesh that a small amount of client funds were stolen mostly from smaller hedge funds with weaker controls.

54:52But Haruko did not respond to coin desks, so details are limited in terms of the volume of the attacks. But if it's a hedge fund, my guess is it's not a couple of thousand dollars worth. Next on the Doom list, we're nearly there guys. Just taking with us Swiss Bitcoin pay takes its servers offline after a suspected breach Swiss Bitcoin pay, which I'd never heard of until now, is a non-custodial Bitcoin or lightning payment process. For merchants based in a place called, well, it's on screen there. I'll let you try and work based in new chitill. That can't be a real word. Why is it got a bus to see? Oh, it's just because it's a different. Yeah, that's been translated, it's hardly by the agent when he made the slides for me. It's not actually there. There is no way to do it anyway. It's Swiss. They took their servers offline on September the 14th after a malicious user likely got into it internal systems.

55:58The company believes customer email addresses, Bitcoin addresses, I bands, transaction histories and hash password may have been accessed. This says that user funds are safe and any amount owed to use will be fully returned. As of today, servers are still offline with no date for restoration. Obviously the non-custodial design limited direct access to, you know, and limited losses. Because the merchant funds settled directly to user bullets in a self-custodial manner, which is good. The main damage here is a significant privacy one. Taylor's older time. You know, if you can't look after your customer's data, they'll have it in the first place. KYC is the dragon that man must slay. Yes, thank you. Order must be restored by the robot with monstrous calves. Time to you, mate. Doing my best. I'll have to get my magic wand out. All right, last on the list, quick update on the Revolute story that we spoke about last week where somebody from Revolute handed over customer data to a fake government request.

57:01The attackers are starting to leak it. They used a hack email account on a real Italian government domain to send fake law enforcement data to request Revolute Lithuanian bank. The bank handed over identity documents KYC selfies, bank statements, transaction histories, and at least 680 customers are affected. And the attackers say they picked accounts with significant crypto holdings using blockchain analysis. On the 6th of September, the group which calls itself, I'm not a villain. Demanded 6000 XMR, which is about $3 million. Within 24 hours or it was going to sell the data. The deadline passed on the September 17th. Revolute says it's had no direct contact from the group and the Italian police and the UK regulators are still looking into it. Samples have already been unfortunately posted on telegram. So this data is going to continue to circulate whether or not anybody pays.

58:06Wow, what a week. KYC is the dragon that man must slay. Say it Jordan. You can't say there's too many times. Slay that fucking dragon. I wholeheartedly agree, right? Let's do let's do something positive, mate. Let's do some boost. I'll let you lead us off. OK, lonely pumpkins with 10,000. Sad. Thank you, lonely pumpkins. That is that's a like a manero style boost that is. Keep up the good work, Gents. It's been a crazy summer with all the hacks and drama. Never a bad time to check in with your huddle setup and do some reps. Cheers. That is a great boost. It is never a bad time to do some reps. Yeah, cosine that one. Next one comes from Cruz. So this is going back to our meet my discussion around my very boring weekend.

59:11And he said the worst part about kids birthday party is you're dealing with the NPC parents. Did you catch the gold code? What do you do for work? Geez, this weather. I can be any closer to the truth. Oh, yeah, it is fucking painful. How do you get round that? Is there any like, is it? I'd like to hear if anyone's come up with a hack. Because you can, I guess that you could be like the volatile weird one and say something really fucking inappropriate. And then people either will love it. They'll just never speak to you again. So it's kind of a win win. But I wonder if there's anything else. But you don't sort of don't want to do that because there's like, oh, I don't want my kids to play with that one. Do you hear what they said? They said the KWC is the dragon must be slayed. What a fucking weirdo. Yeah, my hack is to send the wife as often as possible. Oh, yeah, I mean, that's. That's the best way possible. So, I can't keep my boost cadence with the new weekly releases.

1:00:18Thank you for providing the news and entertainment for me on a weekly basis. Thank you, late stage, huddle. Quick shout out for the best of the rest, Rev Huddle, TYM. Thank you. Sylas Thornbrook, Nostrigang. We see you. We appreciate you. Thank you all for your boost as well. I'm going to appreciate you. Oh, on another note, a bit of value for value stuff. I went on bowls with buds with Lauren and Spence the other night, did a live show and it was good fun. So thank you for them to getting me on and spreading the good word about Ungovernable. I appreciate you both. Very good. All right, let's wish through these releases and wrap this baby up. KQOLY version 6.4.5 is out on the 20th of September. I'm going to use the same thing's minimal release, smoothing out connection to Treza Hardwell while it's also speeds up my narrow back around sync with more stable no connections plus a couple of UI polishes and bug fixes.

1:01:21Umbrell OS 2.0 is now on beta version 2. I don't have any release notes as to what's actually in this beta 2 yet, but they've been doing lots of teasing. I'm excited to be able to do that. I think we're going to have an update on that. I think we're going to have a look at the release notes here. Let's have a look. When they release that like storage thing with the with the wooden stuff. Remember. Yes. I do that was that was top tier. Look at this. Look at this. That looks great on it. Just a simple graphic. You see Bitcoiners, you can do this, especially now with AI. You can get to this level where things don't look like they were built on the back of a fact packet and income online. Like it can look. It can look beautiful. So Umbrell 2.0. We've got redesigned search across apps, files, photos, settings with visual results.

1:02:26Your AI agents can now create and use machines with screen keyboard. Oh, yeah, they have virtual machines in there as well. Oh, Marke, which is that new Linux distro that everybody seems to be very excited about. Is now available in the machines feature. Android machine is now open in portrait mode. You can track up loads. Yeah, very nice. You can move apps to external drives, cloud imports. Yeah, they do a cracking job. And machines is very interesting, because I'm going to have to give that a whirl on mine to spin up virtual machines and mess around with some AI stuff. Very cool. I have a question for you. If we have time, I have a question, and it shall take about one minute. A lot of time for that. Yeah. Right. Yeah. So when I was discussing on free detect Friday with Seth updates, AI updates and stuff, which is a great show for anyone hasn't listened. So let's go back and go into all sorts of things on there for self hosting.

1:03:28But one of the things I was asking him is like, is there going to be like an unbre... I actually said like an umbral type operating system where someone can manage their sparks or Mac hardware and make it easy to use and simple and laid out in a way that like a crayon eater could use. And he said, no, I don't think it's necessary. Just have your AI build you the system for you to use and tailor it to yourself. And there's absolutely no need for a number or I don't think there's a place for it. And I was kind of like not expecting that answer really. And I wondered if you filled the same. Um, what are you like, what is the experience that you're you're kind of leaning into here? Like what, what do you, what are you after? So I'll give you, so I'll give you an example.

1:04:30Um, for some reason, I find behind the sofa a hundred grand and I go, wow, right, I'm going to be like Seth. I'm going to go and buy a or 10 sparks and then I'm going to start setting up infrastructure so that I can talk to my computer from my phone and my laptop anywhere in the world. I want it all set up privately as possible. I want the storage to be connected to this whatever NAS, RAID, or shit, whatever the thing is. I want all that done. I want it all done like a Seth or a queue would do. And I would look at the boxes and I'd go, um, uh, right, people are talking about this quen something. Well, where would I download that? How would I have to verify it? How would I, and then that would go on what that would go on the storage thing that's over there, but could that, and I'd have like a thousand. Like autistic style questions without the processing power to actually work it out.

1:05:35But I would just get confused and be like, uh, what I would want is like download this, you know, unbrillow s. That's the first thing you do. You download that onto your laptop and then it just fucking does all the other shit. Everything else is like simple somehow. That's what I'm imagining. Yeah, I don't know what I don't think unbrillow s is that far away from that. Okay. You know, you can buy the box from them. It comes with pre-installed with the software. You can install your apps. Those apps can be. Alarm are it can be hermys open or whatever you want. And then from within those applications, like it's just click and point of. If you've got a beefy enough unbrill machine, you can download the model straight to it. Have it locally or plug in API keys. Like it feels like it's not a million miles away from that. So yeah, I take the other side of that coin for for Seth. Yeah, because he was just like, well, you would just get your a eyes to build it. And I'm like, yeah, you would. You would do that.

1:06:35You'd build your own operating system, whatever. But I'm just talking about for simplicity. So okay. All right. No. I just lost my screen. There we go. Bitcoin Core version 32 release candidate to. Is now out. Is there anything worth talking about here? Yes. I've gone to the draft release notes. PSBT's now default to version two. A new export option creates a watch only copy of a wallet with no private keys and I'll find signing setups. There's new commands to help set up multi-sig. Basically stuff that people are never going to use because no, no, no, no, no, no, it's a wallet. One, not no one. Who do you know that uses it? That wucky thing. And it's and it's mate and like it like maybe seven other people. Yeah. Yeah, I just, I don't, obviously I'm thankful a bit.

1:07:35Concort exists to work on the core code base, but like we could really use those. Engineering hours like elsewhere because just. Just seems like a waste of time like nobody's using it. It's just a terrible terrible user experience. So many better options available. Speaking of which spiral wallet version. Look at that. Because in 2.5.5 is now out as of the 70th September. It's got some bit box. I'm too related fixes and treasurer related fixes. And we now add a system theme that follows your operating system. Light or dark setting. Very nice. Speaking of bit box. This is pretty cool. The bit box companion app, which is literally called the bit box app. As of version 4.52, which we came out in the 15th September. Let's bit box 0 to owners of the hardware wallet create a lightning wallet inside the mobile app.

1:08:36Funded from their on chain balance. And crucially derived from their existing bit box backup. So there's no extra. No extra seed words and no channels to manage because it's built using spark and the breeze SDK. Pretty cool. Oh, a little bit of what you call it like a teaser. We have Roy from breeze coming on to talk about all this type of stuff in a couple of weeks on free to tech Friday. So I'm really looking forward to that one. Yeah, that'd be good on a light. Roy, he's got some of that my favorite articles in Bitcoin. Very good. So we always we always talk about how it's just heads down build no drama. Absolutely. Yeah, I like it. Eclare version 0.14.3 has come out not a very exciting one, but I've included it in the highlights because it is a security. Hardening release with fixes that came out of project loop, which is.

1:09:38Blocks open source AI white hacker initiative. Basically that kind of points agents at open source projects that kind of harder than them. So this release is as an output of that. So more examples of block kind of doing good work in the open source space, which I thought was pretty cool. For the one person that listens to this and might run a and an incline node because again, just like Bitcoin, I don't know anybody that does run one. Make sure that you're updated because there are some vulnerabilities that have been patched. And finally, not strictly Bitcoin, but I thought it was pertinent to a lot of people that do listen to this. As of the latest beta release for signal Android, you can now register without a phone number by paying a one time fee of about $3. To to presumably to the signal foundation.

1:10:39And yes, this is one of the kind of main things that gets level that signal is that you need a phone number to set up. Well, now you don't have to if you pay a one time three dollar fee. And I'll say that the payment uses the the same zero or I proof as its donation systems of the purchase is not linked to your new account. Because obviously if you're paying with your bank card, then, you know, if there is no zero and all is proof there, then. It would be trivial to link those two users get an account ID and an account key instead of a phone number and a pin. No recovery if either of those things are lost. And without an additional sorry optional username the account can only take part in the chat that it starts. Okay. That's quite cool. I mean, absolutely. Very cool. I'm just trying to think. So they use this zero and all is proof stuff to not tie your payment to the account.

1:11:43So there's obviously proof that you have an account and you've paid for the account because you've got to pay with your credit card presumably they're not accepting an error or lightning. So. So there's that. So it's like we know you have an account. We don't know what the account is. Kind of thing. So we would know that the person that has max is Google account has paid for a signal account. But what signal doesn't know which account that is. Well, that's actually a good. Yeah, I like that as well. And there are a couple of caveats. The payment obviously goes to Google Play Store. So it needs Google Play Services. So if you run something like graphene and you haven't got the compatibility layer installed, you ain't going to be able to access this. Yeah, yeah. And signal does say that more payment. Okay, plan will they haven't specified what those are. And to buy.

1:12:44Yeah, and to be clear, this is Android and it's beta only no current date for iOS or a stable release. So be careful. What was a you just maybe think we, as you said graphene, you know, I shared that. Link and I said, is this just clickbait nonsense or any truth to this? I shared it and I'll free them to fry there about. I'm bringing it up now. I'll be honest, I didn't read it. I'm just reporting on screen here. So it's from BC and press Bitcoin on your hardware or the past phrase. Bear in mind, this is translated by Twitter. So it might not be fully accurate. But I know you already know that without clicking, they drain your crypto from your hot, well, Android. Even with graphene OS, the vulnerability has been shown known to Samsung or Google for months. Google says zero clicks, sell in the mode on vulnerability and pixel has been detected in limited and targeted attacks attacks. A logic error allows an attacker to bypass permission checks and gain elevated access. Graphene OS affected since it's a baseband processor exploit.

1:13:45It's a completely separate RF computer responsible for all incoming outgoing communications and which by default has root access to. The main system. Oh, yeah, there we go. A lot graphene OS. I knew they'd be on this. They said it's patched in the latest cellular firmware that will be included in today's graphene OS release, which is. Four days old. So it update graphene basically is the TLDR there. Yeah, okay, just I just saw it and thought. Okay. Yeah, no, definitely will bring it up. Yeah, that brings us to the end of the show. Hopefully next week we might have something more positive to talk about, but the way that things go and these days we you never know. Yeah, well, I leave I leave it with one positive note is we still have Bitcoin and it's still fucking works. I've made a few payments today to different people all around the world and it just fucking works.

1:14:48Yes, they might want to make things difficult. Yes, there's a load of hacks and all the sorts of stuff, but you do have the power to transact freely and that is fucking awesome. It certainly is. Yeah, I can't think of a better way to close out the show than that. So yeah, until next time, stay on guvina ball. Yeah, stay on guvina ball.